Outdoor signage is the fastest, most effective, and oldest way of attracting consumer interest to your business. Before starting to advertise your brand, you need to familiarize yourself with the information on how to calculate the effectiveness of outdoor advertising and how a professional evaluation of the effectiveness of outdoor advertising is carried out by Kaplun Global specialists.
An important factor in advertising placement and its effectiveness remains preliminary marketing research, successful placement of advertising surfaces in the urban environment, the probability and density of contact with potential and target customers, determining the size of the target audience, coverage and motivation.
All these factors directly affect business and sales success. Factors and calculation formulas are presented below as the main indicators of the effectiveness and success of outdoor advertising. They give the customer a complete picture of the advertising company's work.
Business indicators of the effectiveness of outdoor advertising
Having come to the conclusion that advertising is a product whose effectiveness and benefit can be measured, we will consider the main indicators, applying the methods of evaluating the effectiveness of outdoor advertising:
- Brand recognition. Identify associative motives, brand loyalty, brand knowledge and other characteristics. In this case, the potential audience covered is the first example of evaluating the effectiveness of outdoor advertising;
- Sales stimulus. The main goal of any promotion is to stimulate the buyer, an interested target audience representative. It is necessary to measure sales before and after, as well as to place a link or a word motive that attracts attention and motivates to action;
- Brand image with subsequent key and target dimensions of brand characteristics.
Potential audience
When studying the behavior of the audience and analyzing the effectiveness of outdoor advertising, data obtained from surveillance cameras, clocks, sniffers, and data from cellular operators are taken into account. The purpose of assessing the potential audience is brand recognition. The following are also taken as a basis:
- The location of the audience;
- Time period - day, week, month;
- Characteristics of the potential client: motorist, pedestrian or on public transport.
How to measure the effectiveness of outdoor advertising for a potential audience within the desired limits of territorial and numerical coverage.
Reach = GRP/Frequency
where:
Reach is the audience members actually saw the company.
GRP - evaluation of the effectiveness of one advertising surface.
Frequency - the frequency of viewing advertisements.
Effective audience
OTS detection of an effective audience, since work with indicators of the potential audience will not be very accurate for compiling the overall picture and indicator of advertising data.
OTS = traffic×reduction factors
Decreasing coefficients include such indicators as:
- The structure itself, its distance to the traffic light, viewing angle and viewing quality, which affect visual contact;
- Attention span, clutter and other distractions, as well as the design and brightness of the sign, which is important when planning the design of the entire structure;
- The viewing angle, displacement from the main trajectory of the potential observer, the need for this study is definitely important;
- The quality of the view, the height of the location and accessibility for the audience.
Before ordering the production of advertising signs, all these factors are taken into account, as you can see, the quality of the sign itself and the thoughtfulness of the entire design greatly influences its effectiveness.
Gross Rating Point (GRP)
GRP is the ratio of the working age population over 18 to the total ad exposure. On the basis of the received data, a summary determination of the effectiveness of outdoor advertising is made, and the total coverage of visibility can be calculated using the formula:
GRP = RP1 + RP2 + RP3 + ... + RPn
Де RP іs the rating of one advertising plane per day.
The greater the indicator of this value, the more efficiently the funds spent on the advertising campaign, and the result will meet expectations.
Evaluation of the potential audience per month
Indicators of the effectiveness of outdoor advertising per month are conducted on the basis of geographical location, taking into account the time of day, potential, actual and available audience.
In some cases, taking into account the peculiarities of placing outdoor advertising in places that are less accessible and less lit, a decision is required to install illuminated signs to order, which will significantly increase the effectiveness of advertising in the long term.
Cost Per Thousand (CPT)
The CPT indicator is calculated taking into account a certain time coverage, the economic efficiency of outdoor advertising is calculated on the basis of every thousand potential audience and future customers.
CPT=(ad cost/number of contacts)*1,000
This media indicator, as an indicator of the effectiveness of outdoor advertising, allows you to evaluate economically profitable offers based on the price per 1 thousand and comparing with other methods of information notification in the media. Having calculated the cost of promotion expences, you can profitably order non-illuminated signs, signs of a different type, light boxes and stelae in Dnipro, with maximum benefit and efficiency.
In addition to all the evaluation tools listed above, marketers and designers conduct much more in-depth research and work on the creation of advertising, a campaign aimed at promoting the brand and increasing the effectiveness of advertising.
