Analytic Partners’ data shows just how far Out of Home stretches campaign ROI – it makes TV and digital investments perform better, driving returns up 27 per cent. Tara Coverdale, Group Director, Data & Insights at oOh!media, says marketers have already worked that out, which is why OOH investment is powering.
In an advertising media world once fanatically obsessed with digital clicks and TV spots, there is now an undeniable truth when it comes to Out of Home (OOH). Media outside the home has taken a seismic leap forward. No longer an afterthought in the media mix, OOH is supercharging marketing investment – and it’s actually making TV and digital buys work harder.
The growing sophistication of OOH has made it more accountable than ever. Advances in data are delivering greater confidence in the channel’s ability to reach target audiences and are informing more effective campaign metrics. The industry’s collaborative approach to develop a world class measurement platform, and the upcoming release of MOVE 2.0 are making the sector more attributable and comparable to other media types than ever before. The digitisation of OOH is also a significant enhancement, adding dynamic, creative and interactive elements that further elevates its impact and effectiveness.
With linear TV audiences in long-term decline and the cost of performance media increasing, OOH, which can’t be switched off, skipped or ignored, is proving a safe haven for brands wanting to ensure and enhance their marketing ROI.
The fundamentals of OOH therefore remain strong. This is supported by Guideline SMI data for 2023 which showed that outdoor was the undisputed darling, reporting a record level of revenue up 15.1 per cent (or 18.5 per cent on an underlying basis)¹. In the words of Guideline SMI APAC Managing Director, Jane Ractliffe: “Outdoor media’s recovery from the Covid era has been quite extraordinary with growth continuing to accelerate each year since the pandemic with this year’s revenues now 70 per cent higher than the Covid-hit year of CY2020 but also 43.3 per cent above the CY2021 total.”
OOH is the only channel where both media spend and ROI are growing. As more advertising spend is invested and advertisers leverage the reach of audiences at scale, ROI across the sector is rocketing.
Putting the OOH in ROI
Analysis from global marketing measurement firm Analytic Partners reveals a compelling argument for the power of OOH, showing brands that significantly invest in OOH are reaping much higher marketing returns, and when combined with TV and digital the results are shown to be even stronger.
Leveraging the largest market mix modelling data set in Australia, from more than 500 econometric brand studies with a combined advertising spend in excess of $34 billion, the data shows these are not just incremental gains – we’re talking about substantial, game-changing ROI.
Analytic Partners data shows media combinations drive stronger ROI than a single channel alone, with three media format combinations driving the strongest returns – TV, digital and OOH remain the strongest media mix delivering 27 per cent increase in ROI vs. TV alone².
Moreover, for campaigns with budgets under $1 million, the combination of OOH and digital outshines the same investment on TV alone by +39 per cent. A long-term presence in OOH, coupled with digital, nearly doubles the ROI compared to shorter TV campaigns. The formula is simple yet profound – invest in OOH, extend reach, and amplify returns.
The data also underscores the importance of leveraging multiple OOH formats. By doing so, brands can see up to a +30 per cent stronger return. It’s not just about plastering your message everywhere, it’s about strategic placements across street furniture, retail, and rail assets that elevates campaign performance by 18 per cent. Furthermore, OOH’s performance spans a range of campaign objectives, playing to the strength of the medium by reaching consumers along the path to purchase in contextually relevant environments².
When brand powers sales
Reports from over 80 campaigns that ran across the oOh! network support the findings of Analytic Partners. These studies found that when OOH is used for brand building, brands drove a 21 per cent increase in sales – over three times higher than category. When long-term brand building OOH campaigns ran alongside TV and digital increases extended to 43 per cent in buyers vs. 6 per cent increase across the broader category³.
When campaigns are run exclusively with oOh! there’s a staggering 35 per cent increase in sales – five times higher than the category average. Multi-format campaigns with oOh! saw a 20 per cent increase in buyers, more than three times greater than the broader category. While national campaigns with oOh! saw a 21 per cent increase in total transactions, almost double the broader category’s increase.
OOH is no longer just a supplementary medium, it is a cornerstone of a robust media mix strategy. In a media environment where every dollar counts, the strategic inclusion of OOH is not just wise – it’s essential for unlocking unparalleled advertising success.
Sources:
- SMI Australia, CY2023 Adspend Trends, OOH Top Line and Underlying growth %, year on year
- oOh! Outcomes, 80+ effectiveness studies, Unpacked by Flybuys and Westpac Data X, 2023-2024
- Analytic Partners; Collected Mix Models from The Leading Edge & Analytic Partners 2005-2024
