OOH Drives Online Sales

We all know how a strong OOH (out-of-home) campaign can drive in-store sales, but we've never really understood its true effect on online sales—until now. A recent study from the Centre for Economics and Business Research and Group M OOH sheds light on this.

Key Findings: The study reveals that the impact of OOH advertising on online sales for fast-moving consumer goods (FMCG) is significantly underestimated by current measurement methods. The research, in collaboration with some major media owners, shows that OOH advertising not only drives in-store sales but also has a substantial effect on online sales.

Online Sales Multiplier: The study found that OOH advertising has an online sales multiplier of 1.7. This means that for every £3 spent in-store due to OOH ads, an additional £2 is spent online. Categories such as cosmetics (1.83), health and wellbeing (1.76), clothing (1.76), and personal care (1.75) showed the highest online multipliers. Younger audiences (18-34 years) exhibited a higher online sales multiplier (1.81) compared to older demographics (over-35s), who had a multiplier of 1.66.

Research Methodology: Traditional OOH measurement has focused on in-store sales, using product-level sales data aggregated to postcode level and overlaid with geolocation data. The inability to apply this methodology to online sales, due to centralised warehouse data issues, led to an underestimation of OOH's full impact. The new research employed a nationally representative sample of 2,000 UK adults via an online survey to collect data on in-store and online spending across FMCG brands. This data was then used to develop a multiplier to predict future sales.

Implications for Media and Creative Strategy: Understanding the online multiplier and dual impact of OOH on both in-store and online sales is crucial for brands to get the most from their media and creative strategies. By adapting creative content with a strong call to action and carefully planning high-dwell media environments, brands can drive online sales.

Online spending while out of home is huge and growing at a fast rate. With these latest findings, we're finally understanding the true effects OOH has on online sales.

If you want to find out more, please contact Media Agency Group.