IntroductionOOH conversions, defined as exposure to a billboard followed by actions like website visits, retail visits, or app downloads, provide invaluable insights into the return on investment (ROI) of OOH campaigns. At AdQuick, we use conversion rates to measure...
Introduction
OOH conversions, defined as exposure to a billboard followed by actions like website visits, retail visits, or app downloads, provide invaluable insights into the return on investment (ROI) of OOH campaigns. At AdQuick, we use conversion rates to measure campaign success, and our commitment to innovation has led us to explore the untapped potential of audiences in OOH advertising.
Audiences: A Game-Changer in Targeted Marketing
Audiences, in the context of OOH advertising, encompass psychographic, demographic, and behavioral groups. These groups are meticulously matched against our extensive mobility data, allowing us to generate audience index scores for a staggering 98% of the OOH inventory in the US. Audiences empower us to position OOH campaigns strategically, thereby maximizing their performance.
Methodology: Backtesting for Proven Results
To demonstrate the tangible benefits of using audiences in OOH advertising, we conducted a comprehensive study involving three national campaigns, each featuring over 500 units. To ensure statistical significance and minimize bias, we selected campaigns that didn't originally incorporate audiences in their planning process and had websites with over 20 million monthly visitors. We carefully chose audiences tailored to the brand and the campaign goals.
Audience performance was evaluated by dividing the campaign units into two groups: those that indexed high against a chosen audience and those that indexed low. This allowed us to draw meaningful comparisons across large samples of units.
Key Findings: Audience Integration Drives Remarkable Results
Our study uncovered compelling evidence of the immense potential audiences hold for OOH advertising campaigns:
E-commerce Car Company: When this car company incorporated the "auto retail shoppers" audience, they could have boosted their conversion rate by a staggering 27%.Credit Reporting Company: For a credit card campaign, incorporating audiences interested in financial services could have increased their average web conversion rate by an astounding 79%. Specifically, using the "New Credit Card Shoppers" audience would have catapulted their conversion rate by 100.3%, while the "New Home Shoppers" audience would have led to a 101.6% increase.The lift in conversion rate by using relevant audiences against a baseline of randomly selected audiences was more than 161.3%, showing that audience relevance is important to driving performanceIt's important to note that all these results are statistically significant (underscoring the potential of audience-driven OOH advertising you may be missing out on).
Unlocking Value: A Hypothetical Scenario
While we are mindful of the need to protect sales data, let's explore a theoretical scenario to illustrate the value audiences can bring to OOH campaigns. Consider a campaign with a media spend of $100,000, where an increase in conversions of 79% (1.79x) leads to an increase of Return on Ad Spend (ROAS) from 1.0 to 1.79.
Typical OOH CPMs (Cost Per Mille) average around $7.00, while the cost of incorporating a new audience can range from $0.25 to $2.5 CPM. Using the example of a $1.2 CPM audience, reallocating approximately 17% of the budget (or $17,000) from impressions to audiences reduces the media budget to approximately $83,000. With this adjusted budget, a doubled conversion rate results in a $148,570 return, exceeding expected returns by $48,570, with only a $17,000 increase in spend. The use of premium audiences can have a close to 3:1 return.
Conclusion
The strategic integration of audiences into OOH advertising campaigns can yield remarkable results, as evidenced by our study. While the specifics of each campaign may vary, the potential for increased conversions, higher ROAS, and improved returns is clear. As the advertising landscape continues to evolve, embracing the power of audiences in OOH advertising is not just an option; it's a strategic imperative for those seeking to maximize the impact and value of their campaigns. At AdQuick, we're committed to staying at the forefront of these innovations, helping our clients achieve the exceptional results they deserve in the dynamic world of advertising.
