Smart properties use creative approach to space to earn extra millions

RETAILERS, property developers use buildings, facades, escalators and wi- fi to generate extra income

Typical revenue streams for retailers include rental from tenants, parking and turnover clauses.

However, additional income opportunities that generate millions are staring property developers and mall management in the face, with alternate or non- GLA ( gross lettable area) spaces fast becoming hot property among blue chip brands looking for fresh ways to entertain and engage consumers.

David McKenzie, managing director of BOO! Surprising Media Solutions says that outof-home (OOH) campaigns that integrate existing structures such as a wall or glass façades, escalators, construction sites, LED screens, and even wi-fi into their creative, are exploding locally and abroad.

And brands are willing to pay a premium for this ‘new’ space.

According to McKenzie it’s not uncommon for a property to generate between R2 million and R3m a year by using its unused space for brand campaigns.

“Once we’ve conducted a full audit of the property, we propose a host of media opportunities. On agreement from the landlord, they are then confirmed as permanent media sites with pre-set values and rates.

“According to Urban Studies, South Africa’s 2 000 shopping centres and 23 million square metres of retail space place it sixth in the world with respect to the number of malls after the United States, Japan, China and the United Kingdom.

“Given the strong upsurge in mall development around the country this is more and more likely to become the norm.

“A l t e r n a t i v e r e v e n u e streams from creative campaigns are becoming budget line items on property developers’ financial forecasts and dedicated commercial directors are being appointed to optimise their sites’ interactive advertising potential,” says McKenzie.

Capitalising on the opportunity are the V&A Waterfront, Sandton City, South Point and Melrose Arch among others. Each has signed a five-year deal with BOO! to transform areas of these properties into dynamic content platforms.

“A t Me l r o s e A r c h f o r instance, we will work alongside its existing team of interior designers and architects to put spaces to work without negatively affecting the property’s flow and customer experience,” says McKenzie.

“In fact, alternative media campaigns can add significant value to a site – besides the financial benefit.

“D o n e we l l , t h e y c a n enhance it by adding atmosphere and design appeal. This in turn influences customers who may dwell longer at a nearby café or restaurant while they soak up the ambience, and t he advertising will often prompt shoppers to buy. If the experience includes alternative ambient campaigns, one of our specialities, it may even attract spectators in the mall.”

McKenzie says that alternative media opportunities are becoming popular among big brands such as FNB, Standard Bank, Smirnoff and Microsoft.

“Shoppers expect a brand experience in a mall. Alternative media needs to complement this experience with the end goal being to influence buying decisions.

“Many brands have been communicating the same message through traditional media such as radio, magazines and televison and the adverts in the malls or property environment close the loop in the communication process, while acting as additional revenue streams for the landlords,” says McKenzie.

See www. boomedia. co. za, email info@boomedia.co.za or call 021 448 3656.

GOT THE LOOK: The V&A Waterfront is one of a number of SA shopping malls that is putting non-GLA spaces to work.