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Transcript of TCRP Project B-33: Practical Measures to Increase Transit Industry Advertising Revenues Findings,...
TCRP Project B-33: Practical Measures to Increase Transit
Industry Advertising Revenues
Findings, Conclusions and Recommendations
September 2008
2204/18/23 2
Agenda
I. Background
II. Research Findings
III. Conclusions & Recommendations
3304/18/23 3
U.S. Advertising: Current Situation
US advertising in a “severe slump” Down 1% in 2007 to $230B
Down another 3% in 2008
Important developments in media industry Decoupling of advertising and media services
• Advertisers no longer look to one agency to both develop media plan and develop advertising
• Recognition that there are many more media choices than TV, print, radio
Advent of specialization
• Internet
• Out-of-home
• Direct marketing
4404/18/23 4
U.S. Advertising: Current Situation
Advertiser trends
Intense pressure to show results of marketing spending is driving demand for media that:
• Can deliver sales and prove it
• Are highly targeted for maximum efficiency and effectiveness
• Can accommodate multiple ads (tailored by audience)
• Can break through the clutter
• Can “get in the face” of the consumer
• Promote consumer loyalty
• Are easy to change quickly
5504/18/23 5
Transit advertising revenue down 2% in 2007
= 3% of Total U.S. Media Spending in 2007 ($230B)
= 3% of Total U.S. Media Spending in 2007 ($230B)
2007 Out-of-Home Media Spending = $7.2B2007 Out-of-Home Media Spending = $7.2B
Source: Outdoor Advertising Association of America
574
821889 883
9941046
1109
756816 801
$0
$200
$400
$600
$800
$1,000
$1,200
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Transit Media ($ Millions) Percent Change Vs. Prior Year
6604/18/23 6
Agenda
I. Background
II. Research Findings
III. Conclusions & Recommendations
7704/18/23 7
Conclusions
Transit advertising has serious image and product deficiencies, particularly among media generalists serving local and regional advertisers
Transit advertising’s positioning is neither highly motivating nor differentiated from billboards
The level of product innovation is insufficient
Aside from sales activities, there is no promotion of the product to its target audiences
The challenges of growing ad sales is greater among transit agencies not in top 20 media markets
Transit advertising sales materials are not as effective as they could be at “making the case”
The overall level of satisfaction with transit media sales reps is low
8804/18/23 8
Media Planner Survey: 153 Respondents
Director-level and above
Employed by advertising agencies, general media agencies and out-of-home media agencies, but not advertisers
Balance of major media agencies (annual billings >$50 million) and smaller agencies
National distribution
20-30 minutes, $100 incentive to participate
Media Generalist
Out-of-home Specialist
TOTAL
Clients advertise nationally 42 32 74
Clients advertise locally-regionally 60 19 79
TOTAL 102 51 153
9904/18/23 9
Per
cent
of
Med
ia P
lann
ers
Per
cent
of
Med
ia P
lann
ers
FREQUENCY OF RECOMMENDING TRANSIT MEDIA**FREQUENCY OF RECOMMENDING TRANSIT MEDIA**FAMILIARITY WITH TRANSIT MEDIA*FAMILIARITY WITH TRANSIT MEDIA*
Out-of-home specialists have greatest familiarity and recommend most frequently
24.8
52.9
11.910
41.8
29.4
40.5
53.3
27.5
15.7
40.5
28.3
5.9
2
7.1 8.3
0
10
20
30
40
50
60
Total Sample Out-of-homeSpecialist
Generalist/NationalClients
Generalist/Local-Regional Clients
Extremely familiar Very Familiar Moderately familiar slightly familiar
*“Which of the following best describes your familiarity with transit media, e.g., its products, benefits, product requirements, purchasing, etc.?”
