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U.S. MAJOR MEDIA CPM COMPARISON CONFIRMS SUPERIOR VALUE OF OOH
March 1, 2022
Solomon Partners 2022 Benchmark Report Estimates Out of Home Buys Deliver Greatest Audience ROI Versus Majority of Other Media Channels
WASHINGTON D.C. & NEW YORK, N.Y. (February 25, 2022) – The Out of Home Advertising Association of America (OAAA), the national trade association for the entire OOH and digital OOH media ecosystem, has partnered with Solomon Partners, a leading financial advisory firm, to release findings from the Solomon Partners’ 2022 U.S. Major Media CPM Comparison Report. The report, which provides estimates of CPM based on SEC filings, news, research and other industry sources as of January 2022, shows that out of home ad buys provide significantly more value in terms of reach versus television, radio, and print, as well as most online executions. This holds true across printed and digital OOH formats, whether executed as bulletins, posters, transit shelters or digital placed-based media.
In addition to the benchmarking study, Solomon Partners’ past analysis of the five primary advertising channels, showed that OOH generated the greatest ad recall. The advisory also points to the growth of ad blocking and online ad fraud, as key factors in the potential for out of home to be a strong contender for ad dollars versus online. Solomon Partners also cites OOH’s increased reporting and attribution accountability as being a critical motivator for increased marketer spend in the channel.
Confirming the importance of OOH in the media mix, Solomon Partners’ analysis also shows that successful brands allocate 13 percent of their media budgets to out of home advertising, in sharp comparison to just 6 percent average share of total global ad spend.
“This research affirms out of home’s critical role in the media mix,” said Anna Bager, President and CEO, OAAA. “It verifies the value that out of home brings to marketers at a time when people are not only emerging from the pandemic’s restrictions to venture out, but also noticing OOH ads more than before the crisis. Couple that with the other benefits spotlighted by Solomon Partners, and I expect to see OOH taking a bigger bite out of brands’ ad budgets.”
“These benchmarking numbers clearly show that OOH provides significant return on investment and marketers should consider that reach-per-dollar in their media plans,” said Mark Boidman, Managing Director and Head of Marketing and Media/Tech Services Group, Solomon Partners. “Moreover, OOH has greatly improved its reporting and attribution accountability and, at the same time, programmatic digital out of home is skyrocketing – all appealing to today’s brands.”
Download the Solomon Partners 2022 U.S. Major Media CPM Comparison chart here.
About the OAAA
The Out of Home Advertising Association of America (OAAA) is the national trade association for the $8.6 billion U.S. out of home advertising (OOH) industry, which includes digital out of home (DOOH), and is comprised of billboards, street furniture, transit advertising, and place-based media (including cinema).
OAAA is comprised of 800+ member media companies, advertisers, agencies, ad-tech providers, and suppliers that represent over 90 percent of the industry. OAAA is a unified voice, an authoritative thought leader, and a passionate advocate that protects, unites, and advances OOH advertising in the United States.
OAAA-member media companies donate over $500 million in public service advertising annually. Every year, the industry celebrates and rewards OOH creativity via its renowned OBIE Awards (obieawards.org). For more information, please visit oaaa.org.
About Solomon Partners
Founded in 1989, Solomon Partners is a leading financial advisory firm with a legacy as one of the first independent investment banks. Our difference is unmatched industry knowledge in the sectors we cover, creating superior value with unrivaled wisdom for our clients. We advise clients on mergers, acquisitions, divestitures, restructurings, recapitalizations, capital markets solutions and activism defense across a range of industries. Previously known as PJ SOLOMON, Solomon Partners is an independently operated affiliate of Natixis, part of Groupe BPCE. For further information, visit solomonpartners.com.