Nowadays, when consumers are constantly bombarded with loads of information and brands are playing a crucial role, companies are continually struggling to create the best marketing strategies for their brands. Some tend to spend not enough budget on building a strong brand thus failing to generate sales, while others spend too little on sales activation failing to take full advantage of their strong brands. Not everyone knows that brand building and sales activation work great together once the right balance is achieved. The recent study by Les Binet and Peter Field Media in Focus: Marketing Effectiveness in the DIgital Era suggests to use the 60:40 rule, where 60% of budget to be spend on brand and 40% on activation.
Sales activation doesn’t require a lot of exposure and brings short-term effects to the company by aiming at the consumers who are ready to buy shortly. Brand building, on the other hand, requires a broader reach since it focuses on creating mental brand equity in consumers’ minds and affects the business in the long term.
Although the focus in media advertising has shifted to the new methods, out-of-home (OOH) advertising and TV still offer the most extensive reach. In the study, companies reported that adding OOH advertising to the marketing mix has brought 20% of increase in business effectiveness compared to the other forms of advertising, which is the second place after TV (29%).
OOH advertising has always been a crucial part of marketing mix for many companies, however its significance has been on the rise in the past years. The increase in effectiveness of the OOH advertising has been 14% between 1998 and 2012, however between 2014 and 2016 the growth in effectiveness was 27%.
Overall, OOH advertising helps to create a strong brand awareness by creating mental links in the minds of consumers, which in the long term highly increase their the probability of choosing your brand over the other. On the other hand, out-of-home can also help to increase sales activation when strategically combined with the other forms of marketing mix. According to the report by OAAA Out of Home Advertising Today: Take Your Message Further, OOH increase reach by 68% combined with Internet and up to 316% with mobile advertising.
OOH advertising offers companies a variety of ways to build brand awareness. Among the most common forms of OOH are: street furniture, static and digital billboards, vehicle wraps, the moving billboard and truck advertising. And if you are still not persuaded about the effectiveness of OOH advertising, here is some more information:
Key facts About OOH Advertising:
- 58% of consumers have searched online as a result of OOH advertisement
- OOH has the lowest CPM cost in advertising, with the range of US $2.00 – $8.50
- 70% of time people spend outside of home and get exposed to OOH advertising
- OOH reaches the most attractive audience