The Growth of OOH and Luxury Brands
Aspiration is a key factor in the selling of luxury brands and out-of-home outpaces other mediums with the ability to influence target audiences. This winning combination is why luxury advertisers gravitate to outdoor.
It is important to note out-of-home is set to rise above all media, including digital. This is especially impressive when considering the growth and size of digital media in today’s environment. (3)
Growth Factors:
- The declining audiences of other media makes OOH more attractive to advertisers because it can’t be delayed, skipped or turned off.
- OOH has improved largely driven by digital across the OOH spectrum (billboards, street furniture, transit, place-based).
- People are spending more time outside their homes. (2)
Another notable trend that became the highlight of 2016 is that luxury brands believe in the power of OOH.
Upscale Is Up Again: Luxury Ad Market Expanding 2.9{7dd1416ee44d296125d5309095d205871b45e29241d016cbe67a952aece7c226}
OOH was perceived to have always catered to the masses, not the classes. The demand of OOH medium is increasing due to their tremendous capacity of influencing target audiences as luxury brands are not just selling the product but aspirations and dreams too. (2)
Ad spending on “luxury” category products and services is on track to rise 2.9{7dd1416ee44d296125d5309095d205871b45e29241d016cbe67a952aece7c226} in 2017, according to estimates released by Publicis’ Zenith unit. The expansion is projected to expand even further in 2018, which Zenith forecasts will rise 3.9{7dd1416ee44d296125d5309095d205871b45e29241d016cbe67a952aece7c226}. (1)
With these compelling stats for OOH and Luxury brands; timing couldn’t be better to launch a luxury brand out-of-home campaign.
Outdoor Advertising is poised to record another growth year, which will mark the industry’s 27th consecutive quarter of growth. Other than digital media, no other form of media comes anywhere near such a consistent, solid record. (3)
Luxury ad spending includes sub-categories such as luxury automotive, fragrances & beauty, fashion & accessories, and watches & jewelry. (3)
Key Takeaways for these Explosive Trends
The foundation for OOH’s increasing audience, and consistent, solid growth is revealed in a number of research studies. Review the studies here. (3)
According to Harris Poll’s research, seven of the top 10 Millennial car brands are luxury brands, versus five each for Gen X and Baby Boomers. Aspiration, however, outpaces ownership, as Millennials are much less likely to actually own luxury cars than older generations. (5)
Ad revenue from alternative sites (sports stadiums, malls, shopping centers and kiosks) is projected to reach $977 million this year, but the burgeoning digital/video component of this out of home category promises increasing future growth. More than a million “place based” ad platforms have been installed in stores of all kinds, including more than 30,000 malls throughout the nation. (4)
Call AllOver Media now to get the best possible OOH inventory for your brand and/or service. AOM Luxury Advertising.
