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OOH Advertising: Strategic Shifts in Brand Investment

How to maximize the efficiency of LED screens (DOOH)

Explore the strategic shift as brands invest more in Out-of-Home advertising, redefining its role in uncertain times. A win-win for visibility and brand building.

In times of economic uncertainty, the landscape of advertising strategies often undergoes significant shifts. Surprisingly, the current trend sees brands not cutting back but instead increasing their investment in out-of-home (OOH) advertising. This paradigm shift indicates a growing acknowledgment among brand owners that OOH is not just the right choice but also a responsible investment. Could this mark a turning point where marketing via OOH is seen by the C-suite as an investment rather than a mere cost?

Mark Smith, the UK sales director of Clear Channel UK, observes that in 2023, a year marked by challenges across all media channels, OOH defied the historical trend of budget contractions during recessions. Brands not only maintained their presence in the OOH space but actively leaned into the channel, recognizing the significance of heightened visibility.

Statistics from the third quarter of 2023 reveal a 5% year-on-year increase in OOH spending, according to Outsmart 2023. Moreover, the Advertising Association / WARC Expenditure report predicts an impressive 8.7% annual growth for OOH throughout the year.

Several factors contribute to this renewed interest in OOH. Beyond its traditional strengths such as scale, reach, and creative opportunities, the flexibility enabled by digital and programmatic capabilities sets OOH apart. The medium also aligns with the current social and corporate responsibility trends, as nearly half of OOH ad revenue directly benefits communities.

During the recent cost-of-living crisis, brands have redefined the role of OOH in their strategies. Unlike previous recessions, OOH is not merely a tool for maintaining visibility; it is now a platform for communicating value, attracting light category buyers, and protecting market share. With consumers making more thoughtful purchasing decisions due to financial pressures, brands turn to OOH to justify price increases and reinforce their value proposition.

Aimee McKay, Clear Channel UK’s client partnership director, notes that FMCG brands, as well as those in the beer, wine, spirits, fashion retail, beauty, and entertainment sectors, have increased their OOH spending over the past year.

Mark Smith emphasizes that OOH excels in building brands and effectively reaching light category buyers. In times of economic uncertainty, retaining existing customers becomes more challenging, making the appeal to light buyers a strategic choice. The unique features of OOH, combined with its ability to engage diverse audiences, make it a sensible investment for brands looking to navigate uncertain economic times.

As brand owners increasingly view media spend as a strategic investment rather than a cost, outdoor advertising gains prominence. Outdoor campaigns are no longer seen as an additional layer but are now the broadcast backbone for many brands, signaling a redefined role for OOH in the media strategy.

The upcoming 2024 Outdoor Media Awards, run by Clear Channel in partnership with Campaign, are expected to reflect these shifts. Trends include brands using outdoor more boldly and strategically, demonstrating effective use of data through "smart planning," and campaigns that check multiple boxes, moving beyond stand-out creative or great planning alone.

In the current climate, where choice is paramount, brands must make the right decisions to convey the right message to the right people at the right time. Mark Smith concludes, "Choice is a challenge, yes. But it’s also a powerful opportunity. And the good news is that’s a win either way for OOH and the brands that choose to use it." As brands navigate the complexities of consumer choice, OOH emerges as a powerful tool, offering both challenges and opportunities in equal measure.


 

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