Over the past several years, out-of-home (OOH) advertising has seen strong growth – more than double that of all other forms of traditional media. OOH grew by an average +4% per year over the last nine years (2010-2018), compared to -1.5% for all non-digital media sales (linear TV, print, radio).
Digital ad sales continue to increase, with expected double-digit growth (+12%), making up over 50% of all ad spend. However, linear ad sales are set to decrease by -5% this year. As radio shifts to streaming formats and television contends with OTT and VOD services, out-of-home media continues to expand both supply and demand. In fact, many predict OOH could double its share of marketing spend by 2025.
While outdoor advertising has always been an awareness driver for brands, the ability to effectively measure its impact was limited in the past. Today OOH plays a far more strategic role for marketers as they plan and optimize campaigns to not only cut through the noise and capture consumer attention, but also drive conversions. This is why out of home makes more sense for schools than in the past.
As media consumption behavior shifts, and more consumers cut the cord in favor of on-demand or streaming services, it’s becoming harder for advertisers to reach their audience. In contrast to other media, OOH and digital OOH ads can’t be blocked, skipped or fast-forwarded. They aren’t controlled by a newsfeed algorithm or plagued with fraud. OOH has also become the preferred media type for millennials.
These are the biggest factors driving OOH’s growth, and why more brands are investing in the channel:
The OOH industry transitioned static out-of-home media placements into rotating digital displays, capable of serving eight times the ads every minute. Although, even though digital OOH makes up less than 15% of total OOH inventory, it represents nearly a third of total spend.
Not only has this caused supply to increase, but advertisers across industries have shifted media dollars to take advantage of digital OOH’s ability to dynamically serve creative and measure results in real time.
Access & Automation
What was once a very antiquated medium has now blossomed with automated and programmatic ad platforms for OOH media. For marketers, planning and buying OOH can be a very fragmented and labor intensive given the number of media types, media owners and logistics to sort through.
With the latest Out-Of-Home platforms (DSPs) marketers can analyze and programmatically buy the latest OOH media inventory available across literally thousands of different markets, neighborhoods and media types.
Mobile & Geolocation Data
Mobile phones act as the new survey for the OOH industry. Every day, billions of location observations are captured and shared as consumers use their smartphones, and opt-in to receive accurate information regarding weather, news or surrounding events.
Location observations also play a valuable role for brands, making it possible to report (in aggregate) how many consumers are exposed to an OOH ad, what their daily journey is like and whether they visit specific locations. In addition, as marketers begin to understand their audience and who’s being exposed to their ads, they can better personalize and optimize their campaigns – further increasing reach, relevancy and effectiveness.