Cross-track ads offer a fresh and flexible ad platform, and should shift outdoor into the mainstream. The launch of cross-track projection advertising at Euston Tube station has been a long time coming. Originally scheduled to undergo trials five years ago, it has faced numerous hurdles since, ranging from the bankruptcy of an original partner to the enormous logistical challenge of installing the system in the red-tape laden London Underground network.
CBS Outdoor, which is behind the format, in partnership with London Underground, is investing a substantial pounds 36m in digital development this year, the lion's share of which will be accounted for by the cinematic projection XTP system. Agencies believe it will not only be well worth the wait, but will also finally usher digital outdoor into the mainstream.
James Copley, director of client business at outdoor planning and buying specialist Kinetic, points out that a number of the issues CBS has faced have been out of its control. 'Installing 21st-century design and technology into 19th-century infrastructure is a huge feat and understandably it has taken a long time to get to this stage,' he says.
Agency estimates suggest that digital, including smaller networks such as screens in clubs, bars and retail outlets, represents just 5% of the outdoor market. Bill Wilson, operations director of the Outdoor Advertising Association (OAA), says that to date most digital outdoor media has been disparate and offered by entrepreneurs rather than media owners, meaning that the sector lacked gravitas. 'What we are seeing now is big companies such as CBS and JC-Decaux investing serious money in digital outdoor,' he adds.
Both Clear Channel and JCDecaux also consider digital to be an important revenue stream. 'Digital provides advertisers with a great deal of flexibility and enables them to change price points or stock options regularly,' says Jeremy Male, chief executive of JCDecaux UK and Northern Europe. The outdoor industry is in an exceptional position to benefit from digital technology, he adds. 'While the advent of digital technology is seen as a threat to most forms of traditional media, for us, it is a huge development with massive potential.'
Poster specialists have long been striving to steal ad revenue share from the print market, and sales executives at London newspapers will be watching developments extremely closely. Nicky Cheshire, sales director of digital at CBS Outdoor, says the system will bring incremental revenues to the market. 'Outdoor is often criticised for having long lead times, but digital outdoor will enable retail advertisers to promote last-minute deals in a genuine purchasing environment.'
Crucially, the flexibility of the system will enable advertisers to change their messages swiftly and adapt copy to reflect latest promotions or current events. It also presents agencies with the opportunity to develop more creative outdoor executions.
Indeed, specialist creative agencies have already embraced the potential for creativity within the medium, according to Kinetic's Copley. 'Clients were impressed with the prototype, and the opportunity to create animations and moving images are a clear positive.'
The average dwell-time on a platform is three-and-a-half minutes; agencies say this means brands could capitalise on a variety of opportunities to create short-form entertainment. While a persistent criticism of outdoor has been that it doesn't provide an editorial environment, specialists believe the system will be able to tap into commuters' changing moods and is, therefore, an editorial environment in its own right.
Despite the long wait for the launch of XTP, according to agencies, advertisers have not turned their backs in it. Posterscope, which buys 43% of all UK outdoor advertising, claims there is a 'significant demand' for the technology. 'We have been talking to clients about this technology for some time and a range of advertisers are interested, as well as brands that want to be seen using the latest technology,' says deputy managing director Glen Wilson.
The technology behind cross-track projection is 'as good as it gets', he adds. 'The strength of the system is that it will appeal to premium advertisers, such as food brands, because of the quality of the images.'
Although Posterscope already has technology that can recognise whether someone looking at the execution is male or female or even whether they are smiling, the issue, according to Wilson, is whether consumers want it. 'Advertisers are understandably nervous about being seen to be intrusive,' he says. There is little doubt that the transition to digital has been far from smooth and each of three big playershas faced teething problems, from store managers turning off JCDecaux's Tesco TV to Clear Channel's digital screens that were unable to handle the British weather.
It is not surprising, then, that agencies agree that the growth of digital outdoor will be a voyage of discovery for all concerned, not least because there is no accepted trading model for selling digital outdoor. Specialists warn that a one-size fits-all model, that sells spots in a similar way to TV companies, is too simplistic.
Despite the setbacks, Natasha Murray, head of media at Media Planning Group, believes that CBS Outdoor has done a fantastic job of marketing digital outdoor. 'XTP could be a great case study for the entire industry, so everyone - even CBS Outdoor's competitors - want to see it succeed,' she says.DATA FILE – XTP
- What is XTP?The XTP system projects high-definition, cinema-quality images onto 'dry posters' opposite platforms inTube stations.- What does it offer advertisers?CBS Outdoor runs all its digital screens, including the digital escalator panels, from a remote network.This means advertisers can change content, such as products and prices, to suit different times of day.- Where can I see it in action?The system is currently being trialled by CBS at Euston Tube station; the company plans to have 2000 digital screens up and running by the end of next year.- How much does it cost?CBS is investing pounds 36m in digital this year, most of it in XTP. It has not discussed rates with agencies yet, but there are no plans to demand that advertisers sign up for long periods.
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