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Sales Tip

Published on March 13th, 2020 | by Steve Nicklin

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Sales Tip: OOH Value in the Automotive Market

Steve Nicklin Vice President of Marketing, OAAA


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2019 Spend Up 5.7% Among Local Automotive Dealers

OOH spend in the Automotive Dealers and Services category increased 5.7 percent in 2019, and it was the fifth fastest-growing category among the ten largest OOH categories. Research, attribution, and case studies offer solid evidence why OOH should be a component of automotive marketing plans in today’s fragmented media environment.

A new version of “OOH Value in the Automotive Ad Market” reviews the state of the category, and includes important proof points defining the reasons OOH should be included in automotive marketing plans. The presentation also features an enlightening case study and outstanding creative examples.

Here’s a summary of 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 presentation is posted in PPT format for easy customization.

  • OOH automotive ad spend has grown 3.3 percent from 2015 – 2019, while all other local traditional media ad spend declined.
  • Automotive spend among local automotive dealers increased 5.7% in 2019.
  • US adult travelers ages 16+ spend more time with OOH media than all other forms of media except digital.
  • 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 spend over 50% of ad budgets on digital media with a focus on search, display and video. When OOH is added to media plans, it increases the average ROI of search investments by 40%, and OOH can double or triple the reach of consumers engaged with digital video content.
  • 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 offers a much quicker turn around, so it matches the speed and flexibility benefits that draws dealers to digital media.
  • OOH can increase click-through rates by over 50% with retargeting capabilities through geo-fencing.

Additional OOH automotive case studies are on the OAAA website. Be sure to review the Automotive, Local Case Studies, and OOH attribution sections as each contains automotive cases.

Source: Kantar, MRI/Simmons, Nielsen, Borrell, Benchmarketing



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