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March 02, 2011 | Global Study Finds Out of Home Advertising Offers Significant ROI

Global Study Finds Out of Home Advertising Offers Significant ROI 

US Marketing Campaigns More Successful with Higher Proportions of Out of Home Advertising

(Washington) – For each dollar spent on out of home advertising, an average of $2.80 is received in product sales, according to a new global report released today by the Outdoor Advertising Association of America (OAAA). While television and print advertising receive a greater share of campaign dollars in the average media mix, out of home produces a higher return on investment (ROI).

“Outdoor advertising is one of the oldest marketing media and remains one of the most effective,” said OAAA Chief Marketing Officer Stephen Freitas. “Advertisers around the world see their sales increase when out of home advertising is used because it keeps brands top of mind and reaches audiences near points of sale.”

The report, conducted by British media research firm BrandScience, analyzed 600 case studies, including 43 effective US marketing campaigns, and found that when a high proportion of out of home media is employed in a media mix, campaign effectiveness increases. Sales tripled when campaign spending on out of home advertising moved from a low amount to a medium amount. Sales more than doubled when a high amount was spent on out of home. The report found optimal ROI is reached when a campaign’s overall ad spend is low with a high proportion of out of home in the media mix.

Using out of home in combination with others also helps to improve the decay rate – the time it takes for a consumer to forget a campaign message, according to the study. When out of home advertising is included, particularly with TV and online advertising, the retention rate increases by several days.

Freitas added, “This new report truly showcases the value of out of home advertising. People are spending more waking hours out of their homes, and advertisers would be wise to target consumers accordingly. Not only can outdoor advertising increase sales, it can do so at a fraction of the cost of other media. And, when used in combination with other media, it extends the reach of a campaign and reinforces the intended message.”

For a full copy of the report Out of Home Advertising Effectiveness and Return on Investment (ROI), please contact Nicole Hayes at nhayes@oaaa.org.
 

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Maryland Lottery case study was performed between 12/16/2008 and 12/19/2008 by Edison Research, and independent third party research firm. The study involved Test Locations where Maryland Lottery "Fill 'er Up" s Pump Advertising was present and Control Locations with no advertising. 6548 surveys were passed out with a 4.2% response rate.

  • 26% recall for Maryland Lottery Ad!
    • In aided responses, more than 1 in 4 survey respondents recalled the specific Maryland Lottery promotion!
  • 2-1/2 times greater awareness!
    • In Test stations (stations with Maryland Lottery Promotion) versus Control Stations (no Lottery ad) awareness of the Lottery promotional game was over 2-1/2 times greater than those stations with no Gas Pump

Advertising!

  • 55% more likely to buy!
    • In Test stations (stations with Maryland Lottery Promotion) versus Control Stations (no Lottery ad) consumers responded they were 55% more likely to buy given awareness of the promotion!
  • Consumers Agree!
    • 75 % of survey respondents felt that Gas Pump Advertising "was a good way to learn about new products, services and promotions", while 79% felt Gas Pump Advertising was a "great way to provide relative advertising"
  • Demographic Information
    • 48% men / 52% women
    • 40% of respondents lived 1-3 miles, 65% 1-5 miles from C-store
    • Age Demographics:
      • 33% 17-34
      • 41% 35-54
      • 24% 55 and up

*Maryland Lottery case study was performed between 12/16/2008 and 12/19/2008 by Edison Research, and independent third party research firm. The study involved Test Locations where Maryland Lottery "Fill 'er Up" s Pump Advertising was present and Control Locations with no advertising. 6548 surveys were passed out with a 4.2% response rate.