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P art 1 Problem and Solution An Overview
P roblem 1
Gravity Inc. is a multinational firm with a portfolio that includes investments in multiple sectors. The company has recently launched a FMCG Product in India. It is hoping to target metros and Tier 1 and 2 cities in the initial phase. To boost sales, the company has started a marketing campaign . The Marketing Department of the company has been allocated a certain budget . They are now exploring different channels to reach out to consumers. Their major goals with the campaign are to reach out to people, convince consumers to buy the launched product and strengthen brand identity. The first task that the department undertakes is to figure out the best marketing channels to focus on, based on the ease of implementation and return on investment .
Prospective Channels It is found out that a very targeted campaign could be run online through mediators like Google Adwords and Facebook Advertising. It is also decided that the company a would sponsor a few Television programs which have a high TRP and have viewers who have similar characteristics to their potential customers. The firm also explores print media where it advertises on newspapers having high readership. When it comes to offline advertising medium like billboards and advertisements on prime real estate, the firm keeps its advertising limited to prime locations which have high visibility and traffic.
Outdoor vs Other Channels Prioritizing among different channels, the firm finds the online channels with the most attractive value proposition . The presence of mediators like AdWords makes it easy to reach out to the most targeted customer group and the ability to measure click through rates allows cost optimization to occur. They are able to focus on the creatives part and allocate substantial capital to theses forms. Among all this, the firm understands that outdoor campaigns are also a great way to strengthen brand identity and reach out to people who might not have an active online presence.But the channel suffers from the following problems: Conversion Rate is not known Strategic Planning is required to find out which properties to sponsor. Requires significant investments in terms of money and human resources.
P roblem 2
Abhishek Singh is a Dehradun based businessman . He owns a number of commercial properties throughout the city. Most of these properties are in prime locations across the city. Sensing a business opportunity , he decides to develop billboards at a number of these properties. Considering that all these prospective billboards are present at locations which have high visibility and traffic , he hopes that these properties will generate a significant revenue stream . To make sure that interested businesses are able to advertise through these properties, he starts exploring various channels through which he could reach interested businesses and charge a reasonable price commensurate with the price existing in the market.
Options Advertise on all the properties with given contact number , so that interested advertisers could reach him directly. List out the property on yellow pages and other listing sites like Just DIal There are aggregators specifically dedicated to listing outdoor media properties like MeraHoradings and oimedia which help such properties get listed There are local city based aggregators which remain in touch with city based advertisers and charge a commission.
Challenges Lack of a unified channel through which he could reach advertisers all across the country and the globe. Difficulties in deciding the price to charge for different properties spread throughout the city. Significant Seasonality in the occupancy of the properties. Many properties remain empty for long spans of time. Significant overhead in managing operational cost of the property and other regulatory costs. Difficult in reaching out to potential clients directly and having a quantitatively well defined value proposition to pitch upon
O utdoor M edia
Is it worth spending on advertising through
The onslaught of online advertising Let’s take a look at 5 reasons why more and more businesses are turning to online in order to get their message across to the masses: Process Simplification : Platforms like Facebook give advertisers the ability to select the characteristics of their target audience including age, gender, location, income etc. Measurable results : In order to figure out whether or not an ad is having the desired effect, you need to be able to measure the results of that ad. When you display online ads you are given access to all kinds of valuable data. Reach : When you place an ad on TV, you are totally dependent on your target audience being in front of their set when it plays. That is not the case with online ads. Innovation : The viewer can click on links from within the ad, cast votes, answer a quick survey question, and much, much more. The Visual Aspect : People want their information quickly, and there is no arguing the fact that video delivers it a whole lot faster than text or image.
The state of outdoor advertising With the growing number of communication channels , from online to Video on Demand, to social media, audience target groups are becoming increasingly fragmented . The growing number of devices vying for our attention reduces individual reach and effectiveness of brand messaging. OOH remains a key medium that surrounds audiences in their everyday environment. It can reach them while they are close to the point of sale, and when they are more receptive and are less distracted by other media. Sophisticated OOH audience measurement systems around the world such as Route in the UK, consistently demonstrate how the time consumers are exposed to out-of-home advertising matches closely that of TV and greater than other major media.