AMBestadvertisingoutdoor.docx

1、AMBestadvertisingoutdoorAdvertising Companies - OutdoorOutdoor Advertising Services Display Advertising (pt) Advertising Sign Companies - Outdoor Sign Erection, Installation or Repair Sign Painting or Lettering on Buildings or Structures Billboard Companies Outdoor Advertising Companies Shelter Adve

2、rtising Companies a1900Revision Date: 7/00 LineBests Hazard IndexUnderwriting Comments * AUTOMOBILE LIABILITY6AUTOMOBILE PHYSICAL DAMAGE6Work alongside busy roadways will expose vehicles to passing traffic.GENERAL LIABILITY3WORKERS COMPENSATION7Falls from heights could result in serious injuries.CRI

3、ME2FIRE AND E.C.4BUSINESS INTERRUPTION2INLAND MARINE6Off-site sign fixtures will be covered here.*Low 1-3, Medium 4-6, High 7-9, Very High 10 SIC CodeSIC Classification 7312Outdoor Advertising Services NAICS CodeNAICS Classification 54185Display Advertising (pt)Related Classifications Advertising Ag

4、enciesCrane Services Construction Printing Commercial ElectrocutionScaffolding Contractors Screen Printing Special Exposures Parking vehicles on shoulders of major highwaysWork in busy urban transit centersFalls from heightsBillboad collapse Risk Description a190r.Outdoor advertisers are responsible

5、 for setting in place and maintaining visual promotional materials for a variety of clients and ensuring that these materials are displayed for contracted periods. Despite the fact that they are commonly called “outdoor advertisers,” many of the fixtures they use are situated inside buildings. Inter

6、ior fixtures for outdoor advertisers may be stationary (e.g., two- or three-paneled kiosks in malls or transit centers, commuter clocks, or wall posters) or movable (e.g., grocery carts). Exterior advertising displays are commonly found on the sides, fronts, and backs of public transportation vehicl

7、es, such as buses and taxis, as well as on display panels inside buses and subway cars. Transit shelters, outdoor wall murals, gasoline pumps, and billboard signs of various dimensions provide additional avenues for outdoor advertisers to display their clients materials. Larger- than-life balloons (

8、e.g., giant sneakers, hot dogs, or soda cans) may occasionally be used by outdoor advertisers to attract public attention to special promotional events, such as a stores grand opening. However, these inflatables are generally tethered to the ground and remain stationary for a contracted number of da

9、ys or weeks. Outdoor advertising companies may or may not produce the promotional materials that they display for their clients. Often, this job falls into the hands of an advertising agency that has been hired by the client to develop a complete marketing strategy, of which outdoor advertising may

10、be just one part. While aerial advertising, such as blimps with corporate logos written on their sides, hot air balloons, or airplanes pulling large signs behind them, technically fall under the umbrella of outdoor advertising, this classification will only deal with companies that display advertisi

11、ng materials on non- airborne, mobile or stationary fixtures. Outdoor advertising is the oldest form of advertising, dating back to the Roman Empire when gladiator fights were promoted in written messages on tombstones. The large outdoor poster (more than 50 square feet) originated in 1835 when Jare

12、d Bell of New York first printed posters promoting a circus. Exterior advertising began appearing on street railway cars during the 1850s, and the first recorded leasing of a billboard in the United States occurred in 1867. Most early outdoor advertisers were local merchants whose goal was to let tr

13、avelers know what types of products or services were available to them “just up the road.” By 1870, there were approximately 300 outdoor advertising companies across the country, many of which identified themselves simply as “sign painters” or “bill posters.” By 1900, a standardized billboard size w

14、as established, and as a direct result of this change, a boom in outdoor advertising began. Companies such as Palmolive, Kellogg, and Coca-Cola were able to launch nationwide outdoor advertising campaigns since they no longer had to be concerned with whether or not the billboards would be the same s

15、ize in New York or Oklahoma. With the invention of the bus shelter in 1962, outdoor advertisers found yet another fixture on which to place their clients displays. As billboards became an increasingly pervasive feature of American roadsides, environmentalists pushed for federal regulations to help k

