OAA ECONOMETRICS RESEARCH

The OAA has commissioned BrandScience to look at how Outdoor performs against other media in terms of ROI (return on investment).

Two key advertiser categories were examined – FMCG and Retail.

The FMCG study was presented at the Outdoor Conference in April 2009 and the Retail study was completed in late September 2009.

Key to both pieces of research was determining the absolute levels of efficiency of each media and then, importantly, how Outdoor worked with other media.

Below are the ROI figures, returned by each medium, for each £ spent.

FMCG

  • TV £1.31
  • Outdoor £1.25
  • Print £0.38
  • DM £0.37

    • When taking into account production costs ROI figures are as follows

  • Outdoor £1.15
  • TV £1.12
  • Print £0.35
  • DM £0.34

    • Key Points:

  • Outdoor is as efficient as TV
  • Outdoor ROI increases with proportion of spend
  • Increasing share of spend on Outdoor boosts the ROI on other main media
  • .Higher Outdoor spend drives higher carryover rates (lagged effect of advertising) for Outdoor and TV.
  • Over time Outdoor is becoming more efficient, whereas TV is becoming less efficient.
  • To maximise media efficiency, Outdoor should receive a higher share of media budgets.

    • RETAIL

  • Print £6.23
  • Outdoor £3.57
  • TV £3.57
  • Radio £3.00

    • When taking into account production costs ROI figures are as follows

  • Print £5.73
  • Outdoor £3.29
  • TV £3.06
  • Radio £2.81

    • Key Points:

  • We acknowledge that Print is the most efficient medium. However, Outdoor is the second most efficient - no mean achievement and a clear call to Retail advertisers to consider Outdoor.
  • IMPORTANTLY, Print becomes more efficient when Outdoor was used. Print’s ROI on campaigns with no Outdoor was £4.28. We see this improve to £5.73 when Outdoor is used.
  • Over time, outdoor has become more efficient whereas TV has become less efficient. Print has remained static.
  • To maximise media efficiency, Outdoor should receive a higher share of media budgets.

    • SUMMARY

  • Outdoor is cost efficient in its own right.
  • It makes other media work harder.
  • To maximise budgets, Outdoor should added to TV and/or Print schedules and should receive a higher share of media budgets

The Retail study was covered extensively in the latest OAA Newsletter (Issue.6, October 2009). This newsletter can be found as a pdf within the NEWS section on our website (www.oaa.org.uk).

Click here >>> to view full research

Outdoor Advertising Association

November 2009