outdoor poster campaign: measuring roi in billboard advertising

March, 2010

Outdoor Poster CampaignMeasuring ROI in Billboard Advertising

1. Honda Market Master Report Sales of certain models below expected in certain

area of assigned ASA (Area of Statistical Analysis) Models: Accord, Civic, Odyssey Area for improvement: Lehigh Valley, PA

2. High In-Sell from competing Honda

dealership In-Sell: Sales into another dealer’s ASA

Problems

Strategy: o 10 Posters,1 2-Week campaign (March & April)o Requested different panel locations in March and Aprilo Taking advantage of overlap posting time2

Target: o In-town drivers in areas of Easton, Bethlehem, & Allentown,

PA

Message: o Competitive lease pricing on Honda target models

1 Posters: 20-ft wide billboards located in urban & suburban areas2 Due to business relationship, each poster remains posted for an additional 14 days, on average

Solution: Outdoor Campaign

Poster Location Map & ExposureAverage Poster

DEC*: 12,530

Total Daily Views: 125,300

Total Campaign Views: 1.75 M(not including “bonus”

posting period)

* Daily Effective Circulation

Creative: Honda Civic

Creative: Honda Accord

Creative: Honda Odyssey

Auto Sales (March, 2010): Record month (New + Used)

Method – Post-Purchase Survey:n=68 surveys returned (189 cars sold in March, 36% response)

Purchasers indicating they came in because of posters:3 cars (4.41% of surveys)

Estimated portion of total sales: 189 sold x 4.41% = 8 cars3

3Limitations: Estimate does not take into account: - Service & Parts revenue attributable to posters - Outdoor ads as a subconscious branding & awareness tool (influencing future behavior) - Outdoor as one component of overall advertising causing purchase (not indicated on

surveys)

Campaign Response

Gross Profit:8 cars x $3,0004 = $24,000

Costs: $5,000 (10 Posters) + $693 (Production) = $5,693

Net Profit: $24,000 - $5,693 = $18,307322% Return (1-month return)

4Conservative estimate for average profit across new & used vehicles

Campaign Return