You might be wondering
what the price of gas has to do with advertising. Seems like a long stretch,
doesn’t it? Well, think again. With the price of gas going down all across
America, consumers are choosing to take advantage and get out more. For
advertisers, this means more people to interact with while they are outside of
their homes.
In America, the average
price of gas in October 2014 was roughly $3/gallon. October 2015 lowered the
average price to around $2.25/gallon. On this December day, I drove to work in
Kansas City, MO, and saw gas prices for as low as $1.53/gallon.
The first trend
influenced by lower gas prices is that Americans are driving more miles every
year. As you can see from the graph below, provided by the Census Bureau,
Americans are rapidly increasing the number of miles they drive.
The Census Bureau found
that sales at restaurants/bars and hotels have increased from last year by 8%
and 5%, respectively.
According to the Outdoor
Advertising Association of America, Out of Home (OOH) advertising is, “second
only to digital media in total growth from 2014-2016 (based on actual and
projections)”.
Marketers now have a
larger audience to reach while they are out and about and likely to be
influenced. Consumers can be reached on a variety of OOH platforms like
billboards, smartphones, social media, and more. For advertisers, this can be
seen as a huge opportunity. Consumers now have more disposable income to spend
along with the drive (pun intended) to spend it.
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