In-venue digital advertising is prospering, says Ben McFarland.
Last year, the drinks industry reportedly spent more than £250m on advertising with the lion's share of this sum dedicated to TV commercials.
It has long been regarded as the most efficient, and expensive, means of reaching the nation's pub-goers but TV exposure is currently at the centre of a raging debate.
Over the last decade, brand owners have seen a decline in the large audiences once delivered by mainstream TV. Young people are spending less time in front of the TV and more time out and about.
What's more, when we are in front of the box only 23 per cent actually watch TV adverts, according to research from the London Business School.
In order to grab the attention of a fickle and cynical consumer, brands are therefore turning to digital advertising as an alternative to the traditional TV ad.
According to Andy Pitman, managing director of Brightspace Media, a company that sells digital advertising space, the UK on-trade is set to gain a significant windfall through what he calls "in-venue digital" - video screens found predominantly in young people's venues (YPVs), bars and clubs.
"We are at the beginning of a very steep growth curve," he said. "While TV advertising will remain a leading medium, 18 to 34-year-olds are increasingly out with their friends in a bar or club, and so it is logical that brand owners who want to target this market will increasingly take their brands into these venues."
Up until relatively recently, plasma and video screens have predominantly been used to flag-up two-for-one deals, quiz nights and other in-house marketing, but with more than six million 18 to 34-year-olds visiting pubs and bars every week, advertising on these screens has pricked up the ears of the big drinks companies.
Brightspace is blazing a trail in this sector. It's working hard to get more plasma screens in venues and to persuade more brands to buy into this medium.
What's it in for the brands then? Recent research suggests the eye-catching nature of these ads and positioning of the screens means customers remembered them and, more importantly, didn't seem to mind.
"Brands can exclusively target people while they are in their natural environment at a time when no other media can," said Andy.
Having already sold advertising space on plasma screens in more than 350 outlets to the likes of Guinness Extra Cold, VK Vodka Kick and John Smith's, Brightspace claims an increasing number of drinks and so-called leisure brands are now dedicating a percentage of their above-the-line (ABL) investment to in-digital advertising.
"Some brands have committed up to 14 per cent of their budget to this format," said Andy.
But it's not just a case of taking a TV advert and playing it in a bar. "The format in which adverts appear in this medium is crucial if it is to be accepted as part of the whole entertainment experience."
To avoid overkill, for every hour shown, 35 minutes is lifestyle content and imagery with the remaining time dedicated to adverts - each between 30 and 40 seconds long.
However, Brightspace Media is only talking to brands that are relevant to pubs and bars and they only distribute drinks advertising to venues where the brand is stocked.
"We won't speak to banks or financial institutions as they're not cool enough and it would turn into a circus," said Andy. "The bar's credibility is everything. We only give customers credible brand advertising, and we ensure that brands fit with venues, and vice versa, creating income for the venue, and lending to its ambience."
A better atmosphere, however, is not the only benefit. Those operators working with Brightspace Media are excited at the prospect of being able to claim a share of what are multi-million pound big brand advertising budgets.
Although Brightspace Media retains a commission, pub retail companies enjoy the bulk of the advertising revenue, depending on the number of people and level of exposure in the venues.
"The more screens and audience you have, the more cash you'll get," said Andy. "We expect the audience to rapidly expand as operators realise the revenue potential. By the end of 2003 we expect to have signed up more than 1,000 venues."