**“How often is transit media included in your recommended plan?”
49.7
70.5
45.3
3537.3
21.6
35.7
51.7
13.1
7.8
19
13.4
0
10
20
30
40
50
60
70
80
Total Sample Out-of-homeSpecialist
Generalist/NationalClients
Generalist/Local-Regional Clients
Always/Frequently Occasionally Rarely/Never
BB: 86%
BB: 67%
There is an opportunity among all segments to increase familiarity, which drives recommendations
101004/18/23 10
EXPERIENCE WITH TRANSIT ADVERTISINGAgreement with statement, “I’ve had a good experience with transit advertising”
EXPERIENCE WITH TRANSIT ADVERTISINGAgreement with statement, “I’ve had a good experience with transit advertising”
Experience with transit media positive
77%
82%
74%
75%
21%
16%
24%
23%
2%
2%
2%
2%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
All Respondents
Out-of-home Specialist
Generalist/NationalClients
Generalist/Local-Regional Clients
Strongly Agree/Agree Neither Agree nor Disagree Disagree/Strongly Disagree
111104/18/23 11
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Transit’s greatest perceived strength: Reaching captive audiences
Other strengths: saturating a market, extending reach and frequency Not a strength: building brand awareness or building a brand’s image
% OF “BEST AT” VOTES AWARDED TO TRANSIT*P
erce
nt
of M
edia
Pla
nn
ers
*“Among transit, place-based, billboards, electronic billboards, television and the internet, which medium does the best job at…”
121204/18/23 12
0%5%
10%15%20%25%30%35%40%45%50%
Transit Billboard Place-based
With the exception of “captive audience,” billboards perceived to do everything transit does, but better
Per
cent
of
Med
ia P
lann
ers
Per
cent
of
Med
ia P
lann
ers
% OF “BEST AT” VOTES AWARDED TO TRANSIT, BILLBOARD AND PLACE-BASED
*“Among transit, place-based, billboards, electronic billboards, television and the internet, which medium does the best job at…”
131304/18/23 13
ATTITUDES and HABITS concerning TRANSIT MEDIAATTITUDES and HABITS concerning TRANSIT MEDIA
Transit seen as supplemental, second tier media
77
26
13
56
15
33
33
21
8
41
54
23
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
"Transit's best use is as asupplement to other media"
"Transit is an afterthought inmost media plans"
"Transit is only appropriatefor a small group of
categories"
"Transit needs to be pitchedto clients; they rarelyrequest it themselves"
Strongly Agree/Agree Neither Agree nor Disagree Disagree/Strongly Disagree
77
26
13
56
15
33
33
21
8
41
54
23
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
"Transit's best use is as asupplement to other media"
"Transit is an afterthought inmost media plans"
"Transit is only appropriatefor a small group of
categories"
"Transit needs to be pitchedto clients; they rarelyrequest it themselves"
Strongly Agree/Agree Neither Agree nor Disagree Disagree/Strongly Disagree
Over three-quarters of media planners view transit as supplemental Over half agree that transit is rarely requested for inclusion in a media plan
141404/18/23 14
Image of transit media needs updating and greater credibility
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Complicated
Clean
Sexy
Downscale
Intrusive
Hip
Expensive
Innovative
Efficient
Reliable
Effective
“Describes extremely w ell” + “Describes very w ell”“Describes Somew hat”“Describes slightly” + “Describes not at all”
HOW WELL EACH OF THE FOLLOWING ADJECTIVES DESCRIBES TRANSIT MEDIAHOW WELL EACH OF THE FOLLOWING ADJECTIVES DESCRIBES TRANSIT MEDIA
Fundamental attributes of a medium: need to
be higher
Almost 2/3rds of respondents think
transit is expensive
Perceptions of “clean” are very weak
A positive finding: “Downscale” not as
prominent an issue as expected
A positive finding: being complicated is
not a barrier
Not perceived as hip, sexy or intrusive…
Only 1 in 4 find transit media to be innovative
151504/18/23 15
0 10 20 30 40 50 60 70 80 90
Clean
Not Downscale
Hip
Not Expensive
Innovative
Efficient
Reliable
Effective
Generalists w ith Local-Regional Generalists w ith National Clients OUT-OF-HOME Media Planners
Media generalists with local-regional clients have poorest image of transit advertising
Percent saying the adjective “describes extremely well” or “describes very well”
HOW WELL EACH OF THE FOLLOWING ADJECTIVES DESCRIBES TRANSIT MEDIA
161604/18/23 16
IMPORTANCE OF MEDIA ATTRIBUTES% of media planners who rated attribute as “extremely desirable” or “highly desirable”
