OOH

Ad Spend Trends

Guideline has issued an analysis of ad spending trends in several key markets, showing both similarities and differences.

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The Value of “Other” Media

Given the current focus on social media and streaming services as advertising vehicles, it is worth paying attention to studies that remind us of the value of radio and Out-Of-Home (OOH). 

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A Peek Behind the Curtain at Out-of-Home Advertising

  • Creative Council
  • By Zoe Reiter (Nielsen), Young Pros Officer

On April 4, industry experts explored where out-of-home (OOH) advertising stands today, its current capabilities and its potential in the future. Attendees heard data-backed insights on how OOH has changed in the past decade, where it fits in a multi-channel campaign or media plan, and brands’ objectives in using it.

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OOH Measurement’s Game Has Changed

Christina RadiganSVP, Research & Insights, Outfront

Christina Radigan of Outfront explored the advantages of out-of-home advertising (OOH) and discussed advancements in its measurement techniques. Christina noted that with the loss of cookies and third-party data, contextual ad placement will see a renewed sense of importance, and in OOH, location is a proxy for context, driving content. She further indicated the benefits of OOH citing a recent study by Omnicom, using marketing mix modeling (MMM), which found that increased OOH spend drives revenue return on ad spend (RROAS). This research also highlighted that OOH is underfunded, representing only 4% to 5% of the total media marketplace. Following up on this, Christina pointed to attribution metrics, measuring the impact of OOH ad exposure on brand metrics and consumer behaviors, to demonstrate OOH's effectiveness at the campaign level. Expanding on their work in attribution, she noted changes stemming from the pandemic: Format proliferation and greater digitization, privacy-compliant mobile measurement ramping up (opt-in survey panel and SDK) and performance marketing and measurement becoming table stakes for budget allocations. New measurement opportunities from OOH intercepts included brand lift studies, footfall, website visitation, app download and app activity and tune in. Finally, she examined brand studies conducted for Nissan and Professional Bull Riders (PBR), showcasing the effectiveness of OOH advertising in driving recall, ticket sales and revenue. Key takeaways:
  • MMMs return to the forefront, as models become more campaign sensitive and are privacy compliant (powered by ML and AI).
  • A study from Omnicom, using MMM, found that optimizing OOH spend in automotive increased brand consideration (11%) and brand awareness (19%). In CPG food, optimizing OOH spend increased purchase intent (24%) and optimizing OOH spend in retail grocery increased awareness (9%).
  • OOH now represents a plethora of formats (e.g., roadside ads, rail and bus ads, digital and print) and has the ability to surround the consumer across their journey, providing the ability to measure up and down the funnel, in addition to fueling behavioral research.
  • Key factors for successful measurement in OOH: feasibility (e.g., scale and scope of the campaign, reach and frequency), the right KPIs (e.g., campaign goal) and creative best practices (Is the creative made for OOH?).
  • OOH advertising is yielding tangible outcomes by boosting consumer attention (+49%). Additionally, there has been a notable surge in advertiser engagement (+200%).
  • Ad recall rates in OOH continue to increase (e.g., 30% in 2020 vs. 44% in 2023).

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What the Metaverse Means for Marketers

On September 21, 2022, speakers from Kantar, Meta, Next Media Partners, Snap, VMLY&R, Wunderman Thompson Intelligence and XRGuild shared insights into how the Metaverse will impact marketers. They discussed implications for interoperability as well as paid advertising.

Ad-Spend Cues, Deepfakes/A.I., Badass Endorsers and Influencer KPIs

At this Insights Studio, authors from three different continents showcase their recently published work—including the JAR Best Paper 2022 on how advertising expenditures drive consumers’ perceptions of ad and brand quality. Also featured are studies on deepfakes and AI reshaping the advertising industry, the success of using product endorsers who are actors known for roles portraying despicable characters, and KPI patterns of social media influencers across several platforms. Talking points in the concluding Q&A span the future of AI in advertising and influencer marketing, machine-driven decisions for choosing endorsers, and factors (product- and economic-related) affecting consumer perceptions of quality in TV ads and engagement in user-generated content.

Ad-Spend Cues, Deepfakes/A.I., Badass Endorsers and Influencer KPIs

  • JAR Insights Studio

At this Insights Studio, authors from three different continents showcase their recently published work—including the JAR Best Paper 2022 on how advertising expenditures drive consumers’ perceptions of ad and brand quality. Also featured are studies on deepfakes and AI reshaping the advertising industry, the success of using product endorsers who are actors known for roles portraying despicable characters, and KPI patterns of social media influencers across several platforms. Talking points in the concluding Q&A span the future of AI in advertising and influencer marketing, machine-driven decisions for choosing endorsers, and factors (product- and economic-related) affecting consumer perceptions of quality in TV ads and engagement in user-generated content.

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Why Ad Expenditures Impact Perceived Quality in Some Cases But Not Others

  • JOURNAL OF ADVERTISING RESEARCH

There is a ton of research on the signaling effects of ad spending. But new work tackles lingering questions: Why do advertising expenditures have a stronger impact on perceived quality for some brands and in some product categories but not as much for others? And how do increases in expenditures across different media channels affect quality perceptions?

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