Out of Home Advertising Drives Significant ROI Gains Through Incremental Budget Reallocation

amp8220These findings reveal the powerful role OOH plays in the current media mix and demonstrate that OOH has been an underinvested media channelamp8221 said Anna Bager President and CEO of OAAA amp8220OOH performs well throughout the consumer funnel and the analysis shows how brands can leverage that power by shifting just a few percentage points of their media allocation to OOH and generate impressive returns on their investmentamp8221Benchmarketing a strategic marketing effectiveness consultancy and part of the Omnicom Media Group employed advanced econometric modeling to assess the impact of incremental OOH budget increases on ROAS and key brand metrics in three sectors Automotive CPG Food and Retail GroceryEntitled Media Plan Optimization Analysis of Incremental Increase to OOH Share the report finds that without increasing existing media plan budgets for the Automotive CPG Food and Retail Grocery categories marketers can significantly increase their overall ROI on ROAS and key brand metrics such as awareness consideration and purchase intent by increasing budget allocation to OOH by just a few percentage points and decreasing allocation to media channels that are overspent beyond the point of optimization typically TV and digitalThe research supports a measured incremental approach to budget reallocation By applying small strategic increases to OOH spending advertisers can achieve nearoptimal media performance without making drastic changes to or increasing their overall budget allocations Notably the study found that the initial incremental increase in OOH generated the largest portion of the total media plan optimized revenue and gain in brand metric scoresThe report provides an indepth analysis of how incremental reallocations to OOH affect campaign performance including the below key insightsModeling Analysis Budget Shifts to OOH Yield High ROAS GainsAutomotive An increase of OOH allocation from 1 to 2 in the Automotive vertical can lead to an overall media plan revenue gain of 521 million or 75 of the total optimization improvementRetail Grocery An increase of OOH allocation from 8 to 14 in the Retail Grocery vertical can lead to an overall media plan revenue gain of 1604 million or 61 of the total optimization improvementCPG Food An increase of OOH allocation from 5 to 6 in the CPG Food vertical can lead to an overall media plan revenue gain of 242 million or 70 of the total optimization improvementAs the advertising landscape continues to evolve OOH is an increasingly critical channel for impacting consumer behavior throughout the funnel by driving increased sales brand awareness consideration and purchase intent Marketers are encouraged to leverage the insights from this study to optimize their media plans enabling greater effectiveness and return on investmentFor more information about specific category spend please contact Cassady Nordeen at cassadypurposenorthamericacomPosted at MediaVillage through the Thought Leadership selfpublishing platformClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillageorgMyersBizNet

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Out of Home Advertising Drives Significant ROI Gains Through Incremental Budget Reallocation

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Anna Bager

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Out of Home Advertising Drives Significant ROI Gains Through Incremental Budget Reallocation

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