Effective Out of Home marketing strategies: Keeping your ROI blinkers in check

oOh!media New Zealand's Research & Insights Director David Owen

With data and insights driving the marketing world, it can be easy to overlook channels like out of home where the numbers and impressions aren’t immediately available. oOh!media New Zealand’s Research & Insights Director David Owen makes the case for including OOH in your media planning for the way it can maximise your returns.

One of the biggest opportunities in the out-of-home space is the ability to measure and quantify the impact of a campaign.

In a world of ever-expanding datasets and tools, there is a growing trend toward the measurable aspect of media planning, which allow marketers to see the tangible results of their efforts and make more informed decisions.,

This hasn’t always been the case. Audience measurement and ROI tools have been challenging to design and implement, with attempts often limited by poor methodologies or insufficient data points when compared to online channels. In this data-obsessed marketing world, marketers have sometimes placed too much weight on the measurable aspects of media planning, leading them toward channels and decisions that provide immediate, numbers-driven solutions.

It’s important to “remove the blinkers” and maintain a balanced approach where both measurable data and the creative aspects of media planning work together. While data-driven insights are invaluable, especially in out-of-home (OOH), combining them with the artistry of long-term brand-building ensures that campaigns are both effective and memorable.

In OOH, the channel’s strength— the unavoidable, one-to-many, high-frequency delivery of advertising— is also what makes it hard to measure effectively. We can’t trace the outcomes of every impression delivered like online (don’t believe anyone who tells you otherwise) and asking consumers to recall seeing specific OOH placements is misleading.

The cost of conducting a well-executed modelling study often outweighs the benefits of just getting on with it. This issue is compounded in New Zealand, where media budgets are often dwarfed by their overseas counterparts, leaving little wiggle room for pre- or post-campaign research to showcase what is or isn’t working.

However, the growing investment in the channel means that as an industry, we need to provide more data and insights to marketers to underpin why OOH should be on the plan. You only have to look at the SMI data to see that there has been a noticeable shift in media spend across 2024, with OOH up +7.6% YOY in NZ, even as the wider market continues to feel the effects of the recession and shifting audience patterns. OOH measurement will take a step forward in 2025, but for me, there is still a lot of work to do on the planning side, specifically regarding what constitutes a good OOH plan. “Good” is subjective, but there are some fantastic research studies that provide a blueprint for marketers to follow.

Luckily for us in NZ, we have the scale (and budgets) of our AU team to leverage the research they undertake every year, which covers all the major OOH formats.

Earlier this year, the AU team, along with global marketing measurement firm Analytic Partners, released a new report on the key drivers of OOH effectiveness in Australia and how OOH underpins the effectiveness of other media channels.

With similarities in the way people consume OOH across the two markets, these insights are invaluable for NZ marketers.

What I really like about the ROI studies via Analytic Partners in AU is that they reaffirm the simple fundamentals of good, effective OOH planning, while also shedding light on theories we’ve had about OOH but hadn’t been able to prove with quantifiable data before. The insight that stood out to me this time around was that of 50,000 campaigns tested by Analytic Partners, in only 14 cases did the creative message wear out. We often see a desire to limit frequency or run brand-new creative for each campaign, but there is clearly huge value in consistency and repetition.

So, even if Mixed Market Modelling isn’t your cup of tea, the insights are powerful in highlighting the different levers marketers can pull to maximize returns from not only their OOH but also their overall media mix.

For us in the NZ team, we distilled the insights into oOh!’s 8 Principles of Effective OOH Planning. Whenever we recommend an oOh! campaign, we use these principles as a guide to provide advertisers with a holistic overview.  We also ensure that our mantra of “frequency is your friend” plays a role, as frequency is a strong indicator of the strength of your overall campaign plan.

oOh!’s 8 Principles of Effective OOH Planning:

1. Maximise geographic coverage:
   
   Spreading your OOH buy across as many suburbs and cities as possible is key to delivering effective OOH ROI. For the same investment, leveraging national networks and reach across metro and regional areas drives stronger returns than focusing on metro or CBDs alone—+10% lift in ROI. Why? You simply reach more people in more places, driving both unique reach and higher frequency.

2. Leverage multi-format:
   
   Using multiple OOH formats within the same budget drives stronger returns. We see a +26% lift in ROI when using 3+ OOH formats in combination. Why? You leverage the best attributes of each format (e.g., video and pedestrians in retail, high reach and frequency on the roadside), while reaching consumers through different mobility modes and missions.

3. Use static in combination with digital:
   
   When used in combination, advertisers see a +43% lift in ROI. Why? Both formats have advantages—100% SOV and geographic coverage with static, creative flexibility with digital. Used together, campaigns deliver more reach and frequency.

4. Time in market:
   
   Campaigns on OOH for 7+ weeks deliver +25% more ROI. Why? As a passively consumed medium, longer campaigns allow creative to embed and build brands, driving nearly twice the returns.

5. Creative designed for the format:
   
   Strong creative drives 41% of potential ROI from OOH. Why? OOH’s role is to capture attention, so marketers need creative that leverages brand codes and is either designed for the format or checked to ensure it works effectively in OOH.

6. Increase investment:
   
   OOH should be a foundational part of any campaign. Advertisers investing more in OOH see a +17% increase in returns. Why? OOH audience delivery is unmatched in volume and cost, and increased investment allows for more panels in more places.

7. Combine with digital and TV:
   
   Multimedia campaigns drive stronger outcomes. The combination of TV, digital, and OOH delivers a +27% stronger return than TV alone. Why? OOH works at different times of day, complementing other channels.

8. Plan to 1+ reach & behaviour:
   
   Buying based on real-world behaviour drives twice the return of demographic targeting, while 1+ reach campaigns deliver a +24% lift in ROI. Why? Understanding consumer behaviour and maximizing reach leads to better outcomes.

There’s no one-size-fits-all approach to effective OOH planning, but if marketers leverage just a handful of these principles, their campaigns are more likely to deliver strong positive results. For me, an OOH plan that includes multiple formats, drives high reach and frequency, and features attention-grabbing creative will always perform well. And sometimes, you don’t need to measure every outcome to know it’s working.

OOH is no longer a nice-to-have; it’s a must for delivering effective advertising that reaches all Kiwis. If you want insights to improve your OOH media planning, come talk to oOh!media, New Zealand’s OOH experts.

To find out more, check out the oOh!media ROI report.