Viewpoint - Kinetic's definitive insight into the UK Out of Home industry

viewpoint11A definitive insight into the

UK Out of Home industry

the role of technology in Out of Home Nick Mawditt on the interactive future

igniting creativity Fuel’s five trends in innovation to keep an eye on in 2012

innovations A showcase of the latest innovative and effective campaigns from around the UK

ahead of the curveOllie Bennett-Coles with a round up of the recent trends shaping the world we live in

introduction

welcome to our latest viewpoint newsletter – the innovation and technology issue.

Published biannually, Viewpoint is Kinetic’s perspective on current industry developments, trends and innovations in the UK.

In this issue, we investigate how technology and innovation are having a far reaching effect on the world we live in and what this means for Out of Home. We discuss the latest developments affecting communication and mobile consumers both in the UK and globally, and how new technologies are changing the face of Out of Home, deepening the relationship between brands and consumers.

Our recent Kinetic Panel research has highlighted the changing behaviour of people on the move, with an increased willingness of consumers to interact with digital panels, and high levels of use and awareness of the mobiletechnologies that can be used in conjunction with Out of Home advertising.

This enthusiasm for interaction with brands gives huge opportunity for campaigns and positive associations with brands, the relationship continues with the consumers who have registered interest, resulting in a tangible return on investment.

2012 looks set to be the year that more advertisers will be brave enough to take advantage of the potential for creativity and interactivity in Out of Home.

02

The Out of Home industry in the UK is characterised by a long, creatively prosperous history and has adapted well to change in recent years through the application of high investment levels from media owners and acts to be more accountable, measurable and flexible. It is still delivering all of these elements to satisfy client demand and must now deal with how to effectively embrace technology as consumers get smarter and technology provides a fully interactive experience.

The medium now finds itself at a potential crossroads. Digital screens are being deployed in increasing numbers and, as our report into the Future of Out of Home Media in the UK reveals, this investment will increase the sector’s market share. Kinetic forecasts an even more significant shift in the relationship between media and consumers outside the home. Technology will over the next ten years, in effect, create a new medium in urban environments and a far closer relationship between Out of Home and consumers.

the role of technology is transforming Out of Home

How the relationship between the consumer and technology is impacting the future of Out of Home in the UK

A definitive insight into the UK Out of Home industry

www.kineticww.com

Nick Mawditt global director of insight and [email protected]

The smartphone will help deliver real change. Media observers have been predicting a “year of the mobile” for some time; many agree that 2012 could be that year, but perhaps not in the way we envisaged. With smartphone penetration dominant and our behaviour with this technology embracing downloads, location-setting and tapping to pay/travel, this is really opening up opportunities for brands and media content owners to take communication into a new dimension.

An interactive futureThe nexus between smart device, interactive technology, location and brand message will likely create a new

effective route to consumers while they are shopping, travelling or enjoying leisure time. Interactivity will become a real driver for the medium and its mobile revolution. Evidence suggests technologies are superseding text responses and, as smartphone penetration and capabilities evolve together, the real opportunity for mobile and Out of Home interactivity intensifies.

Kinetic’s research has found that already, half of consumers say they would interact with screens given the right incentive. This helps point towards the creation of a very different form of Out of Home advertising over

the next decade; a new targeted medium that will complement the media’s broadcast reach will broaden the communication offering to advertisers and engage directly with consumers in ways that are directly relevant to their lifestyles and the environments they’re in.

The prospect of Google Wallet and an iPhone 5 equipped with NFC technology – coupled with a burgeoning smartphone market – mean the barriers to a dynamic new relationship between poster and handset could be swept away. NFC is widely expected to cause a behavioural shift in terms of the way consumers buy things and download content to mobile devices while out and about. The action of tapping your device to transact could, in the coming years, become second nature.

We are in the midst of some truly insightful experimentation with the medium that will inform the future and identify the path to success for brands engaging the mobile consumer.

With NFC likely to drive more spontaneous retail action in the near future, the opportunity to ride this wave and create proximity campaigns everywhere out of the home are enormous.

Half of consumers say they would interact with screens given the right incentive.

04

the role of technology in Out of Home continued

LocationWe also believe that geo-location based social media such as those provided by Facebook and Foursquare are set to become hugely significant. Our recent Kinetic panel research found half of UK consumers are aware of location services and 45% say that location-based social media already affects their decision-making while out and about, encouraging them to explore their surroundings more.

