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In today’s rapidly changing digital advertising landscape, brands always seek new ways to capture consumer attention. Digital-Out-of-Home (DOOH) advertising has become a powerful tool for enhancing brand visibility and engagement. At the forefront, BRAVE is helping brands integrate DOOH into their broader digital strategies to amplify their presence.
Traditional out-of-home advertising, which has been dominated by static billboards and posters for decades, if not generations, is being transformatively innovated by the dynamic and interactive features that come with DOOH. This change in outdoor advertising is driven by increasing urbanization, advancements in display technologies, and the demand for more engaging and measurable advertising solutions. Integrating DOOH within broader digital strategies allows brand advertisers to leverage this medium to create cohesive and impactful branding experiences.
This article explores the rise of DOOH, key trends, market predictions, its role in omnichannel campaigns, and how technology today can help brands harness their full potential.
The Rise of DOOH in Digital Advertising
What Is DOOH?
Digital-Out-of-Home (DOOH) refers to dynamic media displayed on digital billboards, screens in public places, and other out-of-home environments. Unlike traditional static billboards, DOOH uses digital technology to deliver targeted and interactive content, making it versatile and effective.
Components & Evolution of DOOH
DOOH encompasses digital billboards, interactive kiosks, and digital signage in transit locations and publicly active areas. Its development has been driven by advancements in display technology and AI, enabling advertisers to deliver more personalized and engaging content. This capability allows DOOH to offer the same level of data analytics, interactivity, and dynamics as other digital marketing channels.
Growth & Adoption of DOOH
The DOOH advertising market has experienced meaningful growth in recent years, with global DOOH ad spending expected to hit $18.64B by the end of 2024. Over the next five years (2024-2029), the sector is anticipated to grow at an annual rate of 5.18%, culminating in a market volume of $24B by 2029. The average DOOH spending per capita in 2024 is projected to be $2.41, with the US as the leading spending country having a projected market volume of $5.277M. This surge is largely fueled by AI and data analytics, which significantly enhance campaign effectiveness.
DOOH ads will also make up 31.4% of all US out-of-home ad spend this year, showing a strong recovery to pre-pandemic levels. Nearly a third (31%) of US advertisers now incorporate DOOH in their media plans, with 39% planning to increase their investment in the next 18 months. Furthermore, 33% of US advertisers are shifting budgets from other digital channels to DOOH.
Forecasts predict that global DOOH advertising revenue will increase by 17%, surpassing $15.5B in 2024, and is expected to grow by an additional 34% and reach $21B by 2028.
Key Trends Driving DOOH Adoption
Data-Driven Customization
One of the leading trends driving DOOH adoption is data-driven customization. By integrating real-time data, advertisers can tailor displayed messaging by location, time of day, weather conditions, and even local events, enhancing the relevance and impact of DOOH campaigns.
Technological Advancements
Artificial intelligence (AI) and real-time data analytics play a crucial role in DOOH. AI-powered algorithms enable predictive targeting and optimized content delivery, ensuring the right message reaches the right audience at the right time. High-definition screens and interactive touchpoints also enhance the visual appeal and engagement potential of DOOH.
Sustainability in Advertising
As sustainability has become a critical factor in advertising, DOOH offers eco-friendly solutions by reducing the need for printed materials and using renewable energy sources for digital displays. Brands committed to environmental responsibility are increasingly choosing DOOH for its ability to deliver impactful advertising in an eco-conscious manner.
DOOH Market Predictions for the Upcoming Years
Market Growth
Experts predict robust growth in the DOOH market, with rising investment from major brands and a shift towards more digital and data-driven advertising strategies. The global DOOH market is projected to grow at a compound annual growth rate (CAGR) of 11.3% from 2020 to 2027, highlighting the unique channel’s increasing importance.
Innovations Shaping the Future
Several innovations are set to shape the future of DOOH. These include advancements in programmatic advertising, which allows for automated buying and placement of ads, and the integration of augmented reality (AR) and virtual reality (VR) experiences, enabling more immersive and interactive campaigns.
Regulatory Changes
As data privacy and digital advertising regulations evolve, advertisers will need to navigate these changes to ensure compliance while continuing to leverage the benefits of data-driven DOOH campaigns, impacting the broader DOOH landscape.
Why DOOH Is Best Suited for Brand Campaigns
DOOH has ranked in the top five channels consumers prefer in 2023, particularly because it involves in-person interaction. Despite this, many marketers still focus on digital channels. Exposure to premium DOOH, which typically features large, high-quality screens in busy areas, can increase brand trust by 13% compared to brands that lack this exposure.
High-Impact Visibility
DOOH is often placed in high-traffic areas such as city centers, transportation hubs, and along major roadways, ensuring that brand messages are seen by a large and diverse audience. The sheer size of DOOH displays, in combination with their vibrant visual elements, makes them highly noticeable and hard to ignore, which significantly supports brand recall.
Contextual Relevance
Modern DOOH platforms leverage data analytics and real-time capabilities to deliver contextually relevant advertisements. For instance, a DOOH display can change its content based on the time of day, weather conditions, or current events, making the ads more relevant and engaging to the audience. For brands, this brings the ability to tailor messages that resonate with consumers’ immediate experiences and environments, heightening relevance and engagement.
