Model outdoor advertising outcomes
Chris Sloane, Mungo Knott and Nick Mawdit
Ohal, Primesight and Kinetic
Applying econometric modelling to out-of-home advertising can result in more robust measurement and more effective media placement.
Measuring Return on Investment (RoI) for advertising media expenditure is a complex task. A wide range of factors both within and outside of an advertiser's control will influence the payback generated from the marketing activity.
Econometric, or marketing mix, modelling is a method of analysing these outcomes and can be used to attribute cause and effect to different elements of a media schedule.
In this paper, we identify key elements that need consideration when econometric models are used to ascribe outcomes to out-of-home (OOH) investment and suggest some solutions based on the latest data and techniques available to practitioners. To conclude, we provide a graded matrix against which models can be assessed to clarify their reliability for driving decisions on the effect of OOH advertising.