Properties can use creative spaces to earn millions, says BOO executive
David McKenzie, MD of BOO! Surprising Media Solutions said: "Out of home (OOH) campaigns that integrate existing structures like a wall or glass facades, escalators, construction sites, LED screens, and even Wi-Fi into their creative, are exploding locally and abroad. And brands are willing to pay a premium for this 'new' space."
According to McKenzie it's not uncommon for a property to generate between R2 million and R3 million per annum by using its unused space for brand campaigns. "Once we've conducted a full audit of the property, we propose a host of media opportunities. On agreement from the landlord, they are then confirmed as permanent media sites with pre-set value and rates."
Given the strong upsurge in mall development around the country, which sees South Africa's 2,000 shopping centres and 23 million square metres place it sixth in the world with respect to number of malls, after the US, Japan, China, and the UK*, this is more and more likely to become the norm.
"Alternative revenue streams from creative campaigns are becoming budget line items on property developers' financial forecasts and dedicated commercial directors are being appointed to optimise their site's interactive advertising potential," said McKenzie.
Five-year deals
Capitalising on the opportunity are the V&A Waterfront, Sandton City, South Point, and Melrose Arch, amongst others. Each has signed a five-year deal with BOO! that will see it transform areas of these properties into dynamic content platforms. "At Melrose Arch for instance, we will work alongside its existing team of interior designers and architects to put spaces to work without having a negative impact on the property's flow and customer experience in any way," said McKenzie.
"In fact", he continued, "alternative media campaigns can add significant value to a site - besides the financial benefit." Done well, they can enhance it by adding atmosphere and design appeal. This, in turn, influences customers who may dwell longer at a nearby café or restaurant while they soak up the ambiance, while the advertising will often prompt the shopper to purchase. "If the experience includes alternative ambient campaigns, one of our specialities, it may even attract spectators within the mall."
In South Africa, alternative media opportunities are becoming highly sought-after by big brands such as FNB, Standard Bank, Smirnoff and Microsoft. "Shoppers expect a brand experience within a mall.
Alternative media needs to complement this experience with the end goal being to influence purchasing decisions. Many brands have been communicating the same message through traditional media (radio, magazines, TV) and the ads in the mall or property environment close the loop in the communication process, while acting as additional revenue streams for the landlords," concluded McKenzie.