IMPORTANCE OF MEDIA ATTRIBUTES% of media planners who rated attribute as “extremely desirable” or “highly desirable”
MUST HAVEMUST HAVE
NICE TO HAVENICE TO HAVE
REALLY SHOULD HAVE
REALLY SHOULD HAVE
SHOULD HAVESHOULD HAVE
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
delivers exactly w hat w as bought
is a good value for the money
can target specific areas or demographic groups
has a credible audience msrmt system
has comprehensive demogr data
is flexible on flighting
has know ledgeable sales representatives
can deliver metrics for ROI evaluations
offers innovative products
is easy to execute a multi-city buy in
has reasonable production costs
has ability to get my creative team excited
simple to coordinate and execute a campaign in
is easy to learn and stay on top of
can't be TiVo'd
offers24-hr exposure
has standardized ad sizes
Most important media attributes: reliability, value, targeting, measurement
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
delivers exactly w hat w as bought
is a good value for the money
can target specific areas or demographic groups
has a credible audience msrmt system
has comprehensive demogr data
is flexible on flighting
has know ledgeable sales representatives
can deliver metrics for ROI evaluations
offers innovative products
is easy to execute a multi-city buy in
has reasonable production costs
has ability to get my creative team excited
simple to coordinate and execute a campaign in
is easy to learn and stay on top of
can't be TiVo'd
offers24-hr exposure
has standardized ad sizes
171704/18/23 17
Transit media’s strongest attributes not aligned with media planners’ most important attributes
% of respondents who said the attribute “Describes transit media completely or very well”
>75% 50% - 74% 25% - 49% <25%
CRITICAL /
MUST HAVE
Delivers exactly (47)
Good value for $ (37)
Can target (45)
Audience msrmt (14)
Comp. demo data (20)
REALLY SHOULD HAVE &
SHOULD HAVE
Know. sales reps (54)
Easy to learn (61)
Flex flighting (40)
Innovative prods (33)
Multi-city buy (41)
Simple to execute (45)
Creative team (33)
ROI metrics (16)
Reas. prod’n costs (21)
NICE TO HAVE Can’t be TiVo’d (86) 24-hr exposure (58) Std’ized ad sizes (39)
GREEN: 0 RED: 5
181804/18/23 18
Billboard’s performance on important attributes better than transit’s
% of respondents who said the attribute “Describes billboards completely or very well”
>75% 50% - 74% 25% - 49% <25%
CRITICAL /
MUST HAVE
Delivers exactly (59)
Can target (59)
Good value for $ (41) Audience msrmt (21)
Comp. demo data (22)
REALLY SHOULD HAVE &
SHOULD HAVE
Easy to learn (77) Know. sales reps (64)
Multi-city buy (56)
Simple to execute (62)
Flex flighting (38)
Innovative prods (26)
Reas. prod’n costs (28)
Creative team (35)
ROI metrics (7)
NICE TO HAVE Can’t be TiVo’d (80) 24-hr exposure (77)
Std’ized ad sizes (73)
GREEN: 3 RED: 3
191904/18/23 19
MOTIVATING POWER OF NEW MEDIAMOTIVATING POWER OF NEW MEDIA
Preferences for new media point to digital
6158
51 49
3935
27
7 6
0
10
20
30
40
50
60
70
% o
f res
pond
ents
say
ing
the
new
med
ium
wou
ld
sign
ifica
ntly
incr
ease
the
likel
ihoo
d of
thei
r re
com
men
ding
mor
e tr
ansi
t adv
ertis
ing
to th
eir
clie
nts
202004/18/23 20
Though comfortable selling transit, two-thirds of media planners don’t disagree that it’s difficult to sell
92
52
21
46
5
41
45
44
3
7
34
10
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
"I'm comfortablerecommending transit
media to clients"
"I recommend transitmore than I did in the
past"
"It's difficult to selltransit media"
"Clients' perceptions oftransit media are
positive"
Strongly Agree/Agree Neither Agree nor Disagree Disagree/Strongly Disagree
ATTITUDES and HABITS concerning TRANSIT MEDIAATTITUDES and HABITS concerning TRANSIT MEDIA
Only 46% of media planners agree that clients’ perceptions of transit media are positive
212104/18/23 21
SATISFACTION WITH TRANSIT MEDIA SALES REPS
Satisfaction with sales reps shows weakness
23.5
16.5
31.1
37.9
40.5
35.1
38.6
43.0
33.8
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Total sample
Planners with multi-media reps (79)
Planners with transit-dedicated reps (74)
Extremely/very satisfied Satisfied Somewhat/not at all satisfied
SATISFACTION WITH MULTI-MEDIA SALES REPS
SATISFACTION WITH TRANSIT-ONLY SALES REPS
More dissatisfaction with multi-media sales reps
Only 42% of planners with multi-media reps could agree that rep spends as much time on transit as on other media
