Industrial Marketing Management 35 (2006) 236 – 247

Outdoor advertising for business markets

J. David Lichtenthala,*, Vivek Yadava, Naveen Donthub,1
a
Zicklin School of Business, Baruch College, City University of New York, 1 Baruch Way-B12-240, New York, NY 10010, United States
b
Robinson College of Business, Georgia State University, Atlanta, GA 30303, United States

Received 6 March 2004; received in revised form 29 December 2004; accepted 16 February 2005
Available online 11 July 2005

Abstract

A review of the history and current prevalence of outdoor advertising suggests that although the medium is very effective it is not widely
used in business-to-business markets. A case for using outdoor advertising is deductively made based on the unique characteristics of
business markets such as: geographic concentration of buyers, need to target buying center members, advantages of having integrated
communication, possibility of creating derived demand, and targeting trade shows. This paper offers recommendations on when and how to
use outdoor advertising based on unique business market characteristics, industrial promotional objectives and business product
classification. Research propositions and directions for future research are offered.
D 2005 Elsevier Inc. All rights reserved.

Keywords: Outdoor advertising; Industrial advertising; Integrated market communications; Business marketing

1. Introduction can open doors for an industrial salesperson (Ray, 1982)

and several studies (Korgaonkar, Bellinger, & Smith,
It is now generally agreed that industrial advertising 1986; Parasuramanan, 1981) found that advertising gen-
objectives must be set within promotional objectives, erates awareness and favorable attitudes thereby support-
which are understood in the context of marketing and ing sales rather than directly causing them.
corporate objectives (Blythe & Zimmerman, 2005; Hutt & One study (Lichtenthal & Eliaz, 2003) identified the
Speh, 2004; Lichtenthal & Ducoffe, 1994; Patti, Hartley, attributes of each promotional medium that make it best
& Kennedy, 1991. While the primary communication suited for a particular communications task (see Table 1).
vehicle in business-to-business (BTB) marketing remains Others (Dwyer & Tanner, 1998; Hutt & Speh, 2004;
the salesperson, non-personal methods of communication Messner, 1991) have similarly identified different options
including advertising, catalogs, the Internet, trade shows available to business marketers.
and other forms of promotions have a unique role in the However, outdoor as a medium has been conspicuously
communication process. Effective advertising can make overlooked in recent systematic discussions on the nature
personal selling more productive (Blythe & Zimmerman, and use of this medium as it pertains to business marketing
2005; Hutt & Speh, 2004; Dwyer & Tanner, 1998). Morril promotional forms (Bingham, Gomes, & Knowles, 2005;
(1970) concluded that dollar sales per salesperson call Blythe & Zimmerman, 2005; Hutt & Speh, 2004; Messner,
were significantly higher when customers had been 1991; Patti et al., 1991).
exposed to advertising2. Evidence shows that advertising The myriad options available have confounded both
business and consumer markets. Contemporary buyers get
exposed to more than 3000 messages per day in one form or
* Corresponding author. Tel.: +1 646 312 3281; fax: +1 646 312 3271. another (Kotler, 2003). For advertisers, the choices available
E-mail address: david _ lichtenthal@[Link] (J.D. Lichtenthal).
1
Tel.: +1 404 651 1043; fax: +1 404 651 4198. have also increased dramatically. Almost every option is
2
Based on a study involving 100,000 interviews on twenty-six product reaching saturation and getting a share of mind can be
lines at 30,000 buying locations. challenging (Ries and Trout, 1982). In fact, there has been a
0019-8501/$ - see front matter D 2005 Elsevier Inc. All rights reserved.
doi:10.1016/[Link].2005.02.006
 J.D. Lichtenthal et al. / Industrial Marketing Management 35 (2006) 236 – 247 237

Table 1
Business media linkages to communication objectives
Objective Awareness Knowledge Liking Preference Conviction Purchase
Publicity X
Advertising X X X
Fax X X
E-mail X X X
Direct mail X X X
Catalogues X X X
Online X X X X X X
Trade shows X X
Promotions X X X
Telemarketing X X
Face-to-face X X
OutdoorT X X
Source: Lichtenthal and Eliaz (2003), ‘‘Internet integration in business marketing ethics’’ Industrial Marketing Management, vol. 32, Iss. 1; pg. 3.
T Appended.

