May, 2024 | BLOG

Why OOH in the Age of Performance?

Why OOH in the Age of Performance?
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Written by Alejandro Donzis

The Value of OOH in Modern Marketing

While Out-of-Home (OOH) advertising has traditionally been a tool for branding and awareness, it’s undeniable that it holds a crucial value component in any performance campaign. According to a Nielsen study, OOH advertising can achieve up to four times more online activity per dollar spent than TV, radio, and print. (Nielsen)


The Shift to Digital and Performance Metrics

The early 2000s marked a frenzy to measure absolutely everything, causing many marketers to shift budgets from offline to online and from branding to performance. This shift significantly boosted the revenues of platforms like Google and Meta. Google, with its search engine dominance, initially offered an exceptional conversion and ROI. Industry reports from the early 2000s show that Google Ads could yield an average ROI of 200%, a figure that has seen adjustments as the digital advertising landscape became more competitive.

Rising Costs and the Challenge of CAC

As more advertisers joined, the real-time bidding not only maximized Google's profits but also gradually increased the Customer Acquisition Cost (CAC). According to a report by AdStage, the average CAC in digital advertising across industries has increased by approximately 50% over the past five years. Meta and other platforms have refined their advertising models to offer highly targeted ads focused on conversions and sales. With the advancement of analytics, every marketing investment now requires a solid business case in terms of conversion and return. (AdStage Report on Digital Advertising Costs)

The Importance of Brand Positioning

Companies aim to win business, operate efficiently, and generate profits. However, the intense focus on immediate performance metrics has often led to the neglect of branding and brand positioning. Many brands that focused solely on performance could leverage a pre-existing brand positioning, benefiting from decades of market presence. Others have used social networks, blogs, and other digital channels to supplement their performance efforts.

OOH’s Role in Enhancing Brand Trust and Conversion

How does this relate to OOH? By understanding that the efficiency of performance-focused channels can and should be enhanced through brand positioning. When our clients implement OOH campaigns with Beeyond, they experience tangible improvements. For example, integrating OOH has been shown to reduce the purchase decision cycle by up to 30% and decrease price sensitivity, according to a study by the Outdoor Media Association. (Outdoor Media Association Study on OOH Impact)

OOH advertising impacts by translating brand presence into consumer trust, similar to influencer validation but with the added advantage of being in a compulsively consumable visual environment. This higher brand validation leads consumers to develop preferences during their selection process. By reducing cognitive dissonance, which often contributes to indecision, the conversion time is significantly shortened.

Conclusion and Call to Action

Therefore, performance-focused marketers, consider launching an OOH campaign with Beeyond in a targeted geographic area or for a specific period to witness firsthand the strategic benefits. The team at Beeyond is ready to guide you through this experiment!