OOH advertising appears to be a key driver for return on investment for brands as part of their media mix, particularly when combined with TV and digital, according to new research.
The findings from oOh!media, supported by data from global marketing measurement firm Analytic Partners, shows the growing impact of out-of-home advertising when used consistently and at scale to drive ROI.
Advertisers are shifting their spend towards OOH for its growing mass audience reach as the decline of linear TV audiences continues and cost of performance media increases.
The research found brands allocating more of their marketing budget to OOH achieve a +17% stronger ROI. That rose significantly when OOH was used along with TV and digital, delivering a 27% higher ROI compared to TV alone for the same investment.
Research by the Analytic Partners 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.
The study additionally found that incorporating OOH alongside TV boosts ROI by +18% compared to using TV alone for the same investment. Meanwhile, using multiple OOH formats generates +30% increase in ROI, while data-led, category buyer targeting delivers twice the ROI of demographic targeting
OOH campaigns extending beyond eight weeks drove more reach, awareness and consideration that translates to nearly twice the ROI (+79%) of shorter two-week campaigns.
OOH delivered returns across all campaign objectives and through the marketing funnel, delivering above average returns for brand building objectives (+9%).
The report found that 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.”
Consistent or increased media investment, particularly in OOH, is proven to be beneficial during economic downturns, the report noted. According to the report, brands that boosted media and marketing spend during recessions experience a 17% increase in sales, with 60% achieving overall growth.
The combination of digital and OOH delivers a 39% 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.”