Interview – OOH Global Market is forecast to grow by $11016.26 m during 2022-2027

OOH can increase a brand’s reach by around 18 to 20% for TV and up to 300% for mobile advertising

OOH delivers a very high return on investment – for every $1 spent on OOH advertising, $2.80 is generated in sales

Brands across the world are gradually turning towards out-of-home (OOH) advertising to capture new audiences, stay in the minds of their existing customers and communicate their brand story in a more effective manner. Focused ads help businesses and brands stay relevant in such unparalleled times. In fact, research suggests that audiences identify heavily with OOH because they associate it with high levels of trust.

In the UAE, the phenomena is equally prevalent. One company investing heavily in OOH is Ferns N Petals (FNP.ae), the UAE’s leading gifting company, which has been among the leading brands in this realm.

Chief Marketing Officers magazine (CMOs) interviewed Rajesh Kumar, CEO – GCC & SEA, FNP (Ferns N Petals), to discuss the latest creative trends, current landscape and the future of OOH in the UAE and many other points that discussed in the following interview…

Why OOH spend around the world has increased?

Out of Home (OOH) advertising is currently one of the best marketing tools for targeting large numbers of people at once. After all, the way that customers engage with brands is constantly evolving, and their behavior is also becoming less predictable and more demanding. Therefore, it was imperative that the world developed a more impactful approach to advertising.

OOH can reach consumers while they are on the go, in public areas, in transit, or whilst they are waiting for services in commercial locations. It is one of the most effective tools for businesses that are operating in dense and highly competitive markets.

Because OOH combines physical presence, prime locations and immediacy, it can go where most other media can’t. It can drive awareness and engagement, and ultimately lead to more successful transactions. OOH is not affected by ad blockers and it cannot be turned off like broadcast or mobile ads can. It gives clients a greater chance at capturing a vast audience.

How can OOH have a positive impact on sales and balance sheets?

Studies reveal that OOH significantly lowers the cost of advertising; it can deliver to the same audience as other mediums, but for a much lower cost. In fact, a recent global econometrics study found that OOH delivers a very high return on investment – for every $1 spent on OOH advertising, $2.80 is generated in sales. Radio is the only medium that comes close to offering the same value.

Most media planners are aware that OOH is a cost-efficient option, and that it can significantly improve the reach of other media campaigns. For instance, adding OOH to media plans can increase a brand’s reach by around 18 to 20% for TV and up to 300% for mobile advertising. It also helps redirect consumers from the big screen to a smaller screen, where they can search and make purchases.

What industries populate the most OOH slots?

Initially, OOH spend was driven by large corporations who were quick to capitalise on the prominent positioning it offered. People rarely miss large outdoor adverts and brands can be highly creative with the messaging they use on them. The food and beverage, technology and online retail industries are amongst those who have most embraced OOH. Worldwide examples include McDonald’s, Apple and Amazon.  These businesses are considered international pioneers in OOH spend.

What are the latest creative trends in OOH?

OOH, including Digital OOH (DOOH) is constantly evolving. For example, programmatic capabilities in DOOH now offer audience planning and buying, creativity, flexibility, measurement and retargeting. All of this gives the medium a competitive edge over tools. In addition, outdoor advertising ads now incorporate Bluetooth signals so that they can broadcast information directly to those who are interacting with them.

By harnessing data and information, advertisers can adjust and tailor their ad according to the needs and wants of their customers. This improves the targeting of campaigns, helps businesses deliver more contextually relevant adverts, and significantly increases the chances of outdoor ads being noticed by the target audience.

In the UAE, OOH is equally prevalent and evolving. One company investing heavily in OOH is Ferns N Petals (FNP.ae), the UAE’s leading gifting company, which has been among the leading brands in this realm.

FNP.ae has video billboards on Dubai’s Sheikh Zayed Road. The ads feature 12,000 times a day on the longest and busiest road in the country. Ads flash through an average of 750 times each every day – standing out with rich video content and clever messaging. The company has also ventured a great deal in LED billboard in a quest to upgrade its visibility.

The current landscape and the future of OOH in the UAE

OOH advertising is here to stay, and it will continue gaining momentum for years to come. On a global scale, the OOH market is forecast to grow by $11016.26 m during 2022-2027, according to the Global Out of Home Advertising Market 2023-2027 report.