Think Outside: Effectiveness, Econometrics & OOH

EFFECTIVENESS, ECONOMETRICS AND OOH

THINKING OUTSIDE IN 2024_

FFECTIVE REATIVE AUDIENCE USTAINABLE

OOH'S ACES

EFFECTIVE OUTCOMES

DRIVING IMPACT

DELIVERING DATA-DRIVEN AUDIENCES

CREATIVITY MAXIMISES ENGAGEMENT SUSTAINABLE CHANNEL

EFFECTIVE OOH

EFFECTIVENESS, ECONOMETRICS AND OOH

Dilki Weerakoon Head of Client Strategy, TALON

THE OOH PLANNING EVOLUTION

EFFECTIVENESS, ECONOMETRICS AND OOH

THE EVOLUTION OF OOH

PROGRAMMATIC OOH

The way OOH is measured econometrically hasn't changed

OOH CAN BE PLANNED WITH MANY NUANCES IN MIND

2-week blocks

Fully flexible DOOH

National general distribution

Location specific targeting

Broad reach

Audience first targeting

Long term brand building

Short term bottom end of the funnel

OOH CAN BE PLANNED WITH MANY NUANCES IN MIND

The creative and measurement methodology needs to match the original objective

DYNAMIC CREATIVE INCREASES ROI PERFORMANCE VS STANDARD OOH CREATIVE

Standard DOOH creative Digital OOH with weather triggered creative Using DOOH to its full potential is fundamental to increasing DOOH ROI

Source: FMCG Case Study, Analytic Partners

OOH IS THE ONLY PASSIVELY CONSUMED CHANNEL

a priming channel with a halo effect

ROUTE HAS THE DATA TO DELIVER MORE ROBUST ROI RESULTS

ü Joint industry currency

ü Evolved to reflect real world changes and increased nuances in OOH

ü Passive methodologies without relying on cookies

ü Granular data which should feed into econometric models

OOH has evolved to have multiple routes to market for several objectives. Route has evolved to reflect these changes, so we need to utilise this granular data.

CURRENT STATE OF PLAY

KEY TAKEAWAYS

ENSURE THE MEASUREMENT FRAMEWORK AND CREATIVE MATCHES THE OBJECTIVE

UTILISING DOOH TO ITS FULL CAPABILITY WILL IMPROVE ROI

PROVIDE MORE DETAILED AND VARIED DATA FOR OOH

IN THE DETAILS

EXPLORING THE OBSTACLES AND SOLUTIONS TO MEASURING OOH ECONOMETRICALLY

Emily Alcorn Head of Effectiveness , TALON

EFFECTIVENESS, ECONOMETRICS AND OOH

HISTORY OF ECONOMETRIC MODELLING

1950’s Developed by retail industry

60’/70’s Championed by Marketers

70’s Computer revolution improving accuracy

90’s/00’s Digital revolution

2020 Fundamental part of Media measurement

Importance of making sure the right data is feeding into these models now to underpin any future AI models

Source:

A UNIQUE SET OF CHALLENGES

CREATIVE

MODELLING THE WHOLE

LOW SPEND

DATA QUALITY TIME

On average 20-25 hours to compile data for MMM

These specific challenges present the need for nuanced modelling approaches

LOCATION

Absence of location data

DATA QUALITY

“GARBAGE IN, GARBAGE OUT”

YOUR ANALYSIS IS AS GOOD AS YOUR DATA

OOH has varied and quality data to feed into MMM models

• Data critical role

• Poor quality data can lead to unreliable forecasts

• Lowest level of detail essential

CREATIVE IMPACT

Source:

MODELLING THE WHOLE

OOH boosts business effects of all channels

Digital returns with TV Digital returns without OOH or TV

strategy comparison

Uplift to business effects %

OOH amplifies the effectiveness of the wider media mix1

ROI index of digital drops without offline support2

You can’t look at a channel in isolation, understanding the impact offline channels has on online returns is paramount

Multimedia campaigns tend to have a higher ROI2

HOW ARE WE ADDRESSING THESE CHALLENGES?

AUTOMATED MMM TEMPLATE

ü More granular data provided to improve modelling accuracy at the click of a button

ü Effectiveness feeding into our product suite

ü Market leading template

COLLABORATION WILL IMPROVE OOH EFFECTIVENESS

Chris Felton Director of Data and Insight , JCDecaux

LOCATION MATTERS FOR MMM

EFFECTIVENESS, ECONOMETRICS AND OOH

"OUT

OF HOME DOES NOT DELIVER ROI – MY

THE MOVEMENT OF PEOPLE IS KEY TO ACCURATELY CAPTURE HOW POTENTIAL CONSUMERS INTERACT WITH OOH ADVERTISING

CURRENCY MOVEMENT DATA + SALES DATA =

2 MAIN FINDINGS...

CORRELATION BETWEEN LOCAL IMPRESSIONS AND SPEND

LOW CORRELATION HIGH CORRELATION

Impacts per Population

Source: JCD and Nielson, ‘Location Matters for MMM’

Impacts per Population

GRANULAR DATA INCREASES

UTILISING GRANULAR LOCATION DATA INCREASES OOH ROI BY +42%

National Location Data

Postcode Level Location Data

1.42

HOW YOU CAN WORK WITH US TO TEST THIS MODEL

LOCATION MATTERS

UTILISING LOCATION

DATA INCREASES OOH ROI BY +42%

HOW CAN YOU MAKE YOUR OOH MORE EFFECTIVE? EFFECTIVENESS, ECONOMETRICS AND OOH

OOH & ECONOMETRICS CHECKLIST

REQUEST MORE DATA POINTS FOR OOH

ENSURE YOU’RE MEASURING CREATIVE EFFECTIVENESS

UTILISE THE AUTOMATED MMM TEMPLATE DESIGNED FOR OOH DATA 02_ ARE YOU USING OOH TO ITS FULL POTENTIAL? THIS WILL IMPROVE ROI

MAKE SURE THE MEASUREMENT FRAMEWORK MATCHES THE OBJECTIVE

UTILISING LOCATION DATA INCREASES OOH ROI BY 42%

REMEMBER THE IMPORTANCE OFFLINE CHANNELS PLAY

OOH & ECONOMETRICS CHECKLIST

ENSURE YOU’RE MEASURING CREATIVE EFFECTIVENESS

Chris