After one of the most challenging advertising years ever, creating a roadmap for sales success in 2021 requires a reexamination of historical processes and data. While most emerging marketplace signals are positive, understanding the nuances of 2020 can help leverage greater success in 2021. To assist sales teams with prospecting and competitive positioning, three new reports are now available:
These reports, produced with data from Kantar, provide insights to the placement of ad spend across media channels, along with product category spend allocations across media channels, and by month. This data should not be used to estimate exact spend within specific media channels, however, as Kantar’s capture is not 100 percent for any channel. Kantar captures about 74 percent of total OOH spend, and their capture of digital media is lower. Hence, this data is best used for comparative purposes to understand OOH relative performance against other local channels.
Local Ad Spend by Market and Media Channel
In 2020, the top 10 markets with the greatest OOH dollar spend, in descending order, were New York, Los Angeles, Chicago, San Francisco, Miami, Dallas, Atlanta, Orlando, Philadelphia, and Houston.
The top 10 markets with the greatest OOH share of local ad spend (all greater than 33 percent) were Rapid City SD, Casper WY, Chico CA, Victoria TX, Biloxi MS, Salisbury MD, Alexandria LA, Jackson TN, Lake Charles LA, and Panama City FL.
The local spend report reveals local newspaper still receives at least 20 percent of total local ad spend in Rochester, Albany, Providence, Indianapolis, Buffalo, Richmond, San Diego, Greenville SC, West Palm Beach, Chicago, Jacksonville, and Milwaukee. In 2019, the Pew Research Center reported newspaper circulation reached an historic low, and social media sites surpassed print newspapers as a news source for Americans with one-in-five U.S. adults saying they often get news via social media.
Local radio receives over 15 percent of local ad spend in Baltimore, Portland OR, Austin, Dallas, Seattle, Houston, Boston, Knoxville, Los Angeles, Minneapolis, Phoenix, Ft. Myers, Memphis, Cincinnati, Sacramento, San Francisco, Denver, and St. Louis.
Identifying competing media channels with greater share than OOH in local markets provides a prospecting strategy. Kantar Media data can then be used to identify local advertisers using the competing channels to identify specific prospecting targets.
Product Category Ad Spend by Month
Understanding media spend allocations by month helps identity the most important time periods for specific advertisers. It’s important to remember 2020 experienced significant shifts with monthly allocations due to COVID. However, the 2020 trends can offer insights to categories currently offering the greatest potential, as well as those that will lag in the recovery. Last year, the top ten total ad spend industry categories were Media and Advertising, Retail, Local Miscellaneous Services and Amusements, Insurance and Real Estate, Government, Politics and Organizations, Medicines and Proprietary Remedies, Financial, Automotive + Automotive Accessories and Equipment, Communications, and Restaurants.
Product Category Ad Spend by Media Channel
This report provides total US spend, including both local and national media, by industry categories. It reveals, for example, that among categories investing at least $2 million in media, OOH garners a five percent or greater share in Shopping Centers and Catalog Showrooms, Aviation (excluding freight), Gasoline, Lubricants and Fuels, Local Miscellaneous Services and Amusements, Cigarettes, Tobacco and Accessories, Apparel Notions and Fabrics, Public Transportation, Hotels and Resorts, Automotive Dealers and Services, Schools, Camps, and Seminars, Beer and Wine, Liquor, and Restaurants.
The report also highlights category opportunities such as Automotive Dealers and Services. Within this category in 2020, OOH garnered a six percent share, but radio earned a nine percent share and newspaper an eight percent share.
It’s important to understand the use and position of competitive ad channels in order to appropriately promote OOH. MAGNA forecasts OOH to be the fastest growing media channel in 2021, so these reports can identify opportunities for increasing OOH market share. Once you’ve identified your new prospects, you can directly access Hoover’s product category reports that highlight trends, opportunities and challenges, along with sales preparation questions by category.
Source: Kantar, Pew Research Center