Out of Home Will Reign Supreme in the Cookieless Future. An Interview with Chris Grosso, CEO of Intersection

Chris Grosso, the new Chief Executive Officer of Intersection, understands the role of urban OOH as an important component to an advertising campaign. 

His company, Intersection, “is an experience driven, out of home media technology company  focused on bringing programming, consumer amenities and advertising to cities,” he explained and added, “We are aiming to elevate the urban experience for consumers and advertisers.” His company, which reaches the 15 biggest cities in the U.S., offers a range of consumer services such as free internet access, such as through LinkNYC, real time information and way-finding products.

A Changing Media Ecosystem Based on Greater Privacy

In an emerging world of IDFA and the prospect of a cookieless future, there will be some media platforms that can easily pivot to this new reality. Out of Home is one of them. The shift from consumer opt out to consumer opt in creates an opportunity for a more passive form of collecting consumer data coupled with a platform the offers premium content. “If you advertise on a premium publisher you know the audience you're getting. You know that the audience is going to be high quality. I think that's got benefits for publishers, because the publishers get the full value of the audiences and they don't have these ad tech companies as middlemen,” he explained and added, “The notion of content and context becomes much, much more valuable and publishers that can deliver that kind of audience are going to be in a really good position.”

Privacy looms large as a challenge for many companies but Grosso is unconcerned because when it comes
to out of home, “You don't need to know who that person is you just need to know that people who were by your screen showed up at the store. You don't need to know anything about those people other than that and that's a very privacy friendly way.”

Intersection’s Offering

Intersection positions itself as a publisher that can offer a range of compelling content such as that found on LinkNYC which offers weather, time, factoids, art, notices of local events, etc. In addition, the company can offer a point of purchase opportunity for advertisers. “Say you're a beer company and want to reach people who are going to bars. You could buy a digital out of home campaign on our screens on Friday nights, right around the bar. I don't need a cookie to be able to get that audience, I can just get that audience, where they are at a logical place in a logical time,” he noted.

And the sun-setting of cookies poses no problem and even offers a compelling point of difference for out of home, according to Grosso. “I can put ads in the drugstore, but I also can put ads on digital out of home screens or even static out of home screens right outside the drugstore and again that's a powerful context, so I think location and context become really important in a world where you can't try to use cookies to track that kind of audience,” he shared.

Intersection’s Measurement

Measurement deliverables for advertisers include both established currencies and strategic partnerships. “We rely on Geopath which is an audited set of metrics for the out of home industry,” for reach, frequency and impressions, Grosso explained. “Geopath is the currency that people buy and sell on. We found that it was a good baseline. But you have to enhance on top of it. So we’ve put together an ecosystem of partners that can build on top of what you get from Geopath,” which includes more demographics – the types of people who have seen the ads and what they do after exposure.

One example is StreetMetrics for exterior buses. “We sell advertising on 10,000 buses in the United States and using StreetMetrics provides digital style measurement in attribution based on the data they collect,” using the GPS from the bus to match to the data they collect to better understand the audience, he noted.

Looking Ahead for Out of Home and Intersection

For Grosso, the future is bright with possibilities. “Valuable premium audience with differentiated content is going to be really, really successful,” he began, “That's going to be true in the digital space and that's going to be true in the physical space.” He pointed out that the opportunities are there for both big and small companies. Big platforms like Facebook or Google, “will continue to be hugely successful because you have lots of data and big audiences that are highly engaged. If you're a specialized vertical publisher with good audience you're also going to be successful. The premium out of home companies that have assets that can reach hard to reach audiences with really good creative in contextual brand safe environments are also going to be hugely successful because so much advertising is targeted by location and without a cookie trying to find those people on a mobile phone, is going to be very hard, I can guarantee you.”

He sees that, “People are coming back to cities and going out frequently. Advertisers want to reach those folks at critical points throughout the day, so high quality out of home publishers are going to really thrive. Out of home will become a great way to add highly localized reach for any of these marketers because if they want to target locations or consumers who congregate and specific neighborhoods, the best way to do it has always been out of home, but now it'll be the only way to do it. Out of home will continue to be the most cost effective, privacy friendly and brand safe way, if you want to target a geography,” he concluded.

