MarTech Podcast ™ // Marketing + Technology = Business Growth
Episode: The Art & Science Behind Billboards
Release Date: December 12, 2024
Host: Benjamin Shapiro
Guest: Scott Harkey, Founder and CEO of the Harkey Group
1. Introduction and Background of Scott Harkey
In this episode, host Benjamin Shapiro welcomes Scott Harkey, the founder and CEO of the Harkey Group, to discuss the intricate dynamics of billboard advertising. Scott brings over 20 years of experience in the out-of-home (OOH) advertising sector, having owned and operated billboard companies and worked extensively with major brands in various industries, including hospitality, digital creative, and video production.
Notable Quote:
[02:37] Scott Harkey: "I've owned and built and bought billboards as almost like a rental house business. This dual perspective as both a media buyer and an asset owner helps in unlocking the value that exists in between transactions."
2. Trend or Trash: The Resurgence of Out-of-Home Advertising
The conversation begins with an exploration of whether the current resurgence in OOH advertising is a passing trend or a lasting shift, particularly fueled by new technologies.
Key Points:
- Digital Integration: Scott emphasizes that the resurgence is a trend backed by technological advancements. Programmatic buying platforms like The Trade Desk, Google, and Vistar have revolutionized how digital billboards are purchased, making the process more targeted and scalable.
- Market Share: Major players such as Lamar, Clear Channel, and Outfront control a significant portion of the U.S. OOH market, integrating their inventory with DSPs to facilitate data-driven ad placements.
Notable Quote:
[05:38] Scott Harkey: "It's a trend. Digital advertising networks are taking their inventory and putting it on DSPs, allowing for more targeted and scalable ad placements."
3. Digital vs. Traditional Billboards: Performance and Inventory
Scott delves into the differences between digital and traditional static billboards, discussing performance metrics and inventory management.
Key Points:
- Cost Implications: Digital billboards tend to have higher CPMs (Cost Per Thousand Impressions) compared to traditional billboards. While digital offers enhanced targeting and ease of purchase, traditional billboards can be more cost-effective.
- Effectiveness: Both mediums serve as powerful tools, but the choice depends on the campaign's goals and budget constraints.
Notable Quote:
[07:05] Scott Harkey: "CPMs on programmatic networks are double or triple what you could buy direct, but it offers more targeting and faster transactions."
4. Analytics and Measuring Billboard Effectiveness
Moving into the analytical aspect, Scott discusses the challenges and methodologies in measuring the effectiveness of billboard advertising.
Key Points:
- Measurability: OOH is one of the least measurable media tactics. Unlike digital platforms, tracking direct conversions from billboards is inherently challenging.
- Integrated Analytics Systems: Scott highlights the use of integrated analytics systems, such as Alight Analytics, to assess campaign performance by comparing sales lift in regions with and without billboard campaigns.
- Impression-Based Metrics: Utilizing companies like Geopath, Scott relies on impression-based data that considers factors such as sign size, location demographics, traffic patterns, and visibility enhancements.
Notable Quotes:
[08:43] Scott Harkey: "Out of home advertising is probably the least measurable media tactic out there. It's a giant sign, and you can't directly measure its brand effectiveness."
[09:22] Scott Harkey: "We saw sales lift between 7 and 20% when we ran campaigns with billboards compared to those without."
5. Creative Strategies: Designing Effective Billboards
The discussion shifts to the creative elements that make billboards impactful and memorable.
Key Points:
- Simplicity and Clarity: Scott advocates for minimalist designs, recommending no more than seven to eight elements on a billboard to enhance readability and effectiveness.
- Unique and Innovative Designs: Emphasizing the need for creativity, Scott suggests incorporating unique physical elements or extensions that interact with the environment, making the billboard stand out.
- Consistency and Brand Recall: Maintaining consistent branding across different billboards in a campaign reinforces brand recognition without overwhelming the audience.
- Color and Contrast: Utilizing bold colors and high-contrast combinations enhances visibility and catches the viewer’s attention swiftly.
Notable Quotes:
[15:23] Scott Harkey: "Less is more. Every time you have fewer than seven or eight elements, the effectiveness doubles."
[16:48] Scott Harkey: "You need to think about if you wanted to interact with somebody, it needs to consider the environment it’s in and be unique in that space."
6. Integration of OOH with Other Media Channels
Scott discusses how billboards can effectively complement other digital and traditional media channels within an integrated marketing strategy.
Key Points:
- Media Multiplier: Billboards act as a cost-effective multiplier for other media messages, enhancing overall campaign reach and brand presence.
- Upper and Middle Funnel Work: OOH is best suited for brand awareness and maintaining top-of-mind presence rather than direct response or low-funnel conversions.
- Store Locator Functionality: Billboards can serve as effective locators, guiding consumers to physical retail locations, which is particularly useful for industries like QSR (Quick Service Restaurants) and cannabis.
Notable Quotes:
[14:12] Scott Harkey: "Billboards can be used successfully as a media multiplier and as a store locator."
[15:07] Scott Harkey: "It's upper, middle funnel kind of work, enhancing brand presence rather than driving direct sales."
7. Conclusions and Key Takeaways
In wrapping up, Scott offers valuable insights into maximizing the effectiveness of billboard campaigns through strategic planning and creative execution.
Key Takeaways:
- Strategic Placement: Choosing the right locations based on traffic patterns, demographics, and visibility is crucial for maximizing impact.
- Creative Excellence: Investing in high-quality, innovative designs that interact with the environment can significantly differentiate a billboard from competitors.
- Integrated Campaigns: Billboards should be part of a broader, integrated marketing strategy to enhance overall campaign performance and brand recognition.
- Adaptability to Market Trends: Staying abreast of technological advancements and market trends ensures that billboard advertising remains relevant and effective.
Notable Quote:
[21:42] Benjamin Shapiro: "A billboard has to have a great message, be legible, and be in the context of the real world. Without understanding its placement and environment, tracking analytics is futile."
Final Thoughts
This episode of the MarTech Podcast provides a comprehensive exploration of billboard advertising, blending both the art and science behind effective OOH campaigns. Scott Harkey's expert insights shed light on the evolving landscape of billboard advertising, emphasizing the importance of strategic placement, creative design, and integrated marketing approaches to drive business growth.
For more information or to connect with Scott Harkey, visit theharkeygroup.com or find him on LinkedIn and Instagram.
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