emerging trends in outdoor advertising in lagos state

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EMERGING TRENDS IN OUTDOOR ADVERTISING IN LAGOS STATE INTRODUCTION Advertising or advertisement is a form of communication for marketing which is also used to encourage, persuade, or manipulate an audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common. This type of work belongs to a category called affective labor (Wayne et al., 2008). The purpose of advertising may also be to reassure employees or shareholders that a company is viable or successful. Advertising messages are usually paid for by sponsors and viewed via various traditional media; including mass media such as newspaper, magazines, television commercial, radio advertisement, outdoor advertising or direct mail; or new media such as blogs, websites or text messages (Tirmizi et al., 2009). Commercial advertisers often seek to generate increased consumption of their products or services through "branding," which involves associating a product name or image with certain qualities in the minds of consumers. Non-commercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Non-profit organizations may rely on free modes of persuasion, such as a public service announcement (Wayne et al., 2008). Outdoor advertising is essentially any type of advertising that reaches the consumer while he or she is outside the home, School, Office etc. This medium is in contrast with broadcast, print, and Internet advertising. Outdoor is focused on marketing to consumers when they are "on the go" in

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Page 1: Emerging trends in outdoor advertising in lagos state

EMERGING TRENDS IN OUTDOOR ADVERTISING IN LAGOS STATE

INTRODUCTION

Advertising or advertisement is a form of communication for marketing which is also used to

encourage, persuade, or manipulate an audience (viewers, readers or listeners; sometimes a

specific group) to continue or take some new action. Most commonly, the desired result is to

drive consumer behavior with respect to a commercial offering, although political and

ideological advertising is also common. This type of work belongs to a category called affective

labor (Wayne et al., 2008).

The purpose of advertising may also be to reassure employees or shareholders that a company is

viable or successful. Advertising messages are usually paid for by sponsors and viewed via

various traditional media; including mass media such as newspaper, magazines, television

commercial, radio advertisement, outdoor advertising or direct mail; or new media such as blogs,

websites or text messages (Tirmizi et al., 2009).

Commercial advertisers often seek to generate increased consumption of their products or

services through "branding," which involves associating a product name or image with certain

qualities in the minds of consumers. Non-commercial advertisers who spend money to advertise

items other than a consumer product or service include political parties, interest groups, religious

organizations and governmental agencies. Non-profit organizations may rely on free modes of

persuasion, such as a public service announcement (Wayne et al., 2008).

Outdoor advertising is essentially any type of advertising that reaches the consumer while he or

she is outside the home, School, Office etc. This medium is in contrast with broadcast, print, and

Internet advertising. Outdoor is focused on marketing to consumers when they are "on the go" in

Page 2: Emerging trends in outdoor advertising in lagos state

public places, in transit, waiting (such as in a medical office), and/or in specific commercial

locations (such as in a retail venue). Outdoor advertising formats fall into four main categories:

large format, street furniture, transit, and Posters

OUTDOOR ADVERTISING

Transit advertising is typically advertising placed on anything which moves, such as buses,

railway advertising, truckside, food trucks,and taxis, but also includes fixed static and electronic

advertising at train and bus stations and platforms. Airport advertising, which helps businesses

address an audience while traveling, is also included in this category. Municipalities often accept

this form of advertising, as it provides revenue to city and port authorities. Media fragmentation,

competition from online media, as well as the need for greater efficiencies in media buying

prompted companies to offer billboard inventory aggregation services Interactive services are

becoming increasingly more common with the move to digital outdoor advertising, such as

allowing the public to connect, share and interact through their mobile devices in particular

through WiFi connections (Latif and Abideen, 2011).

Outdoor media has straddled trends facing new and old media for many years. While

conventional poster faces are arguably the oldest form of advertising, digital billboards and

related signage are based on cutting edge technologies. But the most important factor supporting

outdoor advertising’s growth is the ease with which a range of solutions can be provided for

advertisers of all sizes.

