96% of advertisers are satisfied with the ROI of their OOH marketing campaigns
The digital advertising landscape is currently undergoing disruption due to various factors. However, the OOH market seems to be growing. But what does this mean for OOH sellers and advertisers from an economic perspective? OneScreen.ai conducted research to understand why companies are investing in OOH, how the ad buying process works for them and more. Check the results here.
While digital advertising faces upheaval, out-of-home (OOH) advertising is on the rise. According to forecasts According to The Business Research Company, the global OOH advertising market is expected to reach $40.42 billion by 2026 at a CAGR of 9.1%. Several factors have led to this growth. One key factor is the number of people returning to shop in physical stores. As more consumers resume shopping in brick-and-mortar stores, they’re paying attention to their surroundings. OOH is on a growth trajectory thanks to increased outdoor awareness and a desire to reduce screen time.
But what does this mean for OOH advertisers and sellers in economic terms? OneScreen.ai recently conducted research to understand why brands are investing in OOH, what they’re spending their budgets on, how well the ad buying process is working for them, and more. One key finding is that 96% of advertisers are satisfied or very satisfied with the ROI of their OOH marketing campaigns.
Below are the detailed results.
More details: Predictions for 2022: What’s in store for out-of-home advertising this year
Advertisers invest in building brand awareness and capturing new demographics
Outdoor advertising is notorious for appearing brand awareness exercises or idle games. But more than 50% said that outdoor advertising can introduce their brand to a new audience. While some 58% invested in OOH to increase brand awareness and recognition, 55% said they did so to capture new customer demographics. Those investing in both traditional and digital OOH (DOOH) were more than 18% more likely to say this than the average.
About 38% wanted to take advantage of the increase in mass events and restaurant attendance. Many marketers are looking to diversify their marketing and explore new promotion opportunities in response to the declining effectiveness of digital advertising. With air travel on the rise, 22% of OOH buyers want to take advantage of airport advertising.
So what type of OOH are advertisers investing in? About 51% invest in traditional OOH. Around 41% invest in DOOH, although this is less true for brands with limited marketing budgets. About 8% invest in both OOH and DOOH.
Billboards rank first among marketers for ROI
In terms of ROI, billboards were the winner, as respondents saw the highest ROI from billboard advertising. For advertisers using traditional OOH, junior ad or junior poster billboards showed the highest ROI (40%). Likewise, advertisers using DOOH and both forms of OOH saw the highest ROI in digital billboards (38%).
Traditional OOH users preferred posters (50%) and junior billboards (48%) over bulletins (38%). About 33% of them also used walls, murals or bus advertising. DOOH users and advertisers who use both prefer digital billboards (62%).
Those who invest in both also experience newer interactive technologies. For example, 44% use digital kiosks and 48% invest in QR codes. About 35% use location-based media such as restaurants, supermarkets, etc. However, less than 25% of brands have expanded OOH to include outdoor furniture, mobile messaging and programmatic automation. This can give suppliers a competitive advantage in expanding or promoting inventory, and media buyers in achieving their goal of exploring new opportunities for promotion.
Deployment and budgeting pose serious challenges
Brands spend an average of $268,040 on OOH placement per year. But this is not the amount they budgeted for. While about 42% spent less than expected, 10% spent more. Whether they spent more or less than expected, their budget figure was 53% lower on average.
Advertisers also face the challenge of chaos when dealing with OOH. While marketers enjoy the vast variety of media and targeting options, gathering the details for a campaign can be confusing and frustrating. About 68% of advertisers said that finding and managing display ads is chaotic. Many cited difficulties in identifying the right place to advertise (60%), the right company to buy advertising space (68%) and the tangible impact of campaigns (64%).
Advertisers want more clarity and efficiency. Companies spend an average of 17 additional hours per week sourcing and managing OOH inventory.
Companies are very clear that they need two things to succeed with OOH:
- About 70% said a single touch point would increase the value of their OOH investment.
- Some 76% said better inventory visibility would make them more likely to increase their OOH ad budget allocation.
Most advertisers are happy with OOH ROI
Advertisers using OOH measure success in several ways. Outdoor advertisers want their campaigns to drive more social media engagement (67%), website traffic (54%) and greater brand awareness (44%).
Interestingly, 96% of those surveyed said they had achieved their goals. And their incomes have grown significantly. Advertisers who are satisfied or more than satisfied with OOH attribute these ads to an average increase in monthly revenue of 51%. This means that while the average expenses are $268,040 per year, the average income is $402,252 per month. It seems natural that 80% of brands express their trust in OOH campaigns. Advertisers investing in both OOH and DOOH are more confident.
But what about customer acquisition costs (CAC)? While many advertisers are concerned that CACs are increasing, brands using both OOH and DOOH are 400% more likely to see CACs decrease.
More details: 3 Reasons Investing in OOH Audio Delivers a Positive ROI
Most brands using OOH, DOOH or both are seen to be happy. And they want more. About 78% intend to increase OOH investment in the next year. Only 2% are planned to decrease. To strengthen their service efforts, 99% plan to hire more staff. While the funding for this may come from other advertising categories or departments, 33% will use the revenue generated from their OOH campaigns. Advertisers using OOH and DOOH are twice as likely to say this.
Increase your brand awareness and reach with OOH
As more people face digital fatigue and leave their homes, OOH is seeing significant growth. While some advertisers may face challenges like confusion and budget planning, you can overcome these difficulties with versatile platforms that increase efficiency and reduce chaos. Given that most advertisers are happy with the ROI of their OOH campaigns, it’s time to consider it an important channel for your advertising efforts.
What are your OOH investment plans for the next year? Share with us further Facebook, Twitterand LinkedIn.
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https://www.spiceworks.com/marketing/programmatic-advertising/articles/advertisers-are-satisfied-with-roi-of-their-ooh-marketing-campaigns/ 96% of advertisers are satisfied with the ROI of their OOH marketing campaigns