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Out-of-Home Advertising at Scale: Accurately Measuring Out-of-Home Advertising

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Point of View

Executive Summary: Out-of-Home Advertising Outperforms, but Remains Underappreciated

Marketers are struggling to reinvigorate growth; outof-home (OOH) advertising remains underappreciated and underutilized.

  • There has been a steady but uneven recovery since the Great Recession of 2009. Market growth is occurring, but there is a pervasive lack of breadth and consistency.
  • While the average income of shoppers has stagnated during the recovery, there are pockets of outsized growth where per-capita income has grown as much as 15 percent.
  • Marketers are seeking out new media to reach shoppers in an increasingly fragmented media environment, but often overlook nontraditional media, such as cinema and billboard, considering it less effective than other media.

Advertisers and agencies can achieve sales uplift of 5 to 10 percent by adopting hyperlocal strategies and considering nontraditional ways to reach shoppers.

  • Hyperlocal strategies, such as out-of-home advertising, that focus on high-growth markets can yield outsized results.
  • OOH advertising, such as cinema advertising, is highly efficient, especially with attentionfragmented shoppers, including millennials.
  • Results from this study indicate out-of-home tactics can drive higher results than other traditional media. Cinema advertising in particular can drive 2X to 3X more ROI than TV or print.

Lack of effective investment and inaccurate measurement is feeding marketers’ misunderstanding of the value and impact of the various OOH advertising tools.

  • Marketers who leverage national campaign strategies spend similarly on growing and declining markets, driving down return on advertising spend (ROAS) and other metrics.
  • Inaccurate measurement tools have instilled and reinforced the idea that hyperlocal advertising is an ineffective medium.
  • Today, most advertisers and agencies continue to utilize national or market/DMA-level marketing mix models (MMM).
  • These models oversimplify audience diffusion, obscure the effects of audience reach variations and understate the synergy between out-of-home advertising and other media platforms.

Framework to win: Advanced modeling greatly enhances planning, execution and measurement of out-of-home advertising, allowing for ongoing optimization and significantly elevating impact.

  • Applying a geocentric approach to measure out-ofhome advertising impact yields significantly more nsightful and accurate results.
  • By identifying out-of-home impact zones with a focus on trade areas that are in a 5/10/15-mile radius of the location and applying customized, advanced analytics, marketers can isolate the impact of out-of-home campaigns.
  • The results of this approach show substantial improvement in predictive accuracy and demonstrate the value of a hyperlocal strategy.

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