Jaime Byrdak —What Does Successful OOH Advertising Cost?
Written by Jaime Byrdak,
Managing Director, Billups
Out-of-home (OOH) advertising provides a solution across core marketing objectives. With advances in technology that have raised it to an art form in some settings, OOH provides targeted marketing and one of the highest returns on investment.
OOH can raise brand awareness by engaging target audiences with strong market penetration. It can also create consideration with placements in close proximity to points-of-interest (POIs) to influence a sale. There are many activation opportunities for OOH to return against objectives. To achieve these goals, marketing campaigns need to reach consumers where they live, work, and play.
Is out-of-home advertising right for you? Find out more about the targetability in OOH, the costs involved, and how it could benefit your business.
Who Should Take Advantage of OOH Advertising?
People today are on the move, spending more than 70 percent of their time outside the home. OOH advertising allows you to accompany consumers on their journey across any given market. Compared to other advertising mediums, OOH acts as a backdrop and is woven into the fabric of our daily lives.
Location-based research and hyperlocal targeting help to capture consumer attention and make the most of this medium. Top industries that benefit from OOH advertising include:
- Food & Beverage
- Products & Goods
- Travel & Tourism
Benefits of Advertising in OOH
The Out-of-Home Association of America (OAAA) encourages businesses to think of OOH as a blank canvas. Highly customizable, its potential is limited only by your imagination. Used on highways, city streets, buses, sidewalks, and in shopping malls, OOH allows you to go practically anywhere in reaching your audience. Other benefits OOH can provide for your business include:
- Driven by data science, allowing you to create the most effective and measurable campaigns against key performance indicators (KPIs)
- Targeted campaigns, allowing you to target a broad or hyperlocal customer base
- Timed displays, which can be set to run ads all day or during peak hours
- Non-traditional & experiential activations capture the public’s attention and encourage interaction and social shares
- Amplification with contextually relevant opportunities through creative production build outs on traditional placements and place-based networks
- Lower overall costs, which provide you with higher returns on investment (ROI) and returns on ad spend (ROAS)
OOH Advertising Myths Debunked
- Cost of entry for OOH is high. This is simply not the case, as OOH does not have spending minimums. In fact, OOH is extremely budget-friendly based on your key objectives, market nuances, and target audience. For example, if your desired outcome is to reach shoppers during micro-moments in key essential businesses, there is a good chance that hyperlocal OOH inventory exists to match your messaging needs at a very efficient cost.
- OOH is flashy, big & bold. While OOH can be big and bold from freeway placements and hand painted wallscapes, not every program needs to appear in Times Square or on Sunset Blvd. You can make a huge impact with consumers on a more intimate level through digital displays at the doctor’s office, gas station, or bus stop.
- OOH is hard to measure. False! OOH is increasingly easy to accurately reach precise audiences through location observation data in the physical world. As audiences encounter OOH placements, their exposures can be attributed to business outcomes such as store and website visitations or sales lifts.
Cost to Get Started with OOH Advertising
OOH requires an initial investment, but the overall costs are far less than other mediums. According to the leading financial advisory firm, PJ Solomon’s major media CPM estimates online, audio, television and print ads can cost anywhere from $6.96 to $24.12 per thousand impressions. In contrast, out-of-home advertising generally costs less than half that amount, at just under $3 per thousand impressions.
OOH Offers an Accessible Option for Any Budget
While out-of-home advertising is an investment, it may be the smartest move to achieve your business goals.
Despite common myths about out-of-home advertising, OOH provides a customizable advertising solution for businesses of all sizes, and across all industries. Whether your business is looking to target tourists in Times Square or locals visiting their neighborhood dentist or riding the bus on their daily commute, OOH is an accessible solution that can be adapted to fit your marketing budget while extending your reach to a wider audience and optimizing that reach with targeted campaigns and measurable results.
Find out why more advertisers are investing in out-of-home media and how to launch successful campaigns with the complete guide to getting started with outdoor advertising.
Help us help you
Subscribe to OOH Today for more on the OOH industry