What's Happening?
Bradley Keefer of Keen Decision Systems has highlighted out-of-home (OOH) advertising as a significantly underfunded yet highly effective marketing channel. Despite the saturation of digital and social
media channels, OOH advertising offers unique advantages by building brand equity and driving performance outcomes. Research indicates that OOH placements enhance the effectiveness of other media channels, such as search, social media, TV, and radio. Currently, OOH accounts for less than 1% of marketing spend, yet it delivers a higher marginal return on investment (mROI) compared to other media types. Keefer argues that marketers are missing out on measurable growth by not investing more in OOH advertising.
Why It's Important?
The significance of OOH advertising lies in its ability to provide both brand reinforcement and measurable performance outcomes, which are crucial in today's competitive marketing landscape. As digital channels face diminishing returns due to saturation, OOH offers a viable alternative for marketers seeking to optimize their media mix. The channel's ability to amplify the impact of other media investments makes it a strategic choice for enhancing overall marketing efficiency. By reallocating budgets from saturated digital channels to OOH, marketers can achieve better ROI and drive growth. This shift could lead to a reevaluation of marketing strategies and budget allocations across industries.
What's Next?
As marketing leaders reassess their strategies, OOH advertising is likely to gain more attention and investment. Brands may begin to test OOH at smaller, more efficient levels, recognizing its potential to improve overall ROI without requiring large-scale national buys. The development of modern attribution tools may further enhance the measurability of OOH, encouraging more marketers to explore its benefits. This could lead to a gradual increase in OOH's share of marketing budgets, as advertisers seek to diversify their media mix and capitalize on the channel's strengths.
Beyond the Headlines
The underfunding of OOH advertising reflects broader trends in marketing budget allocations, where digital channels have historically dominated due to their precision targeting and instant reporting capabilities. As marketers become more aware of OOH's potential, there may be a shift towards more balanced media strategies that incorporate a variety of channels. This could foster innovation in OOH advertising, as brands experiment with creative and flexible approaches to maximize its impact. Additionally, the increased focus on OOH may drive advancements in measurement and attribution technologies, further enhancing its appeal to marketers.
