LLINOIS STATE UNIVERSITY aMERICAN MARKETING ASSOCATION marCH

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					ILLINOIS STATE UNIVERSITY
AMERICAN MARKETING
ASSOCIATION
APRIL NEWSLETTER



                
             WELCOME ALL
              MEMBERS!!
                
During the past month, the American Marketing Association past participated in a
few events throughout the ISU campus. In March, we helped were involved in
many community services project, social projects, and helped during
BusinessWeek.
 A few of the members worked with Habitat for Humanity. Habitat for Humanity
is a non for profit organization that recruits volunteers to help construct a house
for those families who are in dire need for a place they can call home. We worked
from 8am until noon, painting and roofing on a house in Bloomington. They
asked us to join them for a house blessing. Make sure to save the date! April
19th! In order to fundraise for Habitat, we were given 50 tickets to the Extreme
Football Hockey Game on April 19 th. The game is at 7 so make sure to by a ticket!
We also have been trying for months to help raise money for the Children’s
Museum. We were able to partner up with The Campus, Paul Mitchell School of
ILLINOIS STATE UNIVERSITY
AMERICAN MARKETING
ASSOCIATION
APRIL NEWSLETTER
Salon. Anyone could bring a flyer in and 10% of the sales would be given to the
Children’s Museum. The money we made for that event is not known as of yet.

Our BusinessWeek committee helps organize fall College of Business events to
promote interaction between College of Business organizations and plan Business
Week. Attends monthly Business Week meetings. All the hard work paid off! We
hosted an alumni speaker, Keith Wakemen. Here is a blurb from Keith’s new
company, Pilot Therapeutics:

“Keith Wakeman, President. As President of Pilot, Keith brings over 20 years
food and nutrition industry experience leading marketing, innovation, and new
ventures organizations across a broad range of categories and brands. Keith was
head of Innovation for the $2 billion Kellogg’s Snacks Division and led New
Ventures for both the $9 billion Kellogg Company and the $2 billion Keebler
Company. He also led brand teams and held various trade marketing and sales
roles at Nabisco, Leaf and Procter & Gamble. Keith has developed and launched
new products generating nearly $1 billion revenue.
Prior to joining Pilot, Keith was President of Cherry Street Innovation LLC, an
innovation company he founded to identify and develop new growth platforms
through new ventures and brand innovation. Through his leadership, CSI
identified opportunities and developed business plans for new ventures projected
to generate nearly $2 billion annual revenue.
Keith serves on the Boards of several entrepreneurial companies including a start-
up branded organic beef business and big Boing, a product innovation and brand
launch company.”
A big thanks to Keith for taking his time to teach us about his life long journey!
The Creative Display and Design Team are still working hard to promote the
ilstu.flix55.com website! Make sure to check out the table in front of Burger King.
We are hoping to have one every Thursday from 12-3 for the rest of the semester.
More information to come!
ILLINOIS STATE UNIVERSITY
AMERICAN MARKETING
ASSOCIATION
APRIL NEWSLETTER




Digital Billboard Up Ahead: New-Wave Sign or
Hazard?
By LOUISE STORY

Their very name once told it all: a board to post notices or advertisements. But billboards are
getting a makeover.

 Billboard companies are adopting digital technology that rotates advertiser images every six or eight
seconds — the better to catch the eye. The new billboards look like television screens, although the
images do not move.

The problem, safety experts say, is that the new billboards may work too well, adding yet
another distraction for drivers.

There are currently about 400 digital signs across the country. But within 10 years, about 4,000
billboards may be converted, according to the Outdoor Advertising Association of America.

The technology has excited both billboard companies, which can generate three to five times
more money from the digital signs, and advertisers. Clear Channel Outdoor and Lamar
Advertising, which has installed the majority of such billboards, promote the digital signs as
more effective at getting consumers to pay attention.

“There’s a perception in the advertising industry that you have to up the ante,” said David Zald,
assistant professor of psychology at Vanderbilt University. “We see so much information coming
at us that for it to actually leap out and capture our attention, one has to go at a more salient
level than you used to.”

But, he added, “there’s a trade-off between the advertiser’s need to grab our attention and the
actual safety implications of that attention capture.”

The digital signs have also revived a debate in towns and cities that dates to 1965, when the
Highway Beautification Act was passed, limiting the number of new billboards that could be
ILLINOIS STATE UNIVERSITY
AMERICAN MARKETING
ASSOCIATION
APRIL NEWSLETTER
erected. Billboard critics have long said the roughly 450,000 billboards in the United States scar
the landscape along highways and local roads. Billboard companies counter that they have a
right to sell the space.

In fact, billboards are not just for roadsides anymore. Advertisements have been popping up
more frequently inside subways and buses, shopping malls, office buildings and airports.

Over the last two years, the category, which the industry refers to as out-of-home advertising,
has been second only to the Internet in its growth rates. But it is still dwarfed by television and
print. Marketers spent about $6.7 billion on out-of-home ads in 2006, of total ad market
spending of $285 billion in the United States, according to estimates by Universal McCann, part
of the Interpublic Group.

While the billboard industry says the digital signs are not dangerous, driving safety researchers
say there has not been enough research to know for sure. Most driving studies have focused on
cellphone use. Still, researchers said the digital signs may tax drivers’ awareness more than old-
fashioned static signs.

