Authored by:
John C. Kozup and Charles R. Taylor
Villanova University

Presented and Published by:

Overview

In an article entitled, “The Creative Heresy in Audience Measurement,” Ephron and Philport argue that some measure of creative effect should be factored into computation of the size of audience likely to see an outdoor advertising display. The basic idea is that some physical attributes of a billboard, such as angle to the road, distance to the road, display size, etc, and their interactions should be factored into the size of audience estimate, along with a measure of noticeability, based on creative effects included in the ad.

We assert that the fundamental value of outdoor advertising lies in the exposures that it generates and that discounting the value of these exposures is problematic, both in terms of measuring true cost per thousand exposures and in comparison to other media. Because traditional measures of recall grossly understate the effectiveness of outdoor advertising (Young 1984), it is important to closely examine the value of the exposures generated by outdoor advertising. If anything, the current measurement system may undervalue the exposures provided by outdoor advertising due to the following factors:

1) In addition to the reach that is possible through outdoor advertising, one of the fundamental strengths of the medium is high frequency. There is considerable evidence available that the cumulative effect of repeated exposures is higher than the effect of a series of individual, isolated exposures.

2) Outdoor advertising is typically viewed in a less cluttered environment than most other media. As a result, an individual outdoor ad is more likely to be seen by the viewer than is the case in many other media.

3) The locational advantage of many outdoor ads is so profound that many local businesses who use outdoor advertising do not have alternative media that can provide exposures to their target market.

The paper will also examine measurement issues associated with attempting to implement a system that adjusts exposures based on VAI and noticeability, pointing out that this type of measurement system is inconsistent with that used by other media. Moreover, the adoption of principles being applied in Europe is questioned on the grounds that the factors that affect the outdoor advertising industry vary between the U.S. and Europe.

In an era where other media are facing issues relating to clutter and getting the message through to consumers, the exposures provided by outdoor advertising are more valuable than ever. Because of advantages in overcoming selective perception and the ability to deliver a message at the right time and place, recent trends in media favor outdoor ads. Wall Street should place heavy weight on the value of these exposures in industry valuation. Certainly, the industry should not implement a measurement system that systematically downgrades the value of some outdoor advertising exposures.