Commentary

Study: OOH Gaining Share Of Ad Budgets

by Richard Whitman , Columnist, November 7, 2022

Just over half (51%) of advertisers polled in new survey expect to invest more in out of home media in 2023.

The survey was conducted by market research firm BWG Strategy and commissioned from OOH agency Talon America.

Currently, advertisers are allocating 4% to 5% of overall ad budgets to OOH. The survey indicates that industry support for OOH is growing with 93% of respondents saying they are planning to allocate 5% or more of their overall marketing budgets to OOH in 2023. And 97% are planning to allocate 5% or more in 2025.

The study found that marketers are planning to shift budgets from other channels with social media (31%) and linear TV (25%) representing the top channels that advertisers are targeting.

OOH is increasingly being used as part of an advertiser’s cross-platform strategy — 86% said that they somewhat often or very often consider OOH as part of their omnichannel strategy.

Almost half (49%) of advertisers stated that their current OOH spend is earmarked for digital with wide awareness that DOOH is available programmatically.

Driving brand awareness is seen as a key advantage of OOH with most advertisers saying that they’re primarily using OOH for top-of-funnel marketing efforts: 76% of respondents indicate that they use OOH for mass awareness and 73% indicate that they use OOH for brand building.

But data-driven capabilities in OOH are fueling interest in the medium as well. Key considerations include audience targeting opportunities and the unskippable nature of the medium.

“Our study shows that advertisers are shifting their dollars to follow their audiences that have largely resumed their pre-pandemic outdoor lifestyles,” said Brad Lyons, Partner & Head of Primary Research of BWG Strategy.