BY Kathy Crosett
How much ad spending went to out-of-home formats last year? The Outdoor Advertising Association of America (OAAA) reports it was $9.46B. The 3.6% spending increase over the previous year marks one of the most significant OOH advertising trends. Marketers can optimize outcomes by understanding which target audiences are most likely to respond to OOH messaging, as reported by AudienceSCAN.
What are the fastest growing OOH formats?
Your accounts have options when it comes to purchasing OOH formats. And the OOH advertising trends show that some formats are growing faster than others. For example, digital OOH now accounts for 36.3% of revenue. Spending on the format increased over 10.5% last year.
Marketers understand the appeal of digital out-of-home. They can use engaging videos to attract consumer attention. And they can quickly change messaging when circumstances require it.
Other than digital OOH, transit is having a moment. Anna Bage, President and CEO, OAAA, reported that transit is the fastest-growing segment, up 9.2% last year.
Which local businesses are strong prospects for OOH media sellers?
Business verticals that have rapidly increased OOH spending recently include fuel suppliers and plumbing and HVAC services. Your accounts should know that 44% of HVAC system shoppers have taken action as a result of seeing an OOH ad in the past 30 days. AudienceSCAN also reveals that 54% of these consumers searched online after seeing these ads.
Other strong OOH categories include hospitals and medical centers, consumer banking and local government.
Which audiences have the strongest response to OOH advertising
When pitching to prospects, it helps to know which audiences respond to ads they see in various media formats. According to AudienceSCAN data, the primary audiences for the following business verticals have a positive response to OOH messaging:
- Powersports retailers
- Medical clinics
- Men’s apparel shops
National brands and local OOH media buys
Large national brands also invest in OOH advertising. The OAAA reports that Apple, Vivint and Verizon are among the top recent spenders.
The OAAA also points out that tech companies continue to represent in OOH purchases. These businesses, along with digital-native brands, account for 28% of the top 100 advertisers. The interest in traditional advertising by tech-related firms shouldn’t escape media sellers’ attention. Convincing a marketer to try a media format comes down to showing value and the opportunity to attract consumer attention.
How does connected commerce work with OOH?
A new report produced by Winterberry and OAAA, The Power of Proximity, also highlights OOH media’s success in connected commerce.
For this study, connected commerce was defined as the conscious effort to “unify consumer shopping experiences across physical and digital touchpoints.” 86% of surveyed businesses believe they’re very focused on this initiative, and 54% say OOH is a “core component” of the connected commerce game plan.
These businesses point to the following media channels as the ones they “rely on” for connected commerce:
- Traditional OOH 25%
- Online display/programmatic 29%
- Point-of-purchase media 33%
- Digital OOH 39%
- Paid search/social 39%
- Social commerce/platforms 44%
Where is OOH headed?
Here’s the good news for OOH sellers. Around 37% of businesses will significantly increase their OOH investment in the next two years. 49% will boost their spending somewhat (2%-15%).
Sellers that offer detailed OOH advertising metrics, along with more formats and inventory options, will likely be sales leaders. Some analysts predict OOH companies expect only a 2% to 3% growth rate over the next few years. However, industry insiders believe the increasing shift to digital capabilities will boost demand for billboard space, in particular. There’s little doubt that consumers are noticing street and transit OOH messaging. Share these perspectives with your accounts, along with audience data, to increase their revenue and yours.
Image by Erik Mclean on Pexels
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