OOH Advertising Needs Better Targeting
OOH Advertising: learn more.
The Impact of COVID-19 on the OOH industry
As the economic impact of COVID-19 continues to unfold, brands and agencies need to re-image their advertising methods. The out-of-home (OOH) advertising players will need to rethink their strategies before the damage deteriorates to them bleeding clients too. Traditional billboards will not be effective anymore as the consumers will be taking a more careful approach and spend more time in their homes. So fewer people will be outside and less impressions will be generated by outdoors advertising. Traditional OOH will be replaced by in-home advertising.
According to a survey conducted by the Interactive Advertising Bureau (IAB) it is believed that traditional out-of-home advertising is expected to suffer (Forbes) an estimated ad spend decline of 51% for March and April and a decline of 41% for May and June.
Adzze has been re-thinking the advertising tactics adapting to a more sensitive message. The team has working on extending its capabilities to offer advertising concepts that can reach the consumers at their safest place: at home. One of these methods uses pizza boxes as advertising space. Think of this as small moving billboard that gets delivered at the consumer’s home. Studies demonstrated that this type of ads can evoke an 80% recall rate (8 out of 10 households individuals remember to see an ad on the pizza box) with an average ROI of 150%. This means, for every 1 dollar the advertiser invested in a pizza box advertising campaign, they received at least additional 2.5 dollars of sales. For more details, see the article Estimating the ROI of Pizza Box Marketing.
Few people spend a lot of time outdoors. According to a study, an average American spends 87% of their time indoors. Of the remaining time, 7% of it goes to time spent with nature and 6% spent in a car. These numbers are startling but advertisers still spend billions of dollars on out of home advertising. Notably, OOH advertising constitutes a significant share of traditional advertising media.
Is OOH advertising worth the money?
There is a general trend in the US where the amount of money spent on traditional advertising media is declining. According to figures by eMarketer, all but one traditional media ad spend declined in 2019. Notably, the only traditional medium that experienced growth in 2019 was OOH advertising. Particularly, this advertising medium includes things like billboards. In the second quarter of 2019, out of home advertising edged up by 7.7%, the highest margin since 2007. Interestingly, most if not all, of the growth came from the increasing adoption of digital out of home advertising media.