Measuring the Value of Outdoor Advertising

As a marketer, you must make many choices on not only what your primary message should be, but also on what medium is the best to communicate your vision. I just read an interesting article in the Wall Street Journal about a nice win that the NASDAQ just pulled off – getting Kraft Foods to drop their big board listing on the NYSE to go instead with a listing on the NASDAQ (see article here). I can only image what the lead time and typical sales cycle is for such a decision, as it is clearly more than just a simple administrative change such as switching banks. Beyond the logistics of such a change, there is clearly a message at play – Kraft wants to be seen more as a company that is closer aligned with the technology companies that now dominate the listings on NASDAQ.

Stepping aside from that whole decision process and what was involved in closing the deal, the point that got my interest was when I read about what was publicly stated as the key reason that Kraft made the swap. According to the article, it was “the prospect of cost savings and the marketing visibility afforded by NASDAQ’s landmark advertising billboard in New York’s Times Square.” Cost savings in today’s economy is certainly justifiable and reasonable. What was interesting is the reference to the billboard that NASDAQ has in Times Square, which I am sure each of you has had the chance to either see either on TV or in person.

Wow. So, what Kraft is essentially saying is that this outdoor advertising venue was the tipping point that pushed them to close the deal. A couple of questions and comments come to mind here. First, what benefit is Kraft really envisioning? Increased brand awareness? I think that pretty much everyone in the world has now heard of Kraft Foods, so that clearly can’t be the case. How about awareness of what Kraft stock can be purchased for? In today’s digital world of price tickers, I have a hard time believing that it is this type of awareness that they are talking about.

I would propose that the awareness they seek is being viewed as part of the NASDAQ’s group of more tech-heavy, startup type of companies that are more typically on that exchange versus the NYSE. But, this message simply wasn’t part of the article. Maybe NASDAQ is trying to expand their positioning to be more than just a home for tech firms, and this was a way for them to point out other reasons for making the swap? If any of you have any background info that can help explain this decision, your comments and feedback would be most welcome!

So, there you have it. The decision to pay millions (?) of dollars a year by NASDAQ’s marketing team to keep that lease or own that real estate with its prime placement in Times Square actually led to a sale, which can now be tracked directly to that investment. The next question is: “Did the marketing team put this into their ROI calculation to help justify the expense?” There probably was some sort of awareness factor, which then translated into some sort of increased branding … but, to actually get a sale as almost a direct impact from the billboard / outdoor sign? I am guessing “no.”

In concluding, first, I hope that the marketing team at NASDAQ saw the article and is now pointing it out to their executive team. Second, I am not endorsing a marketing campaign composed entirely of outdoor advertising – an integrated approach covering multiple channels and awareness media is best. Third, to those thinking that there isn’t really any value to brand advertising and that any quantifiable new sales are not really possible from such expenditures, maybe that assumption isn’t quite always the case!

 
Gordon Benzie is a marketing adviser and business plan writer that specializes in preparing and executing upon business plans and marketing strategies. Gordon can be found on Google+.

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Gordon Benzie

Gordon Benzie is a marketing, communications and public relations consultant that is passionate about elevating brand awareness. He builds corporate narratives, writes business plans, and identifies unique value propositions. This intelligence can then be used to define and execute programs to improve sales and marketing effectiveness.

3 thoughts on “Measuring the Value of Outdoor Advertising”

    1. Before we can measure the value of billboard advertising, the first question to ask is “What is the objective?” Let’s say “increase brand awareness” is the objective, then some sort of “before” and “after” measurement might be appropriate. One possibility is to conduct a study to gauge brand awareness within a group of prospective customers in a specific geographic region, before the billboards go up. Then, after say 3-4 months or so, a follow up study could be conducted to see if the awareness increased.

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