Advantages and Disadvantages of Outdoor Advertising

Outdoor advertising offers a number of advantages

1. Wide coverage of local markets. With proper placement, a broad base of exposure is possible in local markets, with both day and night presence. A 100 GRP showing (the percentage of duplicated audience exposed to an outdoor poster daily) could yield exposure to an equivalent of 100 percent of the marketplace daily, or 3,000 GRPs over a month. This level of coverage is likely to yield high levels of reach.
2. Frequency. Because purchase cycles are typically for 30-day periods, consumers are usually exposed a number of times, resulting in high levels of frequency.
3. Geographic flexibility. Outdoor can be placed along highways, near stores, or on mobile billboards, almost anywhere that laws permit. Local, regional, or even national markets may be covered.
4. Creativity. Outdoor ads can be very creative. Large print, colors, and other elements attract attention.
5. Ability to create awareness. Because of its impact (and the need for a simple message), outdoor can lead to a high level of awareness.
6. Efficiency. Outdoor usually has a very competitive CPM when compared to other media. The average CPM of outdoor is approximately one-half of radio and far less than that of TV, magazines, and newspapers.
7. Effectiveness. Outdoor advertising can often lead to sales. In a study reported by BBDO advertising, 35 percent of consumers surveyed said they had called a phone number they saw on an out-of-home ad. A study reported by Mukesh Bhargava and Naveen Donthu showed that outdoor advertising can have a significant effect on sales, particularly when combined with a promotion.
8. Production capabilities. Modern technologies have reduced production times for outdoor advertising to allow for rapid turnaround time.

At the same time, however, there are limitations to outdoor, many of them related to its advantages

1. Waste coverage. While it is possible to reach very specific audiences, in many cases the purchase of outdoor results in a high degree of waste coverage. It is not likely that everyone driving past a billboard is part of the target market.
2. Limited message capabilities. Because of the speed with which most people pass by outdoor ads, exposure time is short, so messages are limited to a few words and/or an illustration. Lengthy appeals are not likely to be effective.
3. Wearout. Because of the high frequency of exposures, outdoor may lead to a quick wearout. People are likely to get tired of seeing the same ad every day.
4. Cost. Because of the decreasing signage available and the higher cost associated with inflatables, outdoor advertising can be expensive in both an absolute and a relative sense.
5. Measurement problems. One of the more difficult problems of outdoor advertising lies in the accuracy of measuring reach, frequency, and other effects. (As you will see in the measurement discussion, this problem is currently being addressed, though it has not been resolved.)
6. Image problems. Outdoor advertising has suffered some image problems as well as some disregard among consumers.

In sum, outdoor advertising has both advantages and disadvantages for marketers. Some of these problems can be avoided with other forms of out-of-home advertising.

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