Why CPG Brands Should Be Utilizing OOH Marketing


In an industry so dominated by digital marketing, one could be forgiven for thinking the out of home marketing is following the same road as the infamous Dodo. However, recent studies suggest the OOH marketing is still necessary for the success of CPG marketing. The Out of Home industry is one of the only media channels that has not seen a decline in spend year over year, and what's more, OOH has seen a slow-n-steady growth rate of about 3% each year.

For CPG brands, "act global, think local" is the center of branding strategies. CPG brands need to showcase their expansive reach, providing to consumers that others just like them love their products. CPG brands also have to target the consumer at the individual level, which means that CPC ads, digital display ads, and other online sources can get costly quickly when dealing with a Cost Per Click strategy. Lastly, the continual advancement of ad blockers and ad-free streaming options means that reaching individual consumers digitally is getting more costly, more difficult, and more inefficient than ever.

Why CPG Brands Should Absolutely Utilize OOH Marketing

It doesn't take a marketing expert to see that the worlds advertising spaces are quickly turning digital. One need simply glance out the window and see the plethora of empty billboards and dilapidated signage that dot the nation's highways.

CPG Brands are Spending More on Digital

Recent studies have shown that CPG (Consumer Packaged Goods) brands have begun to shift their marketing focus away from OOH (Out of Home) marketing to digital and online advertising. As they continue to spend more and more digitally, the strategy to turn viewers into customers gets more and more complicated (and less profitable). Though this shift cannot be considered a negative for brands and marketers in the OOH space, it is not a surprising move considering the development of technologies that connect the world.

Americans spend nearly 70% of their lives outside of the homes, and digital devices ride shot gun to nearly every single trip outside of the home. Because of this, it makes marketing sense to target consumers and grab their attention immediately, then deliver related branded content right onto that consumer's device in their pockets. OOH amplifies nearly every digital form of advertising and targeting, and reaches more audiences than just single forms of targeting.

OAAA reports that when you combine digital with OOH, you achieve 300% greater reach than with just one channel alone. CPG brands can provide their consumers with a campaign that is cross-channel, has continuity for a great User Experience, and engages audiences on deeper psychological levels than digital ads can.

CPG brands have a unique advantage in the "middle ground" between physical marketing and digital marketing. It's been proven that when OOH media is combined with digital ads, both marketing tactics can have stronger results. By shifting the mindset to a partnership between digital + OOH, CPG brands can captivate and wow consumers with big, bold, memorable OOH ads, then retarget those same viewers online with promotions, coupons, promo codes, and other conversion tactics right on their own devices. This not only helps strengthen brand recall and exposure, but it also helps the viewer trust the brand because they (consumers) have encountered the brand before.

OOH Marketing Works for CPG Brands

Out of home marketing regularly outperforms nearly every other form of advertising. In fact, studies show that advertising has its most significant effect when conducted out of the home, citing 82% of respondents who were able to recall OOH ads at a later date.

Why is OOH marketing so effective?

It's simple; consumers can't turn off, block, or avoid OOH marketing. What's more, OOH marketing retains its effectiveness over time, having been shown to resist audience erosion longer than other channels. OOH marketing is a mass reach medium, meaning it reaches more than half of all consumers in most markets, and over 90% in others.

OOH Marketing is Easy to Measure

Innovations in OOH marketing have made measuring the effectiveness of OOH ads easy and comprehensive. Geo-fencing and location tracking data are often utilized in understanding where and when consumers frequent specific areas. The data from which is used to determine the best places and times to run specific advertising. Consumer retargeting is also made easier as consumer attendance date can be used to re-engage with consumers through other forms of OOH marketing and digital OOH marketing.

Digital OOH (DOOH) marketing is an emerging marketing strategy that incorporates digital marketing tactics and mediums in conjunction with OOH ads and marketing strategy, which is only one of many new capabilities reaching the OOH industry.

New Capabilities in the OOH Industry

When CPG brands fully embrace the innovations that are emerging in OOH marketing, they benefit from the range of new capabilities that such innovations make possible. New technology in OOH marketing such as digital screens, facial & vehicle recognition, geo-targeting, temperature triggers, and social media feeds enable CPG brands to:

Accurately measure the success of their advertising
Actively target consumers using real data
Make changes to ads and marketing strategy in real-time

Multi-Channel Presence with Digital and OOH

CPG brands will benefit most from OOH marketing when the integrate it into a multichannel strategy. Today's consumer is not strictly digital, nor are can they only be reached by traditional marketing.

CPG brands who embrace OOH marketing as a key part of their overall advertising strategy will have reaped the rewards of the worlds most effective form of marketing, with the ability to reach consumers on every platform with which they interact.

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