Conventional outdoor advertising grows in part because of an expanding number of

commercial―faces on buildings as well as through more sophisticated management of inventory

on new and existing public transit systems. Continued format in innovation and creative

Page 3: Emerging trends in outdoor advertising in lagos state

executions are critical parts of this trend, as large format, posters, transit and street furniture all

afford a wide range of possibilities with physical media. Digital outdoor advertising is growing

for relatively obvious reasons. The advent of inexpensive digital displays and cheap-to-connect

networks has fostered an expansion in the number of outdoor surfaces available for commercial

messaging which is inherently more flexible (in terms of time-of day targeting or altering

creative content) than historical applications of outdoor advertising. Further, these trends have

enabled suppliers to develop inventory in new environments – new stores and more rural areas –

much more cheaply than ever before. Interaction with mobile devices, especially with short code

messages, has made the medium more engaging for consumers as well. Cinema advertising is

also benefitting around the world from the increased commercialization of the medium and is

growing in most markets where audiences are attracted by 3D content that cannot generally be

viewed at home, as well as by the development of new cinemas with the capacity to run digital

advertising networks (Baek and King, 2011).

EMERGING TRENDS IN OUTDOOR ADVERTISING IN LAGOS

Outdoor advertising has remained an important link in the advertising chain since inception. In

the last twelve years, 2000 to 2012, outdoor advertising usage and penetration in Lagos state has

recorded impressive changes towards increased user-engagement and value-appreciation,

growing in stature and relevance. In the face of new insight and emerging trend, one can say this

media sector’s peculiarity has been its staying power over the years. However, this staying power

is presently over-stretched. As advertising media platform, outdoor advertising has drawn on its

traditional characteristics of ubiquitous presence, out-of-home engagement, obtrusive posture

and relative low cost on the basis of reach and opportunity to see (Lafferty, 2013).

Page 4: Emerging trends in outdoor advertising in lagos state

Billboard advertising is a traditional out of home (outdoor) advertising format in Lagos state, but

there has been significant growth in digital out of home advertising (billboards and place-based

networks) in recent years. Traditional roadside billboards and posters remain the predominant

form of outdoor advertising in Lagos state with 66 percent of total annual revenue of outdoor

advertising. Today, billboard revenue is 53 percent local ads, 38 percent national ads, and 9

percent public service ads (Lafferty, 2013).

Street furniture is another emerging outdoor advertising taking over Lagos state. Street furniture

is made up of formats such as bus shelters, newsracks, small kiosks, street, internal/external

shopping centres, illuminated street lamp poles signs and phone booth/centre advertising. This

form of outdoor advertising is mainly seen in urban centres. Additionally, this form of

advertising provides benefits to communities, as companies and organizations are often

responsible for building and maintaining the shelters people use while waiting for the bus.

Transit advertising is typically advertising placed on anything which moves, such as buses,

subway advertising, truckside, food trucks, and taxis, but also includes fixed static and electronic

advertising at bus stations and platforms. This is another outdoor advertising platform that has

emerged in Lagos state in recent years. Airport advertising, which helps businesses address an

audience while travelling, is also included in this category. Municipalities often accept this form

of advertising, as it provides revenue to city and port authorities (Baek and King, 2011).

However, the cost of these outdoor advertising comes with huge challenges as well as very high

cost. The bare-face cost profile of an average outdoor media company includes:

(1) Personnel cost

(2) Site rental

Page 5: Emerging trends in outdoor advertising in lagos state

(3) Construction of boards and display panels

(4) Maintenance of sites and hoardings

(5) Provision of securities for displays and hoardings

(6) Fees and dues to regulatory authorities

(7) Dues to local government authorities.

Now, these are frontal costs. The drive for innovation is adding massive cost to practitioners’

operating expenses. Some of the large size digital display boards in Lagos and Abuja costs well

over N200 million each. If outdoor advertising media must enhance its value aggregate and

relevance, investment in technology as seen with the new digital display boards is the way to go.

