Research indicates that increasing OOH share of media plan allocations leads to increased effectiveness, with measurable impact on sales, brand awareness, consideration, and purchase intent.
Commissioned by the OAAA, this new analysis from Benchmarketing- a division of Omnicom Media Group- explores ad spend trends across OOH and other media channels against various product categories.
The analysis examines the optimal mix allocations for total media and OOH – by category, by size of brand, and by each of the four KPIs, for each of three categories. The findings provide data-driven guidance on OOH ad spend recommendations to inform media planning decisions by brands and media agencies.
The key findings include:
- OOH delivers a strong revenue return on ad sales (RROAS) that can improve overall campaign RROAS for the total media mix.
- OOH drives improved brand perceptions throughout the marketing funnel.
- For the three product categories studied (automotive, CPG food and retail grocery), and independent of ad budget size, no matter the KPI or current RROAS, current media mixes are not being optimized because OOH is not being planned at a sufficient allocation.
- Underfunding OOH prevents total media plan optimization because share is being allocated to other channels beyond their point of diminishing returns. TV and digital tend to be over-spent and print typically does not perform well for improved sales or brand metrics.
Automotive
- When looking at brand consideration in the automotive category, the analysis showed the greatest improvement in effectiveness with brand scores increases of up to 11% when OOH budget allocation is optimized.
- Automotive has the strongest improvement in driving brand awareness when the mix is optimized and generates brand scores increases of up to 19%.
CPG Food
- The CPG food category sees the greatest improvement in brand purchase intent effectiveness when OOH budget allocation is optimized seeing a return on ad spend improvement of up to +24%.
- The CPG food category also sees the highest improvement in increasing consumer brand spend once the media mix is optimized, seeing a return on ad spend improvement of up to +27% to +32%, depending on the size of the brand.
Retail Grocery
- In terms of brand awareness across the retail grocery category, the study's brand index model showed the greatest improvement in effectiveness when OOH budget allocation is optimized with brand scores increasing up to 9%.
- Large retail grocery brands use OOH at higher levels but should be spending up to twice as much to achieve sales optimization growth of 4%
- OOH spend should be increased at up to 5X times for medium retail grocery brands to achieve sales optimization growth of 9%
Overall, the analysis supports Marketing Mix Modeling (MMM) for brands and agencies to evaluate marketing performance as well as incremental spending increases in their uses of OOH.
Check out the report here.
Published on PRNewswire.com