If you haven’t started making OOH plans for Q4 yet, there’s no time to lose – OOH inventory is in high demand despite the economic woes dominating the news. Our latest Alfresco Life survey from the UK looks at how people are reacting to the cost-of-living crisis, with some positive signs for brands in the lead up to Christmas.
While most people across the UK are concerned about the impact of cost-of-living increases (86%) and many have already made changes to their spending habits (59%), it’s not a consistent story for everyone. The findings from the latest wave of Alfresco Life suggests consumer spending remains strong, with 6 in 10 revealing they’re actually better off or the same financially as they were this time last year.
Despite economic uncertainty for some, most people still want to treat themselves (73%). And people are prioritising socialising and going out and enjoying themselves (67%) following two and a half years of restricted living due to COVID.
This desire to get out and enjoy ourselves is clear in OOH audience numbers, with OOH reach rising over the last few months across all environments, but especially city centres, hospitality, gyms, and cinema, which is fuelling an increase in public transport usage too.
And you can expect audiences to grow further as people are more likely to go to the cinema/theatre or book a holiday in the next three months (64% say they plan to go on holiday this year), further underlining the value people place on getting out and about.
It’s vital for brands in all sectors to stay top of mind
A recent session hosted by WARC at Cannes showed how increased media spend pays off during times of economic uncertainty. With analysis showing how brands that boosted their investment saw a 17% increase in incremental sales, while brands that cut back saw an 18% reduction on average.
And with spending on essential purchases such as housing (71%), communications and TV (70%), groceries (65%) and fuel (58%), as well as non-essentials such as kids’ toys/clothes (65%), charity (60%), beauty (59%), holidays (55%) and alcohol and gambling (54%), all expected to stay the same or increase in the coming months, it’s never been more important for brands to be front of mind.
For FMCG brands this is particularly true, as consumers say they’re actively switching products (39%) and looking to plan their meals in advance to avoid food wastage (31%). When it comes to utility costs, 86% are making changes to help lower their energy consumption, making it a good time for brands to promote products and solutions that allow people to use more sustainable and energy-efficient options.
When it comes to spending on financial products, 41% don’t plan to make any changes. However, for those who do, they are looking to switch to cheaper products (26%) and better rates of return (17%).
For health and beauty, a quarter of people plan to swap professional beauty treatments for DIY treatments (e.g., dyeing own hair, doing own nails). A further 32% also plan to shop around for the best price, highlighting the need for brands to prove their value.
Q4 is traditionally a busy quarter for OOH and brands, but this year is set to be bigger than most with the addition of the men’s winter world cup kicking off in November.
So how can brands make the most of OOH?
While OOH’s ability to keeps brands front of mind has long been proven, its ability to influence short-term commerce online and offline is often under-appreciated. But there’s a growing number of people shopping while on the go – our recent Mobile Pound study showed over half of all mCommerce spending now takes place while people are out of the home.
Brands should be tapping into this using the flexibility offered by DOOH and PROOH, to trigger one of many moments of mobile commerce. Through our Journeys platform, we can segment online and offline purchasers, pinpointing where a brand’s customers or future customers are, what time they’re there, their mindset and what message will resonate with them the most.
Scannable codes can now turn every OOH touchpoint into a gateway to a variety of content and commerce. Brands should incorporate these into OOH creative, along with a call to action to make finding and buying easily and instantly accessible through people’s mobile phone.
Connect offline and online worlds through the home of creativity
With people cautious about finances but still keen to treat themselves, there is an enhanced need to justify purchases. Brands will need to work harder to build strong emotional connections to maintain or grow brand equity this year. OOH is the home of creativity, and bold creative campaigns resonate strongly with people often generating content that is amplified across online platforms.
Digital OOH now offers immense creative potential when you combine live data, location, and context. The best digital campaigns are built on clever applications of relevant first and third-party data to create or activate content in real time. Sporting events like the world cup offer numerous contextual opportunities for brands to tap into. Whether it’s celebrations or commiserations, the shared viewing experience that OOH offers can be a powerful place for brands that want to get involved. Many people will be out enjoying the games in social groups and the flexibility of DOOH allows brands to be reactive and agile when required.
Programmatic OOH has grown hugely this year and offers brands a way to instantly activate relevant messaging. Cross-channel activations that include OOH are also now a real opportunity for brands and being able to use DOOH in conjunction with audio, display or social activations is a great way for brands to maximise spend across all channels.
Don’t leave it too late
Consumers are continuing to spend, meaning brands should continue to spend as well, with OOH being a key channel with the highest reach of all commercial advertising. And as TV inflation continues to rise, OOH will have a key role to play in extending reach, improving brand saliency, and influencing both online and in-store purchases.
Many advertisers understand this and have already committed to Q4 campaigns to take advantage of the pre-Christmas surge in the nation’s mood and mobility and the OOH market is already busy. Key roadside, POS and mall formats are increasingly in demand as brands secure campaigns for autumn and the run up to Christmas.
Next Month, Alfresco Life will share deeper insight into people’s plans for Q4. As we endure a tougher economic climate in the lead up to the busiest time of year, reaching valuable audiences on the move in relevant ways will be critical to the success of brands. OOH is more equipped to deliver than ever before. Just don’t leave it too late!
Alfresco Life is Kinetic UK’s regular survey about lives lived outdoors. We partner with Toluna and via an online survey have a nationally representative sample of a 1000 UK respondents.