16、eep this growing medium from tainting the natural beauty of our landscape. With the strong support of Lady Bird Johnson, the Highway Beautification Act was passed in 1965. Some outdoor advertising firms feared that its passage might cripple the industry, but this hardly proved to be the case. Rather

17、, the bill merely served to limit the placement, lighting, spacing, and size of billboards nationwide. It also required that outdoor advertising agencies be justly compensated for the removal of any billboards that were no longer in compliance with the new regulations. In 1972 when tobacco products

18、were prohibited from advertising on the various broadcast media, outdoor advertising became that industrys most popular medium for reaching consumers. However, in 1999, tobacco manufacturers were banned from the use of outdoor advertising as well, and in that year, the industry lost roughly 10% of i

19、ts clientele. Each of the various advertising media are rated annually by an independent agency known as the Traffic Audit Bureau (TAB) on their cost per thousand (CPM). One of the main reasons for the continued popularity of outdoor advertising is its consistently low CPM in comparison to other med

20、ia. For example, billboards provide 24-hour message exposure to a “captive audience” of motorists, travelers, and daily commuters, yet have an average CPM of $2 (depending on their location) compared to $5 for drive-time radio, $9 for magazines, and $10- 20 for newspapers and prime-time television.

21、Thus, outdoor campaigns can cost clients up to 80% less than other types of media. Because of its cost effectiveness, the outdoor medium remains the first choice among many smaller, “mom and pop” companies that may have a limited advertising budget. By its very nature, the outdoor medium also has th

22、e unique ability to reach a highly localized market, and for this reason, it remains a consistently popular advertising choice among such travel and tourism-related businesses as hotels, motels, restaurants, retail establishments, amusement parks, and various other tourist attractions. Recent survey

23、s by the U.S. Travel Data Center have shown that over 70% of travelers are influenced by billboards in deciding where to stay on a trip. Nationwide, local businesses comprise anywhere from 50% 90% of an outdoor advertising companys clientele base, and of these, approximately 50% 66% are travel and t

24、ourism-related businesses. In 1999, advertisers in the United States spent a total of $4.8 billion on outdoor media, with billboards capturing 60% of those marketing dollars. Outdoor advertisers may operate on a local, regional, or national basis, depending on the size and scope of their operations.

25、 While most are privately owned and operated, some larger outfits are publicly held companies. There are various types of arrangements made between outdoor advertisers and landowners for the use of a parcel of their property (generally 40 x 60) for the placement of a billboard. In most cases, the in

26、sured will hold a lease (e.g., typically lasting from 1 to 10 years) with the landowner and will pay an annual “rent” for the right to use the parcel of property where the billboard is situated. A second type of arrangement may exist where the insured purchases a permanent easement on the parcel of

27、land; as opposed to a renewable lease, this arrangement is a one-time purchase that gives the advertising company the right to use that land for as long as they like. There are two standard billboard sizes; the larger of the two, called the “paint unit,” is 14 high x 48 wide, and the smaller size fi

28、xture, called a “poster panel,” is 12 high x 25 wide. In determining where new billboards will be placed, traffic count is the first criteria since high visibility is a key selling point to potential clients. Outdoor advertisers that deal primarily with signs in transit centers and on public transpo

29、rtation vehicles (e.g., buses and subway cars) will usually have a 5- to 20-year contractual agreement with the affiliated municipality or transit authority. Typically, the revenue from such ventures will be shared, although when municipal transit centers are involved, the city often gets a larger s

30、hare of the profits. The sign fixtures themselves may belong to the municipality or transit company, or they may be the property of the insured. Whether they actually own the sign fixtures or not, most contracts will stipulate that the advertising company is responsible for maintaining them. The lay

31、out of a typical outdoor advertiser will include offices and conference rooms; various storerooms for housing paints, equipment, pre-printed signs, and supplies; a paste-up room, where signs are pre-pasted with a flour- based glue before being taken out for hanging; a large work area where signs may

32、 be painted or touched up; an employee kitchen or lounge; restrooms; and a garage or outdoor parking area where vehicles are kept during off hours. Smaller insureds may have a single location, while larger operations may maintain several offices in various locations. Most facilities will be freestanding; however, some insureds may have their office in a multiple occupancy facility and keep their other sign-posting operations at a separate freestanding, warehouse type of structure. Outdoor advertisers wil