OAAA: Sharp ROAS Gains Seen With Slight Budget Shifts To OOH
- by Steve McClellan @mp_mcclellan, October 4, 2024
Small reallocations of media budgets typically from TV or digital to Out of Home advertising can lead to substantial gains in return on ad spend and key brand metrics, according to a new study released today by the Out Of Home Advertising Association of America (OAAA).
The organization worked with consultancy Benchmarketing, part of Omnicom Media Group, on the study. The findings were presented at MediaPost's DOOH Summit in Austin, TX Friday morning by OAAA CEO Anna Bager.
Benchmarketing 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 Grocery.
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Highlights from the study include:
Automotive – an increase of OOH allocation from 1% to 2% in the Automotive vertical can lead to an overall media plan revenue gain of $52.1 million or 75% of the total optimization improvement
Retail 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 $16.04 million or 61% of the total optimization improvement
CPG 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 $2.42 million or 70% of the total optimization improvement
“These findings reveal the powerful role OOH plays in the current media mix and demonstrate that OOH has been an under-invested media channel,” asserted Bager. “OOH 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 investment.”