Funds for such investment are not ordinarily available to a larger population of corporate outdoor

advertising service providers. Those better positioned financially go into huge borrowing from

the banks at monumental cost, while many others have had to quit the business entirely (Lafferty,

2013).

CREATIVE APPEAL

Outdoor advertising adds to the richness of local environment whether integrated into city

streetscapes or strategically placed along highways, outdoor media not only moves products it

tells a story.

Advertisers should seek new method of outdoor media which captivates residents and visitors of

Lagos state

Page 6: Emerging trends in outdoor advertising in lagos state

Many international Cities such as Paris, London, Tokyo and New York encourage both creative

application from building wraps to multidimensional digital displays and talking billboards.

INNOVATION

The World of outdoor media display is continually changing with companies investing more in

innovation and new technologies.

Improvement in print productions and lightning have already enhanced the appeal of the outdoor

medium as has new digital technology, 3D imaginary and fibre optics.

Computer imaging, multi-dimensional digital screen and interactive panels are just some of the

examples of the options now available to advertisers and creative agencies.

Better tracking systems and the ability to change advertisements with wireless technology are

also on the agenda.

BETTER DESIGN

Significant advances should be made around the structural design of outdoor media as companies

invest more capital to improve their quality.

The investment should enhance the safety and aesthetics of outdoor structures,many of which

also serves as community amenities, such as pedestrian bridges, bus-shelters and street lamp

poles.

Many outdoor operators should work with Architects and designers to integrate their structures

with the surrounding environments.

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The  growth  indices  proven  upon  outdoor  advertising  business  and  practice  are  open  to  

common  observation.    There  is  a  clear  index  of  local  presence  of  global  and  innovative  outdoor  

advertising  products  in  Nigeria  and  a  huge  upscale  in  the  level  of  professionalism  in  the  quality  

of  service  delivery  within  the  industry  today  which  Is  due  to  the  existence  of  the  state  

regulatory  outdoor  agency  and  other  professional  and    association  bodies.  

The  out  of  home  industry  in  Nigeria  particular  the  Lagos  metropolis  as  being  the  commercial  

nerve  of  the  country  has  been  grasping  huge  amount  of  funds  which  has  been  receiving  critical  

attention,  according  to  Mediafacts  2010,  an  annual  publication  of  MediaReach  OMD,  a  media  

independent  agency  in  Nigeria  recent  survey  shows  that  a  whooping  N100  billion  was  spent  on  

outdoor  advertising  in  2010.  

This  figure  represents  a  7.3%  increase  over  the  amount  spent  in  2009,  which  saw  about  N90  

billion  invested  into  outdoor  advertising,  mostly  in  above  the  line  advertising  (ATL)  activities.  

ATL  advertising  includes  television,  radio,  outdoor,  and  press  advertisements.  

The  telecommunications  industry  which  is  the  biggest  client  for  the  outdoor  agencies  in  Nigeria  

spent  the  highest  on  ATL  advertising  as  in  2009  having  recorded  over  N16  billion  of  ad  spend.  

MTN  Nigeria  was  top  in  ad  spend  with  N7.145  billion,  followed  by  Globacom,  which  spent  

N4.485  billion  for  advertisements  in  2010,  while  Etisalat  Nigeria  and  Airtel  Nigeria  spent  N2.489  

billion  and  N2.126  billion  respectively  and  the  huge  proportion  of  this  went  to  outdoor  and  

television  

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REGULATION OF OUTDOOR ADVERTISING IN LAGOS STATE

The Lagos State Signage and Advertisement Agency (LASAA), is the regulatory body for

outdoor advertisement in Lagos state. LASAA was established by the Lagos State Structures for

Signage and Advertisement Agency Law, 2006 and the Amendment is responsible for regulating

and controlling outdoor advertising and signage displays in Lagos State. Lagos State Signage and

Advertisement Agency is responsible for the management, regulation and control of the signage

and outdoor advertising environment in Lagos State. By implication, this makes LASAA

responsible for managing all forms of signage and outdoor branding opportunities in the state.