42
51
73
29
26
17
29
23
10
0% 20% 40% 60% 80% 100%
“My media sales rep spends as muchtime selling me on transit as on other
media”
“My media sales rep provides sell-intools and materials for transit that areas effective as those for other media”
“My media sales rep is asknowledgeable about transit as other
media”
Strongly Agree/Agree Neither Agree nor Disagree Disagree/Strongly Disagree
32
39
43
45
51
61
38
37
42
31
37
21
30
24
15
24
12
18
0% 20% 40% 60% 80% 100%
"My transit rep provides usefuldemographic information”
"My transit rep provides effective sell-intools and materials”
"My transit rep takes time to understandmy needs and my clients’ objectives”
“My transit rep keeps me current onnew media options”
"My transit rep is knowledgeable andprepared”
“My transit rep is reliable for following upafter the pitch”
Best in class/Above Avg Average Below Avg/Worst in class
222204/18/23 22
Summary of the Obstacles to Transit Advertising Growth
1. Transit advertising’s positioning – the benefits its target audience perceives it to offer – is neither highly motivating nor differentiated from billboards;
2. Transit advertising has serious image and product deficiencies;
3. The level of product innovation is insufficient to generate interest and enthusiasm among media planners and advertisers;
4. Aside from sales activities, there is no promotion of the product to its target audiences;
5. Transit agencies not in top 20 media markets face greater obstacles to growth than those in the top twenty;
6. Transit advertising sales materials are not as effective as they could be at “making the case”;
7. The overall level of satisfaction with transit media sales reps is low.
232304/18/23 23
Agenda
I. Background
II. Research Findings
III. Conclusions & Recommendations
242404/18/23 24
Transit is very well positioned to grow
Media dollars are shifting out of traditional media and into alternative forms
Internet is the fastest growing medium, but out-of-home is the second fastest
Public transit ridership is increasing as fuel becomes cost prohibitive
Advertisers’ demand for new and different formats is what’s driving out-of-home’s growth…something transit could deliver
Advertisers also looking to connect in a more personal, one-on-one way with consumers…something transit does deliver
However, transit advertising has many issues to address
However, transit advertising has many issues to address
252504/18/23 25
Transit’s positioning is neither highly motivating nor differentiated from billboards
Today, transit advertising sits in the shadow of the out-of-home advertising 800-pound gorilla, billboards
Transit is seen to have the same uses as BB, but performs less well across the board
Consequently, 77% of the sample agreed that “Transit’s best use is as a supplement to other media”
All 3 media planner segments view “Reach a captive audience” as transit advertising’s greatest strength, as well as its unique strength
Our judgment and knowledge of media tells us that this is not a highly sought after media objective
Advertiser trends indicate demand for highly targeted media, and for media that can break through clutter, connect one-on-one with consumers, trigger consumer action
Transit is lacking relevance and distinctiveness in today’s advertising market
Transit is lacking relevance and distinctiveness in today’s advertising market
262604/18/23 26
Give transit a compelling positioning in its own right
Transit has something different from billboards to offer…and just as compelling
Permission to believe: Transit advertising is at eye level…in stations, outside stations, on the street, in the cars
Transit advertising can encompass a consumer…whether they are in a station domination or an interior-wrapped bus or railcar
Transit media lend themselves to innovative creative (e.g., bus wraps)
Transit media travel…customers can confront your transit ad multiple times during a day, not just at rush hour
Transit is affordable – you can be in your audience’s faces with one campaign after another
Test positioning among target audiences before launching
Recommendation #1. Reposition transit to differentiate it from billboards, elevate its importance and update its image
Transit media are the mass media that get “up close and personal” with your consumers so that they don’t just see, they experience your
brand message.
