Multi Poland: A shopping centre as a TV Channel
Until recently, the main source of income for the owners of commercial real estate was the rental of premises and, to a more marginal extent; commercial stands or ‘Islands’. An active attitude by the property manager, however, can provide additional monetization from the presence of the many thousands of visitors each day who visit shopping centres. In the more than 80 malls managed by Multi Corporation in Europe, including 6 in Poland, the company consistently extends and enhances its offer of communication channel rental services. These constitute an increasingly significant percentage of the revenues of retail assets. They contribute to the sustainability of the sources of these revenues, and positively influence the brand image of the shopping centre. Thus, the provision of quality advertising exposures increases the long-term value of real estate assets.
“Our management approach to specialty leasing assumes that retail real estate is a product analogous to a TV channel” – explains Adam Bajer, Head of Marketing and Specialty Leasing Multi Poland. “Our task as manager is to create a program that attracts as many consumers as possible, for the longest possible time. Once inside the mall, they also become potential and thus valuable viewers. In this way, our asset becomes attractive to those who want to reach these viewers – advertisers, and for example special tenants,” said Adam Bajer, Head of Marketing and Specialty Leasing Multi Poland.
The first step is to prepare a flexible offer, product and price. Today, Multi Poland can rent at attractive prices; a hall or passage in a shopping centre that is popular in a given region, for a branding event or perhaps an FMCG promotional campaign. This could be for just one hour, or a kiosk in a passage for less than a month. The duration of possible advertising rentals usually varies from several-hours to several-day promotional events and consumer promotions. They can include advertising on screens, totems, banners, flags, and other media in the facility, both printed and digital, and the rental of tailor-made exhibition space in common areas. The regular offer also includes, for example, the façade of the asset –for analogue or multimedia advertising media. The offer of Out of home (OOH) media located on the outside of the property is constantly being expanded.
Multi Poland offers not only space, but an entire package of advertising services, including planning and implementation of comprehensive campaigns, as well as after-sales service. The mall manager provides the advertiser with broad support, like in the form of public relations activities, publicity in the shopping centre’s own channels, such as the website, profiles in the social media or mailings to its own customer base. All is implemented with respect to the highest quality standard of service to customers and advertisers. Extensive know-how gathered systematically by Multi from our assets across Europe demonstrate that the effectiveness of such a package compared to standard advertising channels is very promising. Moreover, an advertising campaign in the shopping centre reaches consumers who are more engaged, and thus pay more attention to the product featured.
Proactive approach to advertising sales:
The other aspect relates to logistics and sales, i.e., place and promotion. All activities are simplified, refined and standardised. This includes proactive and passive sales activities, promotion using B2B tools, such as tailor-made special sales brochures, manuals, offers, negotiations, formal and legal facilities, inter-departmental coordination, as well as professional after-sales service. As a result, the potential advertising tenant is clear about the terms and prices from the beginning of the cooperation, and the owner of the asset gains additional short-term income. Each advertiser has an advisor who coordinates the implementation of the contract with the shopping centre and ensures compliance with the company's quality and ethical standards.
“The advertising sales offer is utilised by various industries: car manufacturers and dealers, Fast-moving consumer gods, producers of electronic devices, cosmetics, interior furnishings, and service providers” – says Adam Bajer. “We reach them directly, with direct marketing to companies in local markets, in the catchment area of a given shopping centre, as well as below the line (BTL) or event agencies serving brands from these segments in a given market. Advertising tenants are often also tenants of premises in each shopping centre, both large retail chains and local tenants.”
The advertising sales offer by Multi representing each shopping centre resembles the typical offer and sales price lists of traditional advertising channels. It is also the result of the standards developed by Multi Corporation over decades of experience in the industry. A potential advertiser will find a comprehensive presentation of exhibition spaces with photos, dimensions, and technical specifications, as well as standardized rental conditions and package price lists.
Standardization and digitalization in sales:
An important element of specialty leasing standardization is the digitalization of the entire process. Multi Corporation has established partnerships with the most renowned PropTech companies. A result of this cooperation is a space management application as a software-as-a-service tool that optimizes the management of all types of potential additional sources of income; their reservations and rental automation.
This application covers all commercial activities in the common areas, regardless of the subsequent accounting treatment of the activity. Before being introduced to the offer, each product, whether it is commercial, advertising or utility space, or the time of issue, is subjected to a detailed market analysis to determine its estimated rental value (ERV). Due to this, Multi maintains a full view of all potential sources of income from the sale of "non-standard" products from all of the real estate it manages, including their current occupancy status, future occupancy and income based on reservations.
