Study Finds Optimal Proportion of DOOH Spend is 45% of OOH Budget
UNITED KINGDOM — A new study by BrandScience, Omnicom’s econometrics and data science business, finds that adding digital out-of-home (DOOH) to traditional out-of-home campaigns drives additional ROI for marketers. BrandScience analyzed 211 out-of-home campaigns from 2012-2015 across FMCG, travel, technology, finance, charity, grocery and retail sectors using Route data for evidence of the effectiveness and demonstrate the medium’s value in delivering profitability.
The study is the first to use econometric data to demonstrate that using DOOH media can drive additional ROI to advertising campaigns. The research was commissioned by Talon, in partnership with media owners Clear Channel, Exterion Media, Forrest Media, JCDecaux, Ocean Outdoor, Outdoor Plus and Primesight.
BrandScience analyzed the optimal proportion of DOOH as part of a campaign’s overall OOH budget and provides recommendations for advertisers on how to maximize ROI when combining digital and traditional out-of-home as part of a wider media mix.
Key findings include:
- Increasing investment in OOH as part of the communications mix drives ROI for advertisers
- Media channels consistently improve ROI across individual categories when OOH is included in the mix
- Dropping OOH from a campaign can lead to a reduced campaign effectiveness
- Cost-effective tactical OOH campaigns can be very effective at boosting total campaign ROI
- The optimal proportion of digital OOH (as a total of the OOH budget) is around 45%
BrandScience and Omnicom now plan to use data from the study to recommend budget levels for all media channels.
“We can clearly measure out-of-home effectively and we have proved that a slightly increased out-of-home spend delivers higher ROI.” said Sally Dickerson, Global CEO at BrandScience.
Nick Mawditt, Director of Insight and Marketing at Talon adds “This is a great example of the industry coming together to look objectively at how out-of-home works for brands. Not only have we a clearer idea of how it works, we know that digital out-of-home works hard in driving the right message in the right context to complement classic out-of-home messaging – the first real insight of its kind.”
“The findings validate the huge developments in out-of-home media in the past few years. Advertisers can feel confident that investment in out-of-home, coupled with smart planning across brand and promotional campaigns can deliver significant increase in effectiveness and ROI, both in isolation and when integrated into a broader communications plan,” said Sarah Speake, Chief Marketing Officer at Clear Channel.
Photo Courtesy: Clear Channel UK
Free Trend Report: Why Location Is the New Currency of Marketing
Finding effective ways to deliver branded messages in today’s complex media environment is one of the biggest challenges facing advertisers. Traditional methods of advertising have become less effective as consumers spend less time in places where marketers have traditionally had an advantage in reaching them. In addition, consumer attention has fragmented across multiple channels as media options and device platforms increasingly diversify.
Active consumers spend money, and while they are going about their daily routine, they are also actively looking for information. According to Google, more than 50% of all mobile searches have local intent, and 17% of search happens while consumers are on the go.
Digital Out-of-Home (DOOH) advertising, also known as Digital Place-based (DPb) media, utilizes strategically placed, networked digital signage displays to reach on-the-go consumers while they are outside of their home with highly targeted messages. Location-based mobile and digital out-of-home media are part of a larger multiscreen ecosystem that effectively amplifies brand messages to create a deeper level of engagement with active consumers.
Why Location Is the New Currency of Marketing is aimed at CMOs, media buyers and strategists and provides insight into why marketers are increasingly shifting their advertising dollars to these rapidly emerging media platforms.
Highlights from Why Location Is the New Currency of Marketing include:
- The Connected Consumer
- Leveraging the Moment
- Multiscreen Campaign Planning
- Amplifying Reach With DOOH Media