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Global ad trends: Out of home key to successful brands

Successful brands allocate 13% of their media budgets to out of home advertising, while the channel’s share of global display adspend has remained stable over the last decade, according to a new analysis of the sector by WARC Data.
February’s Global Ad Trends report, which works from media channel data in 96 countries and detailed findings from 12 key ad markets, also shows that the heaviest OOH spenders were government and non-profit campaigns, which committed an average of 26% of total budgeted spend. Alcoholic drinks brands (16% of budget) and retail brands (14%) were also among the core investors.
Data show that the cost per thousand (CPM) for billboards is routinely below the all media average, which helps explain why successful campaigns within the low (up to $500k) and medium ($500k to $10m) budget bands are the ones that allocate the highest proportions towards out of home.

The latest verified data show that OOH adspend amounted to $31bn in 2016, a 5.8% share of the global total. Preliminary estimates for 2017 put spend at roughly the same level. Excluding search, classified, and other spend, OOH accounts for 8% of the global display ad market.
Digital is growing rapidly in the sector. Data show that digital’s share of total global out of home advertising spend reached 34.8% in 2017. By 2021, digital’s share is expected to rise to 45%.
Explaining the figures, WARC’s Data Editor, James McDonald said, “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.”
However, his analysis found that brands must tread carefully in integrating such new technologies for marketing purposes. A recent WARC and Toluna survey in the UK found that 65.8% of shoppers are open to the application of facial recognition in store for products and services, but the majority (65.2%) do not find the idea of its application for personalised messages appealing.
“New tech, such as facial recognition, is being tailored to improve shopper experience, but advertisers need to heed consumer concerns”, McDonald warned.
Via: WARC

UK adspend posts a record 5.2% growth in first half of 2016; DOOH up 28.9%

The UK’s authoritative advertising statistics, released today by the Advertising Association/Warc, show that UK advertising expenditure posted 5.2% growth in H1 2016 despite economic uncertainty before the EU referendum. The growth rate was 0.4 percentage points ahead of forecast, with adspend reaching a record £9,999m in total for the first six months of the year.
Out of home (OOH) adspend increased almost four points ahead of forecast to £273m in Q2; +9.6% YOY. This was driven by 30.5% growth in the digital out of home market. Digital out of home accounted for over a third of total OOH adspend during the first half of the year, at £176m. Growth for total OOH is predicted to continue at 4.8% in 2016 and 2.4% in 2017
Tim Lefroy, Chief Executive at the Advertising Association said:
“Investment in UK advertising remains strong this year, and the trend towards digital and mobile continues – but the medium term is more complex. The Government should avoid any regulatory uncertainty that might affect advertising’s stimulus to the economy.”
The Advertising Association/Warc Expenditure Report is the definitive measure of advertising activity in the UK. It is the only source that uses advertising expenditure gathered from across the entire media landscape, rather than relying solely on estimated or modelled data. With total market and individual media data available quarterly from 1982, it is the most reliable picture of the industry and is widely used by advertisers, agencies, media owners and analysts.

UK Adspend Growth at Three-Year High

Advertising spend in the UK grew at its fastest rate for three years in the second quarter of this year.
Figures released by the Advertising Association/Warc show adspend increased by 8.5 per cent year on year to reach £4.5 billion for the second quarter of 2014.
Across the first half of 2014, total UK adspend rose by 6.3 per cent year on year. This has led to a 0.4 per cent upward revision for the full year forecast to 6.4 per cent for 2014, but a 0.2 per cent downward revision to 6.5 per cent for 2015.
OOH spend is expected to rise by 3.4 per cent by the end of the year, while 2015 is predicted to increase by 5.5 per cent.

Tim Lefroy, chief executive at the AA, said: “Growth at twice the rate of UK GDP is quite a headline, but the real story is of digital and creative leadership in e-commerce.
“As the Eurozone wobbles, it’s a reminder that our consumer economy is central to the UK’s economic narrative.”
Via: Campaign

Cannes Effectiveness Awards 2014- OOH in 92% of Shortlisted Entries

Warc has once again produced a helpful analysis of the Cannes Effectiveness Awards. In the 2014 awards, Outdoor was even more prominent than in 2013.
Outdoor was used in 92% of shortlisted entries, second only to social media (100%) and ahead of VOD (67%) and TV and newspapers (both 58%)
WARC states that “Traditional channels were key to shortlisted campaigns, in particular outdoor (used by 92%), amplified by owned and earned social media. Only 58% of the shortlist used television, compared to 83% in 2013. Outdoor seems to be increasingly a strategic choice for lower budget campaigns and may be a way to quickly achieve mass coverage in markets where television audiences have become fragmented.”
Click here for the full presentation.
Via: Outdoor Media Centre