Transit media are the mass media that get “up close and personal” with your consumers so that they don’t just see, they experience your
brand message.
272704/18/23 27
Aside from direct selling activities, there is no promotion of the product to its target audiences
Many media have industry associations that focused heavily (if not exclusively) on promotion of the medium to the advertising world
Promotional tactics include
Websites for providing news and information
Events showcasing the medium’s best uses to media planners and advertisers, often in collaboration with associations of national advertisers
Advertising campaigns expressing the unique value proposition of the medium
We found no evidence of wide-scale promotion of the medium to media planners or advertisers
In the highly active and highly competitive media market, transit’s diminished presence is
a liability
In the highly active and highly competitive media market, transit’s diminished presence is
a liability
282804/18/23 28
Recommendation #2. Promote transit media among both advertisers and media planners
Commence national advertising, e.g., in professional trade journals and on websites
Develop tools to make media planners’ jobs easier
Create a searchable directory of transit agencies with demographic data and advertising sales contact information
Identify transit agencies in the directory by audiences reached, e.g., college students, the elderly, Latinos, etc.
292904/18/23 29
Recommendation #3. Create a transit media trade group
Mission: to promote sales of transit media
Activities, e.g.:
Organize industry events / showcases
Forge alliances with national advertisers
Advocate for legal and regulatory changes to permit new product development
Ease access for media planners
Develop national marketing and communications strategies
Organize and promote multi-transit agency offerings, e.g., transit agencies that serve college populations or senior populations
303004/18/23 30
Transit has serious image and product deficiencies
Most fundamental attributes perceived weakly Efficient – only 38% said this describes transit advertising Effective – only 58% said this describes transit advertising Reliable – only 50% said this describes transit advertising A good value for the money – only 37% said this describes
transit advertising
Image perceptions especially weak among media generalists with local-regional advertisers as clients
Having audience measurement, demographic data, the ability to demonstrate that what was bought was actually delivered – are all “must haves” for media planners Transit perceived to not deliver on any
313104/18/23 31
Recommendation #4. Develop a credible audience measurement system
Develop an audience measurement system to address weak perceptions of efficiency, effectiveness, value, reliability
In the short term, conduct a series of market research studies to explore/prove transit’s effectiveness
Multi city
Multi media (buses vs trains vs stations, etc)
323204/18/23 32
The level of product innovation is insufficient
Advertisers demand venues that are new, exciting, fresh – so that they can make a statement with their choice of medium
Perceptions of transit advertising as innovative, fresh, exciting are low
The product innovation ideas in the ASCs’ pipelines are not among media planners’ most highly rated ideas.
Transit agencies indicate willingness to try new media
However, advertising sales contractors perceive many transit agencies to not be fully aligned with this objective
“We want to come in and show transit authorities additional revenue opportunities, but they’re not so interested – it’s the difference between an entrepreneurial/creative business and a government bureaucracy.”
