Top Story

Home >> Out-of-home >> Article

Successful brands allocate 13% of media budgets to OOH: WARC Global Ad Trends

23-February-2018
Font Size   16
Successful brands allocate 13% of media budgets to OOH: WARC Global Ad Trends

WARC has released its latest monthly Global Ad Trends report, with a focus on out of home advertising.

It is based on media channel data in 96 countries and detailed findings from the world‘s key ad markets – Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, United Kingdom and United States – which between them account for approximately two-thirds of the value of global advertising trade. Here are some findings:

Successful brands allocate an average 13% of their media budget to out of home.

Budget allocation to out of home by successful brands within WARC’s case study database has averaged 13% over the eight years to 2016. OOH’s share has remained largely stable, which tallies with the channel’s share of global display advertising spend. The report also finds that government and non-profit organisations (26% of budgeted spend), alcoholic drinks brands (16%) and retail brands (14%) are among the highest investors in OOH.
Out-of-home’s share of global advertising spend has averaged 6% since 1990.

Out-of-home’s share of global ad spend has steadily decreased since 2012, but is stable over the long-term.

OOH has accounted for an average 5.9% of global advertising spend since 1990. The latest verified data show that OOH ad spend amounted to $31 billion 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 7.9% of the global display ad market.

Digital accounts for over a third of all outdoor advertising expenditure and is growing rapidly.

Data show that digital’s share of total global out-of-home advertising spend reached 34.8% in 2017. Long-term projections suggest digital’s share will rise close to 45% in 2021.

Data from WARC’s international partners show that digital’s share of total OOH ad spend varies by key market and is increasing rapidly in all. In Australia, digital out of home (DOOH) ad spend was at 40.2% in 2016 and likely to have risen above 45% in 2017. Preliminary estimates for 2017 put the United Kingdom’s DOOH share at 46.5%, up from 37.7% in 2016; and in the US it is thought to be 22.4% in 2017, up from 20.8% in 2016.

Out-of-home CPM is routinely lower than the all media average

Data from WARC’s Media Costs Database show that out of home cost per thousand (CPM) in key markets is routinely lower than the all media average. Australia and the UK are the only exceptions.

The average CPM for an outdoor ad with an all-adult target audience in key markets is $6.41 compared to an all media average of $12.20 for the same audience.

UK consumers are open to facial recognition for security purposes, but less so for marketing.

Facial Recognition Technology (FRT) is being trialled as a means of offering shoppers more targeted information in stores. In a recent national survey, WARC and Toluna, a digital marketing research and technology company, conclude that UK consumers are open to the application of FRT for products and services, as well as for security purposes, but do not find the concept of personalised marketing messages appealing.

Summing up, James McDonald, Data Editor, WARC, says: “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. New tech, such as facial recognition, is being tailored to improve shopper experience, but advertisers need to heed consumer concerns.”

Global media analysis: A round-up of the importance of out of home advertising:

3.5% average rise in out of home cost per thousand this year.

5.9% out of home’s average share of global ad spend since 1990.

7.9% out of home’s share of global display ad spend.

13% successful brands’ budget allocation to out of home between 2009-2016.

45% digital share of global out of home advertising spend by 2021.

65% of UK consumers are not happy about facial recognition being used to offer marketing messages.

Tags Digital Advertsing out of home sector Warc

Varun Raina, Marketing Manager, Airbnb India speaks to exchange4media about the successful #LiveThere campaign and how Bollywood helps them connect with its young consumer

Tim Castree is all praises for his team in India and trusts it to be a result of “an excellent execution of agency’s global strategy” headed by Kartik Sharma

Siddharth Dabhade says Criteo’s technology allows brands to engage with shoppers, create relevant experience on retail apps, thereby driving sales and profits

Shantanu Gangane says OTT platform Viu plans around 20+ originals and is all set to enter the Tamil market with a mix of syndicated and original content

right
left
OFF THE CUFF HAS JOURNALIST ARUN SHOURIE IN CONVERSATION WITH SHEKHAR GUPTA IN MUMBAI IAA HOSTS FIRST INDIAA REGIONAL AWARDS (TELUGU) IN HYDERABAD BREAK THE CEILING TOUCH THE SKY 2018 SEES OVERWHELMING INDUSTRY PARTICIPATION 10TH EDITION OF ABC EUREKA AWARDS IN MUMBAI CELEBRATES WORK OF PARTNER AGENCIES EMINENT JURY PICKS LOUDEST’S 100 MOST POWERFUL INDIAN MUSIC BUSINESS LEADERS MODE LOFT BY SABGROUP LAUNCHES SIGNATURE MENSWEAR POWER DRESSING CLOTHING LINE TOP MARKETERS DISCUSS ART AND SCIENCE OF EFFECTIVE LISTENING @PITCH CMO SUMMIT 2018, DELHI THIRD SEASON OF ‘INDIA’S TOP DIGITAL PLANNERS’ RECOGNIZES EXCELLENCE IN THE DIGITAL INDUSTRY WOMEN ECONOMIC FORUM 2018 SEES DISTINGUISHED GLOBAL PERSONALITIES IN ATTENDANCE PEPPER CREATIVE AWARDS 2018 RECOGNIZE THE BEST IN ADVERTISING IN SOUTH INDIA RADIO CITY’S POWER OF RADIO MEET HOSTS TOP ADVERTISING INDUSTRY LEADERS TOP INDUSTRY PERSONALITIES ATTEND ZOOM-MYNTRA EVENING TO CELEBRATE THEIR PARTNERSHIP LEADING MARKETERS, EXPERTS SHARE INSIGHTS ON DIGITAL TRANSFORMATION @ADOBE SYMPOSIUM IN MUMBAI NICKELODEON TRADE PARTY SEES MARKETING INDUSTRY LEADERS AND THEIR FAMILIES IN ATTENDANCE GOLDEN MIKES RADIO ADVERTISING AWARDS 2018 RECOGNIZE INDUSTRY’S MOST DESERVING ACHIEVERS AIMA MANAGING INDIA AWARDS HONOUR THE BEST IN THE INDUSTRY BW BUSINESSWORLD’S GREAT INDIA DEBATE BRINGS TOGETHER INTELLECTUALS ACROSS INDUSTRY SECTORS BW BUSINESSWORLD SMART CITIES CONCLAVE PATNA 2018 SEES EMINENT INDUSTRY LEADERS IN ATTENDANCE EMINENT JURY PICKS WINNERS OF GOLDEN MIKES RADIO ADVERTISING AWARDS MADDYS 2018 SEE TOP ADVERTISING AND MARKETING INDUSTRY LEADERS IN ATTENDANCE

Bharti-Airtel issued a statement claiming the apex court dismissed Jio’s petition granting Airtel a partial reprieve over its IPL advertising campaign

Hareesh Tibrewala explains how Block Chain technology can help monetize your digital footprint, as per your own rules, instead of a 3rd party doing it

Kavinder Singh talks about the brand’s advertising and marketing strategy and tells us how it has has played an integral role in the rise in its standalone net profit to Rs 38.55 crore