MANY SA MARKETERS-STILL USING TRADITIONAL MEDIA-COULD BE LEFT BEHIND IF THEY DO NOT EXPLORE THE BENEFITS OF BREAKAWAY OUT OF HOME TV (OOH-TV) TO REACH THEIR TARGET MARKET IN A COST EFFECTIVE WAY.
The electronic out-of Home media industry is massive worldwide and growing exponentially, but it is unfortunately off the radar screen for most media planners, marketers and advertisers in SA,” says Pierre van der Hoven, CEO of TBM, the only SA Company that provides all the necessary elements for an OOH-TV network.
There are many examples of the power of this medium, sometimes referred to as ‘alternative outdoor media’. Van der Hoven points out that in 2003 a single company in US delivered information and entertainment at the point –of-purchase to 150 million shoppers every week in over 5000 stores. These shoppers spend over US$265bn annually.
Research reveals that technology sales to the digital signage market in North America totaled US$972m in 2003 and will increase to US$2,23bn in 2008. Statistics show that digital media is four times more effective than conventional TV advertising.
Significantly, digital media is also seven times more effective than conventional print media. “Savvy marketers are increasingly using OOH-TV networks because national TV is becoming more diverse with many channels competing for the same viewers resulting in advertising spend being more thinly spread. New technology also means viewers can skip the advertising,”explains van der Hoven.
In 2004 there was blue-sky growth in shopping mall networks. The Samsung Screen Survey revealed that there were 57 000 screens operating in the OOH-TV arena in the UK, up from 10 000 in 2003. 2004 saw the successful rollout of Tesco TV with 50000 screens in 100 UK stores. Tesco reaches 14 million shoppers a week. ASDA, UK’s other major chain plans a six-month pilot in two of its main stores. Results of the Spar grocery trial were also published and showed increased sales of between 10% and 40% for targeted products. According to research 75% of purchase decisions are made in-store and 85% of retail customers say multimedia displays make a difference to where they shop. “Moving image are much more effective than static point-of –purchase material. Although advertisers spend millions getting shoppers in store more than half of those leave empty-handed because static material is unreliable, invisible and hard to mange. “ In fact, the Point of Purchase Advertising Institute (POPAI) estimates that 30%-40% of such spend is wasted as a result of incorrect and non-displays,” he notes.
Many marketers as a cost-effective way of reaching the buying consumer and generating sales view OOH-TV. Advertisers spend less and reach a specific target audience with less wastage, and at a time when the consumer is in a captive mode.
“The success of advertising on retail screen networks is no longer based on viewer- ship but on product movement. The good news is that the latest technology enables advertisers and brand manager to obtain an accurate assessment of how effective there on-screen campaigns have been through comparisons with sales figures,” explains van der Hoven. Networks are also used for indirect selling. They are used to enhance shoppers’ in store experience, keep them spending more. Van der Hoven says the technology ensures satellite reach, PC playback and unique content at each site.
Any site within the satellite footprint can be reached almost instantaneously irrespective of whether it is situated in an urban or rural area. Content can be tailor-made for the target market per site, per city, per region or per country.
“The irony is that other countries coming to SA to see how we are doing it because we are seen as world leaders, but as is quite common in this country, many local marketers are not giving this home-grown solution the support it deserves. Those that are, are achieving the results they want,” concludes van der Hoven.

Source: Leadership Magazine