Thursday, November 12, 2009

Digital out of home growing

When Schering-Plough, the pharmaceutical/package-goods giant behind brands like Claritin, Dr. Scholl's and Coppertone, sought to move $8 million to $10 million of its $372 million TV ad budget into digital out of home earlier this year, vendors were eager to accommodate them.

In what is believed to be the fledgling medium's biggest dedicated ad buy, Schering-Plough and its media agency, Havas' MPG, and its out-of-home division, Chrysalis, met with more than 30 member companies of the Out of Home Video Advertising Bureau in the spring to discuss which networks would be the best demographic and creative fit for seven of its portfolio brands. Participating brands in the digital out-of-home buy were Claritin Liqui-Gels, Claritin For Kids, Dr. Scholl's for Her, Dr. Scholl's Massaging Gels, Tinactin Chill, Lotrimin Ultra and Dr. Scholl's Pain Relief.
Digital out-of-home -- an industry that includes everything from taxi TVs and in-store retail networks to digital panels at malls -- has long been touted for its promise as an ad medium but has shown little signs of earning a full-blown commitment from marketers. Aside from cinema, which has positioned itself as the most seamless way for marketers to shift their TV budgets into alternative venues with comparable scale, many networks are too fragmented to accommodate a TV-equivalent buy on their own.

Although $8 million to $10 million may seem like a drop in the bucket for a brand like Claritin, which spent nearly $150 million on TV in 2008, according to TNS Media Intelligence, it's an investment necessary for digital out-of-home to meet the growth patterns projected by PQ Media in a new report issued this week on spending in the medium from 2009 to 2014.

digital out of home

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