“In my opinion, they’re definitely distracting,” said Deanna Singhal, research associate at the
Traffic Injury Research Foundation, a driving safety group in Ottawa. “It’s going to not only keep
their eyes away from the road more, but it’s also more cognitively demanding.”

A study commissioned by the Federal Highway Administration is recommending further
research into whether the signs present risks to drivers, said Dale Keyes, who oversaw the
research. The study, by the Institute for Environmental Conflict Resolution, a federal agency in
Tucson, will be released in a few weeks. The federal government has also allotted $150,000 for a
future study of digital signs.

Meanwhile, the signs are flying up. Lamar Advertising is converting about 28 traditional
billboards to digital signs each month, and company executives consider new locations in weekly
meetings, said Tommy Teepell, Lamar’s chief marketing officer. The company does not plan to
convert all of its roughly 158,000 signs to digital, focusing instead on the ones in the most
heavily trafficked areas, he said.

Lamar has so far heard mainly positive reaction, Mr. Teepell said.

“Typically, the response we get is people love it because they’re very attractive,” Mr. Teepell said.
“The colors are attractive and the creative looks good. You don’t ever have colors faded in the
sun.”

Eileen Furukawa, broadcasting analyst for Citigroup, said profit margins on digital signs can run
as high as 70 percent, while static signs have closer to 45 percent profit margins. She is
recommending that investors buy Lamar and Clear Channel Outdoor stock.
ILLINOIS STATE UNIVERSITY
AMERICAN MARKETING
ASSOCIATION
APRIL NEWSLETTER
Digital signs are sold more like TV commercials than traditional billboard signs, ad executives
said. Advertisers can buy spots for a single day or for a few hours, rather than weeks at a time as
on normal billboards.

“Changeable signage is very much a part of the outdoor landscape as we move forward,” said
Jodi Senese, executive vice president of marketing for CBS Outdoor, a division of CBS, which
has not yet posted digital signs along highways.

Digital signs, Ms. Senese said, offer “immense creativity, flexibility and targetability for different
demographics, which was really never an option for out-of-home advertising.”

Clear Channel Outdoor has created digital billboard networks in six cities, including Milwaukee,
Tampa and Albuquerque. The networks can be cued to show the same ads all over the cities at
once, mimicking how people usually see the same TV commercials while watching the same
shows. Clear Channel Outdoor is also placing TV screens in mall food courts.

Digital billboards are one of the main growth areas for outdoor companies, and what is more,
advertisers are eager to sign up, said Paul Meyer, president and chief operating officer of Clear
Channel Outdoor. “You can’t avoid it,” Mr. Meyer said. “There’s no mute button. There’s no on-
off switch.”

Billboard companies generally have to obtain permits from local governments to convert their
signs to digital boards.

Some towns have turned them down; others are negotiating everything from a quota for
conventional signs to the brightness of the digital images.

In Syracuse, for example, after passers-by began complaining that a digital sign installed last
year was too bright, Lamar was quick to turn it down, said Charles Ladd, the city’s zoning
administrator.

Omaha has not allowed digital signs, and does not plan to unless the billboard companies offer
to remove multiple conventional signs for each digital sign.

“All they have to do is push a button,” Tom Blair, the city’s planner said, “and they can flash and
disturb the motorists.”

Bill Brooks, mayor of Belle Isle, Fla., a town of 6,000 people near Walt Disney World, said he
negotiated with Clear Channel Outdoor in December to allow the town’s first digital sign, in part
because he does not want to risk entering a protracted legal battle.

As an active member of the National League of Cities, Mr. Brooks said he was well aware of the
lawsuits other towns have faced over their billboard regulations. The American Planning
ILLINOIS STATE UNIVERSITY
AMERICAN MARKETING
ASSOCIATION
APRIL NEWSLETTER
Association and the National League of Cities have publicly accused the billboard industry of
aggressively suing cities and towns over their billboard regulations.

Indeed, in the last seven years, there have been about 100 cases in federal courts, about three
times the amount from 1993 to 2000, said Eric Damian Kelly, professor of urban planning at
Ball State University. While almost all the lawsuits have involved traditional signs, the American
Planning Association said digital billboards would probably be the next battleground.

Some consumers said the digital billboards provided entertainment on the road.

“I always read them when I drive by,” said Caitlin Neary, 22, who passes a digital sign in
Connecticut when she drives to her parents’ house in Fairfield. “I always watch to see it change.
It catches your eye more.”

But others said the signs are more distracting than cellphone calls. Lisa Christopher said she
nearly had an accident when she first saw a digital billboard in Vestavia Hills, Ala., a suburb of
Birmingham. Within days, Ms. Christopher, the former PTA president at a local high school,
said she was getting calls from other worried parents.

“It was so bright, it almost jumped out at you,” Ms. Christopher said.

The sign was not up for long. Last month, the Vestavia Hills zoning board told Lamar
Advertising to turn it off.
ILLINOIS STATE UNIVERSITY
AMERICAN MARKETING
ASSOCIATION
APRIL NEWSLETTER
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                      All Member
                      Meeting
                      7pm Cob
                      366

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                                         Faculty
                                         Luncheon
                                         11:30 -1
                                         Place TBA

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                      Top Model -        Relay for
                      Brown              Life - Quad
                      Ballroom           6pm
                      7:30

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