This article first appeared in www.MediaVillage.com

 

A New Twist on OOH. An Interview with Nathan Elliott of FrontRunner

The pandemic has left a pitted landscape for storefront businesses. Nathan Elliott, Founder FrontRunner, believes that his company can help fill the void. “According to the National Restaurant Association, 1 in 6 US eateries closed permanently or long-term in 2020. And according to a recent CoStar Group report, retail store closures last year resulted in 150 million square feet of available retail space. 

These closures, accelerated by COVID-19, have left an unprecedented number of landlords with vacant spaces to rent with limited renter interest,” he explained. His company has created a technology that turns empty window fronts into street level digital canvases for brands to engage with consumers.

Charlene Weisler: How does FrontRunner work?

Nathan Elliott: We connect with landlords to use their vacant windows to run consumer campaigns, providing new revenue sources while they secure new tenants. In turn, leading brands and advertisers gain access to large format window fronts in high traffic pedestrian corridors to deliver HD video content. Powered by a recent partnership with Lightbox OOH, to create Lightbox Unlimited, we work with array of brands including Warner Bros, Hidden Empire Group and Amazon Prime, advertising film trailers across North America using FrontRunner’s WindowFront technology. We call this Street Cinema.

Weisler:  What is your footprint and where do you expect to expand in the next few months?

Elliott: Our Canadian footprint includes Toronto and Vancouver. In the U.S., we are active in New York and LA with plans to expand to the other top DMAs in 2Q21. In New York, FrontRunner secured media licenses in Soho, Meatpacking, Flat Iron, Midtown, Tribeca, among other neighborhoods. In LA, the company is advertising along the famed Third Street Promenade in Santa Monica and is working closely with Smart City Labs to help bring Hollywood Blvd to life this month using the window tech.

Weisler: How has the pandemic impacted your business model?

Elliott: With Retail, the pandemic accelerated the closure of retail stores across the globe. In turn, landlords are looking for innovative solutions to drive new revenue streams and to make use of new age analytics in the interest of addressing the volume of blighted space. Our platform turns these empty spaces into destinations for passerby to consume large format video content, with many “instagrammable moments along the way.” We shine new light on a retail industry that was one of the hardest hit by the pandemic.  With Media, DOOH took a definite hit during 2020. Recognizing that media revenues would be impacted immensely, the company decided to focus on community health messaging at a time when the public was searching for answers.

We used the pandemic period to double down on R&D at a time when revenues were light, focusing on our audio tech stack allowing users to connect mobile devices with windows; enabling one-on-one audio experiences that are synced with content in-window. Additionally, we’ve developed a product that uses “Light Recognition Technology” on a user’s mobile device enabling them to interact with the window with their phones as a remote control. There has also been a democratization of QR codes with a heightened use during the pandemic. This has elevated DOOH experiences, taking users to promotions sites, special offers and more.

Weisler: Do you expect your business to change or evolve when the pandemic is over?

Elliott: Brands are being extremely innovative and resourceful in the OOH space. Most cities have gone through several stages of lock downs. While the return will take time, we are not taking our newfound freedom for granted. The public is more observant and available than it was before the pandemic and, as a result, they are freer to take in some of the brilliant creative executions that are taking place.

Weisler: How does the audio work?

Elliott: Digital out-of-home has been lacking a focus on the ability to engage additional senses beyond just sightlines. People are walking around with headsets and they haven’t been used in the out-of-home space. Our Flare tech connects users to an OOH display sending audio and binaural audio (recorded sounds using two microphones to create a more multidimensional and realistic effect) through a person’s headphones. It’s like virtual reality for our ears. We see the value in adding additional layers of sensory content. The more senses that can be engaged, the heightened a memory is. A prompt initiates the sound, but also a visual version of the out-of-home assets on a users’ screen without emitting more sound into an already bustling street. It elongates the impression beyond the dwell time you had at that installation and allows you to take the in-window media impression with you.

Weisler: What advice would you give an advertiser as to how to maximize the value of your offering?

Elliott: Location, location, location: With the volume of empty space, advertisers have some of the best retail properties on the planet to choose from. Sensory Appeal: adding audio and interactive functionality to campaign heightens memory and extends engagement time with the brand creative.   Video: Light and motion does wonders for engagement. Build or make creative with the window’s large format in mind. It’s a unique opportunity to engage passersby on an intimate level, drawing their interest in with smart creative.

