Why are all eyes on OOH?
It’s true that all eyes are on OOH these days: marketers, Wall Street, media planners, traditional media companies, consumers.  New formats, lifestyle changes that have consumers spending more time away from home than ever, and new technologies are converging to make this a dramatic time in the industry.  On top of that:  an entirely new audience ratings system that will change the way outdoor is bought and sold (see separate entry:  Eyes On Ratings).   The OOH Team at Empower is already capitalizing on these trends to bring new OOH initiatives to bear for our clients’ mediamarketing challenges, and is poised to embrace these exciting changes in the industry.

Advertisers continue to seek new ways to engage with consumers in the context of their daily lives – and the digital transformation affecting the industry is meeting that need.  Advertisers are also quickly taking advantage of the proliferation of digital OOH networks.  Beyond the large digital bulletins cropping up on major arteries across the U.S., traditional ‘place-based’ ad networks are converting from static poster signage to digital screens.  From health clubs to elevators in office buildings, in stores and in taxi cabs – many with the ability to change ads in minutes, across multiple markets.   

According to Ad Age, “Advertisers are keen on putting their 30-second spots in different formats in new venues, looking for TV-like reach for a fraction of the price.” Recent Empower examples include Biltmore promoting its winter value season to value shoppers on the Wal-Mart Checkout TV network, Humana reaching b-to-b decision makers with the Captivate Elevator Network, and Red Robin reaching moviegoers with digital cinema advertising.

Wall Street analysts have their eye on outdoor stocks, which have been trading at a premium, with much higher valuations than other media stocks.  While outdoor stocks have taken a hit as a result of the current market crisis, analysts see a favorable long-term market situation for the outdoor industry:

 No technological threats (like Tivo or Satellite Radio) face OOH; consumers can’t “zap” or “fast forward” outdoor ads
 Macro trends – growing population &  increased congestion
 OOH’s low CPMs make it attractive for advertising
 OOH has stable economics – outperforming GDP with medium to high single digit growth.  (Digital has double digit growth, but other media are flat to down.)

Traditional media companies are looking to their OOH properties to add the “sizzle in their steak” to analyst reports and sales pitches to advertisers.  One prominent example:  CBS included its Outernet (OOH ad opportunities) in its upfront presentations this summer.  This is a first.  

Media planners see that outdoor is leading other media in terms of measurement, thanks to the new Eyes On Ratings being released by year-end.  On the non-traditional OOH side, there are now more ways to find our consumers in narrower environments for increased relevance.  (Example:  our US Bank client supporting a new college branch by sponsoring student finance tips program content in an on-campus digital ad network.)

Consumers are spending more time out of the home, and are seeing more ads, in more places, than ever before.  Moreover, consumers are responding positively to the new digital ad networks.  Research studies have shown that digital signage is more attention-getting than other media, and that consumer recall increases as ads convert from static to digital. 

By: Alison Lang, Empower MediaMarketing Out of Home Director
Alison.lang@empowermm.com