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Top 4 reasons brands should incorporate OOH into their 2023 advertising strategy.

Thursday, March 2, 2023

by Dan Levi

January 27, 2023

January is typically not the most wonderful time of year for many brands. While the fourth quarter brings Black Friday, Cyber Monday, holiday sales and travel at its peak, business can oftentimes slow down in the first quarter of a new year for some brands. And while I am personally optimistic, this year could prove tougher than usual.

Whether it’s moving excess inventory off the shelves, attracting more consumers to increasingly competitive apps and streaming services, or bringing people into stores and restaurants in a time of worrisome inflation, brands are going to need all the help they can get to overcome potential economic headwinds and build sales momentum in this new year. Fortunately, out-of-home (OOH) advertising may be just the solution brands need to ensure strong performance throughout 2023. Here are four key trends that underscore why the OOH media platform should be an essential part of your advertising strategy this year.

1. Now more than ever, brands need to meet consumers wherever they are

In our increasingly mobile society, consumers are spending 70% of their waking hours outside of the home, according to the Out of Home Advertising Association of America. And across these journeys in the real world, consumers have their smartphones in hand, ready to digitally engage with and respond to brands and their marketing messages. At Clear Channel, we rely upon multiple mobile location data sources to get to a deep understanding of consumer mobility, and it’s clear that people are on the roads, experiencing their lives in the physical world. In fact, according to the 2022 INRIX Scorecard, the typical driver in the US lost 51 hours in congestion, up 15 hours from 2021’s 36 hours lost, proving once again that traffic and congestion are good news for OOH advertisers.

Whether walking through Times Square, driving to work or traveling through an airport, OOH media surrounds consumers and influences them in the moments that matter.

2. More and more, consumers are noticing OOH in a rapidly shifting media environment

It’s a fact: consumers have shifted their attitudes toward some forms of media, expressing appreciation for the creativity and mass appeal of OOH, where context and content converge. While people have grown weary of some online and traditional ads, with some declaring these campaigns as invasive, OOH is seen positively, providing a context where consumers don’t feel that the ad message interrupts their experience.

Recent studies reinforce that consumers’ attitudes toward traditional and digital media are evolving and that consumers tend to notice and like OOH advertising. According to a recent Harris Poll, 43% of adult consumers are noticing OOH ads more than they did pre-Covid. 59% of Millennials are noticing OOH more, and 63% of Gen Z are as well. This trend is even more prevalent in large cities, with 62% of respondents in cities with a population of 1 million or more saying that they notice OOH ads more than pre-pandemic. Moreover, according to a recent OAAA Harris Poll, 57% of consumers have recently engaged with an OOH ad, demonstrating that consumers not only notice, but also respond to, OOH ads.

3. OOH’s iconic storytelling in impactful locations continues to attract the best and brightest brands

One of the inherent strengths of OOH is the creative canvas that allows brands to tell their stories at scale. Over the years, many of the world’s largest and most well-known brands, including Coca Cola, McDonald’s, Geico and Anheuser-Busch (the list goes on), have leveraged the creative impact of OOH to build brand awareness and drive business results. And these brands still use out of home in a strategic way to connect with their customers and tell their stories with creative impact.

OOH is also embraced by some of the most innovative digital first brands as well, including Netflix, Amazon, Apple, Google, Meta, Uber and Verizon and so many more. All of these innovators are leaning in heavily to OOH as a way to breakthrough into their markets by activating immersive creative experiences using traditional and digital OOH.

Another strength of OOH is the presence of displays in iconic, strategic locations. Times Square is possibly the most famous showcase for OOH advertising in the country, where brands can really push the envelope with creativity. Take Netflix for example; they are one of the brands that established a long-term presence in iconic locations in Times Square that are critically important to their storytelling and its ability to drive social sharing among fans.

But OOH is much more than Times Square. In fact, OOH displays in some of the fastest growing markets give advertisers the ability to reach consumers in emerging locations that are attracting more people and growing faster than the national population. These markets are also attracting many of the demographics that are most in demand from advertisers today.

4. OOH can help brands to get clicks

Studies show OOH drives consumers’ digital behavior more efficiently than other media. A recent ComScore study looked at the ability of six media types – OOH, television, radio, print, digital display and video ads – to drive digital behaviors, including online search, social media posts, video posts, website visits, app downloads and online purchases and, OOH came up most efficient. Advertisers using OOH are able to leverage anonymous, aggregated mobile location data to help them measure campaign outcomes. And today, our attribution solution allows brands to get the proof they need to measure the ROI of their investment, while also providing insights to help improve performance in the future.

A recent example includes the leading delivery app wanting to acquire new users and saturate select markets in Florida via a high-reach digital billboard campaign market-wide in key markets within the state. Their OOH campaign drove a significant lift in orders from new app users and repeat orders from existing customers. There was a 31% lift in new order rates and a 2x lift in repeat orders among exposed audiences.

These key trends along with the sector’s compelling ad innovations make OOH a strong consideration for your 2023 planning. Let’s kick off the New Year with resolutions that will engage your targeted audiences while driving measurable and meaningful ROI.