Weisler: What advice would you give a landlord/storefront owner as to how to maximize?

Elliott: Retail is in the midst of the greatest transformation in memory. Our platform has shown that the purgatory period between tenants need not be a dark one. Turning windows into digital canvases draws attention to the space and adds vibrancy to the location and surrounding area. Activity fosters activity. While revenue may not be what they are used to from leasing of the full space, it’s a place-making technology that people can’t miss.  

This article first appeared in www.Mediapost.com

 

Vending During the Pandemic. Vengo

Marci Weisler (no relation), Chief Commercial Officer, Vengo Labs, has a challenging role to play during the pandemic. Her company, Vengo, positions itself in the out of home space with a network of over 1400 mini interactive digital vending machines at gyms, hotels, colleges and corporate locations in major DMAs. How is she able to maneuver when many of the venues are still closed or functioning at lower capacity? Where has Vengo been able to expand its base?

Charlene Weisler: What is Vengo's current distribution?  

Marci Weisler: Over recent weeks  Vengo expanded its footprint as the NYC MTA installed Vengos at multiple Subway stations (in Manhattan and the Bronx) offering PPE, including KN95 masks, gloves, and hand sanitizer. Those are in addition to the over 1,400 Vengo interactive digital kiosks that connect brands with consumers in the places they go: gyms, colleges, hotels, offices and retail, providing samples and other goods. We continue to expand as more locations want to offer PPE and find value in transitioning to touchless solutions in the coming months.

Charlene: Tell me about the pre-COVID state of the company's offerings - data, completions etc. 

Marci: The Vengo network grew significantly in 2019, offering data-driven product sampling, interactive DOOH media and unattended retail. Typical campaigns running on Vengo's network see over 70 seconds of consumer engagement time, up to 16% conversion and up to 33% lift in sales at retail from a sampling program.

Charlene: What has happened during the pandemic? 

Marci: Given that many of our retail locations closed temporarily in the first half of 2020, due to the pandemic, we used this time to adapt our strategy and expand our offerings. Rather than panic, Vengo recognized that consumer behavior in the post-COVID world will be very different, so we used this period to drive product development and new partnerships. First and foremost, we extended what we do on the kiosk to mobile -- creating the first end-to-end touchless sampling program. Now the consumer interacting with Vengo can use her own mobile phone to experience the content found on the Vengo screen, and then trigger the dispensing of the product from the machine. Brands, retailers and agencies are all very excited about this new enhancement.  We also now support PPE products with both dedicated kiosks like those in the NYC subway and through product additions at existing locations.

Charlene: How is the company pivoting and is this a short term or long-term pivot?   

Marci: Adding touchless is a long term extension of our business--it gives the consumer flexibility to interact with Vengo in the way that works best for them-- on the Vengo screen or their own screen, and gives the brands and retailers we work with additional touchpoints to connect with the consumer. Also, given the health-conscious focus right now, it provides a vital way for consumers to get the PPE they need, and immediately while in a transit station or at other locations. 

Charlene: How do you see the next several months playing out as businesses reopen?  

Marci: Change can be exciting when positioned for it.  As businesses reopen, our touchless s

olution for retail and sampling will roll out following the success we had with the MTA subways, where thousands of consumers have already taken advantage of kiosks over just two weeks.   Additionally, Vengo will expand its number of initiatives beyond just subway stations in the city, around the wider distribution of consumer PPE, so consumers feel safe in the places they go- with easy access to masks, wipes and sanitizer for sale and through sponsored programs.  

Charlene: Is your business varying by state and if so, what is the overview - impact of reopening, consumer confidence, fulfillment etc.?  

Marci: We are closely monitoring state's re-opening plans--and have seen locations begin to come back online over the last couple weeks. We are monitoring activity at the kiosks and will have better insight into consumer behavior in another few weeks.

Charlene: What data do you collect and how is it being interpreted during the pandemic?  

Marci: We are a data-driven marketing platform--so typically we collect lots of information -- from engagement to lead generation to sales lift on differing campaigns.  As locations open again, we will be able to track how attendance at locations and consumer engagement with campaigns look relative to pre-pandemic numbers.  

