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Belch: Advertising and
Promotion, Sixth Edition
V. Developing the
Integrated Marketing
Communications Program
13. Support Media © The McGraw−Hill
Companies, 2003
cent of outdoor advertising is purchased by local merchants and companies.) Let
us examine some of the advantages and disadvantages of the medium in more
detail.
Advantages and Disadvantages of Outdoor Advertising
Outdoor advertising offers a number of advantages:
1. Wide coverage of local markets. With proper placement, a broad base of
exposure is possible in local markets, with both day and night presence. A 100
GRP showing (the percentage of duplicated audience exposed to an outdoor
poster daily) could yield exposure to an equivalent of 100 percent of the marketplace
daily, or 3,000 GRPs over a month. This level of coverage is likely to yield
high levels of reach.
2. Frequency. Because purchase cycles are typically for 30-day periods,
consumers are usually exposed a number of times, resulting in high levels of
frequency.
3. Geographic flexibility. Outdoor can be placed along highways, near stores, or
on mobile billboards, almost anywhere that laws permit. Local, regional, or
even national markets may be covered.
4. Creativity. As shown in Exhibit 13-1, outdoor ads can be very creative. Large
print, colors, and other elements attract attention.
5. Ability to create awareness. Because of its impact (and the need for a simple
message), outdoor can lead to a high level of awareness.
6. Efficiency. Outdoor usually has a very competitive CPM when compared to
other media. The average CPM of outdoor is approximately one-half of radio
and far less than that of TV, magazines, and newspapers.
7. Effectiveness. Outdoor advertising can often lead to sales, as demonstrated in
Figure 13-3. In a study reported by BBDO advertising, 35 percent of consumers
surveyed said they had called a phone number they saw on an out-of-home ad. 4
A study reported by Mukesh Bhargava and Naveen Donthu showed that outdoor
advertising can have a significant effect on sales, particularly when combined
with a promotion. 5
8. Production capabilities. Modern technologies have reduced production times for
outdoor advertising to allow for rapid turnaround time.
At the same time, however, there are limitations to outdoor, many of them related to
its advantages:
1. Waste coverage. While it is possible to reach very specific audiences, in many
cases the purchase of outdoor results in a high degree of waste coverage. It is not
likely that everyone driving past a billboard is part of the target market.
2. Limited message capabilities. Because of the speed with which most people pass
by outdoor ads, exposure time is short, so messages are limited to a few words and/or
an illustration. Lengthy appeals are not likely to be effective.
Brand Outdoor Used Results
Sunsplash Amusement Park 25 GRP billboards 6,000 new customers in first
14 days
Bennett Infiniti 25 GRP billboards Moved from #35 to #3 in sales
in upscale markets in state; sales increased from 8
to 30 per month
Altoids 30 sheet posters; Sales increased 50%; sales
transit, bus panels; increased 5 to 1 in advertised
kiosks vs. nonadvertised markets
Exhibit 13-3 Most
desirable out-of-home
advertising locations
Figure 13-3 Higher sales
from outdoor advertising
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Chapter Thirteen Support Media