333304/18/23 33
Recommendation #5. Introduce digital and interactive (experiential) technologies to transit advertising
Get ASCs to collaborate on expediting the introduction of new media to transit
Address alignment issues within transit agencies
Appoint a director of new business development within the transit agency whose entire responsibility is driving higher advertising sales
Alert general managers that their attention will be needed in a timely manner
Explore incentives, e.g., rewarding the department driving business development with bonuses or extra spending if goals are reached
Address obstacles/disincentives to new product development in the ASC-TA contract structure
Forge a collaborative effort between ASC’s and TA’s to bring about legislative/regulatory changes needed to permit digital’s use on transit
343404/18/23 34
Transit has serious image and product deficiencies - more
Less than 1 in 10 respondents describe transit advertising as “clean”
Only 1 in 5 respondents perceive production costs to be reasonable
Less than half think that transit media offers flexible flighting
Slightly more than half think that it’s easy to do a multi-city buy in transit advertising
More than half think that advertisers’ perceptions of transit advertising are negative
353504/18/23 35
Recommendation #6. Address transit’s other product and image deficiencies
Re-position and promote transit advertising’s benefits
Disseminate examples of best-in-class creative (ads) used in transit
Further explore extent of negative advertisers’ perceptions to better inform media planners
Further explore perception of high production costs so that it can be addressed
In communications
By introduction of cost-lowering technologies
Put additional focus on keeping transit ads and their environs clean and well maintained
363604/18/23 36
The challenges of growing ad sales is greater among transit agencies not in top 20 media markets
General estimates are that 40% of transit media is purchased by national advertisers and 60% is purchased by local and regional advertisers
National advertisers generally want only top 20 media markets
It is more or less up to the media planners working with local and regional advertisers to drive ad sales growth for transit agencies outside of top 20 markets
This study shows that media planners whose clients are local and regional advertisers have the least favorable image of transit advertising
This group is the least enthusiastic and most skeptical. Most of all, because they are working with the smallest budgets, they need to be convinced of transit advertising’s value for the money.
373704/18/23 37
Recommendation #7. Develop specific strategies to promote ad sales of transit agencies outside top 20 markets Arrange individual meetings with media planners serving local and
regional clients
Advertising sales contractor and transit agency do meeting together
Tailor marketing pitch using each segment’s specific beliefs and attitudes about transit advertising, as outlined in this study
Use new positioning and market studies to change media planner’s image of transit advertising’s effectiveness
Promote groups of transit agencies that reach audiences in high demand
E.g., all transit agencies that serve college towns
E.g., all transit agencies that serve Latino markets
E.g., all transit agencies that serve senior markets
Make this information searchable in the transit agency database
383804/18/23 38
Transit advertising sales materials are not as effective as they could be at “making the case.”
Media Planners see deficiencies in the sell-in tools and materials the receive on transit
Media Planners not getting the measurement data they “must have”
Many media planners agree that “it’s difficult to sell transit media to advertisers” (21% agree and 45% are on the fence)
We found no evidence of a selling message other than “extends reach and frequency,” which is of value, but not distinct
Extremely/very Desirable
Describes
Transit completely/very
well
“has a credible audience measurement system” 88% 14%
“has comprehensive demographic data” 86% 20%
393904/18/23 39
Recommendation #8: Arm sales force with information, research, case studies (and ultimately, measurement) Re-position transit to give it a more compelling benefit and to
differentiate it from billboards
Produce high quality sales materials targeted to media planners A brochure expressing the benefits and best uses of transit, as well as
success stories
Evidence of transit’s effectiveness and efficiency via a credible research study of in-market usage
Information on exactly what they’re selling – routes, times, locations for every market
Information on competing out of home media – locations, cost, availability, etc.
In collaboration with media planners, produce high quality sales materials targeted to advertisers To use in direct to advertiser sales opportunities
For use by media planners in their pitches to advertisers
Provide media planners with the necessary information to prepare post-buy analyses to communicate exactly what was bought
404004/18/23 40
Media planners with multi-media reps are less satisfied than are planners with transit advertising dedicated sales reps
58% either disagree or are on the fence re: “My media rep spends as much time selling me on transit as on other media.”
