Published on March 5th, 2018 | by Stephen Freitas0
Successful Brands Allocate 13% of Media Budgets to OOH
The World Advertising Research Center (WARC) has released a Global Ad Trends report providing positive facts about out of home (OOH) advertising.
Based on data from 96 countries and detailed findings from the world’s top ad markets, the markets studies include the United States, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, and United Kingdom. Collectively these countries account for two-thirds of global advertising spend.
OOH budget allocations by successful brands within WARC’s case study database averages 13 percent of share, which has remained largely stable for the past eight years.
The report also finds that government and non-profit organizations (26%), alcoholic brands (16%) and retail brands (14%) are among the highest spenders in OOH.
OOH has accounted for an average 5.9 percent of global ad spend since 1990 with OOH ad spend reaching $31 billion in 2016.
Data from WARC’s international partners show that digital’s share of total OOH ad spend varies by key market and is increasing rapidly in every market. In the US it is nearing 20 percent. In Australia, digital OOH accounts for over 40 percent of total OOH share and in the United Kingdom digital OOH share is over 46 percent.
Data from WARC’s Media Costs Database shows OOH cost per thousand (CPM) in key markets is routinely lower than nearly all other media average. Australia and the UK are the only exceptions.
Globally, the average CPM for an OOH ad with an 18+ aged target audience is $6.41 compared to the all media average of $12.20 for the same audience.
According to James McDonald, Data Editor, WARC, “Out of home is an industry staple, attracting a consistent share of successful brands’ budgets over the long term. The channel delivers affordable reach with CPM routinely below the all media average. Out of home is well-placed for future advancement with rising digital penetration delivering flexible creative informed by rich audience data.”