Charlene: Where do you see Vengo a year from today?   

Marci: In addition to creating a "new normal" in the interactive kiosk space during recent weeks, we see the pandemic driving more long term change in consumer behavior, and forcing an acceleration in retail and marketing innovation; as a result, Vengo will be a key player in the next wave of data-driven marketing.  By next year at this time Vengo will have greatly expanded its footprint--and will be playing an even bigger role in the sampling and DOOH media space-- both in-store and in other locations where people go every day.  Sampling, a key channel for so many marketers, can no longer be reliant on street teams and in-store reps giving away product to random passers-by. Vengo's touchless, data driven solution will enable meaningful data capture for lead generation, CRM and consumer survey information.

This article first appeared in www.Mediapost.com

The Impact of Pandemic Behaviors on Out of Home. An Interview with Mike Cooper, Global President and CEO, Rapport

Many aspects of our current lives are undergoing a transformation as habits developed to cope with the pandemic are altering otherwise ingrained behaviors. In some respects, this is especially so in media where thirst for information, entertainment, escape and confirmation is causing shifts. 

How permanent or landscape-altering are these shifts?  Mike Cooper, Global President and CEO for Rapport, offers some insights. Rapport is part of IPG Mediabrands focusing on Out-of-Home (OOH) media planning.

Charlene Weisler: How have consumer behaviors changed during the pandemic and how have they stayed the same?

Mike Cooper: I guess the first and obvious response, is that consumers are staying home, a huge, unprecedented and never before seen state of affairs. Couple this with an understandable sense of insecurity, holistically across a population, then people are going to spend less on things they don’t ‘need’, and indeed, the word ‘need’ becomes completely redefined, or returns to its actual meaning.

Therefore, the ‘need’ to buy groceries remains the same, lets avoid the pattern changes/ hoard mentality here which seems to be ebbing quickly, but the ‘need’ for a new pair of jeans, has vanished. Everyone is more cautious; therefore, the main body of the population will spend less.

We’ll likely see a renaissance of things as simple as cooking, Arts & Crafts and DIY projects too. Etsy and Pinterest have both reported huge YOY growth, and you would expect a long tail on this as consumers harness and build skills during this time. You may see a decrease in the consumer desire for Ikea furniture moving forward or things of the like. 

Weisler: How strong is brand loyalty now?

Cooper: It’s a strange concept, brand loyalty is a result of many things. A home keeper may be 100% loyal to washing liquid, as it does a better job than any other, therefore as a low-cost item, that ‘loyalty’ may ride this wave. However, the hedge-fund guy, that can no longer afford the Ferrari, that he is loyal to as it fuels his ego, is no less loyal to the brand, in fact he likely craves it more than ever, he simply can’t afford it, when/ if he can again he will be back more ferociously than ever.

Brand loyalty, during such extreme times as these, will suffer when a brand is not seen to understand said times, or the struggles consumers face going through it. Consumers want to see that the brands they love are in the fight with them. Shake Shack returning a $10MM back to the federal government was the ultimate “we are in this together” moment and will only increase their base.

The most prevalent example of ‘getting it wrong’ right now, appears when you look at personal or celebrity brands. Every day, there is a headline describing how some celebrity faced backlash, after talking of the struggle to self-isolate in their 12,000 sqft Hollywood home, with pool and basketball court, (check out the Buzzfeed link below). People are loyal to brands they aspire to, resonate with or feel understand them, and right now, understanding has to be wrapped in empathy, comradery, sacrifice & love. Product & lifestyle brands could learn a lot from the mistakes of our previously adored, and ever-growing celebrity community.

https://www.buzzfeed.com/mjs538/dumbest-things-celebrities-have-said-or-done-about-the

During times of extended uncertainty, consumers often revert back to heritage brands, those they trust and those they know have been up against adversity in the past. Brands that can pivot on the fly due to their potential infrastructure, will earn respect that will develop to loyalty, at least short-term.  P&G using its factories to produce masks and hand sanitizer, while Ford and GE Healthcare teamed up to produce respirators and ventilators to help COVID-19 patients and frontline staff. These community effects on a global scale only continue to weave their narrative for times like these. 

Weisler: Do you see a shift in amount of consumer spending?

