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18 To advertisers, one of the biggest advantages of digital dis- number of people actually viewing the billboard. This is an plays is their ability to be instantly modified. Advertisers can improvement over television's rating system, which measures change or adapt their ads overnight, if they so choose. Adver- the number of people with the opportunity to see the ad. A tisers can also alter the ads during any given day to suit the time Wachovia Capital Markets evaluation of this new audience period. A fast food company can show a breakfast offering on measurement system estimated that its introduction will result the morning drive and a dinner offering during evening drive in the billboard industry's ability to more than double its size, time. To advertisers, the abilities to more precisely target deliv- adding $7 billion in annual revenue (24). ery of their advertising to audience segments and to tailor mes- saging to particular segments are of great value. The Transit Media Market The alterability of electronic billboards holds advantages for the owners of the advertising space as well. It gives them the Transit media had been the second fastest growing segment ability to sell one billboard to several advertisers using the same within the out-of-home market, behind alternative. In 2006, "daypart" structure that has existed in television and radio. transit advertising revenues increased 22% to $816 million, Should one daypart--for example, the morning commute faster than out-of-home overall. However, in 2007, revenue period of time--generate high demand from advertisers, it decreased 2% to $801 million, as shown in Figure 1 (2). Again, could offer an opportunity for higher pricing of the space. A the definition of transit media used in this analysis includes Citigroup analysis estimates that digital displays can generate airport media, truck sides and taxi displays. from five to sixteen times the revenue of a static display (20). Transit advertising revenue's significant setback, since the Another advantage of digital technology is that it enables high point on 2003, is due to the advertising bust, triggered out-of-home media to become interactive. Bluetooth technol- by the Internet bust of the late 1990s. Advertising sales con- ogy is already enabling billboards and subway posters to send tractors locked into generous guaranteed minimum contracts consumers--via their cell phones--digital coupons, music in the late 1990s and proceeded to lose millions of dollars on downloads, movie trailers and video games. In the view of one those contracts through the early 2000s, while transit agen- such technology provider, "For the advertiser, it really turns cies collected their high guaranteed payments. The majority out-of-home into a direct-response mechanism" (21). of those contracts ended in 2004. Out-of-home advertising is moving in the experiential direc- Why transit has been unable to significantly rebuild rev- tion as well. A Titan campaign for the London Underground enues after this correction is unclear. The purpose of this report celebrating the launch of the Sweeney Todd movie included is to illuminate some possible explanations as well as steps that free wet shaves at the Liverpool Street Station (22). may be taken to reignite transit advertising's growth. Lastly, there are early uses of new technologies surfacing. Cross-Track Projection offers advertisers a high-quality digital Promotion Activities of Media image in a widescreen format. This technology will be in use Trade Organizations this fall in the London Underground as well as on New York City's Metropolitan Transit Authority underground stations For several types of media, a media trade organization exists (23). CBS Outdoor is illuminating both sides of London buses. for the purpose of promoting the medium to drive growth. One side's images are static, while the other, longer side offers This section looks at a few notable examples of media trade moving images. Finally, JCDecaux and Clear Channel Outdoor organizations that appear to be having an impact. are offering illuminated LED frames in a variety of hues to serve as "halo lighting" for posters (22). Interactive Advertising Bureau The Interactive Advertising Bureau (IAB) was founded in Approaching Watershed: Introduction of 1996 and represents the sellers of 86% of U.S. interactive adver- an Audience Measurement System tising (25). For the uninitiated, interactive advertising is Over the past several years, the out-of-home media industry advertising that uses interactive media, including the Internet, has begun to address issues of advertising accountability. The interactive television and mobile phones. According to its web- industry has already established consistent planning and buy- site, the IAB "is dedicated to the continuing growth of the ing standards and adopted common post-campaign evaluation interactive advertising marketplace, of interactive's share of procedures. Its latest initiative, an audience measurement sys- total marketing spend, and of its members' share of total mar- tem comparable to television's and radio's, is scheduled to keting spend." A primary motivation seems to be to "create [a] launch in fall 2008. This new audience measurement system, countervailing force to balance the power of other media, mar- developed for the industry by the TAB along with Arbitron and keting and agency trade groups" (26). To achieve these objec- OAAA, is an "eyes-on" system, meaning that it measures the tives, the IAB's primary strategies appear to be the following:

