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Optimal digital OOH spend figured

News, 26 November 2015

LONDON: About 45% of an advertiser's out-of-home (OOH) budget should be given over to digital outdoor media according to a new study.

At the request of Talon, the independent outdoor media specialist, BrandScience, the Omnicom econometrics and data science business, analysed some 211 OOH ad campaigns that ran between 2011 and 2015.

It concluded that the 45% figure would deliver maximum effectiveness, Marketing reported, taking into account the various costs associated with digital and traditional OOH. Above that level diminishing returns set in.

The study didn't stop there, however, as it also came up with detailed advice on how different categories can maximise ROI when combining digital and traditional OOH as part of a wider media mix.

So, for example, optimal OOH investment for grocery retailers was put at £7m, a figure likely to deliver 70% in incremental value.

For travel companies, it recommended OOH investment of £2.7m, to yield 15% in incremental value.

"We can clearly measure out-of-home effectively and we have proved that a slightly increased OOH spend – in many cases – delivers higher ROI," claimed Sally Dickerson, the global chief executive at BrandScience.

Past BrandScience work in this field has purported to show that out-of-home is the second most efficient media, behind radio, and that OOH can improve the rate of return on investment for all other media used in an ad campaign, except for print.

At the same time, a higher proportion of budget spent on OOH increased ROI, while the reverse was true for TV spending.

The Outdoor Advertising Association of America recently launched a campaign, Feel the Real, highlighting the fact that, unlike many online ads, billboards are seen by humans.

As well as posters headlined "You are consuming this advertisement. You are real", the campaign tackled agency thinking specifically with headlines such as "Media planners, do you have a reality problem?" and, in one positioned outside Ogilvy & Mather's New York office, "Hey, Shelly, does this ad feel real to you?" – a dig at the agency's Chairman Emeritus Shelly Lazarus.

Data sourced from Marketing, OMA, MediaPost; additional content by Warc staff