07 May Every Out-of-Home Ad Dollar Generates $5.97 In Sales
According to a post from the Outdoor Advertising Agency of America from last year, every OOH Ad dollar generates $5.97 in sales.
May 16, 2017 (Washington, DC) – For each dollar spent on out of home (OOH) advertising, an average of $5.97 is generated in product sales, according to a new report released today by the Outdoor Advertising Association of America (OAAA). While radio, print, and digital display advertising receive a greater share of campaign dollars in the average media mix, OOH produces a higher return on investment (ROI).
The report, conducted by Omnicom Media Group’s Benchmarketing, found that when OOH is incorporated into the media mix, it improves overall campaign revenue ROI. OOH increases the effectiveness of digital search by over 40 percent and print by over 14 percent.
“Using OOH in any campaign makes it more effective,” said OAAA’s Chief Marketing Officer Stephen Freitas. “This new report tells us advertisers see their sales grow and brand awareness increase when OOH is used in the media mix.”
While TV and radio are high in diminishing returns, OOH delivers linear incremental returns in general, offering consistent ROI growth. In the analysis of four product categories, Benchmarketing advises OOH share of budgets of all sizes – small, medium and large – should be increased two to three times over current allocations. The study offers media planners insights on media channel share reductions to fund the increases in OOH share.
Freitas added, “The study recommends increases in OOH spend in every brand category analyzed to ensure optimal campaign ROI.”
The OOH ROI and Optimization in the Media Mixing report analyzed 100 US media campaigns, 25 of which used OOH. The cases span the last 10 years and OOH’s share of the media mix averaged 9 percent.
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Article found at oaaa.org/stayconnected