The study points to growing demand for location-based communications, with 43% saying they are likely to use geo-location information technology more in the future; half said they would use them to meet people, while 26% would make recommendations as well as seek them out for destinations via mobile social media.

Such services will help increase the popularity of mobile marketing where communications are relevant to a person’s current location. In the future, 44% expect to use location services to access promotional offers relevant to

where they are at the time, while a fifth would find location-relevant mobile phone advertising acceptable, soaring to half in the 35-44 age group.

A promotion or invitation to view content could, for example, be driven via Facebook Places and be redeemable only in that immediate environment. Alternatively, the poster could tell passers-by that a virtual store was available to view with purchases 25% off, but only in a 25 metre range of that panel and on that day. The traditional poster site, digital screen or experiential presence are truly coming to life and bringing technology and Out of Home together.

Here and nowThe growth of digital OOH has helped this shift in the possibilities of Out of Home. We expect digital revenues to grow to around 25% of the medium by 2020, but more than 100,000 digital screens will be visible across the country, with many screens in shopping malls, high streets, leisure environments and in transport hubs linked to the internet and

capable of interacting with mobile phones. More than 20,000 retail mall and point of sale sites will be deployed nationwide, but effectively every site will have smartphone and interactive capability as consumers and technology converge to deliver more flexible and two-way opportunities.

There is additional appetite for interaction and content download across news and television, travel information, film and games clips, even smartphone apps. Digital OOH can deliver live information in a really interesting way and people expect digital posters to be smarter than they currently are, because they are used to dealing with smart screens in their pocket; smartphone technology that continues to develop and evolve. Digital OOH is being transformed from a niche opportunity into a distinct medium with a national reach in a very short space of time. There are opportunities to harness the immediacy of this technology in a way that is very similar to online and which is much closer to the trading nuts and bolts of a client’s business.


www.kineticww.com

Despite gender and gesture recognition emerging as norms in some campaigns, the widespread deployment of screens capable of recognising individuals is very unlikely on any timescale. However, we expect increasing use of screens that can drive different types of consumer interaction as digital enhances environments and creates highly engaging visual brand experiences, where interaction can exist where relevant.

Technology now has the potential to transform the relationship in the short to medium term. Daypart, retail proximity and real-time planning will revolutionise the relationship between Out of Home and advertisers. Digital screens in established Out of Home locations will double and, far from being a static home-based form of communications, social media will increasingly influence choices and behaviour in Out of Home environments, bringing location and redemption opportunities closer to the point of action.

As we go into 2012, and reflect on what has been a challenging year for all media in the UK, we can clearly see that advertisers have embraced the philosophy of change and many mainstream brands have used the medium to drive interactive customer experiences. When you get the likes of Foster’s, IBM, Heineken, British Airways,

Ford and Lynx pushing the boundaries of the medium, showcasing great digital interaction and using augmented reality and social media to amplify the messaging, it shows we’re in a great place.

With digital investment now exceeding £200 million, the media owners are creating great environments for brand communication to thrive. There are more regional and London digital offerings,more creative-led opportunities in bars, transport and retail environments and on the streets of London and other cities and that are attracting huge audiences that will be significantly amplified across the Olympic and Diamond Jubilee Year.

Clear Channel, JCDecaux and Primesight massively invested along with Ocean, Outdoor Plus, MediaCo, Amscreen, Signature and others to create an opportunity that is strongly engaging the consumer and delivering new exciting and interactive opportunities and long term brand association.

Digital OOH is being transformed from a niche opportunity into a distinct medium with national reach in a very short space of time.

06


Kinetic’s recently launched Fuel division helps to identify the new technologies and ideas for Out of Home campaigns that are most relevant to a client and its objectives, amplifying a brand story and helping to connect to consumers on a personal level.

Fuel’s five trends to watch in 2012

1. Interactivity We expect to see an increase in the use of camera-based technologies in 2012. Content should be tailored to gender, mood and gesture for maximum engagement.

2. Live, dynamic contentDigital OOH provides opportunity for streaming targeted, time-senstive, entertaining live feeds. Grand Visual’s OpenLoop technology enables advertisers to update content remotely, no matter how many different formats and media owners are involved in a campaign. This presents opportunity to push live pricing and location specific content.

