News flash: While you find new ways to engage, provide safe and social distancing solutions for your travelers, guests or customers, this is the perfect time to rethink your marketing and advertising strategy. Over the last two years, many of our customers have implemented omnichannel tools such as Kiosks, Mobile and Digital Signage and I realized that there were a lot of questions about how to set up these programs.
In this blog I will share some information and ideas on the topic, for a more comprehensive layout of advertising packages, rates and strategy feel free to reach out or contact our partner Miles Media, they have been instrumental and working with us on these programs. Here are the topics I will cover high-level for us today:
- How to transition from traditional media to digital (this is especially important as we see a decrease in paper usage or a desire not to touch racks of brochures and visitor guides)
- New ways of advertising across of omnichannel Kiosks, Mobile & Digital Signage
- Building an advertising package, how to get new members and build a complete value package to keep them
The decision to scale back on print is often driven by the need to cut costs for immediate financial survival. A better approach is to make planned, proactive decisions about downscaling print that enable a long-term digital future, suggests a recent report from the American Press Institute.
Here are some key things to consider when starting to move investment from traditional to digital. The strategy includes:
- Communicating to advertisers that they will get the same amount of company information but with a broader reach and scope
- Remind them of the overall value they get from membership and new advertising opportunities. For example, offers and coupons that can be posted throughout the website, social channels and through your digital channels giving them 3x value.
- Emphasizing the value of the guide or paper and how it will play into moving toward a more balanced progressive approach.
- Show them examples of how their ads will look on traditional and then through each channel, so they get the complete impact.
- Show them real analytics that can prove impression rates but also the ability to show click throughs and direct engagement on how many times their ad was requested or clicked on weekly
- Simplifying pricing models across each channel, you can look at bundling packages in Silver, Gold and Platinum programs, or to get started, give them access to all your channels at an introductory rate.
Building an Advertising plan and program ideas and suggestions
- Omnichannel differences
- Web- easy to stat total traffic numbers, and how you are marketing the media to drive traffic
- Mobile- if Native app, number of downloads, notification services and any tech used to drive engagement (Conversions)
- Kiosk- an interactive digital billboard, connect with visuals and provide ways to touch to engage to calls to action (impressions and conversions)
- Digital Signage- billboards, for multi-ad solutions providing ways to engage small and large advertisers (impressions)
How to take these channels and build a pricing strategy:
- Web– You can chargeX dollars per month, per ad, with X being equal to your daily visitors count divided by ten. So, if you get 500 visitors per day, you can expect to make $50 per banner ad. There are many conditions that can change this calculation.
- Mobile – The averageCPM across all Android devices is $2, and it’s $5 for all iOS hardware. The average CPM for a mobile interstitial ad in 2018 was $3.50.
- Kiosk – Combination of CPM and Impression, use it like you would digital signage below with the key element being CPM of clickthrough in mobile.
- Digital Signage is all impression based, and one of the oldest forms of advertising if you look at signs and billboards, its highly effective to connect with consumers and a key part of any advertising strategy.
- How to set pricing
- Total cost of advertising purchase = CPM x (gross impressions /1000)
- For example, if you decide a competitive CPM is $2 and you know that your audience is 996,000 people/month, then:
- Total cost of advertising purchase = $2 x (996,000 / 1000)
- Total cost of advertising purchase = $2 x 996
- $2 x 996 = $1992/month
- From a rate card perspective, then, you would start with $1,992 per month per board.
- How to set pricing
Now that you have an understanding of advertising through omnichannel and some high-level ideas of how to price your new strategy. Here are key recommendations, note this is not just my opinion but feedback from customers that have created successful advertising programs on average that do $350k and above on current day advertising. Most of our customers with the integration of digital increase their advertising revenue numbers by 30%, not only paying for most of the investment within first year but building a sustainable crowd-pleasing solution loved by customers and advertisers alike.
- Review all your current traditional touch points and start integrating your digital strategy to augment and likely replace paper & guides as customer receiving information decreases
- Consider how to take a blended advertising plan to your stakeholders to help them connect with visitors, show them you are thinking of the future of connection and engagement
- Bundled packages and looking at partnership models, you will see a correlation between partner-based organizations and successful advertising programs, that’s because its easy to show and for stakeholders to perceive value
- Consider looking at moving to member or partner based as you get deeper into advertising, it’s a great way to ensure consistent revenue, and create value packages for members that invest in you
- Let’s face it most local businesses struggle with advertising, they need experts in destination and occupancy numbers, areas of high traffic and visitor trends to put them in the right place
- Digital provides some huge advantages for all, it allows you to sell more ads and run more adds consecutively, it provides a fair shake for large and small advertisers give more level playing field, it provides true brand consistency throughout channels
In conclusion, we all know digital will be the future. With pandemics will come decrease in paper and other things handed from human to human. So, consider the trend and get ahead of it. As you can tell creating a pricing and strategy isn’t that difficult and investing in technology if done properly will pay for itself time and time again. For more information on what others are doing and how you can implement strategies to complement your organization, call us at 1833-300-6664 or email us at [email protected] and we’ll be happy to share and help in any way we can.