Current marketing mix modeling (MMM) is missing out on OOH's true return on investment (ROI) because it doesn't include sufficiently granular location data, new research has found.
JCDecaux UK and Nielsen research; Location is important to MMMfound that the contribution of OOH was “underestimated by current econometric models” and that adding location-based impression and sales data increased OOH ROI by 42%.
The study builds on research by OOH industry associations Outsmart and Entropy, which found that three limitations of MMM hinder understanding the full impact of OOH on campaigns.
These include the use of country-wide aggregate numbers that don't capture the impact on sales in specific regions, the inability to isolate the impact of channels running at the same time, and the size of the campaign.
Chris Felton, Director of Data and Insights at JCDecaux UK, said:: “From an OOH perspective, it is important that our true sales effectiveness is captured by MMM. We urge everyone to ensure that they use the most accurate data possible.
“This helps us identify what is actually driving sales. As a location-based media, our impact also varies by region, so we need to measure accordingly.”
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