Cooper: Right now, there is both reduction and shift, and really driven by the lack of an alternative, over a subliminal change is behavior. People are spending more on Amazon, as they are stuck at home. More on groceries as they can’t eat out. Netflix subs are through the roof as cinema’s, gyms, restaurants and a myriad of other entertainments are closed. On the flip, people are spending less on commuting, coffee & dry cleaning, things that were deemed essential mere weeks ago, though these will return, as and when life returns to some kind of normality, but, to what level? Again, people are nervous for the immediate and long-term future of themselves and the economy, so inevitably, we are all more frugal.

Weisler: Do you see a long-term trend in consumer behavior? and if so what?

Cooper: The truth is, only time will tell. Through all great crisis, the human race has proved to be both incredibly enduring and forgetful, both important survival traits, so we don’t live in eternal fear. China has been ‘re-open’ for several weeks, but only now have people felt comfortable heading to a bar after work as a group, so it’s a slow recovery process psychologically, having spent months being told we should be terrified by every news outlet. I suspect that going forward, every family will have a box of surgical masks and a pack of 80 toilet rolls in the cupboard, the hoard mentality, even at a subtle level, will likely stay with us. It may take a long time for planes to be full (though the cruise ships are selling out for 2021, we love a deal more than we hate a pandemic). 

The consumer normal, will be driven by the economic and commercial normal, and that is anyone’s gamble. Will large corporations still rent 25 floors of premium real estate in Manhattan, having survived this time with it sitting empty? If 75% of the workforce are working from home 3 days a week, who will fill the lunchtime restaurants and sandwich shops? What of the cleaners, security guards & catering companies that service office space that may be sitting empty, as well as the transport industry, public and private, that furry us all around? There is a very real risk, that corporate America will take this opportunity, to save going forward, not re-employ or reinvest, but look to improve margin and boost share price first, ‘the trickle down economics’ that so many are a fan of, only works, if indeed it does at all, with a trickle.

This article first appeared in www.Mediapost.com

Impeachment Hearings Were Big OOH Events According to Tunity

Tunity just released the results of the OOH usage for the Impeachment hearings that began on November 13, 2019 and were covered in total or in part on ABC, CBS, CNN, Fox News, MSNBC, NBC, and PBS. The topline results were covered in Tunity’s newsletter. 

In addition, Paul Lindstrom, Tunity’s Head of Research and Analytics offered these other, exclusive insights. To Lindstom, the impeachment hearings were as every bit as popular among OOH viewers as some major sporting events, attracting millions of viewers. 

Audience Performance

“Across the entire hearing each of the three cable networks drew substantially higher audiences than usual. I compared the hearing time periods to comparable ones for the week of Nov 4th.  Across the entire time CNN indexed 336 versus the benchmark week. Fox News indexed a 186 and MSNBC a 287,” he noted. The greatest increases in usage came from 18-49 and 25-54 year olds across all three networks. There was a gender skew, depending on the network. CNN increases were more likely to come from men while Fox News and MSNBC were more likely to come from women.

Viewing By Venues

Depending on network, viewers tended to watch the hearing from a range of venues. Across all three broadcast networks there was a greater percentage of OOH viewing coming from offices than compared to the benchmark week with the percent distribution indexing from 110 to 153 across the networks. 

Airports and other transportation centers made up a greater percentage of the OOH viewing to CNN and Fox News than the benchmark week with indices of 214 and 142 respectively. According to Lindstrom, “Overall CNN had a larger percentage of their OOH viewing coming from Hotels, Schools, Colleges, and Government Facilities than usual. Both Fox News and MSNBC received a larger percentage of their viewing from Bars and Restaurants.  Correspondingly all showed a substantially lower percentage of their OOH viewing coming from Gyms which is a prime OOH viewing location for news.”

He posited that, “Significant news events drive viewership in locations that might not usually have news on their screens or don’t have their screens on, thus allowing for a wider range of viewing opportunities.” But, he noted, the Impeachment hearings couldn’t compete with the Cohen and Kavanaugh Hearings, “both of which had substantially higher average audiences in the mid to upper 4 million range across all networks compared to 2.7 million for the first day of the Impeachment Hearing.”

This article first appeared in www.Mediapost.com