10 reasons to use out-of-home
Below are 10 key reasons behind the resilient and consistent performance of OOH media in those markets.
- Everybody is outside! OOH remains a mass reach medium, reaching at least half of consumers in most markets and as much as 90% in some. Out-of-home stands alongside TV and radio as a way to communicate at scale. In the majority of markets assessed, OOH reach and audience are mostly immune from the erosion and fragmentation experienced by television or print.
- OOH audience measurement continues to improve. With technological advancements in areas such as electronic location data and eye-tracking, markets including the U.S., U.K., and Germany are leading the charge on more sophisticated out-of-home measurement. The U.S. market is at the forefront of innovation in OOH media measurement with the recent launch of MORE by Geopath. Thanks to various technologies including Eye-Tracking, OOH measurement gradually gets closer to measuring actual impressions (“Likelihood-to-See”) rather than just “opportunities to see” (traffic within viewing distance of an ad unit).
- OOH advertising cannot be skipped or blocked. Media consumers, and generation X and Y especially, have become experts at avoiding advertising by choosing ad-free, paid-for media or blocking ad insertions on free websites. OOH is largely immune from that threat.
- Digital OOH is boosting advertising revenues by creating more opportunities for marketers in premium locations like airports or malls, thus increasing the revenue per panel multiple times. Although digital units account for only 5% of the global OOH inventory, they already generate 14% of total advertising revenues. In fact, DOOH already accounts for 30% of revenues in some markets like the UK and Australia, and the global share is predicted to grow to 24% globally by 2021.
- OOH inventory becomes more impactful and valuable. According to the MAGNA and Rapport study, the total volume of OOH advertising units is not expanding globally. In many markets, it is actually shrinking, as large-format static billboards are being gradually dismantled or replaced by fewer, more high-quality back-lit rolling panels or digital panels. The OOH industry is engaged in a process that feels necessary but complicated for other media categories (TV, radio, print): cutting clutter to increase the impact value of inventory.
- Transit and Street Furniture are still developing. In many markets, regulation and public governance have reached a point where transportation authorities and municipalities are ready to partner with OOH vendors to generate advertising revenues. These OOH segments are typically based on long-term contracts (10 to 15 years) and the renewal/RFPs being negotiated now are often the first to come up in the context of affordable digital screens, connectivity and programmatic opportunities. This is why digital inventory has increased by approximately 30% over the last two years. For instance, the renewal of the Street Furniture contract in Madrid and Barcelona, or the New York bus shelters in 2016, all led to a jump in digital inventory and revenues. Big contract renewals in 2017 include New York’s Metropolitan Transport Authority, where the authority is looking to aggressively develop digital opportunities.
- OOH is expanding to brand new environments. Digital screens have allowed OOH advertising vendors to penetration niche environment allowing to reach young urban population that is otherwise hard to reach by traditional media: offices, elevators, taxi, gyms, bars, retail etc. The “Digital Place-Based” segment offers targeting capabilities and programmatic opportunities.
- OOH becomes addressable and experiments with programmatic. Programmatic technologies initially developed to automate the trading of online display ads, are now being used in to buy and optimize ad campaigns on connected DOOH units.
OOH can address branding campaigns as well as lower funnel activation. Positioned in transportation and shopping malls, OOH has an inherent ability to target consumers at or near point-of-sale. Now connected digital screens, usage of smartphone data and marketing data allow marketers to target specific day parts, target groups and location with increasing relevance.
OOH can go native. “Native” is the buzzword for ad campaigns to become more acceptable and impactful by avoiding standardized formats and merging in the editorial context. OOH has a long history of creatively playing with formats and environments; moving image and connectivity bring that to a new level today. Specialized operations, which rely on customized equipment, interactivity, unexpected location, have the capacity to surprise, entertain and engage consumers. Finally OOH can go real time: Digital connection also means that OOH campaigns can occasionally reflect live events (sports results, lottery draws, weather, traffic etc.)
Source: Adobo Magazine