Source: Outdoor Impact and Kantar
In total, JCDecaux alone reaches 59.1% of the people every week. In comparison, about 74% of people aged 17-35 watch commercial TV on a weekly basis.
Source: Outdoor Impact and Kantar
"Gen Z (born around 1995-2005) Use Online, but Prefer OOH (Out-of-Home)", concludes a recent study by Kantar (2018). So why do they prefer traditional media channels over online advertising? The answer is obvious when you examine their relationship with the online world. They consider their online activity personal and like to be in control of what they see and who they interact with.
Advertising has never been something that they have always been exposed to. They can choose the content they consume across different channels. They don't need a newspaper to get the news. They don't wait for their favorite song to come on the radio. And they certainly don't wait one week to watch the next episode of a TV show. Channels that do push advertising with their content - YouTube, Facebook, and major websites - are commonly accessed using ad-blocking software. Gen Z are the heaviest users. 70% of them skip ads - vs 66% of Gen Y (Born around 1980-1995) and 62% of Gen X (born around 1965-1980).
The Kantar study shows that Out-of-Home advertising holds a unique position with this younger audience. Importantly, the study noted that billboards are not "perceived as being invasive in people’s lives, their activities or the content that they are exploring." While Gen Y and Gen Z audiences are heavy users of their online services, they don't want to have to go through a slew of ads to get to that stage.
Outdoor is a growing mass media. Despite people spending more and more of their time online, they still need to get from A to B. And with continuous population growth, especially in urban areas, increased use of public transportation and other ways to get around makes outdoor a media channel with significant growth in its audience.
Comparing realistic ad recall with the same criteria across desktop, mobile and outdoor, it is evident that outdoor ads is much likelier to be seen. Outdoor does really well because there is less noise (disturbing elements) that online, and it has big formats that cannot be blocked.
Outdoor is the channel perceived to be least annoying among the public, while still enjoying one of the highest scores on reach.
What annoys people according to Mindshare’s formula for ad irritation is: It disturbs. It’s forced upon us. It’s not relevant. It lasts too long, and the same ad comes again and again. This is where outdoor stand out: It does not disturb, it’s perceived as a natural part of people’s everyday life, and a single ad rarely exceeds 10 seconds.
Outdoor is, therefore, a good choice for advertisers looking to build their brand, especially towards a younger audience. TGI insights in Ireland shows 52% of Gen Z (15-24-year-olds) feel bombarded by ads and nearly half use some type of adblocker on their devices. They are also more likely to use the software when compared to the rest of the population (Index: 114). It appears Gen Z prefer non-intrusive advertising formats and is skilled at avoiding ads when they become disruptive.
Digital screens are more likely to be seen, has a higher number of eye fixations, and has longer dwell-time than classic faces.
LIKELY TO SEE
EYE FIXATIONS PER FRAME
This graph shows how many people recall seeing an ad within the last 30 minutes before making a purchase. It shows that outdoor drastically outperforms other media channels when it comes to the last window of influence and being the best channel for point-of-sale advertising.
According to research by industry legends such as Les Binet and Peter Fields, a marketing budget should be a 60/40 split where 60% is spent on brand building and 40% on activation activities. In today’s never-ending hunt for quick, measurable results, activation activities tend to get the biggest pot, leaving less for strategic brand building over time. This can cause future trouble for your brand, resulting in a lower ROI than previous years.
A combination of brand building and activation activities, with an emphasis on brand building, has the best brand effect. Here it is measured by number of brand shifting effects. Those who invest more in brand building has more positive shifts in their brand than those who focus on activation activities.
Those who build brand also has a higher return on their activation activities. Those who have reported two or more positive shifts in brand also report a higher rate of activations. So, investing in long-term brand building pays off.
Several studies have proven that adding outdoor to your media mix increases the ROI of your campaign.
This shows that outdoor contribute more to ROI than what is reflected in most advertising budgets.
The same study also shows that:
- Outdoors’s total portfolio of assets in drive-by, walk-by and stand-by environments delivered an ROI of 16% more than that delivered by Television
- Using multiple outdoor formats boosts ROI incrementally. The combination of roadside billboards and outdoors’s retail offering delivers 7.3% return and the combination of experiential with outdoor retail panels add a further 7% return.
Outdoor is the offline channel generating most activity on Instagram, and second most activity across social media. Here, outdoor is growing faster than TV, and is expected to pass TV in just a few years. This makes outdoor the most efficient offline-channel in a digital day to day life.
Is how much more likely a consumer is to click a mobile ad having seen the same message outdoor first. This makes mobile a natural extension of digital outdoor, reinforcing messaging and providing a point of action.
Three of the ten biggest outdoor advertisers in the US in 2017 were Apple, Google and Amazon. The most digital companies use outdoor as a complement to online, as they know they need to meet the digital generation when they are not online. That is how you build a brand. “You can't miss it, you can't change the page. That's one of the appeals» (… for why the giants of tech spend so much on outdoor).
This graph shows the difference between shoppers who have seen outdoor advertising right before shopping and those who have not. It clearly shows that those who have seen outdoor advertising is much more likely to is more likely to look for more information and towards buying the product.
This is the main audience of outdoor advertising. Studies show that people on the go and with high mobility spend more money than those who have lower mobility. It pays off to advertise where people are.
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