tremendous explosion in the use of advertising, to an extent ogy has provided outdoor advertisers with myriad options.
that it has become a nuisance rather than a method of Most recently, the liberal use of electronics has created
information dissemination. ‘‘spectacular’’ billboards that look like giant screen tele-
The focus herein is to look at the nature and purpose of visions, some even with sound.
outdoor advertising as it concerns business marketing. Street furniture also provides very interesting options for
Outdoor is the oldest mass communication medium known out-of-home media usage. Some of the most prominent
to man and received much attention in the U.S. between the forms of street furniture are bicycle racks, bus bench/bus
years after World War II and the early 1980s (Agnew, 1985; shelter advertising, kiosks, sidewalk posters, shopping mall
Henderson, Landau, & Feldman, 1980; Wilson, 1952). displays, in-store displays and one sheet (small) posters.
However, there is a dearth of material about this commu- Transit advertising in outdoor media is seen on transit or
nication mode, especially as it pertains to business-to- places of transit in airports and subway stations, as well as
business communications. on buses, taxicabs, trains, etc. Advertising on movable type
The use of outdoor advertising in a BTB context is media like taxicabs and trucks has been shown to provide
explored next. Key BTB marketing characteristics are first high recall rates.
identified and their implications for the associated use of Finally, there is an alternative form of outdoor media that
outdoor as a medium are evaluated. Second, traditional comprises almost all options not covered in the above three
advertising objectives used in BTB communications strat- forms. This is probably the fastest evolving category and
egy are examined to identify the niche that can fulfill. includes such options as trash receptacle advertising, airborne
Subsequently, the traditional classification of business displays, digital displays, carton and cup advertising, movie
goods/services is examined to evaluate the conduciveness theater advertising and stadium and arena displays.
of these different categories for using outdoor advertising Outdoor has come of age and has the capability of
medium. Finally, the latest technological developments in reaching an audience on a national scale or on a market-by-
the field of outdoor advertising are examined and their market basis (Wilson, 1952). Outdoor advertising has
impact towards usage in a BTB context is discussed. evolved to the extent that it can be almost as useful as some
traditional forms of advertising like newspaper, radio and TV.
Outdoor is strikingly different from other media in one
2. Outdoor advertising characteristics essential aspect—the medium does not circulate the message
to market but rather the market circulates around the medium.
Outdoor advertising includes all forms of advertising that ‘‘The medium delivers its message to people on their way to
provide out-of-doors exposure. These forms may be work, play or shop (Wilson, 1952).’’ For instance, an
pictured, written or spoken (Agnew, 1985; Nelson & Sykes, executive going to work to deal with a full day of
1953; Wilson, 1952). Prevalent forms of outdoor advertising computer-related problems would probably look out for
include billboards, street furniture, transit and alternative messages from Dell, Hewlett Packet or Epson. It may seem
forms (see Table 2). like a trivial distinction, but if one takes into account the
Billboards are the predominant form of outdoor advertis- psychological frame of mind of people at the time the
ing and are further classified into bulletins, 8 sheet posters message is delivered, it is surely a powerful medium3. One of
(smaller size), 30 sheet posters (larger size), wrapped 30
sheet posters, squared wrapped posters, spectaculars and
3
wall murals based on size, shape, and placement. Technol- Selective exposure and attention are likely salient in the outdoor arena.
238 J.D. Lichtenthal et al. / Industrial Marketing Management 35 (2006) 236 – 247

Table 2
Prevalent forms of outdoor media
Billboards Street furniture Transit AlternativeT
Bulletins: largest, most practical Bicycle racks: advertising Airport terminal displays: available Airborne displays: large format
form of outdoor media located positioned on structures designed to in many formats throughout the panels towed by aircrafts. Skywrit-
primarily on major highways shield parked bicycles. Can be terminals in both departure and ing is also a popular form of
commanding high density strategically positioned near places arrival areas. Airport displays serve airborne display
consumer exposure mostly due of interest to derive maximum well to target the elusive business or
to vehicular traffic benefit leisure traveler
8 sheet posters: located mainly in Bus bench advertising: Exterior bus posters: posters fixed Digital displays: often Internet
urban neighborhoods and silk-screened posters attached to the outside buses provide mass enabled provides weather, news,
secondary arterials viewed back of bus benches. Used to reach exposure and build up frequency as entertainment etc. and targeted
by both vehicular as well as pedestrian as well as vehicular bus travels to different areas advertising
pedestrian traffic traffic
30 sheet posters (paper): the largest Bus shelter panels: uncluttered and Interior bus cards: fixed on frames Blimps or custom inflatable:
poster format that is located backlit to provide 24-h visibility to above passenger seats. Longer airships that carry corporate
mainly in commercial and both pedestrian and vehicular traffic viewing times allow for greater messages or custom designed
industrial areas on primary and in high circulation areas of metro copy to be carried on these cutouts meant to attract attention
secondary arterials. Delivers markets
messages to both resident and
commuter traffic and is used
to build reach and frequency
Wrapped 30 sheet posters: Convenience store displays: located Subway or rapid transit rail systems: Carton and cup advertising:
essentially extensions of 30 sheet at the entrance of supermarkets available in various forms like advertising on coffee cups, pizza
posters (paper) that offer a larger designed for point-of-sale influence backlit posters, entrance displays boxes, etc. that places the message
surface area than 30 sheets bleed and now even in tunnel advertising directly into the ‘‘hands’’ of the
posters consumers
Square wrapped posters: stacked or In store displays: located within the Taxicab advertising: displays fixed Postcard advertising: consists of
squared 30 or 80 sheet posters supermarkets, they come in various on the roof or trunks of taxicabs postcards displaying individual
that draw attention due to their formats including TV monitors, provide high recall rates. ‘‘Fully messages. Postcards are available
vertical format backlit displays, shopping cart wrapped’’ taxi displays are also for free in places like restaurants,
panels, etc. becoming popular cafes, etc.
Spectaculars: large and non- Kiosks: free standing information Truck-side advertising: provides Stadium and arena displays:
standard structures custom (like newsstands) or telephone billboard sized alternatives on the available in various formats like
designed to gain maximum kiosks. Primarily meant to reach road along market-to-market routes. scoreboards, replay screens,
attention. Frequently imbibe the pedestrian and vehicular traffic in Available as mobile billboard courtside, etc. Provides captive
best of technologies and designed densely populated areas displays and fleet displays audience plus possibility of
by special design teams. TV exposure
Examples include Times Square
in New York City or the ‘‘Strip’’
at Las Vegas
Wall murals: custom designed, Sidewalk posters: located at subway Trash receptacle panels: patented
painted or stuck directly on walls stairwells in New York City format has up to four sides on round
using pressure sensitive vinyl or rectangular trash receptacle
they encompass a wide variety of
shapes and sizes
Pedestrian panels: backlit bus Parking meters: three laminated
shelter-size showcases located on posters affixed to parking meters
inner perimeter of sidewalks
Shopping mall displays: Vending cart umbrellas: advertising
strategically located at entrance on umbrellas on outdoor food
of shopping malls, could be 2, 3 vending carts
or 4 sided
One sheet posters: framed posters at Gas nozzle advertising: durable
the front of stores plastics over gas nozzle
Source: Outdoor Advertising Association of America, 2003.
* New products constantly being produced. Those listed are just some examples.

