TAB OOH Ratings 2.0

Understanding the New Numbers

UndersTAnding THe new nUmBers

Overview

TAB OOH ratings 2.0

mAin imAge gOes Here

On June 16, 2014, the TAB released the first major update to out-of-home ratings since their launch in 2010. Incorporating traffic speed and congestion data from more than 100 million drivers across thousands of roads nationwide, the enhanced system enables individual spot ratings for all audited digital inventory. The updated system also impacts static inventory, providing more detailed and accurate ratings across all formats.

This is good news for the OOH industry. Advertisers have long asked for accurate ratings on digital spots, and we can now provide them with confidence and consistency. More accurate data from the TAB brings with it more credibility and accountability – both of which are good for business.

• The TAB will now report spot ratings, not structure ratings for digital inventory

• Ratings for all inventory, including static, are impacted by the changes

• The impact of these changes will vary widely by market, since each market has a different mix of formats, road types, and traffic patterns

• Official spot-level impression data from the TAB means that an “adjustment factor” is no longer necessary when planning for digital

• New ratings are now available via the TAB Audience Delivery System; they are slated to be available via Telmar in July

• Though total digital impressions will increase, spot-level reporting means digital CPMs will also rise

key TAke-AwAys

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meAsUring digiTAl impressiOns reqUired Adding new inpUTs inTO THe TAB mOdel

TAB OOH ratings 2.0

In order to determine how many “flips” of a digital billboard a driver can see, we need to know how far away the driver is when she can first see the billboard (maximum noting distance), how fast she’s going (speed), and how long the ad is displayed (ad length).

It turns out that road type (e.g., major highway, local road, etc.) affects maximum noting distance, so that’s included

in the model, too. Finally, we need to understand if a digital billboard is noticed any more or less frequently than a static one (digital noticing rate).

Since most of these variables apply to both static and digital inventory, the new ratings will change for all units, not just digital. On the next page we see how the new inputs (light blue) feed into the model.

methodologySince the launch of out-of-home ratings, the TAB has used a variety of factors to generate precise audience estimates for out-of-home advertising. Building on traffic counts and census demographics, the TAB used board size, read, distance from road, viewing angle, and other variables to calculate a VAI (visibility adjustment index) score. The TAB continues to use this methodology today, but new variables have been added to the model. Those variables include traffic speed and congestion, maximum noting distance, road type, digital noticing rate, and ad length.

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new reseArcH impAcTs rATings On All sTrUcTUres, nOT jUsT digiTAl

TAB OOH ratings 2.0

It’s important to note that “opportunities to see” is not the same thing as impressions. If you’re driving down a highway and you’re staring at a digital billboard, you might have the opportunity to see two, three, or maybe even four flips, depending on your speed. But most people aren’t staring

at a billboard the entire time they’re passing it. That’s why the TAB incorporates “noticing rate” into the model – to account for the fact that even though multiple ads may appear while a driver is passing by, she won’t necessarily notice all of them.

since most of these new vaRiables apply to both static and digital inventoRy, the new Ratings will change foR all units, not just digital. above we see how the new inputs (in light blue) feed into the model.

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TAB OOH ratings 2.0

So what impact do all these changes have on the numbers? Generally speaking, larger formats on larger roads have better measured visibility, so the format and road type variables will positively impact impressions for inventory with these characteristics; the converse is also true. Additionally, slow speeds have a positive impact on impressions, while fast-moving roads have shorter dwell times, and thus fewer impressions.

Below we see how these new variables affect impressions for both static and digital units.

ratings impact

mOre dwell Time meAns mOre impressiOns FOr BOTH digiTAl And sTATic UniTs

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Taking a more concrete example, let’s look at an average Clear Channel Outdoor digital bulletin with 8 ads in rotation for 8 seconds each. We start with the original impression count for the digital bulletin structure, shown below as “original static structure”, since digital bulletins were formerly measured in the same manner as static bulletins. We then add the impact of the new variables (road type, speed, etc.) on visibility for the structure itself (+31%, below). Note that this 31% increase has nothing to do with the bulletin being digital – it’s just the impact of the new variables on bulletins in general. Static bulletins will see a similar increase in impressions because of these variables.

Once we adjust the structure impressions for the new visibility variables, we then add the digital impact (+61% over the visibility-adjusted impression count). Digital impact refers to the fact that there are multiple ads in rotation, so the driver now has the opportunity to see more than one ad per pass. Altogether, combining visibility impact plus digital impact, an average CCO digital bulletin sees a +111% increase in total impressions.

impAcT OF digiTAl rATings On AVerAge ccO digiTAl BUlleTinImpressions | 8 fl ips, 8 seconds per fl ip

TAB OOH ratings 2.0

But we’re not done. The TAB will no longer report on a structure-level impression count. So the last step is to divide the new structure-level impression number by 8 digital spots, illustrated above.

The good news is that you won’t have to do any of these calculations – the TAB will report on digital spot impressions directly from their website and via Telmar and other OOH

planning tools. In fact, each spot in a digital rotation will be treated just like an individual bulletin or poster – every spot will have its own TAB ID and its own impression numbers.

Finally, please remember that the above example is for illustrative purposes only – these percentages will vary greatly by market and format.

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TAB OOH ratings 2.0

Better, more precise research from the TAB is great news. And knowing the exact impression count for a single digital spot makes the buying process easier for everyone. These new numbers enhance the credibility of the TAB, and of the OOH industry.

For digital inventory, it’s important to keep in mind that although overall impressions are going up, spot-level

reporting means that CPMs will also go up. This is simply a by-product of more accurate reporting, and does not necessarily refl ect a change in the product being offered or its value. Spot-level reporting also means that planning software will now be able to accurately refl ect the additional impressions and reach generated by adding multiple spots on a single board to a plan.

Business impact

If you have any further questions, please don’t hesitate to reach out to your local clear channel Outdoor representative.

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