Mobile Billboards: An Underserved but Highly Valuable Medium
By Joshua Lawton, 6/19/18
Mobile billboards are a highly valuable medium for direct advertising to a specific sub-segment of consumers, and yet it is underserved by companies and nonprofits who provide data to the out-of-home industry. While this should come as no surprise to those who know that mobile billboards account for a fraction of the total available boards within the out-of-home industry, it is an oversight of a growing and highly active section of the out of home industry that requires correction to increase revenue and spur on the growth of mobile billboard companies.
Beyond the fact that mobile billboards have a lower CPM than static billboards and that mobile billboards have a 7% higher recall rate than static billboards, a mobile billboard also have a higher conversion into the advertiser’s store than static billboards. This is quintessentially important, because according to a 300-person survey conducted by us at Abraxas Technology, the number one ROI measurement that media buyers, agencies, and local advertisers want to see is if their OOH campaigns are increasing sales. The number two ROI measurement that these same people want to see is if an OOH campaign actually causes people to go to the website or into the advertiser’s store. When asked if they equate conversion with increased sales, 80% of them said Yes.
Yet, just like the rest of the out of home industry, mobile billboards need to keep up with the changing needs of advertisers and provide them with the data they already use and also data they demand. According to our study, there are several key factors that advertisers stated would increase their spending with a mobile billboard company:
- Reliable Number of Impressions: Advertisers want to go beyond ADT data and they want to know how many people actually saw their advertisement.
- Conversions: Are the people who see the mobile billboard going into the advertiser’s store or onto their website?
- Demographics: Rather than local advertisers providing the routes that they want the mobile billboard to traverse, they want the mobile billboard company to target the routes that will correlate the highest with their target customer demographics.
These findings correlate with what our clients have seen when using our product. Advertisers have increased their spends when our clients have presented them with relevant data.
However, this should come as no surprise because when the digital realm was able to provide, click-through data online advertising took off. Between GDPR’s effects on digital marketers to the increasing demands by CMOs to show ROI, mobile billboard companies who have relevant data are perfectly situated to reap the rewards.
Joshua Lawton is the COO and Co-Founder of Abraxas Technology.
If you are interested in learning more about how data can help you increase revenue, please contact JLawton@abraxastechnology.com.
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