the biggest advantages of outdoor vis-à-vis other mediums tion. Since the maximum number of words one can
like television or magazines is that ‘‘your audience can’t zap, effectively use in outdoor advertising is seven (Business
discard or even click away from it’’ (Business Wire, Wire, 2002a,b,c) there is no room for detailed explanations.
2002a,b,c). Outdoor advertising may best serve as a reminder that helps
This medium also differs in that it targets a ‘‘market in register the brand to achieve a top-of-mind recall when the
motion’’ and thus requires a special technique of presenta- ‘‘want’’ in the buyer needs to be fulfilled.
 J.D. Lichtenthal et al. / Industrial Marketing Management 35 (2006) 236 – 247 239

3. A brief history of outdoor advertising 4. The prevalence of outdoor advertising

The fifteenth century saw the separation of the producer Over the years, outdoor advertising has grown steadily
from the consumer and mass consumption rapidly increased at a compounded annual growth rate of 14.62% (since
over the next couple of centuries. A method was therefore 1970—see Appendix I). Also significant is the fact that
required to inform the public about the existence of goods the ratio of spending on billboards to spending on other
and services available for consumption (Nelson & Skyes, forms of outdoor advertising has come down from a high
1953). Billposting was a tool of choice that producers of 3.73 –1 in 1970 to 1.5 – 1 in 2002. However, billboards
employed in large scale giving rise to a field now called are still the most predominant forms of outdoor media.
mass communication. Appendix I shows that there has been a steady rise in
Until the fifteenth century billposting was the only total outdoor advertising expenditures over a 32 year
means, other than a public address, of disseminating period averaging approximately 10% annually; the growth
information on a widespread basis (Wilson, 1952). One of rate for street/transit and alternative furniture is double
the earliest forms of mass communication was the stele of that for billboard which has itself grown ten fold.
ancient Egypt (Agnew, 1985; Henderson et al., 1980; An industry-wide breakdown of expenditures for out-
Wilson, 1952). Hewn from basalt, these stelai, or tablets, door (see Appendix II) indicates that ‘‘Local Services and
were about 5 ft high, 2.5 ft wide, and 11 in. thick. Amusements’’ is the industry’s top business at 13.3% of
Displayed prominently in town centers and other areas of total spending with growth even stronger than in 2001.
high traffic, these stelais are the earliest form of mass The top five categories of spending remain unchanged
advertising known to man. Some stelai carried messages from a year ago and collectively represent 50% of total
that promised a reward for locating a lost slave (Wilson, spending. In addition to Local Services and Amusements,
1952), while others were used to declare the King’s these categories include Hotels and Resorts, Retail,
decree and other such information. Media, and Restaurants. The top ten industry categories
In 1450 Johannes Gutenberg is credited with inventing make up almost 80% of revenue for outdoor; and
printing from movable typesetting and the dream of approximately the top 40% (from the top four of five)
duplicated messages was realized (Wilson, 1952). Inven- go to attract consumer markets for ‘‘near marketer point
tion of the printing press led to the development of two of use’’ of outdoor. Furthermore, Appendix II reveals that
media—the handbill, a circulating medium that was the remaining five categories have essentially no use in
distributed in large quantities, and the posted bill. While business markets.
the handbill can be considered a forerunner of a modern Appendix III shows that outdoor media spending is
day newspaper, the posted bill is the forerunner of among the lowest four of the fifteen categories; and the
contemporary outdoor advertising. other three are increasing while outdoor is in decline.
In the 17th and 18th century another form of outdoor
advertising emerged—the outdoor sign. Taverns, book-
makers and apothecaries identified their place of business 5. Measurement of outdoor advertising
with signs that were symbolic of both trade and firm. In
1796, Alois Senefelder perfected the lithographic process One of the biggest challenges facing outdoor advertising
that combined the art form of signs with the detail of the as a viable medium stems from the difficulty of measuring
handbill to create the illustrated poster (Wilson, 1952; audience reach/frequency (especially as it pertains to
Outdoor Advertising Association of America, 2003). specific customer segments/profile) in verifiable, quantita-
As billposting became more popular and the space tive terms. This fact, acknowledged by the industry, is a
for displaying the messages more scarce, measures were major factor preventing widespread use of outdoor advertis-
taken to ensure the exposure of the message for a fixed ing as a significant medium (Business Wire, 2002a,b,c;
period of time. The billposters began erecting their own Steinberg, 1994). The lack of specific data pertaining to
structures to display the messages in high traffic areas audience profiles is also a major hindrance. This is
and stopped relying solely on the space available on pronounced when it comes to business-to-business advertis-
walls. These structures came to be called ‘‘fences’’. ing since the target segments are typically much smaller and
American marketers picked up the technique of bill- more geographically concentrated, and therefore more
posting with gusto and the special structure that ‘‘tightly’’ defined than for consumer products.
gradually evolved for the use of billposting came to The earliest method of measuring outdoor advertising
be known as the ‘‘billboard’’ (Wilson, 1952). In the ‘‘showing’’ (Wilson, 1952). An advertiser could buy a No.
1830s the largest American outdoor poster of more than 100 showing, or a No. 50 showing and so on. A No. 100
50 ft emerged in New York in Jared Bell’s office where showing was defined as the number of outdoor panels
he printed posters for the circus in 1835. Fifteen years sufficient to provide an advertiser complete coverage of a
later, exterior advertising was first used on railways particular market. A No. 50 showing similarly provided
(Outdoor Advertising Association of America, 2003). only half the total coverage of the market.
240 J.D. Lichtenthal et al. / Industrial Marketing Management 35 (2006) 236 – 247

