Brands Face New Challenges with the Incoming LHF Ban

Brands Face New Challenges with the Incoming LHF Ban: Why OOH is the Solution

 

The impending decision on enforced LHF (Less Healthy Food) regulations across broadcast TV and paid-for online advertising, will likely lead to a significant shift in the media landscape and a series of changes and challenges for all brands. OOH is well positioned to deliver against full funnel marketing objectives, as brands actively seek alternative solutions. It will remain a critical channel for LHF brands to help maintain mental availability, reinforce physical presence, and increase prominence at points of sale (POS)

 

OOH is a proven solution

LHF restrictions are not new to OOH. The industry has self regulated for over a decade, setting pre-defined boundaries around schools for LHF, tobacco, alcohol and gambling categories. The 2019 LHF regulations on TFL estate saw the industry adapt again and media owners work more closely with local council regulations in cities. These existing restrictions provide a framework for how the potential LFH advertising ban may be managed across TV and online.

A well-known confectionary brand recently saw OOH drive an incremental sales uplift of +3.5% over the analysis period, proving that LHF brands using OOH in a regulatory way can still drive significant business outcomes.

 

The power of OOH in a post ban world

The new restrictions across TV and online will force brands to rethink their media strategies and explore alternative channels to reach their audience. OOH offers unique advantages that can fill the void.

TV has long been a dominant platform for advertising, targeting a broad and often older audience demographic in recent years. With the ban in place, the availability of TV as a medium for LFH food advertising will be significantly impacted. There will be a reduction in advertising space, which will increase competition for the post 9pm watershed slots and drive up cost inflation.

Outside of TV, OOH advertising remains one of the last true public broadcast channels reaching 97% of the UK population each week. It has proven itself to be a resilient and versatile medium, capable of delivering across multiple marketing objectives. It builds fame and trust, alongside or akin to TV. Ocean’s research with Ebiquity showed that OOH turbocharges the sales contribution of TV by +35% when added to the plan.

Recent research from Bauer Media Outdoor highlights OOH’s effectiveness in counteracting the impact of TV watershed restrictions. When OOH was combined with TV post-9pm advertising, sales increased by 5% compared to expectations, whereas the absence of OOH led to a 7% decline.

The ban on paid-for online advertising will impact brands looking to target the younger 18-34 age demographic. Online platforms have been highly effective at delivering targeted, data-driven campaigns. But advancements in technology and smart data, has allowed OOH to also reach specific audiences with more precision. Through programmatic DOOH (PROOH) or using dynamic content on Core campaigns, advertisers can tailor messages based on variables like weather, location, and sales data—mirroring the granularity of online campaigns.

 

Planning for further OOH demand

As more brands divert their budgets into OOH to maintain top-of-mind awareness or drive immediate sales, the market’s finite nature becomes a critical consideration. Key formats often require longer lead times, and competition for prime OOH spaces will intensify. This isn’t just a challenge for LHF brands; alcohol, entertainment, and even non-LHF brands displaying restricted products in their creatives will feel the impact.

Media owners may respond by reviewing pricing during key periods, adding another layer of complexity for advertisers. For brands, planning ahead and securing OOH inventory will be essential to staying ahead in a crowded marketplace.

 

Shaping the future of advertising for LHF brands

As the media industry adapts to these restriction changes, the resilience and versatility of OOH advertising will play a pivotal role. Its ability to deliver on a range of objectives and outcomes, even under regulatory constraints, makes it integral to shaping the future of LFH food advertising.

 

For more information, contact the OOH team at GroupM.