The agency has been known to embarke on the implementation of a “Streetscape Optimization

Process and System” (SOPS) for all facets of the City’s streetscape, including, signage of all

forms, outdoor advertising, and street furniture within the Lagos State boundaries. From

LASAA’s view, outdoor advertising provides direct community benefits, funding basic

infrastructure such as bus shelters, pedestrian road bridges, illumination of street lamp poles, tree

planting and landscaping project as well as raising awareness for important public campaigns. In

this wise, LASAA is involved in the provision of infrastructures which promotes good

advertisements. This includes Street lights, Bus shelters and so on. The street light advertisement

project, for example, guarantees illumination on our major roads 24 hours a day, 7 days a week,

365 days a year, creating the first impression of your business, telling people who you are, where

you are and what you offer Revenues generated from such advertisement will support the

maintenance of such streetlight lamp poles.

Page 9: Emerging trends in outdoor advertising in lagos state

Overall, the constitutional role of LASAA includes:

• Control outdoor structures to be used for signage and advertisements

• Issue licenses and permits for the construction and placement of outdoor structures in any

part of the State

• Protect the environment from potential adverse impact from visual blights

• Control the number, size and location of outdoor structures;

• Ensure that outdoor structures are soundly and carefully designed, erected, modified,

maintained or removed when no longer in use to avoid potential damages to lives and

property

• Ensure that outdoor structures are compatible with surrounding land uses and

environment and further ensure the beatification of the immediate surrounding and

vicinity of the advertisement

• Control the pasting and display of posters on public structures and highways

• Organise the procedure to regulate the ownership and operation of outdoor structures for

the purpose of signage or advertisements under specific regulations as contained in this

law

• Reject, revoke or modify a permit if found to be in violation of any of the provisions of

this Law or the conditions for its grant

• Prepare and keep all records related to the issuance and denial of outdoor structures

permit as well as appropriate general records;

• Monitor and inspect through its Monitoring Unit any outdoor structure and verify its

compliance with the Law; and

Page 10: Emerging trends in outdoor advertising in lagos state

• Establish a data-base of all the outdoor structures used for signage and advertisement,

their owners and operators as well as their location and the reason for the operation

Signage promotes the excellence in a brand, it creates an indelible mark on the minds of

consumers. Visafone, Coca-Cola, Globacom Sony, Guiness, Airtel, GTB, MTN Nigeria

amongst others are brand synonymous with success and quality. Hence the need for every

business to attain such enviable profile with their brand and logos cannot be underestimated.

We hope everyone supports and endorses the vision shown by LASAA which we strongly

believe will see the outdoor and signage industry continue to excel.

Page 11: Emerging trends in outdoor advertising in lagos state

REFERENCES

Baek, T.H., and King, K.W. (2011). Exploring the consequences of brand credibility in services.

Journal of Services Marketing. Vol. 25, No. 4, pp. 260–272.

Lafferty, B. A. (2013). The relevance of fit in a cause-brand alliance when consumers evaluate

corporate credibility. Journal of Business Research. Vol. 60, pp. 447-453.

Latif, Abdul and Abideen, Zain (2011). Effects of Television Advertising on Children: A

Pakistani Perspective. European Journal of Economics, Finance and

Administrative Sciences, Issue, 30, pp. 38-49.

Saleem, Salman., Abideen, Zain Ul., & Latif, Abdul (2010). Few Determinants of Compulsive

Buying of Youth in Pakistan. European Journal of Social Sciences, Volume 17,

Number 4, pp. 521-535.

Tirmizi, M. A., Rehman, K. U., and Saif M. I. (2009). An Empirical Study of Consumer

Impulse Buying Behavior in Local Markets European. Journal of Scientific

Research, 28 (4), 522-532.

Wayne D. Hoyer, Deborah J. Macinnis and Pinaki Dasgupta (2008). Consumer Behavior.

Published by Biztantra.