The Impact of Out of Home Media
Every agency aims to get the most value for their client’s dollar when creating a media plan. Media that has a high impact – high recognition and engagement per dollar spent – is an important part of the mix. Out of home media offer this high impact to advertisers. This is why OOH is a growing media segment for many businesses.
The data indicates that OOH offers high engagement and influence compared to the same dollar spent on other media channels. According to a 2013 Arbitron study, OOH media delivers more online activity per ad dollar spent compared to television, radio, and print media. Segments of OOH, such as billboards and transit, offer an average daily reach of over 80%. Simply put, consumers notice and engage with out of home media. In 2015, OOH led all traditional media in growth of consumer time spent; all other traditional forms except Cable TV are declining.
The surge in OOH spending can also be contributed to changes in the media available. For example, measurement advances enable targeting to nearly any audience. Social and mobile integration allow advertisers to track real-time action of consumers, such as how many were influenced to visit a store. The prevalence of digital displays also offers flexibility for time-sensitive messaging. Out of home is now offered in a wide variety of channels, including billboards, street furniture, transit, and alternative methods such as cinemas, stadiums, health clubs, and restaurants.
Advertisers are noticing the impact of out of home media. OOH is generally a small part of the overall media budget – around 5-7%. However, its share is increasing. OOH advertising has experienced steady growth for six years, reaching an all-time industry high in 2015 with a total spend of $7.3 billion. The list of companies that contributed to this increase includes Amazon, Beats Store, Boost Mobile, Draft Kings, Epson, Ford, IBM, Lyft, Microsoft, Netflix, Planet Fitness, Sprint, T-Mobile, Verizon, and Yahoo.
Retailers make up a large portion of that growth. Retail ranks second in size and growth of OOH categories. New measurement capabilities are affecting this trend. The ability to link mobile data with OOH displays has resulted in a clear indication that OOH drives retail action.
OOHA Wilkins can help you identify the best OOH channels to reach your client’s goals. Contact us today to learn more.