Insight: Out-of-home advertising boosts market share by more than a third – Rapport

A new report reveals that using out-of-home (OOH) within advertising campaigns increases market share growth by 36 percent, boosts profit growth by 20 percent and attracts 15 percent more new customers compared to campaigns that shun OOH.

The report, compiled by esteemed industry analyst Peter Field and commissioned by Rapport in association with the IPA, examines 147 case studies of effectiveness advertising and marketing campaigns from the IPA’s Effectiveness Awards Databank. The analysis investigates the performance of campaigns investing at least 15 percent of their budgets on OOH – known as ‘power users’ – versus those that don’t use the medium.

Further report highlights reveal OOH’s power in driving brand effectiveness, and the nature of its relationship with other media. These findings include:

  • Power users achieved significantly greater brand uplifts than non-users of OOH, boosting esteem by 41 percent and fame by 32 percent. Esteem is defined as building a belief in the esteem and perceived quality of the brand. The fame metric proves pertinent as a key driver of long-term profitability, as shown in the IPA’s 2012 report, ‘The long and the short of it’.
  • OOH is a highly versatile media channel, with power users driving uplifts in activation effects. A significant uplift of 47 percent in short-term sales was reported by power users vs. non-users.
  • OOH is synergistic with search and social media – these digital channels benefit from brand fame afforded by OOH. When looking at ‘very large’ business effects, adding OOH power-use boosted the effect of search by 54 percent and social media by 20 percent.

The IPA’s Effectiveness Awards Databank comprises over 2,000 case studies submitted to the body’s Effectiveness Awards competition since 1980. The research covers the service sector, which currently accounts for 80 percent of GDP in the UK. As such, the main power users were identified as brands from a wide spectrum of service backgrounds including travel, finance, telecoms, retail, entertainment & media and fast-food among others.
Peter Field comments: “The IPA data supports Rapport’s own research, revealing clearly the value of OOH and how it works best: by adding stature and fame to campaigns. In today’s highly crowded media environment, the impact on consumer brand memory structures is important and valuable. Moreover, its flexibility can be exploited to drive both short-term activation effects as well as long-term brand effects. As a result, campaigns using OOH deliver sturdier business results and enhance the effectiveness of other media compared to those shunning OOH.”

Paul Sambrook, global marketing director of Rapport, added: “In an increasingly cluttered media landscape, it is imperative to take stock of what’s working and improve upon it. This report provides tangible proof of OOH’s power to drive not just advertising success, but also business success; what constitutes best-practice in OOH; and how it integrates effectively with other media channels. Our findings will better equip marketers and the industry at large to cut through and increase performance in both the short- and long- term.”

To download the full report, please click here.

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