Over the past 5 years OOH’s share of Canadian advertising expenditures has increased from 3.6% to 4.2% and there are signs that the OOH industry is poised for significant growth in the future.
An analysis of over 600 econometric studies by BrandScience, a marketing and business consultancy, showed that OOH’s revenue return on investment has been increasing over time. OOH advertising plays a vital role in interacting with Canadian consumers who spend more than half their time outside of the home and want to access information on the go.
Currently, there are over 5 million Canadians that use their mobile device to access the internet. As mobile devices are expected to overtake PC’s as the most common web access device worldwide by 2013, it is predicted that marketers will increase their investment in mobile marketing.
The use of quick response (QR) technology has provided on-demand content and immediate interaction with consumers. Close to half of mobile phone users (45%) are aware of 2-D barcodes and one-tenth (10%) have used them. Recent studies show that mobile phone users, particularly younger people are interested in using their phone to scan a 2-D barcode to access information or videos about a product or service, participate in contests and to receive coupons. Mobile and OOH allows consumers to access content on the move at bus stops, on train platforms, in restaurants, fitness clubs and school campuses, making OOH advertising an attractive proposition for marketers. A recent UK study showed that online searches on mobile phones significantly increased when there was an OOH campaign.
Technological advancements will continue to transform the OOH industry and create new opportunities for marketers. NFC (Near- Field Communication) is a proximity based wireless technology that’s limited in range to only a few centimeters. OOH companies are beginning to integrate NFC chips into advertising displays allowing consumers to simply tap their phone to the ad and instantly connect to information about a product or service, receive coupons or to purchase the advertised product. OOH locations will become points of sale, with the potential to motivate an immediate transaction. As an example, for the launch of a new movie, consumers can tap their smart phone on the OOH poster to view a trailer, find out where the closest movie theatre is and purchase a ticket. The integration of NFC onto digital OOH displays has the potential to recognize someone approaching the sign with their NFC enabled smart phone, read the user’s preferences and customize the message on the display for that user. The phone’s GPS could also allow for the delivery of location-specific content.
While one of OOH’s greatest strengths is the ability to influence purchase decisions on the path to purchase, in the not too distant future it will also serve as the actual point of sale.
Canadian Perspectives on Advertising
Advertising Standards Canada recently released the results of a study conducted to understand Canadian perspectives on advertising. The research verifies that Out-of-Home advertising is considered one of the most acceptable and trustworthy of the six media channels included in the research.
OOH Advertising Ranks High On Acceptability
% Saying ads are somewhat or very acceptable
Source: ASC 2011, 1,378 adults 18+
Canadians Rank OOH Advertising High for Truthfulness
% Saying ads are somewhat or very truthful
Source: ASC 2011, 1,378 adults 18+
OOH Education
OMAC will continue to expand its educational program in 2012. The first OOH 101 course is scheduled for Tuesday, February 7 (English), and Thursday February 9 (French). Details can be found on OMAC’s website.
On behalf of OMAC staff and its member companies we would like to wish you and your families all the best for the holiday season and a prosperous 2012.
