Study Case

1st Case Study

What do American Express, Target Stores, Coca-Cola, the Discovery

Channel, Cadillac, Minute Maid, and Calvin Klein have in common? They

all break through the clutter of traditional ad space to grab the attention of

potential customers. And in the process, they dazzle them right out of the

boredom of riding the subway.

Subway advertising has been around nearly as long as the subway

itself. But advertising media pioneers Submedia and Digital Underground

Media give the old venue a different twist. By employing an innovative

technology similar to that of a childhood flip book, they illuminate dark

subway tunnels and turn them into valuable showcases for major

advertisers.

At the core of this method is a series of lit panels that contain static

images. The panels occupy 500 to 1,000 feet of space that normally holds

only graffiti, rime, and the occasional rat. When you view one from a

standstill, it appears as a simple still image. But when the train passes by,

the series comes to life for riders as a 15- to 30-second full-motion

commercial.

Having just another place to air a commercial might not seem so

appealing to advertisers. But in a media environment where consumers

increasingly skip or fast-forward through ads, the placement of these

messages in subway tunnels presents exceptional possibilities. Advertisers

clamor for opportunities to break through the typical clutter. Because these

ads are really unique, they’re likely to grab the attention of even the most

jaded commuter. “We think this will catch people so totally by surprise that

when they see them, they can’t help but watch then,” said Dan Hanrahan,

Royal Caribbean’s senior vice president of marketing and sales.

But the uniqueness of this medium is only part of the formula that

makes these ad agencies believe they’re on to something. The rest is

based on the nature of the subway audience: captive and bored.

“everybody overwhelmingly says it takes away from the boredom of the

ride,” said Joshua Spodek, founder of New York City-based Submedia. “It’s

not like it’s taking away from a beautiful view, like a billboard as you’re

driving around a beautiful area in Vermont. A subway is a semi-industrial

environment.”

Whether it’s because the ads give a bored audience something to do

or because this new wave of out-of-hime advertisement is truly cutting-

edge, industry officials claim that the public reaction has been

overwhelmingly positive. Submedia reports that 87 percent of riders look

forward to seeing the next Submedia advertisement and 60 percent said

the ad made their ride more enjoyable.

Comments like these make it easy to believe the claims of

underground advertising agencies. One estimate asserts that more than 92

percent of consumers remember the advertised product, whereas only 13

percent have the same level of recall for televisions ads.This means big ad

revenue, and not just for the agencies. Mass transit organization potentially

can realize a big source of secondary income when they lease out thus

unused real estate. In a two-year trial with Digital Underground Media,

Madrid (Spain) Metro hoped that subway tunnel ads installed between two

of their stations would add 400, 000 euros of advertising income to their

bottom line.

Currently brightening the tunnels of numerous mass transit systems

in North and South America, Asia, and Europe, these advertisements

represent something every advertiser dream of: an ad that people go out of

their way to look at. In a world that is increasingly skeptical about too much

advertising, this new platform is an express ride to success.

DISCUSSION QUESTIONS

CS 1-1 Based on the principles of attention we discussed in class (in

the slides), explain why riders receive these ads so positively.

Be sure to consider the possible stimulus selection factors that

apply.

CS1-2 It has been shown that consumers can habituate to a stimulus.

Is there anything the ads’ creators should know about

adaptation and its potential impact on the success of these ads

over time?

CS1-3 As you consider the companies that have used tunnel

advertising, are there brands or product that would not be a

good fit for this medium? Justify your answer with examples.