Outdoor Advertising Demonstrates Direct Sales Lift, Increases Effectiveness of Other Marketing Investments - Reports First Ever Research Study of "How Out-of-Home Advertising Works"
MarketShare Partners Applies Market Optimization Models, Proprietary Compass Software to Provide Insights on OOH Effectiveness and Shows Why OOH Is Key Component of Optimal Marketing Mix across Advertising Vehicles
PHOENIX--(BUSINESS WIRE)-- With the Out-of-Home (OOH) advertising industry in the midst of a major transformation, thanks to the advent of digital technology and new outdoor measurement developments, Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) today released a ground-breaking study entitled "How Out-of-Home Advertising Works" in conjunction with MarketShare Partners, the leading cross-marketing optimization company. The new study offers an analysis of Out-of-Home (OOH), including its financial contribution and return-on-investment as part of a balanced marketing mix to help marketers make more informed decisions regarding their overall marketing allocations.
"After careful analysis of thousands of marketing optimization models, and considering decades of research and applied marketing science, independent research from MarketShare Partners conclusively shows that OOH is an effective marketing vehicle and should be included as a component of the optimal marketing mix across a broad range of industries," said Debbie Reichig, Senior Vice President of Business Development and Marketing at Clear Channel Outdoor. "For the first time, this report gives marketers proven models that show OOH not only provides a direct sales lift by increasing brand awareness and consideration, the medium can also increase the effectiveness of other marketing vehicles including TV, radio, print and online."
Amongst the key findings:
-- Given where some companies are in their budget allocation, OOH advertising has been shown to drive significant incremental sales lifts comparable to and often greater than other drivers. -- The optimal OOH allocation lies between 5% and 25% of the total advertising budget for the majority of products and brands. -- Including OOH in the media mix, for industries and products where it provides observable sales lift, makes other media more effective. -- OOH, as well as other marketing channels, has an indirect impact on sales. -- OOH can provide marketers with the ability to identify and focus their spending in the Designated Market Areas ("DMAs") or geographic areas that provide the greatest response to their product and marketing efforts, in addition to the direct impact on sales. -- OOH can provide a significantly higher sales lift in conjunction with TV when the creative messaging is coordinated across platforms. -- OOH can provide a significantly higher sales lift in conjunction with Radio when there is a call to action.
"Today's Out-of-Home industry is experiencing a fantastic transition, with cutting edge technology expanding our capabilities, and game changing measurement giving marketers new tools to evaluate our delivery," said Rocky Sisson, Executive Vice President of Sales and Marketing at Clear Channel Outdoor. "It's just the right time to offer this new study from MarketShare Partners that helps show how to optimize OOH's value in the total media mix."
Clear Channel Outdoor anticipates being able to provide marketers in the near future with data-based optimization examples for specific industries developed by MarketShare Partners to aid marketers in understanding how to determine the optimal use of OOH in their own marketing programs.
For more information and to receive the complete "How Out-of-Home Advertising Works" report, please contact Debbie Reichig at firstname.lastname@example.org.
About Clear Channel Outdoor
Clear Channel Outdoor (NYSE:CCO) is the world's largest outdoor advertising company with close to one million displays in over 50 countries across 5 continents. In the United States, the company operates over 200,000 advertising displays and has a presence in 48 of the top 50 Designated Market Areas. It also operates airport, rail, and mall advertising businesses worldwide. Its Spectacolor (U.S.) and DEFI (international) divisions are the global market leaders in spectacular sign displays, including in New York's Times Square. Clear Channel Adshel is the company's international street furniture division, which operates over 3,500 municipal advertising contracts worldwide. Clear Channel Outdoor also operates digital displays and networks in most of its divisions. More information may be found by visiting www.clearchanneloutdoor.com.
Certain statements in this release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Source: Clear Channel Outdoor Holdings
Released October 11, 2010