The Outdoor Advertising Association of America recently released first quarter figures that showed out-of-home advertising revenue rose 4.7% to $1.58 billion in first quarter compared to a similar period the previous year, marking the 20th consecutive quarter of growth and outperforming the other forms of traditional media advertising.
Major marketers are big believers in OOH. The top 10 largest spenders on outdoor advertising in the first quarter were McDonalds, Apple, MetroPCS, Verizon, Warner Bros. Pictures, T-Mobile, Chase, Citi, HBO and Samsung.
Marketers showing the largest percentages of growth were Charles Schwab, Cadillac, Microsoft, Google, Universal Pictures, Verizon, Warner Bros. Pictures, American Express, New York State Lottery, T-Mobile, Samsung, Cox, Chick-Fil-A, Geico, MetroPCS, HSBC and Apple.
The OAAA also issued the results of a new study which documents how out-of-home advertising can be effective in intercepting consumers near or at the point of purchase and why OOH can offer an advantage in reaching consumers as they engage with mobile devices.
The report also offers up data indicating that OOH advertising can be more effective at reaching consumers on an immediate mass reach basis than almost all of the other media platforms. The report is based on survey data from mobile research tech company RealityMine.
The data finds:
• The various forms of OOH advertising each week reaches 99% of the U.S. population, edging out TV which reaches 96%
• That consumers spend 19.6 hours per week with OOH, higher than any medium other than TV (25.9)
• OOH reaches consumers in the hour before their quick service restaurant visits 57% of the time
• OOH reaches consumers in the hour before their shopping mall visits 91% of the time
• OOH reaches consumers in the same half hour as their in-store shopping activity 98% of the time
• OOH reaches consumers in the same half hour of their purchase activity 68% of the time
• Consumers report "action" responses such as in-store shopping, e-commerce, online searches, brand-related social media activity and making purchases in the same half hour as their OOH exposures 22% of the time
• Consumers at airports report action responses in the same half hour after seeing OOH ads 39% of the time
• Bus/subway/train riders report action responses in the same half hour of exposures 10% of the time
• OOH reaches consumers in the same half hour as of their online mobile activity 23% of the time more, than any other traditional medium
• OOH reaches consumers in the same half hour of online shopping activity on mobile, 42% of the time
“This deep, multidimensional study offers multiple proof points to support the value of OOH,” says Stephen Freitas, OAAA chief marketing officer. “With the help of smartphones, we can demonstrate how OOH can intercept consumers who are near or at the point of purchase like no other ad medium.”
Jim Spaeth, chief product officer for Reality Mine, says, “We’ve long known that OOH is often the first step on the path to purchase. [This study shows] that brands can secure shopper engagement with an effective hand-off from OOH to mobile. This one-two punch has become a key success strategy for brands and retailers alike. Our research for OAAA provides media agencies and marketers alike with strong quantitative evidence showing that ad dollars spent in OOH will positively impact purchase behavior.”
The study includes data from nearly 2,000 smartphone users. The data was captured via the eDiary app in half-hour increments over 10 days and tracked details such as location, mode of transportation, activity, social setting, media exposure, purchase behavior and emotional context.