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OOH advertising: What are the top 3 advantages of the out of home channel?

By Adam Kahansky, Director of Business Development, North America

Broadsign

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June 24, 2024 | 7 min read

As an advertising channel, OOH is one of the oldest and most effective. Take a closer look at why.

As an advertising channel that has proven its value time and again over centuries, out of home (OOH) remains one of the most effective ways to reach modern audiences and build trust in brands, especially as the cookie crumbles

To this end, it’s no surprise that the medium continues to experience record-breaking growth, hitting nearly $2bn when combined with Transit in Q1, according to the OAAA. In many ways, OOH is the perfect complement to a media buyer’s omnichannel spending strategy. Studies have shown strong consumer trust in both traditional OOH and its brand safety checks and balances, especially compared to other forms of digital advertising, and it’s known to inspire action across other digital properties as well. At the same time, programmatic digital out of home (DOOH) has provided new flexibility and agility to update DOOH creative and settings easily to make it more contextually relevant for audiences.

These advantages matter, especially with CMO budgets “winnowing down” and sitting “well below the averages recorded in the four years preceding the pandemic,” as Marketing Dive reports. The publication cites a Gartner study showing that two-thirds (64%) of marketing leaders surveyed feel they lacked the resources to properly execute their 2024 strategies. If there was ever a time to consider or double down on OOH as part of your larger omnichannel budget, it’s now. Here’s why.

1. Consumers trust traditional advertising

When it comes to audiences, trust is a must for purchase consideration and intent, with 81% of consumers stating its importance in an Edelman study.

Harvard Business Review research shows that consumers trust brands that display ads across more traditional ad mediums like TV, radio, print, and OOH; billboards specifically rank four to one higher in trust for consumers than social or online ads, according to data provided by a UK government poll

What’s more, consumers are more likely to see a brand that advertises on OOH platforms as legitimate, partly because data is collected anonymously in OOH, so privacy tends to be less of a concern than it has been in the online and mobile space.

OOH is also generally viewed by consumers as a less intrusive, more trustworthy medium, making its inclusion in omnichannel media buys sensible. This is especially true today, as other digital display and video ad platforms face strict scrutiny amidst increasing incidences of fraud, and advertisers are reconsidering where to redirect their spend.

2. Ad fraud is tougher with OOH

There’s no denying ad fraud is on the rise, with Statista estimating that the costs related to digital advertising fraud worldwide would increase within the five years between 2023 and 2028, from $88bn to $172bn. 

While not immune to ad fraud, OOH remains one of the safest forms of advertising, especially next to online and mobile. Less regulation in the online marketplace makes the ability to control it difficult. In April, The Drum covered a new report that even found a popular news site was operating a “secret, spammy made for advertising (MFA) subdomain” on which brands bought ads under the impression they were buying them on the actual news site. This is just one of countless examples.

Ad fraud manifests in many different forms, from domain spoofing to ad stacking to fake social media profiles and bots, among others. And fake profiles and ads across platforms, including Instagram and Facebook, have been made more prevalent with the recent advances in artificial intelligence (AI) and CGI technology. 

Deepfakes, especially in a record-breaking election year, are also sounding alarm bells, with trade publications like Adweek highlighting the concern for the upcoming “Summer of Deepfakes.” No ad medium can escape fraud, but OOH holds unique advantages that make it a safe and powerful play in your omnichannel strategy, with OOH buys providing confidence as to when and where your ad will appear, and with no ad blockers, fast-forwarding, bots, or fake clicks or traffic. These present a huge advantage.

3. Multiple touchpoints to reach audiences in a way that feels more organic

The impact of screen fatigue is becoming more evident, with a Deloitte Insights study revealing that six in 10 participants who felt they spent too much time on screens were worried about the effects on their physical and emotional well-being, while two in 10 of those who said they did not struggle with screen time expressed similar concerns. 

OOH, on the other hand, is more passive by nature, which comes with its own set of potential benefits. Consumers can choose to engage with OOH, versus the ‘in-your-face’ approach of digital, which often makes the interaction feel more organic. As a result, they’re more prone to take notice and engage. At the same time, the nature of OOH also challenges brands to think outside-the-box to deliver visually compelling creative with smart messaging that will capture the audience’s attention, even if it eventually means driving them to another digital property.

OOH is an incredible brand awareness tool that can help inspire action on other channels. An OAAA study reinforced this, as it found one of seven participants viewing OOH ads snapped a photo and shared it on social media. Furthermore, “over three-quarters (76%) of participants used a mobile device to learn more about a product featured in an OOH ad, just over half (51%) used their mobile device to search for more information about an advertiser, and 43% made an online purchase". Thus, it’s difficult to dispute the myriad of opportunities OOH advertising presents in supporting a multi-funnel strategy.

As new doors continue to open to reach audiences with more dynamic and meaningful omnichannel messages across ad channels, OOH offers advertisers, media buying agencies, and publishers a trustworthy, engaging medium that, when used right, can deliver impressive results. 

So, while, like any channel, OOH comes with a unique set of benefits and potential drawbacks, media owners and OOH ad tech developers are working diligently to address them. As they do, OOH may just be the perfect addition or complement to your omni channel lineup, especially if you’re looking to maximize ROI with a tighter budget.

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