The Traffic Audit Bureau (TAB), established in 1934, effective. The key characteristic of outdoor ads that give
published two types of data for such showings. First, it this medium the flexibility for use in advertising is the
defined the showing (i.e., what is the difference between a ability to deliver the message constantly and consistently
No. 100 showing and a No. 50 showing). For example, in a to a select (and often very small) target market. This
study conducted by TAB in Cedar Rapids, it was concluded could be the differentiating factor that enables the ‘‘brand
that a No. 100 showing achieves a reach of 93.1% and a to surpass the threshold level of awareness thus achieving
frequency of over 20, over a period of 30 days (Wilson, meaningful additions in the brand preference share’’ (Hutt
1952). Second, TAB also provided data on an individual & Speh, 2004). While a ‘‘larger-than-life’’ billboard could
outdoor panel that it compiled after studying vehicular and be an effective means of building the brand, outdoor
pedestrian traffic at the particular location. The data took into media is also the most localized of all mass media, thus
account individual nuances of the outdoor site and gave a giving the advertisers the freedom to place it appropri-
composite rating by considering the visibility provided by ately within the vicinity of the target market.
each site. The visibility took into account the angle of the One of the biggest advantages of outdoor medium lies in
outdoor site, speed of traffic, length of approach and other its affordability when compared to other forms of advertis-
such factors (Wilson, 1952). Not much has changed since ing especially the forms often used in business-to-business
TAB’s founding first began in 1934 and the outdoor industry marketing. In 2003 outdoor advertising cost on average
still uses the Board’s audited data of vehicular traffic as a from US$1.45 to US$3.28 per thousand compared to $8.75
measurement tool. Thus, while the question of ‘‘how many’’ to $10.45 for a 30 s TV commercial on network/spot,
are exposed gets answered, the issue of ‘‘who’’ is exposed to US$21.15 – 22.05 for a one-third page B and W newspaper
the medium remains a mystery (Business Wire, 2002a). ad or US$10.30 for a four-color magazine ad (Goodgold,
Over the last couple of years measurement of outdoor 2003).
advertising has received much attention. Various technology
driven solutions are being implemented to acquire data that
will put the measurement of outdoor advertising at par with 7. Characteristics of business-to-business marketing and
the data available for other media. While Nielsen has the use of outdoor
proposed using a handheld Global Positioning System,
Arbitron intends to develop its own method of acquiring Certain unique business-to-business marketing charac-
data that will provide audience demographics, geographic teristics indicate the appropriate use of outdoor advertis-
definitions, audience estimates such as reach, frequency and ing despite the historic low usage of the medium in the
Gross Rating Points (Business Wire, 2002a,b). Other industrial arena (see Table 3).
technologies permit billboards to monitor radiation leakage
from car antennas to indicate which radio station drivers 7.1. Geographic concentration of buyers
passing by are listening to and adjust their messages to fit the
demographic profile of the most popular stations (Emling, It is widely known that business buyers (e.g., a
2003). Such advances in the measurement of outdoor specific manufacturing industry) often are located near
advertising data will be a boost for the industry and will each other. Examples include oil production companies in
go a long way to putting this often ignored medium into the Alberta, Canada’s oil fields, chemical companies in
mainstream of advertising choices. Niagara Falls and many automakers in Detroit. Over
two-thirds of business firms in the U.S. are located in the
Middle Atlantic, East North Central, South Central and
6. Outdoor and business-to-business marketing Pacific States (see Table 4).
According to one source, over half of business buyers
Despite the infrequent mention of outdoor as a are located in just seven states: New York, Pennsylvania,
medium for industrial advertising, its use could be very New Jersey, Ohio, Michigan, Illinois and California

Table 3
Business-to-business marketing characteristics and outdoor advertising usage
Business-to-business marketing characteristic Use of outdoor advertising
Derived demand Outdoor advertising is effective if in proximity to upstream buying firms and customers
Geographic concentration of buyers Outdoor advertising is effective if used in (or near) region(s) of buying firm concentration
Ability to target one single firm cost effectively
Buyer as a group of people Outdoor advertising can reach many individuals simultaneously with one consistent message
Trade shows Efficient use of billboards can generate interest in the trade show per se
Billboards can be used effectively to direct visitors to specific locations (booths) in the trade show
Integrated communications Integrated communication campaigns can be more effective by using outdoor advertising in addition to
other media
 J.D. Lichtenthal et al. / Industrial Marketing Management 35 (2006) 236 – 247 241

