Truck Advertising Does Not Deliver The Expected ROI
Truck advertising: learn more about the type of returns of this concept.
The ramifications of COVID-19 in the OOH Advertising Industry
As the economic impact of COVID-19 continues to unfold, brands and agencies need to keep a up to date with the changing consumer behaviors and ensure they are prepared for any outcomes and find new opportunities. Marketers will have to change their strategies to mitigate the impact of COVID-19 is now a major focus since advertisers are researching better alternatives to keep their clients. Traditional out-of-home advertising methods such as billboards, bus stops, fliers, magazines, and transit posters will have a hard time finding their feet in the long run.
A survey conducted by the platform Numerator indicated many industries are shifting their messaging to in-home delivery. As example, restaurants are pivoting to food delivery message. The increased “work from home” periods will force the shift of advertising concepts. Numerator reported that Burger King and Little Caesars are even advertising new delivery options available in their stores.
Adzze has been adapting the advertising vehicles to a more sensitive message. The team has working on extending its capabilities to offer advertising vehicles that can reach the consumers at their safest place: at home. One of these concepts 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.
Traditional billboard advertising is unpopular for the inability of advertisers to target the precise audience. As such, improvements like truck side advertising are designed to enhance the ability to target ad campaigns. Nevertheless, does this medium deliver the expected return on investment?
Truck Side Ads: the concept
The trucking industry in the US is as strong as ever. As of 2018, trucks moved more than half of overland freight in the country, representing a market share of $796.7 billion. Notably, the trucks deliver goods to their final destination as well as waste material from residential areas. As such, trucks are the critical component in the last mile delivery in the US. Being the last link in a global supply chain, trucks have access to final consumers. Interestingly, advertisers leverage this capability to build brand awareness and to ramp up product sales.
There are some parts of the country and others globally, with restrictions on billboards. As such, advertisers cannot access the areas during an ad campaign. In such a situation, truck side advertising is an ideal alternative. Notably, advertisers can attach different types and sizes of billboards on the side of trucks. A standard size truck can carry a billboard large enough to have a similar impact as a roadside billboard. Interestingly, mounting the billboards on the side of trucks turns stationary billboards into mobile.
Does truck advertising deliver the expected ROI?
The return on investment (ROI) is a crucial metric that enables advertisers to make measure the effectiveness of the ad campaign. Placing ads on trucks could cost you up to $30,000 per month. According to the American Trucking Association, 98% of people in cars are likely to notice trucks during traffic. Further, mobile billboards attract an average of $2.05 in terms of cost per thousand impressions. This is cheaper and much more effective compared to billboards.
Brands are looking for alternative to static traditional OOH advertising as vehicle advertising or digital mobile OOH. The use of ads on advertising trucks has been emerging as unconventional tactics however it has risks related to the impact on reputation. When the vehicle carries the advertisement of the brand on the road, the advertising truck serves as brand ambassador. Any driving misbehavior could impact directly the brand image. In addition, advertising trucks have several pitfalls as low return on the ad investment, difficult to track the outcomes and low brand recall. Advertising trucks cannot target precisely the exact audience as any traffic driver could be targeted. There are some parts of the country and others globally, with restrictions on billboards. As such, advertisers cannot access the areas during an ad campaign. In such a situation, truck side advertising is an ideal alternative. Notably, advertisers can attach different types and sizes of billboards on the side of trucks.
Nevertheless, truck advertising cannot pinpoint the exact audience that a business would like to reach. As such, the ad campaign might generate thousands of impressions per day, but only a handful of them will lead to direct action. For a truck is traffic, there is no guarantee that 98% of the people in cars who will notice the ad are interested in the product or service. The lack of precise targeting undermines the conversion rates of the ad campaign. Ultimately, the ROI of the advertising medium can be quite disappointing.
In Home Advertising will replace billboard trucks
Recently the Interactive Advertising Bureau surveyed nearly 400 media buyers and brands. The results were surprising: 74% think the coronavirus pandemic will have a larger impact on their advertising spend than the 2008 financial crisis. According to the President of Interactive Advertising Bureau, David Cohen, “Typically marketers will press pause for a moment, take a breath, assess the situation, replay and reevaluate.”
The use of mobile OOH methods will most likely experience more decline in the coming months, given the fact when the economy re-opens, people will still be cautious and stay more at home. Mobile advertising using trucks, buses and others will be fast replaced by in-home advertising. The impact of COVID-19 has kept normally mobile citizens inside their homes. Hence, the best ways to reach your audience and maintain brand visibility will be to take your products and services to them indoors, as it will be clearly unprofitable to place adverts on advertising vehicles that no one is seeing.
Alternative to Ad on trucks
Advertising is a major problem, especially for small businesses. This is especially true in an environment where traditional media is the only avenue for advertising. Luckily, in-the-hand marketing is a white knight that can save the small businesses the headache. Not only is the medium cheap, it is simple to set up and to operate. Valet tickets are a good example of in-the-hand marketing. Usually, it takes a lot of money and effort to advertise to an affluent audience. You might need to place ads in airports and on billboards on highway side.