Top 3 Advantages of OOH Advertising Channel

Introduction

As an advertising channel, OOH (out of home) is one of the oldest and most effective. Let's take a closer look at why.

Why Outdoor Advertising is Effective?

Over the centuries, the outdoor advertising channel has proven its worth time and again, remaining one of the most effective ways to reach modern audiences and build brand trust. According to the OAAA, the medium continues to experience record-breaking growth, reaching nearly $2 billion when combined with Transit in the first quarter. In many ways, OOH is the perfect complement to a media buyer’s omnichannel spending strategy.

Studies have demonstrated strong consumer trust in traditional OOH advertising and its brand safety measures, especially compared to other forms of digital advertising. Simultaneously, programmatic DOOH has provided new flexibility and agility to easily update creative and settings, making it more relevant to audiences.

These benefits are significant, especially with CMO budgets decreasing well below pre-pandemic averages, as reported by Marketing Dive. If there ever was a time to consider or double down on OOH as part of your omnichannel budget, it's now. Here's why.

1. Consumers Trust Traditional Advertising For audiences, trust is crucial for consideration and purchase intent, with 81% of consumers declaring its importance in an Edelman study. Harvard Business Review research shows that consumers trust brands that advertise in traditional mediums like TV, radio, print, and OOH; billboards specifically rank significantly higher in consumer trust compared to social media or online ads, according to a UK government survey.

Moreover, consumers are more likely to view a brand advertised on OOH platforms as legitimate, partly because data is collected anonymously in OOH, thus privacy concerns are less prominent than in online and mobile spaces.

OOH is also generally perceived by consumers as a less intrusive and more reliable medium, making its inclusion in omnichannel media buys sensible. This is particularly true today, as other digital ad platforms face scrutiny amid rising fraud incidents, prompting advertisers to reconsider where they allocate their budgets.

2. Ad Fraud is Tougher with OOH There's no denying the rise in ad fraud, with Statista estimating that costs related to digital ad fraud worldwide will increase from $88 billion to $172 billion between 2023 and 2028.

While not immune to ad fraud, OOH remains one of the safest forms of advertising, especially compared to online and mobile. Less regulation in the online market makes it challenging to control. In April, The Drum covered a report revealing a popular news site operated a "secret, spammy made for advertising (MFA) subdomain" where brands unknowingly bought ads, thinking they were on the actual news site. This is just one of countless examples.

Ad fraud takes many forms, from domain spoofing to ad stacking, fake social media profiles, and bots, among others. Fake profiles and ads on platforms like Instagram and Facebook have become more prevalent with advances in AI and CGI technology.

No ad medium is immune to fraud, but OOH offers unique advantages that make it a safe and powerful play in your omnichannel strategy. OOH buys provide confidence about when and where your ad will appear, without ad blockers, fast forwards, bots, fake clicks, or traffic. These are significant advantages.

3. Multiple Touchpoints to Reach Audiences in a More Organic Way The impact of screen fatigue is increasingly evident, with a Deloitte Insights study revealing concerns among participants who feel they spend too much time on screens, affecting their physical and emotional well-being.

OOH, on the other hand, is naturally more passive, which comes with its own set of potential benefits. Consumers can choose to engage with OOH, unlike the 'in-your-face' approach of digital ads, often making the interaction feel more organic. As a result, they are more likely to notice and engage. At the same time, the nature of OOH challenges brands to think creatively to deliver visually compelling ads with smart messaging that capture audience attention, even if it means eventually leading them to another digital property.

OOH is an incredible brand awareness tool that can inspire action on other channels. An OAAA study supported this, finding that one in seven participants who viewed OOH ads took a photo and shared it on social media. Furthermore, "over three-quarters (76%) of participants used a mobile device to learn more about a product featured in an OOH ad, just over half (51%) used their mobile device to search for more information about an advertiser, and 43% made an online purchase". Therefore, the myriad opportunities OOH advertising presents in supporting a multi-funnel strategy are hard to dispute.

Conclusion

As new avenues open to reach audiences with more dynamic and meaningful omnichannel messages, OOH offers advertisers, media buying agencies, and publishers a reliable and engaging medium that, when used correctly, can deliver impressive results.

So, while OOH comes with a unique set of benefits and potential drawbacks like any channel, OOH media owners and ad tech developers are diligently working to address them. As they do, OOH may be the perfect addition or complement to your omnichannel lineup, especially if you're looking to maximize ROI with a tighter budget.