OUTSMART

New independent research that proves Out-of-Home is a smart investment


BrandScience, a marketing and business effectiveness consultancy, analysed 600 econometric studies to determine the impact of various media on sales – individually, in a media mix and over time. Several categories were examined including consumer packaged goods, retail and finance. The study revealed many interesting relationships.

Research highlights show that:

OOH delivers high ROI

                       

The BrandScience study found that OOH delivers results, has consistently done this and will help other media achieve a better result.

According to BrandScience OOH is an effective and efficient channel in its own right delivering a high ROI (based on incremental dollars of actual sales achieved by the campaign).

In total, OOH campaigns combined had a better ROI than TV, Print, or Cinema campaigns achieved during the same period.

                                            

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OOH has also consistently delivered this strong ROI, achieving either the first or second best ROI each year during the study period. In an ever changing media landscape it's good to know that OOH delivers consistency and top results.

 

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The study also found that OOH improves the results other media achieve, when it is used as part of an integrated campaign. OOH worked as a multiplier by expanding the ROI of other media channels. Results show TV, Radio and Online all delivered a better ROI when OOH was part of the media selection.

 

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OOH is cost effective

 

The BrandScience study found OOH reaches as many people as TV at a fraction of the cost, and that the more we spend on it the better return for every dollar.
 
Analysis of the Australian campaigns in the BrandScience vault shows that similar levels of reach against the population can be achieved between the two mediums but at a significantly different cost. OOH was only a quarter of the cost of TV, yet MOVE campaign ratings for the OOH total reach were essentially the same as OzTAM ratings for the TV campaign. For example, this is a case study of an Australian BrandScience client who utilised OOH and TV to great effect.

Secondly, on a global scale BrandScience found that those clients who had spent the most on OOH got the best ROI for every dollar they spent. With clients who spent 15% or more of their budget on OOH getting more than double the return out of every dollar they spent, versus clients who only spent 8% or less of their budget on OOH.

In contrast, a higher proportion of budget spent on TV resulted in a reduced ROI. Clients who spent more than 85% of their budget on TV got less than half the ROI for each dollar they spent versus those who gave a lower share to TV. 


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In the graphs above, the clients who have spent more than 85% of their budget on TV are seeing the effect of diminishing returns. The additional spending does not generate additional sales, due to the saturation of the media channel with the advertising message.

A better option can be to cap spending on a channel once diminishing returns are found and look to alternative channels to generate higher ROI’s for the campaign. Here is a case study of an Australian BrandScience client who did just this and split media channels to ensure their second year campaign was better than their first years.

How global budget levels were set: The budget levels for OOH and TV were derived from all campaigns within FMCG. The campaigns were grouped into three equally sized groups according to budget spend. The bottom third represents a budget for OOH of less than 8% of the total campaign budget, the middle third 8%-15% and the top third representing 15% or more. For TV the three budget levels split to, under 70%, 70%-85% and 85% or more.

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OOH delivers memorable campaigns


One of the core reasons OOH deliver such great ROI’s is its ability to be remembered in today’s busy media landscape. Its everyday presence enables it to break through the ‘noise’ in to the target audience’s memory.

BrandScience found OOH advertising has the second highest campaign retention, with 55% of the previous week's audience having retention of the campaign. It was second only to the sight, sound and movement of a TVC. A powerful result for a medium that is not actively consumed like all the others and for which the ‘content’ that draws people in is the advertising itself.   


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Additionally, just like with the ROI, the usage of OOH advertising increases the memory of other mediums in the campaign mix. BrandScience found a TVC or an Online campaign recall was increased by 30% when OOH was part of the mix.


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In this Australian case study OOH was responsible for a great return in its own right and 10% of the TVC’s ROI.

 

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