The Power of Out-of-Home Advertising 2024

The Resilience of Out-of-Home Advertising

In a landscape where most traditional media platforms are struggling to maintain their dominance, Out-of-Home advertising (OOH) is emerging as the resilient hero; the last true broadcast channel remaining amidst the ever-changing local media scene. It should be increasingly evident that Out-of-Home is not just an option; it’s a necessity for brands wanting to achieve mass reach with effective frequency in today’s fragmented media climate.

The Reality of Other Traditional Media

I returned to New Zealand in late 2023 to head up JCDecaux’s local business and I’m staggered to find that many media buyers in New Zealand don’t champion Out-of-Home as a reach and frequency medium, and a necessary inclusion in a multi-channel campaign.

Let's address the situation with television. Once the undisputed king of broadcast media, it is experiencing a steady decline in viewership on terrestrial channels. The glory days of achieving huge national reach with a single Sunday evening TVC across free-to-air channels are gone.

Terrestrial TV now struggles to reach even 50% of the population daily; it is well below this among the coveted under-40 demographic. Broadcasters’ digital platforms are not replacing their lost audiences. Advertisers see this changing picture and demand for television is declining, and brands are seeking to replace the lost reach.

The Effectiveness of Out-of-Home Advertising

Contrast this with Out-of-Home advertising. A medium that not only survives but thrives in the shifting digital landscape. Out-of-Home has the highest daily reach opportunity of any channel, capturing audiences during their daily routines. Post-pandemic work-from-home habits are lessening in New Zealand, faster than in other nations, and urbanization is increasing. In my opinion, Out-of-Home is the only remaining one-to-many channel that is a viable and future-reach solution. The Out of Home Association of Aotearoa recently released its mobility study showing 80% of Kiwis aged 18+ are exposed to Out-of-Home every day; this figure would be even higher if including all Kiwis.

Synergy Between Media

At JCDecaux, we understand that the question is not which media, but how they work together to achieve optimal effectiveness. Out-of-Home can absolutely be a standalone medium; however, Analytics Partners research proves that the most effective channel combination in New Zealand includes Out-of-Home. The best ROI comes from TV, Digital, and Out-of-Home combined. As the reach of television declines, the share of total investment directed to Out-of-Home should be calibrated to recognize the reach potential. Brands that fail to make this change or don’t include Out-of-Home will miss out.

Innovation and Technology in Out-of-Home Advertising

Beyond reach, in an era where online video offers a one-to-one model, Out-of-Home delivers the impact and shared experience reminiscent of television’s heyday. Billboards of JCDecaux, strategically placed along the 83% of journeys taken by car in New Zealand, ensure brands leave a lasting impression in consumers’ minds.

Furthermore, Out-of-Home has evolved from being data-poor to data-rich, allowing for more targeted and accountable campaigns. Programmatic trading has opened new avenues for advertisers to reach both mass and specific audiences with precision. Programmatic accounted for 7% of revenue at the end of 2023; this will grow exponentially in the years to come.

Digital technologies not only enhance the targeting of campaigns but also offer greater agility in terms of timing and contextual relevance from data. Brands are looking to embrace technology to increase attention; technologies such as 3D or full-motion video can be used in pedestrian environments such as JCDecaux Airports.

Out-of-Home Advertising as a Pillar of Stability

In these uncertain times, one thing remains clear: media buyers cannot afford to overlook the power of Out-of-Home advertising. As TV struggles and digital fragmentation continues, Out-of-Home, the oldest media channel in the world, is the beacon of stability and potential. It’s time for advertisers to rethink their strategies and to embrace the bold and unmistakable opportunities that Out-of-Home offers.