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19 Educate advertisers and advertising agencies about the tising. There, advertisers can download a nine-page paper benefits of interactive advertising. called, "Interactive Advertising: At the Center of Every Pow- Create measurement guidelines and creative standards. erful Campaign." The stated intent of the paper is to help Generate research studies substantiating the effectiveness advertisers incorporate the multiple forms of interactive of interactive advertising. advertising into their marketing mixes. Its frequent mention Offer thought leadership for participants in the interactive of the many benefits of interactive advertising also qualifies it, advertising marketplace. in the research team's opinion, as a sales brochure. Impor- Promote best practices among sellers of interactive tantly, the paper's first paragraph expresses the core value advertising. proposition of interactive media: "By using interactive, mar- Advocate for supportive regulation/fend off detrimental keters can target the audience that matters to their brand, regulation in Washington. allow their customers to experience the brand the way they want to and then measure the effectiveness of their market- The IAB's most visible activities are the events it stages. The ing dollars" (28). Clearly, the IAB includes active promoting events serve multiple purposes: they educate advertisers and of interactive media to be among its core functions. agencies--the buyers--on interactive media; they offer pro- Other resources available on the IAB website include case motion opportunities to sellers of interactive media; and they studies showing effective application of interactive advertis- generate buzz about interactive ads to both stimulate interest ing, the latest press coverage of interactive advertising, and and elevate the media's image. A prime example of how the a series of white papers offering best practices on a variety IAB uses events to promote the industry follows. of topics specific to interactive advertising, developed by In September 2007, the IAB staged the MIXX (Marketing committees of IAB members. and Interactive Excellence) Conference and Exposition. It was The IAB conducts studies to prove the efficacy and effi- the kickoff event to Advertising WeekNew York City, and ciency of interactive media. An example is a recently com- brought marketing and agency professionals together with the pleted study on the return-on-investment of advertising on sellers of interactive ad space. The content of the conference Internet local, classifieds and directory sites. Proving the served to both educate advertisers and agency professionals media's efficacy through research, along with establishing about interactive media and to provoke dialogue on the issues measurement protocols and conventions, are initiatives meant facing interactive media. Included in the two-day event was a to increase the perceptions of legitimacy of the media as "spectacular multi-media awards show and gala" recognizing they compete for advertising dollars against established and creativity and effectiveness in interactive advertising (MIXX measurable media. awards were presented). There was also an exhibition hall at Another recent and high-profile study done by the IAB is which sellers of interactive advertising and related products called "Marketing and Media Ecosystem, 2010." It synthe- and services could showcase their latest wares. sizes the opinions of advertisers and agencies into a view of One of IAB's most significant functions is establishing cre- the marketing and media world of 2010 where, as one might ative standards. The organization's belief is that standardiza- expect, interactive marketing plays a very significant role. The tion of ad sizes makes ad space more appealing to advertising IAB's partners in the ongoing study are the Association of agencies for the increased workload efficiency it generates. As National Advertisers, the American Association of Advertising a result, media planners are more likely to recommend the Agencies and Booz Allen Hamilton management consultants. media to advertisers (27). Again, the IAB is at the center of activity of the emerging Establishing conventions for measurement of new media is interactive media industry, allying itself with prominent part- also a key function of the IAB. Its Measurement Task Force ners, generating attention for its "product," and delivering drafts the methodology by which an advertising impression is the measurement tools and research studies to establish inter- made for a new medium, and then seeks public comment. In active media's legitimacy. November 2004, the IAB issued what is now the global stan- The IAB has been led since January 2007 by a former Adver- dard for counting on-line ad impressions. The IAB obtained tising Age magazine editor and New York Times reporter, Ran- the endorsement of major advertising industry organizations dall Rothenberg. In addition to explaining and promoting throughout the world, gaining acceptance of its plans and interactive advertising to potential buyers, Mr. Rothenberg establishing its central role in advancing the use of interactive appears tireless in his efforts to win popular support for the new media (28). types of advertising his organization represents, a strategy for The IAB's website is highly sophisticated, serving not only keeping regulators at bay. When a well-known social network- as a resource for members (again, mostly sellers of interactive ing website made a controversial advertising move that was advertising space and related products and services), but also immediately panned by the website's users, Mr. Rothenberg for advertisers wanting to learn more about interactive adver- placed an op-ed piece in The Wall Street Journal, using the