Even while conversations round the economic downturn crank up, marketers say theyll continue steadily to spend money on out-of-home advertising, which includes spent the final year on the rebound amid the pandemic.
Most of the testing of new opportunities gets curbed a little, said Michelle Chong, group director of planning at Fitzco ad agency. But a normal roadside billboard will be safer than a few of the newer technology and testing opportunities.
As a normal advertising channel, out-of-home is old. Or as Chong puts it, its an extremely well-understood media. Advertisers know very well what theyre getting making use of their OOH media buys when it comes to spend and profits on return, instead of the rising CPMs and saturation of the digital advertising marketplace.
Advertisers started going for a second look at OOH advertising this time around this past year, seeing value in the channel as shoppers continued to come back to in-person activities, like work, music festivals and travel. That momentum hasnt slowed as OOH ad revenue reached $2.62 billion earlier this season, nearing the record-breaking revenues of $2.69 billion in 2019, in accordance with a fresh ad revenue report from the Out of Home Advertising Association of America (OAAA).
Historically, OOH has fared well during economic crises, said Anna Bager, president and CEO, OAAA. This time around isnt likely to be any different. Not merely as the platform is known as to become a very reasonable platform, she said, but additionally because technological advancements, like programmatic and digital OOH, have made targeting and measurement easier.
We have been a one-to-many contextual medium, and for that reason not facing exactly the same challenges as other advertising platforms do with regards to privacy and targeting, Bager said within an email, which likely will help to keep us at the forefront of ad spend.
As more advertisers take fascination with OOH and inventory remains limited given the physical nature of OOH, skillfully developed expect CPMs to go up. However, its not likely to detour marketing spending.
We get a growing number of requests for OOH and our syndicated research has seen an uptick in the channel ranking higher for what consumers watch/see, David Song, CEO of Rosie Labs freelance ad collective, said via email. This past year, None of our clients even touched OOH, because of pandemic uncertainty, Song said. This season, about 20% of client ad spend was focused on OOH.
The OOH CPM will continue steadily to rise and we have been seeing sellouts in a few boards we wished to buy for Q4, Song said within an email, adding that ad space along transit, especially NEW YORK subways, has already been selling out, making it unavailable for months. Per Song, CPG, retail, fashion and sports clients are wanting to buy up OOH. Chong too said client fascination with OOH has been over the board.
Thats not saying that OOH is replacing digital channels. The interesting space probably is similar to the merging of the twothings like out of home [and] retargeting, where you retarget some people that have physically driven past your board, Chong said.
Whats more, brands like BelliWelli snacks and Coterie baby brand have leveraged OOH billboards, garnering some online traction after people shared images of the billboards online, making for a two-tiered, digital and OOH strategy.
Its more about those channels being better together out-of-home supporting what youre doing in digital, said Chong.
As a potential recession looms, Bager is confident OOH will weather the storm. OOH home will continue steadily to deliver efficiency across multiple formats, she said via email. Marketers will continue steadily to make their media spend work harder for them.
3 Questions with Clarisa Lindenmeyer, chief of staff and chief brand officer of fintech company Gig Wage
Gig Wage, a financial technological payroll company, has raised $16 million in funding. How has that changed the online marketing strategy?
Its amazing that even yet in the first days, while we spent no money on Google, we got so much attention from Google. The 3rd party credibility of press really made that possible. So for several years, we created really solid content. We distributed a monthly newsletter and our list grew. Then needless to say our social media marketing channels[and] plenty of speaking engagements. The organic [growth] thrived. That has been actually the model until we raised our Series A. Whenever we raised our Series A, we finally had more funding to place into place. We attempted Google, webinars, [and] more automated e-mail marketing. We did much bigger sponsorships and advertisements with key institutions around certain industries that people know are contractor-dependent. We began to touch every channel in preparation for putting more fuel on the fire.
Just what exactly channels have already been put into the marketing mix?
We really ramped up our content on our blog. Press is definitely the big one. We began to make changes to your website and really optimize that. E-mail marketing, webinars and sponsorships of organizations. And trusted old fashioned events. conferences, and searching for other strategic partnership channels from their website. And then needless to say social media. We’ve experimented a whole lot with that. That has been the media mix that has been completely drive until April.
How did things change in April?
In a few of the categories where we’d the largest spend (Google was confirmed), we just werent seeing the traction that people wanted. Its never that people dont have confidence in that [channel], we realize it could work. Its how much money and time it takes to obtain those campaigns really working. [April] really was only a strategic pause to nail our business design, pricing and figure some things out that people had learned amid our marketing, especially around segments like where you can go find our potential prospects, and turn [marketing strategy] back on in a far more focused and meaningful way.
By the numbers
Advertisers have already been increasingly reliant on content creators and influencers to obtain before audiences, especially as shoppers tend to be more advertising adverse. That trend is likely to continue having an estimated 74% of marketers likely to invest at the very least a quarter of these social media devote to article marketing partnerships through all of those other year, in accordance with a fresh report from Sprout Social. Find more key stats from the report below:
- Instagram (58%), Facebook (51%), and TikTok (50%) reign supreme because the top three platforms brands intend to use for creator partnerships.
- 40% of marketers anticipate investing over fifty percent of their social media marketing budgets on partnering with a content creator within the next couple of months.
- Marketers that are prioritizing dealing with creators rank generating more audience engagement (62%) and reaching new audiences (60%) as their top two goals, even before driving revenue (42%).
Quote of the week
Much like so many emotionally charged situations, the price of getting things wrong will be higher than the price of remaining silent.
Nev Ridley, managing director at ilk Agency, discussing brands a reaction to Queen Elizabeth IIs death on September 8.
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