Out-of-home ads can boost customer loyalty by 275%, study finds
- Brands that dedicate 15% or more of their media budgets to out-of-home (OOH) advertising had a 24% increase in brand trust and 106% increase in perception of brand quality, according to a new study by Rapport, the OOH division of IPG Mediabrands, reported on by The Drum.
- OOH investments also boosted customer loyalty by 275%, and was related to an effectiveness boost of 31% for online advertising, 80% for paid search and 56% for social media.
- The study also found that nearly half (48%) of brands were using OOH for brand building and 28% for sales activation. Twenty-four percent were embracing OOH for both brand building and sales.
The Rapport study shows how investing more in OOH with elaborate or immersive elements can pay off and provide many benefits for brands, including a boost in customer loyalty and consumer perceptions.
The study comes at a time when digital OOH advertising is growing as marketers look to create unique, memorable experiences to engage consumers. The growing opportunity in digital OOH ads has attracted the attention of major platforms, with Alibaba recently investing $2.23 billion in Focus Media and Google reportedly working on making outdoor ads more relevant by tying web history to real-world messaging.
One key takeaway from the Rapport report is the ability of OOH to build trust with consumers, who are demanding more transparency from businesses. As marketers continue to grapple with transparency and building trust, OOH could be a potential solution. Several high-profile privacy issues are causing consumer satisfaction with social media platforms to wane, and some marketers are likely looking for new ways to connect with consumers.