Out of Home advertising is more critical than ever for brands looking to maximize their media investments
Out of Home is a growing driver of ROI in media mix, Analytics Partners research reveals
Sydney – oOh!media has released new research on the key drivers of Out of Home (OOH) effectiveness, supported by data from global marketing measurement firm Analytic Partners. The study shows the growing impact of OOH advertising when used consistently and at scale to drive return on investment (ROI), highlighting the significant gains for brands investing in OOH as part of their media mix, particularly when combined with TV and digital.
As linear TV audiences continue to decline and the cost of performance media increases, advertisers are increasingly shifting their spend towards OOH for its growing mass audience reach and its role as a key driver of ROI performance. The research reveals that brands allocating proportionally more of their marketing budget to OOH achieve a +17% stronger ROI. When used in conjunction with TV and digital, OOH drives the strongest returns, delivering a 27% higher ROI compared to TV alone for the same investment.
The Analytic Partners research leverages the largest market mix modelling data set in Australia, based on 20 years of data from more than 500 econometric studies created for hundreds of brands with a combined advertising spend in excess of $34 billion.
Other key findings reveal:
- Incorporating OOH alongside TV boosts ROI by +18% compared to using TV alone, for the same investment
- Using multiple OOH formats generates +30% increase in ROI, while data led, category buyer targeting delivers twice the ROI of demographic targeting
- OOH campaigns extending beyond eight weeks drive more reach, awareness and consideration that translates to nearly twice the ROI (+79%) of shorter two-week campaigns
- OOH delivers returns across all campaign objectives and through the marketing funnel, delivering above average returns for brand building objectives (+9%)
- Australian OOH ROI performance is unrivalled, with the channel up to 2.5 times more effective than global OOH markets
Paul Sinkinson, managing director ANZ, Analytic Partners, said: “Our data shows OOH is a strong foundation for driving media effectiveness, particularly in times when budgets and every dollar is heavily scrutinized. OOH is a cost-effective channel for building reach among mass audiences and provides a platform for performance media to drive synergy.”
During economic downturns, maintaining or increasing media investment, particularly in OOH, is proven to be beneficial. Brands that boost their media and marketing spend during recessions experience a 17% increase in sales, with 60% achieving overall growth. The combination of digital and OOH delivers a 39% stronger ROI for budgets under $1 million compared to television alone.
Tara Coverdale, group director – data and insights at oOh!media, said: “This research underscores the critical role OOH plays in today’s media mix. Brands that strategically invest in OOH are seeing remarkable returns, especially when it’s integrated with other channels such as TV and digital.
“Out of Home advertising is more critical than ever for brands looking to maximize their media investments. It continues to demonstrate its growing effectiveness, providing brands with a robust and unmissable platform to reach and engage audiences at scale. By leveraging its unique strengths, advertisers can unlock new levels of growth and ROI.
“This research, coupled with the imminent launch of MOVE 2.0 which will dramatically increase the scale of scope of audience measurement, means agencies and advertisers can invest in Out of Home with even greater confidence.”
Source: Analytic Partners: Collected Mix Models from The Leading Edge & Analytic Partners 2005-2024
About oOh!media
oOh!media is a leading Out of Home media company that is enhancing public spaces through the creation of engaging environments that help advertisers, landlords, leaseholders, community organizations, local councils and governments reach large and diverse public audiences.
The company’s extensive network of more than 37,000 digital and static asset locations includes roadsides, retail centers, airports, train stations, bus stops, office towers, and universities.
Listed on the ASX, oOh! employs around 800 people across Australia and New Zealand, and had revenues of $633.9 million in 2023.
The company invests heavily in technology, and is pioneering the use of sophisticated data techniques that enable clients to maximize their media spend through unrivalled and accurate audience targeting. Find out more at oohmedia.com.au
- Advertisement -
[…] Out of Home Growing Driver of ROI in Media Mix […]