Intercept Consumers On The Go With Digital Out-Of-Home Advertising
Intercept Consumers On The Go With Digital Out-Of-Home Advertising
Intercept Consumers On The Go With Digital Out-Of-Home Advertising
April 2020
TERMINOLOGY
For this study, we explore topics related to “digital out-of-home
advertising.” We defined this term to survey respondents as inclusive of
any digital advertising that reaches consumers on the go.
2
Figure 2
“To what extent do you agree with the following?”
Strongly agree Agree
Buyer preferences for privacy are changing the way we use
23% 64%
data for advertising
Base: 424 global marketing or advertising decision makers responsible for media budget
Source: A commissioned study conducted by Forrester Consulting on behalf of Waze, February 2020
in the past decade, but marketers know that a critical part of getting
contextual advertising right is knowing where the customer is and their 72% More valuable customers
likelihood to respond to the message.
Base: 368 global marketing or advertising
decision makers at organizations
prioritizing in-person visits
Source: A commissioned study conducted
by Forrester Consulting on behalf of Waze,
February 2020
85% Our marketing and advertising efforts are focused on targeting specific audiences
Base: 424 global marketing or advertising decision makers responsible for media budget
Source: A commissioned study conducted by Forrester Consulting on behalf of Waze, February 2020
Figure 6
Top five reasons brands invested in digital out-of-home advertising:
Digital out-of-home not only meets customers in their moments of need; it Compared to low performers,
also delivers business results. Based on our survey, we found that: high-performing firms are:
› Brands with better business results prioritize in-person visits and 1.5 times more likely to
digital out-of-home ads. We segmented respondents based on view increasing
performance across key metrics like revenue, customer acquisition, in-person visits as critical
customer lifetime value, and return on investment for advertising in the next 12 months
spend.2 The results revealed that high performers do a couple things
differently compared to low performers: 1) They are 1.5 times more Increasing investment in
likely to view increasing in-person visits as critical in the next 12 digital out-of-home
months, and 2) they are increasing investment in digital out-of-home advertising at a rate of 3x
advertising at a rate three times greater (see Figure 7).
› Marketers expect digital out-of-home to increase volume and size Base: 424 global marketing or advertising
decision makers responsible for media budget
of sales; results provide significant uplift. Global marketers expect
Source: A commissioned study conducted
that digital out-of-home advertising could deliver across in-store traffic, by Forrester Consulting on behalf of Waze,
sales volume, and size (see Figure 8). These expectations prove February 2020
true for brands that have already invested in digital out-of-home.
Respondents who have seen increased volume of sales estimate a
weighted average 9.1% increase; the same can be said for size of sales
(8.3% increase) and traffic to brick-and-mortar locations (8.0% increase).
Figure 8
Respondents who have seen/expect an increase in the following from an Weighted average change to key
investment in digital out-of-home advertising metrics among digital out-of-home
ad users*
Traffic to brick-and-mortar
51% 8.0%
locations
Base: 424 global marketing or advertising decision makers responsible for media budget
*Base: 68 to 84 global marketing or advertising decision makers at organizations that have invested in digital out-of-home advertising
Source: A commissioned study conducted by Forrester Consulting on behalf of Waze, February 2020
5
DIGITAL OUT-OF-HOME INTEREST IS HIGH AND GROWING Figure 10
As marketers look to new advertising channels to influence buyers, many Digital out-of-home ad users who
highly consider digital out-of-home an area for growth. Looking toward initially secured investment funds
the future of advertising, we found (see Figure 9): with net-new incremental investment
Figure 9
Weighted average change in Likelihood to consider investing in
advertising investment over the digital out-of-home over the next
next year two years
Online video advertising 4.2% We are already invested in this
type of advertising
Digital out-of-home
4.1% Extremely likely
advertising
Very likely
Paid search advertising 3.9%
Somewhat likely “Digital out-of-home
Not likely/not applicable advertising puts brand
Social media advertising 3.4%
messaging in front of a
4% 1% captive audience. It offers a
Print publications 3.1%
reminder that exposes our
29% 30% location and our services. It
TV 3.0%
opens up an opportunity for
us to be on their path to work
Display advertising 2.4%
or home or to wherever
Traditional out-of-home they’re going and feel a time
2.3%
advertising of need.”
Printed materials 2.2% Senior media director at a
large US retailer and
Radio or podcast pharmacy
1.6%
advertising 36%
Base: 424 global marketing or advertising decision makers responsible for media budget
Source: A commissioned study conducted by Forrester Consulting on behalf of Waze,
February 2020
Appendix B: Demographics/Data
GEOGRAPHY INDUSTRY GROUPING
CPG
Gas stations
24%
26%
38% EMEA
37% NA
Retail
QSR 24%
25% LATAM 25%
COMPANY SIZE
5,000 to 19,999 employees 100 to 249 employees
RESPONDENT LEVEL 7% 15%
1,000 to 4,999
C-level executive 3% employees
19%
Vice president 17% 250 to 499
Director 80% employees
500 to 999 employees 26%
32%
Base: 424 global marketing or advertising decision makers responsible for media budget
Note: Percentages may not total 100 because of rounding.
Source: A commissioned study conducted by Forrester Consulting on behalf of Waze, February 2020