3. Content ‘on the move’Live brand experiences put the consumer at the heart of the campaign. This trend, seen in 2011’s Lynx Angel’s campaign and the Colgate ‘share your smile’ campaign (pictured overleaf), is set to grow in 2012. Consumers are able to share content and their experiences in real time.

4. GamificationInteractive challenges and competitions are gaining popularity. Consumers want to be entertained, wherever they are, and opportunities for gaming in Out of Home, including through mobile, are coming into the mainstream. Gamification offers strong connection to social media, and is often used to give vouchers as rewards.

5. Mobile interactionFrom QR codes to visual browsing, consumers can now access exclusive content by interacting with Out of Home sites. 2012 will see brands starting to experiment more with NFC technology.

See overleaf for a selection of recent innovative campaigns.

Rebecca Bainbridge head of [email protected]

igniting creativitythe role of innovation in Out of Home

Creating a memorable campaign that cuts through the competition is key if your brand communication is to have an effect

www.kineticww.com

Campaigns left to right top to bottomHarry Potter user generated picture mosaic, Ford, Happy Feet, Colgate.

08


ahead of the curve

A roundup from our digital series on global trends in technology and innovation helping to shape the Out of Home environment and the world we live in

As the speed of technological and social change continues apace, the advertising industry has been quick to embrace the latest developments in technology to connect with an increasingly sophisticated and discerning consumer. However, the challenge for the industry doesn’t solely centre on adapting to the proliferation and sophistication of technology; it’s about understanding how we consume media and how we address consumer mindset around technology.

The media we use has made the world around us more fractured and less linear. As people move through their day switching between media touchpoints and environments, the way brands vie for our attention has changed. This is both an opportunity and a challenge for the advertiser and the Out of Home industry.

A digital worldOne such way in which advertisers continue to use technology, is to structure their message around content and the platform that allows them to share that content with the consumer. The dual emergence of social media and the smartphone continues to shape our lives and the way we consume media. The synergy with Out of Home media has enriched the Outdoor experience but in certain

cases such as with TV, current thinking points to a migration of our habits from traditional media. In the case of TV viewing, there has been an emerging migration to mobile video with online TV viewing growing by 50% since 2009 according to Ofcom. In fact, the divergence between traditional TV viewing and technology continues apace with Kinetic’s latest panel revealing that tablet penetration has already reached 13%, with 41% planning to acquire the much sought after technology in the post-Christmas sales.

The ways in which this technology is used by brands continues to evolve, exemplified by the trend of gamification. A strong example of this empowering and involving the consumer into the fabric of the brand is the Domino’s Pizza Hero iPad app, which simulates the experience of making a pizza from scratch and allows the customer to order their own handiwork on Domino’s own website but also encourages customers to compete against each other and share their scores on Facebook and Twitter.

Brands have also tapped into technology to enrich offline as well as online retail shopping experiences and if you happen to visit a Walmart store in the near future, you’ll be able to make use of their very own Walmart social network which will give

Ollie Bennett-Colesglobal marketing [email protected]

www.kineticww.com

customers the opportunity to ask fellow shoppers in-store questions relating to products and special offers.

Mobile commerceThe increasing technological mobility of the consumer has led to a boom in mobile commerce which is being fostered by the global rise of the smartphone. Current research points to the fact that we’re increasingly ready to make a purchase decision when out of the home with 140 million of us globally processing payments through our mobile devices in 2011.* This trend is echoed by mobile adspend forecasts from eMarketer that reveal that in the US it has risen by 65% year on year to hit $1.23bn in 2011 and is estimated to reach a staggering $4.4bn by 2015.

Out of Home has embraced the advertiser confidence in mobile as two key interaction technologies have emerged in recent times; QR codes and Near Field Communication or NFC. This technology allows customers and commuters to save product information directly from Out of Home adverts allowing them to browse and buy at a more convenient time. Even in a WiFi disabled environment the synergy between smartphone technology and Out of Home media is a compelling one.