Dynamic Content Capabilities
Unlike traditional out-of-home media, DOOH allows for dynamic content changes that are not only automated but can also be made and even A/B tested in real time. This flexibility enables brands to run multiple creatives simultaneously or adjust their messaging quickly in response to new trends or feedback without significant additional cost, to optimize messaging based on viewer engagement.
Brand Safety
DOOH provides a controlled environment for ad placements, unlike many online platforms where ads might appear alongside undesirable content. This level of control ensures that brand campaigns are displayed in safe, contextually appropriate settings, maintaining the integrity of the brand and protecting its image from below-standard association.
Audience Engagement
Technological advancements have transformed DOOH from a purely passive advertising medium to an interactive engagement tool. Integrations with QR codes, NFC technology, or augmented reality can turn a standard advertisement into an interactive experience. This not only entertains or informs the audience but also encourages active participation with the brand, deepening connections and potentially leading to immediate digital engagements.
Measurement & Analytics
With the integration of sensors and connectivity technologies, DOOH platforms can collect valuable data on viewer interactions and engagement levels. This data can be used to measure the effectiveness of brand campaigns and provide insights that help refine marketing strategies. The ability to track performance with concrete metrics better aligns DOOH with digital advertising norms, making it a more trackable and compelling option for brand campaigns.
There are many benefits of DOOH when it comes to enhancing customer engagement. Interactive DOOH installations, such as touchscreens and QR codes, enable direct interaction with consumers which drives higher engagement levels. Additionally, the ability to deliver contextually relevant content increases the likelihood of capturing consumer interest and driving action.
By leveraging these capabilities, DOOH offers brands the powerful dual capacity to capture attention and generate impressions while engaging consumers deeply across diverse settings.
The Role of DOOH in Omnichannel Branding Campaigns
Complementing Other Channels
DOOH plays a crucial role in omnichannel branding campaigns by complementing other digital advertising channels. Providing a unique opportunity to reach consumers in real-world settings, DOOH reinforces brand messages delivered through online, mobile, and social media channels.
Effective Integration
Case studies demonstrate the effectiveness of integrating DOOH into omnichannel campaigns. For example, a retail brand might use DOOH to promote a limited-time offer while running social media ads and email marketing campaigns to drive traffic to their stores. This approach ensures consistent messaging and maximizes reach and engagement.
A good example is how Tiger Beer effectively integrated DOOH into its campaign strategy. Tiger Beer (via The Trade Desk) aimed to increase brand awareness and sales by targeting key locations with high foot traffic and strategic digital placements. The campaign used real-time data to optimize ad delivery based on weather conditions, ensuring the ads were displayed when potential customers had the greatest likelihood of being influenced. The results were impressive: a significant increase in ad recall, brand perception, and sales during the campaign period.
Extended Reach with Omnichannel Strategies
DOOH integrates smoothly with digital marketing campaigns, amplifying both online and offline touchpoints. By linking the data-driven insights of online campaigns with the broad, impactful reach of offline DOOH displays, brands can create a cohesive consumer journey. For example, brands can retarget consumers on their mobile devices who have previously been exposed to DOOH campaigns, reinforcing the message and increasing the probability of conversion.
Challenges & Considerations in DOOH Implementation
Integration Complexities
Integrating DOOH with existing digital strategies may present technical and logistical challenges. However, it also offers a unique opportunity to innovate and streamline communication channels. Successful integration creates a seamless consumer experience across digital and physical realms, encouraging companies to revisit and optimize their overall digital strategy.
Scalability Concerns
Scaling DOOH campaigns can involve navigating the availability of suitable locations and dealing with variability in screen formats and capabilities. These concerns push brands to think creatively about campaign designs and placements, potentially leading to more customized and effective advertising solutions. Overcoming these challenges results in a more robust and flexible advertising strategy.
Regulatory & Privacy Issues
Navigating the regulatory landscape regarding data usage and privacy can be daunting. Addressing these issues head-on is an opportunity for brands to establish themselves as leaders in consumer privacy and trust. By adhering to and upholding regulatory standards, companies can differentiate themselves by offering transparency and security to consumers, uplifting their brand reputation and leading to greater consumer loyalty.
Embracing these challenges as opportunities allows brands to improve and innovate within their advertising strategies. This approach advances their market position and delivers compelling, effective advertising experiences that resonate with consumers on multiple levels.
In Conclusion
In the bustling world of advertising, DOOH shines as a beacon of innovation and impact. Its power to deliver targeted, engaging, and personalized content makes it an invaluable asset in any comprehensive digital strategy. As the market landscape continues to shift and evolve, brands that embrace DOOH will increase their capacity to capture the attention of their audiences in a uniquely interactive and exciting manner.
DOOH is the Swiss army knife of advertising – versatile, effective, and has the ability to work wonders with a capable strategy. By seamlessly integrating DOOH into your omnichannel campaigns, you can create a cohesive and compelling brand narrative that resonates across various touchpoints. The brands that harness DOOH’s full potential will find themselves at the forefront of advertising excellence, with unparalleled customer relationships.