60|Retail News|February 2021|www.retailnews.ie
Out of Home Communications
OOH industry to recover ground in 2021
The Out of Home communications industry is predicted to show some recovery in 2021, according to a recent Kinetic Viewpoint event. KINETIC, the specialists in Out of Home (OOH) communications for brands, recently hosted an industry seminar to look at the OOH industry in 2021, after a difficult year in 2020. The virtual event highlighted the changes in audience behaviour as a result of the Covid-19 pandemic and the need for flexibility and agility. As experts in audiences on the move, Kinetic has invested heavily in research and behaviour analysis tools to provide effective OOH solutions for brands. In 2021, investment in existing networks and new format developments will be a key contributor to growth. Despite a very challenging environment, media owners have continued to invest and show confidence in the industry. According to Kinetic, industry forecasts show incremental growth over the next couple of years, and by 2023, spending should be back in line with 2019 figures. Aoife Hudson, Deputy Managing Director at Kinetic, spoke about the role of OOH in this key growth period: • OOH builds broadcast reach but can do so in a dynamic and agile way, increasing the effectiveness of communications. • In an uncertain world, brand fitness and trust signals are vital. OOH can play a key role in strengthening brand metrics such as trust, popularity, success and importantly, purchase intent. • OOH can build connections between our audiences and local communities. As audiences are proactively supporting local businesses, this provides an effective hook for brands to create powerful moments with their audiences. Identifying trends in audience movement Caroline Decourcy, Insights Director at Kinetic, looked at the importance of audience data, to identify trends in audience movement throughout tiered restrictions. Despite being in a similar situation to the restrictions last April, the OOH audience has not declined at the same rate. Research carried out by Kinetic Insight (Source: Kinetic Insight, Changing consumer behaviour 2020-2021) found that: • Top-up shops, which reduced to just 12% last May, have increased to 36% (January 2021); • 53% of audiences prefer shopping instore to online. This is expected to increase over the course of 2021 as the
Using Out of Home communications builds trust with consumers, according to Kinetic. vaccination scheme is rolled out and environments are perceived as safer by shoppers; • Increased consumption patterns of social media and streaming services are beginning to settle, with more time OOH noticing ads. “It is easy to default to certain theories around the word ‘lockdown’,” noted Ciara Gibney, Marketing Manager at Kinetic. “In this session, we wanted to look at the key myths that have been present in our industry, including the notion that ‘Everyone is working from home’. It is true that more people are working from home during this time, but studies show that 60% of our workforce are still travelling to work. With the 40% of our population who are working from home, their local area is becoming more important to them and so, becomes an important touchpoint for brands. As we make our way through 2021, we expect to see a more hybrid approach with office and home working.” Continuous recovery Aoife Hudson concluded the event with some thoughts on 2021: “Throughout the year ahead, we will see continuous recovery in the OOH industry as we begin to see some level of normality returning. Market developments by our media owners continue to provide new and engaging touchpoints that brands can utilise, and a level of importance and focus will be placed on innovation and dynamic. Overall, the OOH audience is still very much present at various touchpoints and there are strong opportunities for brands to lead the charge and create a real point of difference over their competitors.”
