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OOH Delivers Highest Engagement in Top 10 Us Markets
The top 10 US markets drive the very highest level of OOH engagement with almost 90 percent of travelers reporting they look at the ads at least part of the time, while 43 percent report looking at the ads all or most of the time. The results were generated by OAAA’s Nielsen OOH Advertising – Top 10 Markets study conducted in September 2019.
Reflecting today’s growing urban culture, among the top 10 markets in the US OOH, transit and street furniture advertising reach 81 percent and 60 percent, respectively, of adult travelers ages 16+ monthly. These numbers are even higher than the US national averages for the transit and street furniture formats, which total 78 percent and 50 percent, respectively. Consumers in these top markets are also prompted by directional ads to visit stores and make purchases at higher rates than the national averages.
When comparing the transit category in top 10 markets to the national averages, monthly ad viewership was higher for public buses, taxi cabs, commuter rail and subways, airports and mobile billboards. Commuter rail and subways saw the greatest increase of viewership with over a third of travelers noticing these ads, an increase of 140 percent over the national study viewership.
Within the street level category, monthly ad viewership grew among bus shelters and street kiosks, with more than half of travelers noticing bus shelter ads and 46 percent noticing street kiosk ads. The viewership growth in bus shelter ad notice was 31 percent and 24 percent in street furniture ad notice over the national study averages.
For advertisers focused on the top US markets, the Nielsen study makes a compelling case for OOH because of its massive reach, high levels of engagement, and the ability to influence consumers on mobile devices. Similar results were produced by the MRI/Simmons Benefits of OOH Advertising study, which found adding OOH to any media plan grows audience delivery to almost 100 percent among adults 18 – 64 who have traveled by car in the past week.
The MRI/Simmons study found OOH viewers over-index with a variety of mobile activations such as use of search engines, banking, social media usage, and purchases, while the Nielsen study found almost two-thirds of viewers report taking an action on their mobile device as the result of OOH ad exposure. Both studies found OOH viewers are younger and more affluent than the general population.
Source: OAAA, 2020
OOH Ends 2018 With Strongest Quarter In A Decade
Fourth quarter 2018 produced the strongest quarterly growth for total media ad sales in 18 years (almost +12%). The winners in 2018 were OOH (+4.5% to $8 billion) and paid search (ad sales up +23% to reach $54 billion). OOH had its best quarter in more than a decade (+7.2%), partly due to the significant increase of ad spend from the technology sector. OOH is the only linear media type to experience consistent organic revenue growth.
2018: 35 Consecutive Quarters of Growth
OOH experienced increases in all four primary formats – billboards, street furniture, transit, and place-based. Among the top revenue categories, those with the greatest growth increase in 2018 included Government, Politics and Organizations +14.6 percent; Insurance and Real Estate +14.6 percent; Schools, Camps and Seminars +13.2 percent; Miscellaneous Local Services & Amusements +8.2; Retail +6.6 percent; and Financial +6.2 percent.
Digital OOH is the Biggest Driver
OOH will continue to be the only traditional media format to show growth in 2019, and MAGNA expects it to rise by +2.6 percent during the year. Digitization is leading the growth for total OOH, and digital OOH represented 29 percent of the total in 2018. MAGNA projects an 8.8 percent increase for digital OOH in 2019, or more than triple their projected increase of 2.6 percent for total OOH.
Tech Brands Lead the Way
Of the top 100 OOH advertisers in 2018, one-quarter were from the technology sector and include the FAANG businesses (Facebook, Amazon, Apple, Netflix, and Google). Ranked in order of OOH spending, the top 15 advertisers in 2018 were Apple, McDonalds, Geico, Netflix, Google, American Express, Metro By T-Mobile, Amazon, M&Ms, Chevrolet, Facebook, Universal Pictures, Coca-Cola, AT&T and Comcast. Apple and McDonald’s have retained the top two positions for the sixth consecutive year.
OOH Future Looks Strong
As Mark Boidman of PJ Solomon says, “OOH is the only media channel where technology is a true friend.” OOH NAR grew by an average 4 percent in the last five years while all other non-digital media categories were flat (TV, radio) or declining (print). OOH is forecast to grow an average of 2.5 percent annually over the next five years. The success of OOH is largely caused by technology innovation (digital units, audience measurement), plus sales and marketing efforts. OOH has also been largely immune from the decline in reach and/or consumption that affects television, print, radio and even digital display to various degrees, especially among younger audiences. Other factors impacting OOH’s future success include:
—OOH reach and audience are holding. Contrary to all other traditional media categories, OOH reach and audience has not declined in the last ten years. Contrary to editorial media that require active consumption, OOH hits passive, captive viewers. Campaigns are viewable, but they cannot be skipped and cannot be blocked.
—Audience Measurement keeps improving. In the last ten years, audience measurement has evolved from measuring “opportunity to see” to actual impressions, to qualified impressions. OOH is gradually providing a level of accountability that is comparable to television and digital media.
—Creativity. Both static and digital OOH media attract some of the best creative work in advertising and the rise of digital has not reduced or diverted talent from static creative.
—OOH is affordable. OOH is the second most affordable medium in the US, after online display, according to PJ Solomon. in most of the 50 markets analyzed. It is significantly less expensive than television and print.
—Digital inventory increases yield (revenue per location). When an existing OOH unit is converted to digital, the revenue of the location is almost automatically multiplied.
—Digital attracts new categories of advertisers. The technology sector has dramatically increased spending in OOH, partly due to digital offerings, along with the fast-growing direct-to-consumer and cannabis categories.
Source: MAGNA, Kantar Media