Commercial benefits Brands are continuing to see the commercial benefits in investing in ways of communicating via smartphones and new technologies such as Augmented Reality have given them creative channels of interaction. The Augmented Reality app market itself is expected to grow to $5151.74m by 2016.**

Future technologyGlimpses into the advances in technology show us that companies are investing in ways of making the world in which we live an even more flexible and evermore interactive one. The Mobile Display Division of Samsung recently showcased their vision for future mobile

communication with the Samsung Flexible AMOLED. The device is envisioned to amalgamate an e-reader, camera, video chat system and an interpreter all in one device that will also show 3D images through an augmented reality system.

However, it’s not just mobile phone manufactures who have been quick to harness smartphone advancement as car manufacturer Ford has unveiled an augmented reality app that allows smartphone users to test drive the new Ford Fusion 2013. Consumers will trigger the experience by taking a photo of the Ford logo which will then immerse them in driving environments and videos to learn about the design and features of the all-new Fusion.

ahead of the curve continued

10

Domino’s Pizza Hero iPad app – an example of gamification being used to enmesh the consumer into the world of the brand

OOH innovationsOut of Home media continues to be at the vanguard of this burgeoning technological evolution as media owners the world over continue to create innovative solutions for brands through access to digital interaction in areas of dwell time and brandrelevance, bringing the path to purchase to new environments and key touchpoints in the consumers day. In Singapore, for example, IKEA transformed a Clear Channel bus shelter into an interactive living room complete with access to IKEA’s 2012 catalogue. In Helsinki a busy tram stop has become a way of booking a table at the nearby Ravintola Lämpö restaurant by using the touch-screen to enter their phone number and from where they can then browse the menu.

The environments that make up our daily routines are being used in increasingly creative ways in order tocut through the deluge of advertising that surrounds us. Hard-working Shanghai commuters who may have been too busy to notice TV ads or print campaigns were recently treated to an OOH experience with a difference. As part of Adidas’s ‘Don’t Waste Your Wait’ campaign, commuters were encouraged to take out their frustrations on branded punchbags installed on platforms on the Shanghai underground.

The stage is setAs the perfect storm of technology advancements and abundance, media fragmentation and increased consumer sophistication build to a

crescendo, our lives continue to be shaped by the technology and environments around us, granting us and brands the opportunity to experience the world like we’ve never done so before. There have never been more challenges but at the same time opportunities for our industry.

For more insights and innovations from Kinetic’s Ahead of the Curve series, follow @kineticww on Twitter.

Out of Home media continues to be at the vanguard of this burgeoning technological evolution.


Sources:

*techcrunch

**marketandmarket research, November 2011

www.kineticww.com

Foster’s launched premium lager Gold with an interactive, digital bus shelter campaign. Foster’s regular characters, Brad and Dan, invited people to a party. The screen took a photo of a user’s face and allowed them to create a digital outfit for their night out. If Brad and Dan approved, the user could then share the ensemble on Facebook.

Over the four-week period the campaign ran, 22,794 photos were taken. The interactive shelters demonstrated how interactive Out of Home can work with social media, creating a positive and memorable association with the brand.

In one of the first campaigns of its kind, Argos brought an exclusive selection of its online range to commuters at Paddington and Waterloo stations shortly before Christmas 2011. A giant gift box enabled time-pressed Londoners to browse photos of gifts, then scan a QR code beneath each chosen product to reserve and collect later that day from one of 750 Argos stores.

Of those engaging with the site, 9% reserved a product. The Argos Gift Box succeeded in changing the perception of Argos, with 3 of the 4 people reserving products stating they would not otherwise have purchased from Argos.

Heineken, one of the official partners for the UEFA Champions League, used tactical digital formats for three days in the lead up to, and on the day of the final.

In a media first, Heineken was the first client to use digital Out of Home to visualise Twitter feeds. Transvision screens were updated in real-time and viewers were encouraged to tag their own tweets with given hashtag terms, to help ‘feed the tweet map’. The screens showed a map with Heineken bottles, their size related to the % of Tweets coming from each country they hovered over. 1.75 million people fed the map in just 3 days.

Interactive 6sheets launch Foster’s Gold

Interactive Argos store pops up at Paddington

Heineken maps global Tweets


innovations12

kinetic 121-141 Westbourne Terrace London W2 6JR

t +44 (0)20 7544 4600 f +44 (0)20 7544 4601 www.kineticww.com

Documents

Viewpoint - Kinetic's definitive insight into the UK Out of Home industry