Out of home is a smart way to improve the reach and impact of a media campaign. There’s a reason why out of home is the only traditional form of media continuing to see year-to-year ad spending gains. It works.
Why should you include it in your advertising mix? We advise our clients to do it for many reasons, including:
- It’s incredibly effective: People who see the ads take action. A third of people who see billboards search online using their smartphones to find out more about the advertiser, and more than a quarter talk about the ad or products with others.
- It’s seen significant growth, with more on the horizon: This year, OOH saw its biggest quarterly increase in ad spending ever, up 40.5% in first quarter, rising to $1.8 billion. Huge gains in digital out of home promise to maintain that momentum.
- It improves the effectiveness of other media: Using OOH with other media improves outcomes for a campaign. One study found that out of home boosts paid search effectiveness by 80% and social media effectiveness by 56%.
Advertisers can find solid numbers for their campaigns, proving return on investment, too, using geofencing and impressions. Such measurement backs up the wisdom of using OOH in any campaign.
So how can you maximize your OOH budget? The size of your budget will vary according to:
- Target audience.
- Location targeting.
- Size of the business.
- Business model (i.e., B2C or B2B).
Here are some of our can’t-miss strategies for getting the most out of your out of home budget.
Understand Your Customer and Target Audience
We could also call this, “don’t get swayed by swagger.” It’s easy to get swept away by vanity locations or famous people you want in your ad. But the ad should be about the customer, not clout chasing. Consider where your customer lives, works and seeks entertainment. Where do they go on weekends? What do they want to do? The answers to these questions, provided by market research and insights, give you the locations you should target.
You can determine whether to run local, regional or national placements based on your audience insights. Key pricing considerations include:
- CPMs are highly competitive in popular cities like New York, Los Angeles and Miami.
- You may be better off competing in a smaller market, such as Boston or Denver, where your buy will be more cost-effective.
- The messaging could be even more effective if you can find your target demographic in concentrated local or regional markets, where prices will be lower.
Another question to ask yourself is whether you want to saturate the market or just dominate a key area — i.e., do you want boards all over New York City or just in Times Square? You can purchase high-impact units in such places if you feel positive they will connect with your target audience. But you can gain increased visibility by saturating a market. Neither approach is right or wrong, so you can see what works best for your budget.
Finally, if you have a smaller budget, it’s wise to test an OOH tactic or message before making a wider effort. You can tweak accordingly before rolling out a bigger effort, which will be more effective thanks to your adjustments.
Look at Alternative Markets With Similar Demographics
As we mentioned, Los Angeles and New York easily outrank every other city as the top markets for out of home. In many cases, buying them makes sense. But they also have potential drawbacks, such as being heavily competitive and highly saturated. Amid a plethora of competing ads, yours could get overlooked.
Find other cities offering OOH placements geared toward customers who exhibit the same key characteristics of your demo. For example, targeting Los Angeles because you want to reach people who love to surf? You can also find them in Cocoa Beach, Florida, and La Jolla, California.
Allocate a Portion of the Ad Spend Toward Loyal Customers
It costs more to acquire new customers than to keep loyal ones. Loyal customers are seven times as likely to try one of your new offerings and four times as likely to refer another person to your services or products. By targeting these established users, you can also increase their brand loyalty by making them feel seen and appreciated.
Think About the Competition
Do you have competitors who have run OOH campaigns? Let their mistakes and triumphs guide you. Think about these questions:
- What formats are your competitors using? They may be active on billboards, benches, transit and more.
- What style of creative do they use? They might focus on a call to action or simply raising brand awareness.
- Are they missing opportunities to communicate creatively with your shared target demographic? Maybe their message is being lost in poor creative, or they don’t list a website on their board. Build off their mistakes and make sure you don’t repeat them.
Use an OOH Agency to Maximize Your Budget
So much of making a budget go further depends on experience. Using a full-service agency can save you the headache of researching all the answers on your own. Plus, their expertise ensures you will get the best insights regarding:
- Current trends in the industry.
- The latest location intelligence.
- OOH-specific experiences and guidance.
A one-stop-shop/all-in-one agency can also optimize your time and money. They act as a partner to understand your product or service and match them to the most effective formats to maximize campaign goals. They provide tailored media strategies more wide-ranging than a single owner-operator can offer. For instance, you may not have considered wild posting for your campaign — you may not even know what that is — but an agency will know the best place to do it and what similar advertisers have used it to great success.
Agencies build long-term relationships that benefit you. They spend time in the marketplace and know the vendors. They can present time-specific deals based on market opportunities you may not be privy to. And they become familiar with your specific needs and preferences, building on them over time.
Finally, whether you have a full marketing department or you’re running a lean ship, it’s always easier to have a single point of contact for your advertising needs.
You can simplify and maximize your OOH budget by enlisting DASH TWO. Reach out to us today to learn more about our services.