Thursday, August 9, 2012

No. 584: Establishing standards to measure how much outdoor advertising is effective (August 9, 2012)

Technology:
According to an industrial source, Japan’s outdoor advertising market decreased 6.8% from the previous year to about 290 billion yen in 2011. This is partly because ad agencies cannot easily show advertisers how much their ads are effective. A total of 54 ad agencies including Dentsu and Hakuhodo established standards to measure how much outdoor ads are effective. With the standards, they can calculate the rate of visual recognition that shows how many people see the content of outdoor billboards and explain how much outdoor ads are effective to advertisers. They developed a method to calculate the rate of visual recognition for such condition as location of the billboard and angle from which people see the billboard. They wish to stimulate the outdoor advertising market through industry-wide activities.

They calculate the rate of visual recognition using five conditions: area of the billboard, location and angle of the billboard, height of the billboard, existence of competing billboards, and degree of the illumination of the billboard. Naturally, a billboard in an intersection where many people wait for the green signal has a high score. A billboard in the Shibuya intersection that is one of the most crowded intersections in Tokyo is estimated to have 390,000 viewers per week. In other crowded areas inside Tokyo, survey on the number of pedestrians is under way. In the standards, the highest score point is the intersection of both ways, and the second highest is the corner cutoff of an intersection. The third is the intersection of one way, followed by the area for pedestrians other than intersection and the area not for pedestrians other than intersection.

The billboards in the most crowded intersection in Tokyo. They have 390,000 viewers per week. A group of ad agencies established standards to measure how much each of the billboards is effective to stimulate the outdoor advertising business. 



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