Digital OOH Adspend to Rise 11%

Global digital out-of-home (DOOH) advertising revenues are expected to increase to 11.3% in 2014, buoyed by an improved global economic outlook and increased adspend in certain categories, a new report has forecast.
According to research firm PQ Media, this will be an improvement on last year and it expects strong growth in the US this year on the back of increased adspend on healthcare and political campaigns.
Global DOOH ad revenues increased 9.3% to $8.9bn in 2013, the report found, with Asia-Pacific accounting for $3.83bn and the US, the world’s largest national market, for $2.37bn. China followed with revenues of $1.87bn.
US DOOH media revenues increased 8.7% in 2013 and were boosted by spending on healthcare, especially related to the Affordable Care Act.
Asia-Pacific performed well because of a strong rebound in Japan and “surging growth” of 23.6% in Australia, PQ Media said, which also noted that Brazil recorded the highest worldwide growth of 41.9% because of digital investment ahead of its hosting of the FIFA World Cup.
Although last year’s worldwide revenue growth of 9.3% was lower than in previous years, the report suggested that consumers are becoming more open to DOOH.
Consumer exposure to DOOH media grew 7.2% to an average of 14 minutes per week in 2013 and it is expected to grow by a further 9.5% in 2014.
PQ Media said consumer exposure will be driven by higher engagement with DOOH media deployed for the World Cup and the Winter Olympics in Sochi, Russia, but also by expansion of existing DOOH media on traffic-related sites in large cities.
“Global digital out-of-home media revenues are on pace for accelerated 11% growth in 2014 following three consecutive years of slowing expansion,” the report said.
“A dynamic combination of sporting mega-events, increased adspend on healthcare and transit video nets, and a streaking DOOH sector in Australia are expected to fuel the industry’s best performance since 2010.”
Via: Warc

Out of Home Adspend Forecast to Exceed £1bn in 2014

In the final part of MediaTel’s series looking in detail at the latest UK adspend forecasts, Suzy Young, data and journals director at Warc, exmaines how new digital technology is accelerating growth for the out of home sector.
In Q1 2014, out of home advertising expenditure dipped 2.2% compared with the same period a year ago, according to the latest data released in the Advertising Association/Warc Expenditure Report this week. But this is expected to be just a temporary blip, and Warc forecast consistent growth throughout the rest of the year and into 2015.
Warc predict annual growth in the out of home sector of 2.7% in 2014, reaching a total of £1,017m. This is the first time the sector will have surpassed the £1bn mark. The pace of annual growth is expected to accelerate to 5.9% in 2015, or £1,077m.
In recent years the out of home sector has performed consistently well, recording year-on-year growth in all but four of the last 31 years, with these dips occurring in line with the total ad market, following economic recessions and the dotcom crash in 2001.
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Note: Outdoor Media Centre; AA/Warc. Source: AA/Warc Expenditure Report.
The London Olympics in 2012 provided a significant boost to out of home ads in particular, with spend rising 25.4% year-on-year in Q3 2012 and helping the annual total increase by a strong 9.5%.
According to YouGov research, 62% of visitors to the Games were aware of outdoor advertising related to the event. Consequently, the AA/Warc had initially forecast a drop in adspend for 2013 given the lack of a similar event, but out of home maintained its upward trajectory to register growth of 2.0%.
One of the key reasons for this success is the sector’s rapid adoption of new digital technology. As the chart shows, digital’s share of total out of home advertising expenditure has grown significantly over the last 11 years – when the traditional vs. digital formats were first tracked. Digital adspend has grown from a 1.4% share of adspend in 2003 to a 21.6% share in 2013.
Mike Baker, CEO at the Outdoor Media Centre, said: “In 2013, outdoor beat expectations, growing 2% over the spectacular Olympic year. What’s behind the continued growth? Digital is the main driver, with consistent investment by media owners into high profile sites such as Clear Channel’s Storm panels on Cromwell Road and Outdoor Plus’ Vauxhall Cross.
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Note: Outdoor Media Centre; AA/Warc. Source: AA/Warc Expenditure Report.
“Importantly, the footprint of digital has expanded geographically, including JCDecaux’s Trinity Leeds, Mediaco’s Citylive sites in Manchester, as well as new sites in Newcastle (Ocean), Birmingham (Signature) and Glasgow (Forrest) and Cardiff (blowUP).
“Advertisers continue to find a place for outdoor on their schedules, and the number of million-pound clients now stands at 159. Route, our audience measurement system, now covers just about all the environments.”
According to the Route research carried out by the Outdoor Media Centre (and also published in topline form as part of the Expenditure Report), roadside panels accounted for 28.4% of all out of home panels monitored in March this year (372,818 panels). The next biggest formats were tube carriage interiors at 24.4% and bus panels at 18.1%, as detailed in the chart below.
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Source: Route, Outdoor Media Centre; AA/Warc.
Via: MediaTel