BY Kathy Crosett
Last year, marketers spent nearly $9.5B on out-of-home (OOH) advertising. That spending level represented a 3.6% increase over previous levels, according to the Outdoor Advertising Association of America (OAAA). And OOH ad spending accounts for 2.6% of all media spending in the U.S. This category is not standing still, especially since AudienceSCAN reports that nearly 24% of U.S. adults took action because of an OOH ad. Here’s what you need to know about OOH advertising trends.
Are marketers underinvesting in OOH?
A new report funded by the OAAA and conducted by Kochava Foundry suggests that advertisers are underinvesting in this format. Industry experts point out that OOH has moved beyond what it is best known for: awareness. The latest research shows that OOH can deliver more for your accounts. Specifically, it can increase on-site and online visits and drive sales.
In this study, researchers reviewed campaigns in several major verticals. They wanted to know how well OOH delivers results for marketers in comparison to CTV and broadcast TV advertising. These competitor media categories tout stats about lift following ad campaigns.
How OOH compares to other media formats
The survey outcome strongly favored OOH. “Campaigns leveraging OOH delivered a median lift of 20% for in-person outcomes and 14% for digital outcomes,” report analysts. These figures compare to a 10% lift for TV campaigns.
In this case, in-person outcomes referred to consumers who personally visited an advertised location. Digital outcomes measured visits to a website.
The importance of frequency
Researchers also note that frequency makes the difference when it comes to OOH effectiveness. In their daily routines, consumers may see the same ad on a transit sign or OOH billboard multiple times. And these exposures make a difference.
Consumers will tend to remember ads they’ve seen many times. And they’ll also remember the advertiser. These OOH advertising trends can influence your accounts to consider the format more seriously.
The study highlighted a few key verticals including automotive, retail and quick-service restaurants where a higher rate of lift, beyond the industry average, played out for advertisers.
Why OOH is not capturing more ad spending
The study was discussed during the industry’s recent annual conference where experts discussed the challenge of capturing more ad spending for OOH. Anna Bager, OAAA President, explained that OOH is “undervalued in marketing mix models (MMM).”
Because the industry is fragmented and complex, buyers lack understanding and confidence in OOH.
Keep in mind that OOH ranges from digital billboards to transit signage and these varied placements inherently make OOH different from other media. Patrick Dolan, OAAA COO, reminds buyers that some messaging travels with consumers, such as placements on the side of transit vehicles or other vehicle wraps. These repeated exposures make a difference in delivering impressions. Media sellers must remind their accounts about these details.
Why audience behavior matters for OOH ad sales
Other OOH advertising trends this year indicate that more sellers are emphasizing audience behavior in their OOH pitches. One industry expert notes, “OOH planning has become deeply audience-centric.”
To sell more OOH, let your accounts know how their target audiences travel. AudienceSCAN reports that around 5% of U.S. adults regularly commute by train or subway to work. These commuters are far more likely than other U.S. adults to switch gyms and financial planners this year. They’ll notice ads as they travel to work.
It’s also important to let your accounts know how consumers engage with outdoor advertising. For example, AudienceSCAN reports that around 11% of U.S. adults call themselves tennis fans. These consumers either watch tennis matches in person at stadiums or on TV. These fans also over-index when noticing and responding to out-of-home advertising. Over 34% have taken action as the result of seeing an OOH ad. Your accounts should be buying ad space at stadiums.
OOH advertising is not standing still. As more ads show up in new locations, consumers notice. And digital billboards allow for more flexibility and impact. Help your accounts stay current with OOH advertising trends. Their business and yours will benefit.
Image by Optical Chemist at Pexels.
