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B&T > Advertising > OOH Growing Driver Of ROI: Analytic Partners Research
Advertising

OOH Growing Driver Of ROI: Analytic Partners Research

Staff Writers
Published on: 3rd July 2024 at 9:17 AM
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New research from oOh!media supported by global marketing measurement firm Analytic Partners has found that OOH advertising is becoming increasingly important for driving ROI when used consistently and at scale, particularly in combination 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 per cent stronger ROI. When used in conjunction with TV and digital, OOH drives the strongest returns, delivering a 27 per cent 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 per cent compared to using TV alone, for the same investment
  • Using multiple OOH formats generates 3o per cent 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 per cent) 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 (nine per cent)
  • 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 scrutinised. 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 per cent increase in sales, with 60 per cent achieving overall growth. The combination of digital and OOH delivers a 39 per cent 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 maximise 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.”

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TAGGED: Analytic Partners, oOh!Media
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Staff Writers
By Staff Writers
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Staff Writers represent B&T's team of award-winning reporters. Here, you'll find articles crafted with industry experience spanning over 50 years. Our team of specialists brings together a wealth of knowledge and a commitment to delivering insightful, topical, and breaking news. With a deep understanding of advertising and media, our Staff Writers are dedicated to providing industry-leading analysis and reporting, both shaping the conversation and setting the benchmark for excellence.

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