OOH – A Wise Media Investment for the Automotive Category

An OAAA Sales Tip

The local automotive dealers and services category is a top-10 OOH category. Perhaps more than ever, OOH offers solid evidence why it should be a component of automotive marketing plans in today’s fragmented media environment.

OAAA has produced a presentation (OOH Value in the Automotive Ad Market) reviewing the current state of the category. It includes important proof points defining the reasons OOH should be included in automotive marketing plans, features an enlightening case study from Cheryl McCoy and her team with Lamar Advertising in Savannah, GA, and includes outstanding creative examples. The customizable PowerPoint can be tailored for specific needs.

Here are some of the top proof points, but be sure to review the entire presentation to help make the case for OOH with auto dealers in your local markets.

  • The more miles a consumer drives, the more likely they are to notice OOH ads. These are the best target consumers for the automotive category because they tend to be younger and more affluent.
  • 4 out of 5 Auto Intenders say that they have noticed an OOH ad in the last 30 days. They are 15% more likely to notice OOH advertising than the total population and are 10% more likely to say they pay attention to OOH ads (3 out of 4 pay attention)
  • Auto dealers spent over 50% of ad budgets on digital media in 2017, with 62% of digital budgets allocated to paid search. When OOH is added to media plans, it increases the average ROI of search investments by 40%.
  • When added to media plans, OOH increases the average ROI of search investments by 40%.
  • Current OOH share of automotive media plans is 2.4%, but overall media plan optimization occurs when OOH receives 5% – 14% share.
  • OOH has strong influence across all five levels of the consumer purchase funnel.
  • Most dealerships are scored by monthly incentive sales with their manufacturers, but typically don’t learn of the manufacturer incentives until after the 1st of the month. Incentive promotions must end last day of the calendar month, but typical broadcast production timeline is 6 days. In contrast, digital OOH can offer a much quicker turnaround, so it matches the speed and flexibility benefits that draw dealers to digital media.
  • OOH can increase the reach of mobile advertising up to 316%, and increase click-through rates by over 50% with retargeting capabilities through geo-fencing.

For these reasons, among local auto dealers and dealer associations, OOH ad spend has grown 14 percent from 2013 – 2017, while all other traditional media has declined.

Sources: Kantar Media, Simmons, Nielsen, Borrell Associates, Benchmarketing, USA Touchpoints,
Lamar Advertising

 

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