"Once you 've seen it, it will stop people from getting into their tracks," vector Media CEO Bill Schwartz said in a recent interview on the topic of double advertising. decker buses.
"Try to imagine the daytime impact of 40 giant billboards on the streets of Manhattan or Los Angeles.
You can't see these.
Vector is part of out-of-home (OOH)
Advertising not only on a variety of buses and subways, but also on airports, bus shelters and street furniture, movies and arenas, and of course traditional billboards.
According to the American Outdoor Advertising Association, there are only about 205,000 public cars advertised.
The organization claims about 2.
2 millionof-
The home display, coupled with an additional smaller size display, such as the news stand and the "alternate" stand, can be almost anything, such as the side of the building.
OOHin general's value proposition is set out by Outfront Media Inc, the industry's largest company.
In their 15-year annual report, they said that, unlike most other media platforms, the outdoors "is always open, viewable and cannot be closed, skipped or quickly closed --forwarded.
"An executive who was deeply involved in marketing but did not want to be named said that the impact was the main consideration for large outdoor activities --of-Family promotion.
"We are looking for something that looks special.
Creativity must be very organic with actual advertising venues--
Not just some re-
Taken with a poster or photo.
What is shocking is that it is better.
It's important to have something bigger, because it's key to make something really stand out.
This is really helpful for "unassisted" films.
Whether someone buys a ticket for this kind of advertisement is another matter.
"The fact is,of-
Compared to tens of millions of websites and billions of unique Google searches that show digital advertising, home displays are numbered. With U. S.
According to industry estimates, advertising sales for 166 billion dollars in the year were $2015.
$ 4% or $7 of the total. 3 billion.
Some 18% of them were in transit.
However, despite being so scarce, buying outdoor advertising is still relatively cheap.
In a telephone interview with Peter J. investment banker mark Boidman
Solomonwho has been working with companies in the outdoor industry since 2008 and with industry groups in the industry, the current CPM median (
Cost of thousand people)
$3 transit shelter.
45 is higher than digital advertising with a median of about $2, but much lower than non-digital advertising
Prime-time TV shows cost $8.
Print magazines for $99 and $14. 00.
According to the company, manual advertising carrier media with 60 employees and $70 to $100 million in annual revenue is small compared to large companies in the field;
Its most famous listed companies in the field, such as Outfront Media Inc. , earn less than 10% a year. (NYSE:OUT)
Outdoor holding (NYSE:CCO)
And Lamar ads (
NASDAQGS: AMR. )
Schwartz reported that Vector's revenue grew by 20% from 2014 to 2015 and was profitable.
Vectorworks works with advertisers on street furniture and events, but its bread and butter are being transported, including food trucks, taxi tops and regular coach cars, but especially in large doubledeckers.
They have long-term contracts for about 3,000 vehicles, including 500 pairs.
Decker bus in USAS.
And cross-sell across Italy for another £ 800.
Manual content.
The company is proud to meet the needs of advertisers through its creative, hand-tailored approach.
"We recognized early on that the integration of the industry left us with a huge loophole because our big corporate competitors didn't have the time or flexibility to focus on creating unique executive expertise, schwartz said.
"We like to think of ourselves as ninjas sitting on jet skis, and everyone else is sitting on an aircraft carrier. ”Out-of-
Box request.
When Vector works with marketers at Sony Pictures's Angry Birds to create memorable promotions, they need to coordinate with suppliers and bus companies that own these vehicles.
"We have to go to our bus Partners and tell them, 'We want to do this crazy thing and drill holes on the side of the bus.
They said, well, put them back together when you're done.
"This action video shows how the bus promotion was built and how it looked after it was done.
Cooperate with other artisans.
Vector is not made, but depends on partners.
Schwartz said he works closely with Moshe Gil of Carisma, who has a special large 3D printer.
"This is a cooperative thing. we often exchange ideas with each other.
We worked closely with them from the beginning.
He archived all the templates.
He also basically runs a body shop, so if something goes wrong with the bus, he will go and mess up the dents.
Why is it so custom outdoors-
So cheap?
Sales of transit ads can be hand-made like content creation, Schwartz said.
He called the process a "comprehensive push --pull.
We deal with intermediaries.
We deal with customers.
We are responsible for purchasing services.
We deal with experienced institutions. We deal with P. R. companies.
Our business is 360 degrees.
It all comes from a place.
Many times, we read articles or watch programs on TV. V.
Or something else, one of our sales people will come up with an idea and start selling.
Competition is cruel.
Of the 800 OAAA members, 500 are American. S.
Media companies compete for limited display inventory.
Even if a particular-of-
Home companies have long term contracts with site owners, perhaps dominant in the region-
Or in the case of vector double-
Decker bus--
In a given region or a given format, there are sufficient alternatives, and it is difficult for a single display company to maintain pricing rights of any kind.
At the end of the contract, the site owner can also increase the rent, which also increases the cost pressure.
During most of the outdoor life, it is very challenging to verify who is near the monitor.
"The owner of the billboard can tell you about the number of cars that often pass by during commuting, as well as some demo information about the working population, but that's it, Jim Dolan explained in a telephone interview;
Dolan, the managing partner of investment bank Cherrytree, was an entrepreneur in the media industry before coming to the bank.
"The way they sell is to get the customer to try it out and it would be great if it worked out-but they don't know why.
"Although the location of billboards and bus ads is very personalized, the demographic information is so vague that it is useless," said Dolan.
He believes that the latest digital technology will help make outdoor advertising more valuable to advertisers, so the industry will start to have more pricing power.
"For example, there is a device on the billboard that reads the license plate and can tell who owns the car and how often they pass.
While you don't know who the driver is, you know very well about the family demographics.
Where is the scale?
"Scale is always important in the media," Dolan said . " But it's not just scale that matters.
"The mutual purchase between newspapers is not large-scale. it is just an increase.
Therefore, if there is integration in the outdoor industry, this does not necessarily mean a large scale;
Dolan believes that digital technology and consulting sales are fixed costs for companies to scale up. Peter J.
Rodman of Solomon also sees technology as a way to increase prices and strengthen industry integration.
He predicts that digital technology will drive the development of outdoor sports in the next five years.
He believes that "mobile, social Internet and video will be integrated into outdoor media, making it a more attractive and responsible media channel.
Boidman believes that there is such a good technique to identify who has gone through what the "stay time" is and how long, and he claims that it will be more responsible than TV measurement.
According to Schwartz, the business of Vector shows that integration has begun.