Brand Management: Trends in indoor advertising market

Business Forum
The Romanian indoor advertising market has undergone a significant transformation over the past two decades, beginning with the opening of Bucharest's first shopping mall and the rise of Brand Management as the market leader in this sector. The industry is increasingly embracing digitalisation, with shopping centers and malls allocating more resources to developing advanced digital advertising platforms. Today, indoor advertising has become an essential component of every brand's media strategy.

"We see a clear trend in the investment and development of digital platforms, both outside and inside malls. These digital solutions offer greater flexibility and creativity in delivering advertising messages, addressing the personalization and interaction needs of modern consumers. Malls and providers of such digital spaces, guided by client demands, have begun significant investments in developing digital advertising networks, creating more dynamic and efficient opportunities for brands. This transformation not only enhances consumer experiences but also increases brand exposure and provides easier access to concrete data about campaign impacts in specific locations. Over 20 years of activity, we have established ourselves as experts, consistently adapting to new trends and developing solutions that combine digital innovation with the efficiency of traditional advertising," said Georgian Drăghici, Commercial Director of Brand Management.

Brand Management forecasts indicate that the indoor advertising market will maintain its growth trajectory, with an expected 17% increase in 2024 compared to the previous year—significantly outpacing the overall growth of the Romanian advertising market. Romania's advertising sector has shown consistent recovery and expansion post-pandemic, growing from €640 million in 2022 to €700 million in 2023. This year, the market is projected to reach approximately €760 million, according to the Media Fact Book.

Another trend is the increasing share of indoor advertising within the total OOH (Out-of-Home) market. In 2023, indoor advertising accounted for 34% of the OOH market; this share is expected to rise to 36% this year, equivalent to almost €46 million. 

The current trend shows a growing preference for allocating larger budgets to campaigns on digital platforms over static, printed formats. On average, a national indoor advertising campaign costs around €30,000 per month, with digital advertising making up approximately 30% of the total indoor advertising spend. Most indoor campaigns run for about six weeks, excluding clients with year-round permanent advertising networks.

Each format offers distinct advantages and disadvantages, with no definitive conclusion on which is more effective. Key factors influencing the choice include rental fees, production and implementation costs, campaign duration, number of touchpoints, flexibility for visual updates, and speed of execution.

But some opportunities for indoor advertising campaigns remain underutilized, such as fitness centers and sports facilities (indoor sports), gas stations (indoor mobility), and hotels and restaurants (indoor travel). Some of these spaces are often overlooked due to limited client interest or a tendency to undervalue their potential. Additionally, the pressure to launch campaigns quickly sometimes leaves little room for designing customized strategies. Underutilized locations, like parking areas and restrooms, often go unnoticed despite their unique advantages.

As in previous years, one of the primary challenges for the indoor advertising industry in 2024 is the rapid execution of campaigns. A persistent issue is the delayed delivery of print files by clients, which disrupts timelines, increases pressure on campaign execution, and complicates coordination with suppliers involved in the process.

"By 2025, indoor advertising will be as accessible as online advertising. We expect this medium to be recognized as essential for any campaign, regardless of brand or industry, because it provides relevant visibility for consumers at the most critical point in the purchasing process—the so-called 'Golden Touch Point.' This key moment decisively influences the consumer, and indoor advertising plays a vital role, reminding them of the advantages of products previously promoted on other channels such as TV, online, or outdoor. Indoor advertising has been and continues to become an indispensable part of every brand's media mix due to its proximity to the point of purchase. As technologies and digitalization solutions advance, indoor advertising will offer even greater flexibility, personalization, and impact, solidifying its position as a strategic medium for integrated marketing campaigns," stated Laurențiu Jiga, Founder & Managing Director of Brand Management.

Brand Management was founded in 2004 as the first company in Romania to provide comprehensive indoor advertising services nationwide. With over 20 years of experience in implementing advertising campaigns in shopping and business centers, Brand Management creates indoor advertising campaigns for companies in industries such as IT, telecom, fashion, beauty, jewelry, banking, and FMCG, managing dedicated budgets of over 130 million lei, including 2023.

Operating in over 150 locations across Romania (malls, hypermarkets, office buildings, etc.) in the country's major cities, the company ensures indoor advertising campaign exposure to over 110 million visits per month, as tracked and reported by the locations. Approximately 85% of the company's clients have been part of its portfolio since its early years.

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Business Forum  |  27 November, 2024 at 4:43 PM