Out-Of-Home Advertising Generates Higher RROI Above The Average Of All Media Analyzed.
Wsource: Canadian Out of Home Marketing and Measurement Bureau (COOMB)
* RROI: revenue return on investment or incremental sales revenue for each dollar of media cost
Across all categories, Out-Of-Home advertising (OOH) performed within the top 3 of all media studied. Despite a lower share of the average media budget, in most categories, OOH delivered higher RROI than the other media analyzed. When the share of spend on OOH was increased, the performance of the other media in the mix was also improved. OOH’s RROI is trending up over time, whereas other major media are at best, flat.
Research reinforces the effectiveness of using multiple media to create connect points that engage consumers at relevant times throughout the day and on the path to purchase. Out-of-Home’s revenue return on investment is increasing over time whereas other media are at best flat. This is due in part to the audience erosion that has occurred in other media as well as the high level of disengagement from media such as TV and online. Technology has had a positive impact on Out-of-home leading to the growth of digital networks, mobile and other interactive opportunities that engage active consumers who spend over half their time outside of the home.
Despite lower advertising budgets, Out-of-home advertising is shown to perform better than other media and in a media mix, improves the performance of the other media.
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OOH appears to be the most straightforward and honest medium that works best in pure advertising mode. People see OOH ads while they are on the go, when they are most receptive to useful information. New research finds it can also trigger short-term consumer behaviour and drive new customers to engage with brands on their smartphone.
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