(Bingham et al., 2005). Therefore, firms that are selling ence a particular stage in the buying process if warranted
inputs into these firms’ production processes would find (e.g. when the buying process evolves over months or
outdoor supportive to their selling efforts for these even years).
locations. Several firms can be reached simultaneously Similarly, when it comes to positioning in the BTB
along a given route and any particular firm could be market, ‘‘the multi-market and multi-person nature of
pitched uniquely. The message could also be part of a organizational buying (Lichtenthal, 1997) suggests that
long-term promotional campaign or developed for a positioning must be determined in the minds of those
specific sale the business marketer is trying to close. involved as members of the buying center. Since a campaign
For example, Oracle could target many of their customers is most effective when it reaches all the members of the
by placing billboard in Silicon Valley and can in fact buying center, the focus should be on determining how
customize the billboards based on which customer is many different individuals in each buying center role are
located close to which billboard. exposed at least once to a campaign (Lichtenthal & Ducoffe,
Even if businesses themselves are not concentrated in a 1994). Since individuals in the buying center can keep
particular geographic location, there are areas of high changing (Lichtenthal, 1988) it becomes imperative to use a
concentration of business-to-business buying decision- medium that is ‘‘mass,’’ yet largely concentrated on the
makers that can serve as important outdoor advertising target (Glover, Harley, & Patti, 1989). Outdoor advertising
spots in business marketing. For example, transit hubs fits well due to its highly localized nature. Along with
like airports or commuter train stations or most major achieving high reach; outdoor advertising also achieves the
hotels in key cities that have a high concentration of much desired objective of high frequency by being
business buyers at any given point are prime areas for omnipresent in the eyes of members of the target market.
outdoor advertising. In fact, business marketers have Individuals in a buying center may have different media
recently been exploiting outdoor sites at airports quite habits. They may all not watch the same television
well. Accenture Consulting and various network solution programs or read the same magazines. However, by
providers like Novell occupy prominent outdoor spots in targeting them all at their points of entry, outdoor becomes
key airports like JFK in New York, Newark International very effective in reaching all buying influentials in a
Airport in New Jersey and even at Heathrow International buying center. Outdoor does not rely on all members
Airport in London. having the same media preference but exploits the fact that
they all live, work, and commute in an area that can be
7.2. The business buyer as a group of people targeted using outdoor.

Because of the capability of ‘‘near target market site’’ 7.3. Derived-demand

feature of outdoor, the entire buying center (for geo-
graphically concentrated firms) can be reached as a group. It is generally accepted that demand in business markets
Placed in proximity to the buying firm’s ‘‘entrance ways’’, is tied ultimately to consumer demand (Blythe & Zimmer-
all buying center (influential) can be reached for most man, 2005; Hutt & Speh, 2004; Kotler, 2003). Therefore, a
firms in a given geographic cluster. The message can be business market whose product becomes a visible part of a
consistent or varied to differing buying center roles. The final product (e.g., the Intel processor), might find the use of
billboard could be further adjusted periodically to influ- outdoor in high consumer traffic areas helpful in meeting
promotional objectives. Intel, for example, may be able to
drive up the demand for computers by placing its billboards
Table 4 near college campuses that tend to purchase a lot of
Geographic distribution of U.S. manufacturing plants based on selected computer products. It may be able to influence demand by
criteria
placing ads in mass transit. College students tend to use mass
Region Number Thousands of transit more than others and they tend to purchase more
of plants manufacturing
employees
computers. As these outdoor ads likely drive up the demand
for computers, the demand for Intel processors will go up.
Northeast 26,393 1350
Middle Atlantic 61,894 3007
East North Central 69,756 4186 7.4. Trade shows
West North Central 24,513 1322
South Atlantic 53,476 3104 Most industries have trade associations, which hold trade
East South Central 19,718 1303 shows usually in the same location or in a limited number of
West South Central 31,304 1432
Mountain 16,479 596
locations. Hence, there is a predictable time sensitive
Pacific 65,362 2650 opportunity for promoting to a specific business market. It
Total 368,895 18,950 has been noted (Blythe & Zimmerman, 2005; Hutt & Speh,
Source: Bingham et al. (2005), Business Marketing, McGraw Hill, New 2004; Messner, 1991) that trade shows offer an opportunity
York, page 7. to communicate with all members of a firm’s buying center.
242 J.D. Lichtenthal et al. / Industrial Marketing Management 35 (2006) 236 – 247

Table 5
Proposed integrated framework for business-to-business advertising strategy decisions
Objective hierarchy Strategy hierarchy Comments Proposed use
of billboards
Awareness Corporate generic Diffuse—long term benefits, low persuasion Yes
Benefit offered by competition—no attempt to establish superiority Yes
Informative—limited persuasion Yes
Pre-emptive Benefit offered by competition—seeks to establish superiority No
Informative—moderate persuasion Yes
Knowledge liking Brand image Concentrated on effective benefits without reference to competition, Perhaps
emotion moderate persuasion
Positioning Emphasis on differentiation relative to competition Perhaps
High to moderate persuasion arises from placement in consumer’s mind
Preference conviction USP Concentrates on benefit not delivered by competition, high persuasion No
Purchase Direct appeals to action Benefit delivery and incentive to act Perhaps not
Source: Glover et al. (1989), Industrial Advertising Decisions, page 22.

