2023 OOH FORECAST FROM TALON: THE TRENDS
In recent years, Out of Home (OOH) advertising has shown massive resilience in reinventing itself and staying relevant. Technological advancements and the digitization of media assets are transforming how and why advertisers use the medium. With digital fatigue one of the main challenges to be faced by advertisers and today’s consumers smarter and more tech-savvy than ever, they have more control over the ads they would like to see. Companies that want to stay agile, need to return to more established channels such as OOH. A recent study conducted by Talon UK and OnDevice Research recorded that OOH had the largest increase in trust across any medium, jumping from 14% to 57%, while 40% of people were more positive towards Out of Home compared to 16% for online ads. Looking ahead to the 2023 OOH forecast, we predict modest double-digit growth in the OOH channel. As new technologies continue to emerge, and consumer behaviour evolves it has become clear that OOH is now perfectly positioned to take its rightly place as a lead channel in the communications mix.
Prediction: The road to net zero.
2023 must be the year of sustainable innovation for the media and advertising industry. Whether that’s rethinking the way we plan and buy, looking at energy consumption, or offering brands more green products and services in the planning process such as recycled material for posters or using electric fleets for billposters, sustainability should dominate conversations across all media channels.
Prediction: Programmatic will be one of the most promising advertising opportunities in 2023.
Digital Out of Home has created huge opportunities for brands. We now have a format that holds the necessary tools to drive a more targeted, memorable, innovative, and measurable campaign. With continued investment from media owners in the digital out-of-home space, this channel has untapped potential going into next year, which brands need to take hold of.
Prediction: Growth in Multi-channel integration.
Looking ahead to next year, we see Out of Home advertising integrating with other channels especially, TV and online. According to BARB Mediaplanner+ 2020, investing 26% of TV budget into Out of Home has a positive outcome on reach, with OOH and TV working most effectively at different times throughout the day. When looking at OOH and Online, a recent 4th space project, from Talon UK shows that by adding FMDOOH to a social campaign increased effectiveness across the brand funnel by 23%. Exposure to FMDOOH had a positive impact on the whole brand funnel from awareness through to call to action, not only generating desire and interest but generating consumer action. In fact, it was in consumer action that we saw the largest shift (+48%) when FMDOOH was added to a social plan.
Prediction: Data & Technology will supercharge the campaign planning process.
2023, will deliver numerous new technologies and further enhance existing tech.
To date, data has powered both dynamic and programmatic campaigns and, although, in the early stages of this market, it’s set to continue but in more innovative ways. We envisage more clients using clever data sources to capture audiences on the move with impactful and attention-grabbing campaigns.
Applying a prescriptive approach to the campaign planning process is a high priority for 2023. At Talon, we have plans afoot to invest and launch new platforms that will ensure that our planning process is second to none and will give clients a more granular level of measurability and accountability.
Prediction: Advertisers will get creative.
Grabbing and maintaining attention will be huge for brands heading into next year. The longer a brand can stay top of mind with consumers the better, because of this we will see more brands shift spending from performance marketing into brand building, making OOH the perfect canvas. Talon’s research shows that special builds not only position a brand as exciting and innovative but positively influence consumers’ purchase behaviour. In 2018, Talon UK conducted a special build campaign effectiveness research study whereby they compared those exposed to special builds vs those that were exposed to standard OOH formats. The results showed a +15% increase in positive impression of the advertising, +17% increase in consumer action and +35% increase in purchase consideration.
“2023 promises to be another exciting year in Out of Home’s renaissance. With a wider industry lens on areas such as data & tech, programmatic, creativity and of course sustainability, we believe Out of Home is uniquely placed to take a leadership role in each of these spaces. As we begin to shift focus to next year, the team at Talon Ireland are excited to lead that renaissance and champion Out of Home’s unique proposition, all kickstarted early with our new branding and new office move” – Andrew Sinclair, Managing Director, Talon Ireland