Coronavirus outbreak and the consequences for Out-Of-Home Advertising
Since the spread of the deadly coronavirus which began in China assumed a menacing global sweep, economies around the world – both big and small – have been counting losses in billions of dollars. Yet, another devastating blow came, with the fall of the oil market, hitting already fragile economies. The business world bears the major brunt in this economic crisis. And one aspect that has been so badly hit is the advertising industry. Even more unfortunate is the out-of-home (OOH) advertising media because public places like Times Square and Piccadilly Circus, which used to be host to massive billboards and sign adverts, have all been deserted, and still the coast isn’t clear yet.
If expert analysis and market forecasts so far are anything to go by, OOH advertising agencies will need to rethink their strategies before the damage deteriorates to them bleeding clients too. According to a survey conducted by the Interactive Advertising Bureau, it is believed that traditional out-of-home advertising is expected to suffer (Forbes) an estimated ad spend decline of 51% for March and April and a decline of 41% for May and June. In the revised March
2020 Ad Forecast released by MAGNA, a company which provides strategic investment and media intelligence it is expected that total linear ads (National and Local TV, Radio, Print, and OOH) sales will decline by -12%. OOH, and print media are expected to take a hit of -12% and -25% respectively. If the lockdown should extend beyond the April 30, the blow might be below the belt because current realities will worsen.
Billboard trucks used to work well
Notably, digital advertising platforms are ahead of trucks in terms of ad spend, but the trucks came earlier. For a long time, the vehicles presented a cheaper option for businesses to get their message to the consumers. Interestingly, businesses only need to pay a one-time cost to wrap ads on the vehicles. Also, companies that have their cars find it easy to equip them with the ads hence cutting down on costs.
Interestingly, mobile trucks offer a unique space for a message for as long as possible. As the truck traverses densely populated urban cities to the countryside, many people get to interact with the ad. This excellent visibility increases the impact and impression the ad generates. Interestingly, advertisers ensure that billboard trucks are more effective by designing captivating ads. Often, trucks are on the move. Therefore, the target audience needs something that will capture their imagination in under a minute.
Advertising Trucks will lose the effectiveness
Nonetheless, this advertising avenue can be expensive, especially if compared to alternatives like in-the-hand marketing. Equipping trucks with the wrapping that carries the advert comes with a steep upfront cost. Depending on the scale of the ad campaign, designing and installing ads could gobble a lot of money. Besides, some wraps could begin aging faster than anticipated. As such, the cost for re-equipping of the truck could dig deep into the business’ profits.
Interestingly, trucks may not always be the best alternative for businesses that are focused on a favorable return on interest. Usually, trucks move from one place to another, particularly in areas with high population density. However, there is no guarantee that the message will reach the targeted audience. Specific targeting of ads using trucks is difficult because trucks cannot isolate a particular section of consumers on a highway. The lack of accurate targeting of ads implies that impressions and conversion rates are low for this type of advertising. Eventually, trucks may not offer a great alternative compared to other advertising options that put the message in the hands of the audience.
The after-effect of this development will, of course, be an unavoidable reduction in patronage for the outdoor advertising companies. These media companies may count their losses for months after. Advertising truck companies will eventually have to sit it out with the hope that they can still reclaim their market share in the end. However, smaller businesses and other brands that depended on their strategic displays to market their brands may not be so patient. Just as major clients like hoteliers, airlines, and cinemas are on pause mode, smaller brands are quickly pulling away and leveraging alternative media and in-home advertising to preach their brands.
Truck Advertising will be replaced by In-Home Ads
Recently the Interactive Advertising Bureau surveyed nearly 400 media buyers and brands. The results were surprising: 74% think the coronavirus pandemic will have a larger impact on their advertising spend than the 2008 financial crisis. According to the President of Interactive Advertising Bureau, David Cohen, “Typically marketers will press pause for a moment, take a breath, assess the situation, replay and reevaluate.”
The use of mobile OOH methods will most likely experience more decline in the coming months, given the fact when the economy re-opens, people will still be cautious and stay more at home. Mobile advertising using trucks, buses and others will be fast replaced by in-home advertising. The impact of COVID-19 has kept normally mobile citizens inside their homes. Hence, the best ways to reach your audience and maintain brand visibility will be to take your products and services to them indoors, as it will be clearly unprofitable to place adverts on advertising vehicles that no one is seeing.
New age advertising can adapt the message
During this crisis marketers will have to adapt and to stay on top of the latest trends. Its critical to improve type of advertising message shifting it to more sensitive perspective. The business of marketing is changing in the age of COVID-19. Whether its effects are brief or prolonged, marketers need to be nimble in these challenging times, and pivot when needed while optimizing performance throughout the crisis.
So before things return to normal, the question is: “what is the best way to survive?” Many ad agencies have reduced marketing drives via billboards and signs since companies that buy ads have held back their dollars. This only makes sense because people who are supposed to see those billboards are now inside their homes. Digital media has also been negatively impacted but has remained fairly steady so far. Magna expects digital advertising to be more resilient at +4%, especially following the spike in the demand for home entertainment. The world Economic Forum noted that the crisis presents both opportunities and challenges. Advertisers are now exploring innovative and unconventional methods of advertising which are directed indoors.
New age advertising methods as seen at Adzze, will not only attract more clients but will effectively engineer the on-boarding of major businesses as many begin to see the tremendous benefit of in-home advertising. With innovative methods such as ads placement on pizza boxes, we guarantee definite impressions of your brands on prospective customers because our approach delivers the brand directly into the hands of your target audience at their homes.
Pizza Box Marketing will emerge as as In-Home delivery option
A survey conducted by the Interactive Advertising Bureau (IAB) interviewed nearly 400 media buyers and brands. They found out that 63% of the brands plan to change their messaging strategy as a result of the coronavirus. Consumers do not expect Brands to stop advertising. Instead, they expect the message to be sensitive. The advertising message should reinforce reassurance and reach the consumer at the right location.
Fortunately, Adzze’s new age marketing strategies offer innovative ways to navigate the storm and help brands to take their message into the homes of the consumers. Unique advertisement ideas have surfaced across the landscape; these strategies include placing ads pizza boxes and door handles that can reach the consumers at their homes. As simple as they sound, they generate guaranteed impressions delivering the ads at consumer’s homes.
The advertisement is printed on pizza boxes (or pizza toppers) and shipped to the pizzerias that the advertiser selected. The advertising pizza venues distribute to the consumers locally or they deliver at their homes. These venues are recognized pizza chains, so the advertiser has exposure to reputable brands. The pizza box ads get delivered in the hands of the consumers at their homes reaching on average 45 min of brand exposure. Sometimes the consumer leaves the pizza in the fridge generating additional exposure. On average, each Pizza Box Advertising venue delivers 2,000 pizza box ads per month with an estimate 1.8M impressions/month.
There are few reasons why marketers would choose Pizza Box Advertising instead of other traditional media vehicles:
High Brand Recall
The pizza box ads create a surprise effect making it more memorable. Studies show that this type of ads can evoke an 80% recall rate (8 out of 10 households individuals remember to see an ad on pizza boxes)
The budget used to place a 1 billboard on a high traffic highway for 1 month can be re-allocated to distribute 60,000 pizza boxes. This is enough to cover all households of a small town in the USA.
High Return on Advertising Spend
The average ROI is 150%. This means, for every 1 dollar the advertiser invested in a pizza advertising campaign, they received at least additional 2.5 dollars of sales.