Content: Qualification system

Qualification-System

 

Price calculation of Mega Poster sites

Due to the transition to 28-day posting periods and because of the lack of pricing transparence in this market, APG|SGA Mega Poster, Paron AG has decided to promote outdoor advertising with oversize formats by introducing a qualification system for price-calculation purposes.
 

The process involves four advantages:

  1. The value assessments on the buyer and deller sides can be harmonized on the basis of performance and quality-related aspects.
  2. The advertising industry benefits from objective, reviewable media costs.
  3. In media plannings, the individual sites gain significance for national campaigns.
  4. The assessment of competitive bids stimulates the market and creates price stability.

     

The survey system is based on four fundamentals:

  1. Frequency counts from Monday to Friday (7 am to 7 pm) with four 6-minute samples during various periods (rush and normal hours) throughout a day.
  2. Separate situation-driven measurements for the "private traffic", "public transportation", and "pedestrian traffic" categories.
  3. Each count is taken where there are realistic opportunities to see at the site of the respective Mega Poster.
  4. Seven elementary quality criteria are considered per category to assess the extrapolated absolute OTS ratings:
     
  • The distance that assures good visibility
  • The influence of natural, permanent viewing obstacles
  • The distractive power of the surroundings
  • The technical complexity of traffic
  • The angle of the Mega Poster site versus traffic flow direction
  • The impact of the Mega Poster format
  • The optimizing effect of illumination

     

Pricing based on random sampling measurements:

  1. The calculated 6-minute value (from all samples, Mon to Fri, 7 am to 7 pm) is extrapolated to obtain a working day exposure. This OTS value is extrapolated to a full 20 day-period.
  2. Based on the period value for Mon to Fri, 7 am to 7 pm, the pro rata OTS values are separately estimated per category for Mon to Fri, 7 pm to 7 am. Based on the 1-day value for Mon to Fri, 7 am to 7 pm, the pro rata OTS values are separately estimated per category for Sat and Sun (both for 7 am to 7 pm) and computed for 4 days per period.
     
Example of a full OTS calculation:
Berechnung_E.jpg
 
The parameters for the media price of a Mega Poster are OTS and CPM.

APG|SGA Mega Poster, Paron AG defines its prices according to a CPM (cost-per-thousand) scale based on Mega Poster sizes. A so-called efficiency discount is assigned to each size. Relative to a 40-m2 format, a larger Mega Poster is thus actually less expensive. The media price of a Mega Poster is calculated by multiplying the CPM for verified OTS (opportunities to see) by 1000. 

 

Media prices

Examples with a performance rating of 750‘000 OTS:

40 m² = CHF 11‘250.– / 120 m² = CHF 27‘375.-- / 180 m² = CHF 34‘950.--

CPM's and efficiency discounts:
Kontaktpreis_E.jpg

Conditions:

APG|SGA Mega Poster, Paron AG grants an agency commission (AC) of 5% on media prices to advertising and media agencies. In addition to media prices, APG|SGA Mega Poster, Paron AG separately lists and invoices the production cost of the Mega Poster, installation, removal, illumination, and VAT where legally required.

Implementation of OTS measurements:

The survey system was developed on behalf of APG|SGA Mega Poster, Paron AG by Chollet MediaExpert (a media and consulting agency) which also conducted the surveys in September 2002. The extrapolations and pro rata estimates are continuously reviewed in cooperation with Mega Poster sales representatives at APG|SGA Mega Poster, Paron AG.