OOH makes great budget sense

"Marketers today are under more pressure than ever to prove that every dollar works harder. For years, digital and social channels seemed to deliver just that: fast reach, precision targeting, and measurable returns. But after decades of heavy investment, those channels are showing signs of fatigue and saturation. Incremental spend is delivering diminishing returns, and efficiency gains are harder to come by. Marketers are reaching a tipping point where pouring more dollars into digital isn't the answer."

"Research shows that OOH placements not only reinforce awareness and cultural relevance but also amplify the effectiveness of other channels, improving overall marketing efficiency. According to IPA Databank, Peter Field and Rapport, when used alongside other media channels, OOH boosts the impact of search (54%), social (20%), TV (17%), and radio (17%). It's one of the few channels that can credibly claim to move the brand and the bottom line at the same time."

"According to new research from Keen Decision Systems, OOH's current share of spend stands at less than 1%. However, that spend doesn't correlate with the value the channel delivers. When looking at marginal return on investment (mROI), which estimates the impact of the next dollar invested in a specific tactic by using response curves that consider both the level and timing of spending, OOH routinely outpaces the average media type mROI of $5.52, at $7.58."

Digital and social channels are exhibiting saturation and diminishing returns after decades of heavy investment. Incremental digital spend now yields smaller efficiency gains, prompting marketers to seek alternative channels. Out-of-home (OOH) advertising combines brand-building and direct performance impact by reinforcing awareness, cultural relevance, and amplifying other channels' effectiveness. OOH used alongside other media boosts search by 54%, social by 20%, TV by 17%, and radio by 17%. Current OOH investment is under 1% of spend despite higher marginal ROI; OOH's mROI measures $7.58 versus an average media mROI of $5.52, indicating stronger incremental returns per additional dollar.

Read at The Drum