By extension, outdoor advertising near the trade show site, While the ultimate objective of any communication
hotels, and other support areas presents the same promo- strategy is to drive sales, not all ads have a direct or
tional opportunity. In fact, information about a specific immediate influence on sales. Different advertising execu-
business marketer’s participation in the trade show can be tions are designed to achieve different objectives, the
communicated as well. ultimate goal being to create a favorable influence on
For example, Intel can take advantage of the fact that (increase or sustain) sales. The hierarchy of effects approach
every fall the COMDEX computer trade show is held in the (Lavidge & Steiner, 1961) that forms the basis of several
Las Vegas convention center. Just by placing a few models of measuring advertising effectiveness (noted in
billboards around the convention center Intel can reach Lichtenthal & Ducoffe, 1994) is based on the premise that
their potential customers. Billboards can be rented for short audiences must first process information from advertisers,
time periods at relatively inexpensive rates. then develop (and/or change) attitudes, and finally react
(positively or negatively) advertisers’ products as a result of
7.5. Integrated communications these messages. Thus, the objectives of awareness and
knowledge creation form the base of this pyramidal
It has been documented that there is a growing push structure. Once a buyer is aware of the brand, the next
toward the use of Integrated Market Communications objective is to create a liking for it by communicating the
(IMC), (Gould, 2004; Kitchen, Brignell, Li, & Spickett- desired positioning and forming a positive brand image.
Jones, 2004). The basic idea is to target the consumer with Finally, the behavioral goal to create preference and
multiple channels but in a coordinated way. For example, conviction leading to increased sales forms the final
target the consumer using direct mail, personal selling, radio objective at the top of the hierarchy.
or television advertising and magazine advertising with In general, the effectiveness of billboards as a medium of
similar themes and messages and creative elements. Often advertising in the business-to-business context is likely to
outdoor is not included in the integrated communications decrease as an advertiser’s objectives move from the bottom
strategy. Outdoor advertising presents an opportunity to to the top of the hierarchy of benefits as defined above.
further enhance the IMC strategy. A BTB manufacturer who Billboards are likely to be very effective if the advertising
wants to introduce a new money-back guarantee policy may task pertains to awareness or knowledge creation. They will
use all media (personal selling, television, radio, direct mail, be less effective in creating brand image or positioning and
and billboards near their client locations) to emphasize their their role will be even more limited at driving preference
money back guarantee policy. Such integrated communica- conviction and immediate sales4. Table 1 has been appended
tions may be very effective as opposed to using a different to reflect this concept.
theme and strategy in each medium. For example, a new commercial bank may want to use
outdoor to create awareness but will have to depend on
personal selling and detailed literature to acquire business
8. Advertising objectives in a BTB context and the use of customers. However, the bank is likely to find that outdoor
outdoor advertising advertising has played an important role in creating
awareness allowing the salesperson to perform his job more
Glover et al. (1989) developed an integrated framework effectively.
for advertising objectives based on three frameworks from
consumer advertising (see Table 5). Billboards can play an
4
important role in achieving certain advertising objectives. This effect may be opposite when using billboards for a specific firm.
 J.D. Lichtenthal et al. / Industrial Marketing Management 35 (2006) 236 – 247 243

9. Classification of industrial goods/services and the use experiment at the Muttart Conservatory and Kinsmen Sports
of outdoor advertising Center (Bhargava & Donthu, 1999). Conclusive evidence
showed sales was enhanced by the use of outdoor on a
There is empirical evidence that advertising can ‘‘open standalone basis as well as a part of a larger marketing media
doors’’ for the industrial sales person (Ray, 1982). In a study mix. Even though the experiment was conducted for consumer
conducted by Mukesh Bhargava and Naveen Donthu, the services, it can be easily inferred that outdoor may have a very
impact of outdoor advertising on sales was measured in a field positive impact for: business products that have shorter (less

Table 6
Use of billboards and the classification of business goods and services
Type Key characteristics Examples Comments Use of Billboards
Major equipment Often referred to as Machinery, machine tools, Products usually highly Very limited role
‘‘installations.’’ Exhibits stamping machines, robots customized, few buyers and
inelastic demand, usually sellers, high priced, high
involves direct distribution emphasis on after-sales
and close cooperation between services and require detailed
buyers and sellers description of benefits to
trigger buying decision
Accessory equipment Used to facilitate production, Office equipment, personal Standardized products or at Extensive role
administrative, clerical or computers, desktop printers, best limited customization,
marketing activities; exhibits hand tools and fire medium to low priced, large
elastic demand, longer extinguishers number of buyers, intense
distribution channels competition amongst sellers,
usually do not require detailed
descriptions, brand awareness/
impressions plays an important
part in buying decisions, often
offered by companies that also
provide consumer products
Process material Generally bought per Chemicals, plastics, cement, Unit pricing may vary but Limited role—can be
specifications by the asphalt typically orders are very large decided only on a
customers, cannot be identified and thus high priced, long case-to-case basis
or regrouped into finished buying cycle and usually loyal
product, mostly marketed to customers, in many cases
OEM or sometimes to geographically concentrated
distributors, considerable buyers, benefit based buying
emphasis on price and service decision
in the sales process
Maintenance, repairs Facilitate the production Brooms, paints, bearings, Very diverse and fragmented Significant role—could
and operating operation, short life and less gears, filters, pens, greases, product category, usually range from extensive for
supplies expensive, standardized lubricating oils consists of low priced but high products like brooms or
specifications and longer volume usage items, buying pens or limited for gears
channels of distribution cycle could be long or very and grease
short, brand awareness/
impression may be a significant
decision criteria
Business services Support organizational Banking, insurance, Very involved buying decision, Extensive role—for
operations, spectacular growth, advertising, marketing price may vary subject to example, Accenture, a
specialized providers, cost research, consulting services, benefits and brand consulting company, is in
effective awareness/impression a the top 100 outdoor
significant factor in buying advertisers in the country
decision-making, often offered
by companies that also provide
consumer services
Fabricated and Become part of other products, Spark plugs, timing devices, Usually geographically- Limited role
component parts identified and distinguished switches concentrated buyers, long
easily, consistent quality and buying process, price
strict delivery schedules critical an important factor,
benefits-driven buying decision
Raw materials Basic lifeblood of industry, Farm products, lumber, A very vast category, buying Limited to moderate role
inelastic demand curve, usually iron ore, resins decision almost always
bought in large quantities, benefits-driven
flexible channels of
distribution
244 J.D. Lichtenthal et al. / Industrial Marketing Management 35 (2006) 236 – 247