Our research confirmed that the practice of offering less commission for transit ad sales than for the sale of company-owned media exists; it is unknown how widespread this practice is
The overall level of satisfaction with transit media sales reps is low
Total sample Planners with multi-media sales
reps
Planners with transit-dedicated
reps
Extremely/very satisfied 24% 17% 31%
Satisfied 38% 41% 35%
Somewhat/not at all satisfied 39% 43% 34%
414104/18/23 41
Recommendation #7: Address the dissatisfaction with sales reps among media planners
Establish sales performance measures and hold ASCs accountable to them
To the extent that they exist, remove financial disincentives of selling transit for multi-media reps
Conduct further research to gain more detailed insights on drivers of dissatisfaction
424204/18/23 42
Recommendations for the Proposed Media Trade Organization
1. Develop the national transit media advertising campaign (Recommendation #2).
2. Provide guidance (e.g., selling messages about the benefits of transit advertising) for the development of sales tools and materials to help sales reps be more responsive to media planners and advertisers (Recommendation #8).
3. Commission market research documenting the effectiveness of transit advertising (Recommendation #8).
4. Lead the effort to establish a more effective way to portray demographic information depicting transit advertising’s audiences (Recommendation # 8).
5. Organize conferences that showcase transit media to media planners and advertisers and include a competition showcasing best-in-class transit advertising (Recommendation #2).
More…More…
434304/18/23 43
Recommendations for the Proposed Media Trade Organization
6. Lead the effort to develop an audience measurement system (Recommendation #4).
7. Develop tools and information for media planners to make it easier for them to use transit media (Recommendation #2).
8. Advocate for legal and regulatory changes necessary to permit new product development (Recommendation #5).
9. Develop “package” offerings comprising the advertising space of multiple transit systems (Recommendation #7).
10.Charter a work group to develop strategies to expedite the introduction of new technologies (Recommendation #5).
444404/18/23 44
Recommendations for Transit Agencies
1. Commit to supporting the internal effort required to drive advertising sales growth Management needs to make themselves available for timely decision-
making on such topics as introducing new advertising platforms (e.g., digital) and pursuing lucrative, but possibly new, opportunities with important advertisers.
Appoint an entrepreneurial advertising director within the transit agency whose charge is to drive sales as high as possible, within reasonable limits.
Decide that the agency can tolerate the degrees of risk that typically accompany new business development efforts.
2. Locally assess the performance of the sales force and address underperformance as warranted
3. Set performance targets and hold sales organization accountable to them
4. Find a mutually acceptable approach to pursuing the introduction of new products and technologies with sales contractors
5. Require sales contractors to deliver periodic new product development progress reports along with business reviews
454504/18/23 45
Recommendations for Advertising Sales Contractors
1. Find a mutually acceptable approach to pursuing the introduction of new products and technologies with transit agencies
2. Provide better sales training and materials and assess sales incentive structures
3. Survey clients – both advertisers and media planners – on how their needs can be better met
4. Apply the information in this study to tailor the sales pitch by type of media planner Out-of-home specialists are transit advertising’s biggest fans. They just
need to be given more reasons to use transit as frequently as they use billboards
Media generalists with national advertiser clients are also big fans of transit. Most critically, this audience needs to be convinced of transit’s effectiveness
Media generalists with local/regional clients, as we have seen, are the least enthusiastic and most skeptical. Most of all, they need to be convinced of transit advertising’s value for the money
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Prioritizing Next Moves
IMMEDIATE LONGER TERM
Extremely high value
Test proposed positioning Create transit advertising trade
organization Website /resources for media
planners Effectiveness studies Focused, compelling sales
message and materials TA new business director More insight on low sat with
sales reps
Audience measurement system
Innovative new products Address sales force lack of
satisfaction Advertising & promotion Address obstacles to new
product development
High value
Focus on clean Collect and disseminate best-in-
class transit advertising
Joint promotion with other in-street media
Explore high production costs Explore (and seek to disprove)
negative perceptions of transit advertising among advertisers
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End of Presentation
TCRP Project B-33: Practical Measures to Increase Transit Industry
Advertising Revenues
Principal Investigator:Jane Alpers, Executive Vice President
Denneen & Company, Boston, [email protected]
Draft 3 02 04 09