DOOH helps CPG keep brand loyalty strong and expenses low
Published: April 13, 2021
In March 2020, COVID-19 created a dual global economic and health crisis. People all around the world transformed their lifestyles drastically to avoid socialization and potential infection for months on end. Some industries were devastated by this behavioral change, such as tourism and hospitality which came to a near standstill. Companies shut their offices, furloughed employees, scaled back production, and completely canceled advertising campaigns. The pandemic led to an unprecedented consumption shock across countries that altered the traditional consumer habits we’ve come to know.
Consumer Packaged Goods (CPG) have played a crucial part in society surviving through this once-in-a-lifetime pandemic. The CPG industry faced big changes and new costs in order to adapt to the new normal. By necessity, many companies adopted new ways of functioning within weeks-- implementing processes that normally would take years. With supply chain disruptions, escalating consumer demands, and increased pressure for employee and customer safety, CPG brands have been facing operation challenges and expenses never seen before. As COVID-19 begins to slow down, sales of CPG products are expected to be significantly higher than 2019, the last typical year on record. With the continued high consumer demand and the new costs or issues that come with it, Consumer Packaged Goods are in search of innovative solutions to keep brand loyalty strong and expenses low.
Spending the past year indoors will result in greater spend and out of home activity as consumers are becoming increasingly able to access the vaccine and have a strong inclination to spend. An outcome of the lockdown has been a greater appreciation for the outdoors. In a 2020 consumer behavior study by OAAA and The Harris Poll, 68% of consumers reported they were tuning out digital online ads from spending so much time looking at screens and nearly half (45%) said they were noticing OOH advertising more than before the pandemic began.
As we rapidly develop immunity to recalling online and mobile ads after spending more than a year glued to our personal screens, digital out of home advertising (DOOH) provides the opportunity for CPG brands to gain attention and create cost-effective campaigns. Digital OOH campaigns ultimately raise brand awareness, increase store visits, and lead to sales. The full array of benefits of DOOH to CPG brands, however, is vast.
Digital OOH advertising enables measurement and detailed reporting to quantify a campaign’s impact. Marketers are able to monitor a campaign’s progress in real-time during and after it runs and, thanks to the nature of programmatic, campaigns can be flexible and adaptable. In-depth insight into demographics allows for better audience segmentation, and through geo-targeting, CPG brands can target digital out of home advertising screens in specific states, cities, zip codes, or even a custom radius around retail locations of interest to display their campaign. A recent Nestle Coffee Partners campaign took advantage of hyper-targeting capabilities and driving consumers to Target stores, where a new Starbucks Nespresso Vertuo line was sold. As a result, the campaign generated 26.5 million impressions and Target stores had a +42% lift in-store visits.
DOOH campaigns are especially successful when paired with other devices to create a multi-channel approach. For instance, a digital screen could prompt the user to use their phone and visit a mobile-friendly website or landing page related to the DOOH ad through a simple call to action or QR code. In a study by OAAA, 52% of viewers engaged in mobile device actions after seeing a digital out of home ad and engaged in behavior such as visiting an advertiser’s website, scanning a QR code, downloading and using the brand’s app, accessing a discount offer, or making a purchase.
Around the world, consumers are opting to purchase from CPG brands “they can absolutely trust.” With privacy concerns steadily on the rise as a result of incidents like social media data leaks and mobile app security breaches, DOOH provides Consumer Packaged Goods with an alternative to online ads for building consumer trust. Out of home advertising is less intrusive than online or social media -- it works in harmony with people’s daily routine or activity, sparking a more favorable reaction among consumers. Programmatic provides the flexibility for creative to dynamically adjust in real-time based on external factors such as custom triggers, changes in weather, nearby mobile devices, or travel data which helps keep campaigns personalized and relevant to both their audience and environment.
In a world that is becoming desensitized to mobile ads, stay at the forefront of consumer’s minds with dynamic digital out of home content that grabs their attention and engages them. For Consumer Packaged Goods, DOOH advertising is an important investment to stay relevant and keep marketing spend on track. If you’re ready to extend your reach and drive results with DOOH, our team is ready to help plan your DOOH campaign today, at no charge to you. Contact us at firstname.lastname@example.org