involved) buying cycles; business products that are stand- technology, similar to what is used at checkout counters in
ardized (not highly customized); or business products and supermarkets, records exactly when each message is
services where brand awareness/impression plays an important installed on every outdoor location (Outdoor Advertising
role in buying decision. Association of America, 2003).
Business goods and services can be classified in various
ways and it is clear that a different promotional strategy will 10.2. Technological advancements in billboards and signage
be utilized for each category (see Table 6).
If the business product is low priced, high volume, and a Vinyl and computerized painting were introduced in the
part of the market that has a large number of buying firms or late 1970s and today more than 70% of industry bulletins in
requires positive brand awareness/impression, then outdoor the US use vinyl instead of hand-painted messages on wood
advertising can be effectively utilized. Thus business services, or steel frames. Images printed on vinyl give advertisers
consumable office supplies and accessory equipment are prime creative versatility, vibrant colors, durability and precision
candidates for out-of-office media usage. They can use outdoor image reproduction (Outdoor Advertising Association of
media for brand reminder and promoting specific features of America, 2003).
the product that appeals to a large number of customers. On the ‘‘Digital billboards that can instantly adjust their messages to
other hand, if the product is highly customized, has variable the passing audience are popping up everyday in cities across
pricing, long buying cycles and fewer buyers and sellers, then the country,’’ (Emling, 2003; Kuchinkass, 2003). This should
outdoor advertising can only be used selectively. For example, interest business marketers who carefully target advertising.
products falling in categories like raw materials, heavy Several examples include: ‘‘intelligent billboards’’ that detect
equipment or processed material warrant a more cautious leaking radiation from car antennas to calculate the most
approach towards the usage of outdoor media. These popular radio station and adjust their messages to suit the
categories may be able to use outdoors more for brand drivers passing by; ‘‘oscillating billboards’’ on top of buses that
reminder than promoting product features. change messages as the bus moves from one area to another;
and ‘‘sound enabled billboards’’ that come equipped with a
motion-sensitive infrared device that can launch a recorded
10. In the near future message or a jingle lauding the billboard’s sponsor. All are
technological advancements that have already been tested and
Technology has touched upon almost every facet of our applied (Emling, 2003; Kuchinkass, 2003).
lives and has made it easy to inform buyers about the merits Messages on billboards can be changed in the blink of an
of goods and services. The Internet has revolutionized the eye and remotely from a central location. If Pitney Bowes or
process of information dissemination to pinpoint the buyer OfficeMax wants to target drivers who at work will make
that is most likely to be receptive to a particular product or decisions regarding document management for their compa-
service given the time and place. nies, or if Dell Computer Corporation wants to target the IT
The outdoor advertising industry is in the middle of a manager for its high-end servers, they only need to put
revolution. Almost 3 years after the [Link] bust, technol- billboards on the roads and rails leading into Manhattan,
ogy may have finally caught up with the world’s oldest Chicago, Atlanta or other major cities for just 2 or 3 h in
advertising medium. Outdoor advertising is evolving at a the morning. No more wasted dollars in ‘‘spillover’’ for the
rapid pace in essentially three areas: measurement of effects; business marketer and the ability to target the members of the
technology in construction and the broader array of options. buying center when they are likely more receptive to the
message. ‘‘I see a point in time when this is not a fixed screen
10.1. Measurement of outdoor advertising medium, one in which we’re not buying space but time’’—
Jack Sullivan, Senior VP Starcom—Out-of-Home Media
As mentioned, measurement of outdoor advertising has Director (in Brown, 2003). Traditional printed media do not
received much attention, and various technology-driven offer this flexibility—the ability to buy time on billboards and
solutions are being implemented to acquire data that will put not space.
outdoor advertising at par with the other media. Media
ratings companies including Nielsen and Arbitron are 10.3. More than just billboards
utilizing technologies like GPS to acquire data that will
soon provide audience demographics, geographic defini- No more are the options in outdoor advertising restricted
tions, audience estimates such as reach, frequency and to posters, signs or billboards. New options are being
Gross Rating Points (Business Wire, 2002a,b). Such devised on an almost daily basis. Billboards that move with
information will allow business marketers to specifically you in subway tunnels, advertising on children’s strollers,
target the highly segmented market of business products. and advertising on trashcans. . .the options are ever increas-
Operational efficiency is being improved using bar code ing (see Table 2 (Outdoor Advertising Association of
technology that allows outdoor companies to immediately America, 2003)). While the use of all such innovations
inform advertisers when the message is installed. This may not directly impact business operations, they do
 J.D. Lichtenthal et al. / Industrial Marketing Management 35 (2006) 236 – 247 245

provide the business marketer with options that can objectives and must take into account nuances at different
creatively target the members of the buying center. stages of industrial advertising decision-making. For certain
market conditions, product categories, and geographic areas,
10.4. Limitations of outdoor advertising outdoor can achieve specific industrial advertising or market-
ing objectives. Outdoor can indeed be an effective medium in
Outdoor as a medium does have limitations for use in a business-to-business marketing context and presents a very
business-to-business context, the biggest being its inability fertile area for academic research in the BTB field.
to support lengthy descriptions that are sometimes
essential ‘‘in order to create awareness, build preference,
or arouse interest, an industrial ad should have 300 or Acknowledgement
more words of copy making, use of tables and charts and
a toll free number if possible.’’ (Bellize & Hite, 1986). The authors wish to acknowledge Lisa Ellis, Associate
Also, this medium has a history of regulation by the Professor of Library Science, Newman Library, Baruch
government (Taylor & Chang, 1995). College, CUNY for her generous assistance in the execution
of the background research for this project, the very useful
insights and comments provided by the anonymous IMM
11. Future research reviewers and the Institute for the Study of Business
Markets at Penn State for their partial funding of this
Academic research on outdoor advertising is limited and research.
is mostly in the consumer marketing area. Some of the
arguments presented above provide ideas for future research Appendix A. Outdoor advertising expenditures
in the BTB area. 1970 – 2002
Some preliminary research propositions are:

1. Outdoor advertising increases the awareness of business Year Billboard Street furniture/ Total Growth, %
marketers. (US$m) transit/alternative outdoor (over previous
2. Outdoor advertising is more effective in increasing (US$m) (US$m) year)
awareness than boosting sales of business products. 1970 205,000.0 55,000.0 260,000.0 15.0
3. Outdoor advertising is more effective for non-custom- 1971 233,000.0 66,000.0 299,000.0 16.7
ized, fixed price, short buying cycle business products 1972 268,000.0 81,000.0 349,000.0 9.2
than customized, variable pricing, and long business 1973 289,000.0 92,000.0 381,000.0 6.0
1974 303,000.0 101,000.0 404,000.0 11.4
cycle products. 1975 333,000.0 117,000.0 450,000.0 18.4
4. Outdoor advertising is more effective when the target 1976 389,000.0 144,000.0 533,000.0 14.3
customers of the business marketers are geographically 1977 438,000.0 171,000.0 609,000.0 15.6
concentrated. 1978 499,000.0 205,000.0 704,000.0 20.0
5. Outdoor advertising is more effective when the buying 1979 591,000.0 254,000.0 845,000.0 18.3
1980 690,000.0 310,000.0 1,000,000.0 10.9
decision for the business product is a group decision. 1981 754,000.0 355,000.0 1,109,000.0 8.7
6. Outdoor advertising is more effective when used in 1982 807,000.0 398,000.0 1,205,000.0 12.9
business-product trade shows. 1983 897,000.0 463,000.0 1,360,000.0 9.0
7. Outdoor advertising increases the effectiveness of inte- 1984 963,000.0 520,000.0 1,483,000.0 7.9
grated communication programs of business markets. 1985 1,024,000.0 576,000.0 1,600,000.0 11.6
1986 1,124,000.0 661,000.0 1,785,000.0 12.2
1987 1,241,000.0 761,000.0 2,002,000.0 12.4
Some of the above propositions can be tested using 1988 1,373,000.0 878,000.0 2,251,000.0 9.3
perceptual data by polling business marketers, while others 1989 1,488,000.0 972,000.0 2,460,000.0 5.7
may need the design of experiments to collect empirical 1990 1,560,000.0 1,040,000.0 2,600,000.0 4.9
data such as those created by Bhargava and Donthu 1991 1,636,800.0 1,091,200.0 2,728,000.0 3.3
1992 1,582,800.0 1,055,200.0 2,638,000.0 8.7
(1999). 1993 1,720,200.0 1,146,800.0 2,867,000.0 10.2
1994 1,895,400.0 1,263,600.0 3,159,000.0 10.8
1995 2,100,000.0 1,400,000.0 3,500,000.0 7.4
12. In closing 1996 2,256,000.0 1,504,000.0 3,760,000.0 7.6
1997 2,428,200.0 1,618,800.0 4,047,000.0 9.04
1998 2,647,800.0 1,765,200.0 4,413,000.0 9.49
Outdoor especially as it pertains to business-to-business 1999 2,899,200.0 1,932,800.0 4,832,000.0 8.34
marketing context has been an under-utilized medium that 2000 3,141,000.0 2,094,000.0 5,235,000.0 0.8
can provide the business marketer with much needed 2001 3,115,872.0 2,077,248.0 5,193,120.0 0.8
promotional muscle to cross threshold levels. The decision 2002 3,139,261.3 2,092,840.9 5,232,102.2
to use outdoor is subject to overall industrial advertising Source: Outdoor Advertising Association of America (2003).
246 J.D. Lichtenthal et al. / Industrial Marketing Management 35 (2006) 236 – 247

Appendix B. Outdoor advertising expenditures ranked by total spending

Industry categories Jan – Dec Percent of Rank Jan – Dec Rank Category growth Jan – Dec Percentage change
2002 (US$m) total revenue 2001 (US$m) 2002 vs. 2001 (US$m) 2002 vs. 2001 (%)
Local services and amusements 693,920.3 13.3 1 654,938.3 1 38,982.0 6.0
Public trans., hotels and resorts 542,740.4 10.4 2 585,330.4 2 42,590.0 7.3
Retail 516,052.8 9.9 3 540,243.1 3 24,190.3 4.5
Media and advertising 463,893.8 8.9 4 468,586.1 4 4,692.3 1.0
Restaurants 407,480.3 7.8 5 396,973.2 5 10,507.1 2.6
Automotive dealers and services 379,429.5 7.3 6 349,308.6 6 30,120.9 8.6
Financial 329,063.3 6.3 7 274,900.9 8 54,162.4 19.7
Insurance and real state 325,030.8 6.2 8 285,083.4 7 39,947.4 14.0
Beer and wine 233,908.4 4.5 9 209,855.0 11 24,053.4 11.5
Automotive, auto access and equipment 229,585.2 4.4 10 252,386.4 9 22,801.2 9.0
Total top ten categories 4,121,104.8 79.0 4,017,605.4 103,499.4
Total 2002 (Jan – Dec) outdoor expenditures is US$5,232,102.156. Overall percentage change Jan – Dec 2002 vs. 2001 is 0.8%.
Source: Outdoor Advertising Association of America (2003).

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