Even though traditional forms of outdoor advertising like billboards have been around for quite some time, the rapid development of adtech has led to a more sophisticated, savvy, and original method for advertisers to reach consumers in the real world: programmatic digital out-of-home (DOOH) advertising. From 2018 to 2026, the digital out-of-home (DOOH) advertising market is expected to grow at a compound annual growth rate (CAGR) of 10.35% and reach a market value of $33.4bn.
However, since DOOH is still so new, many marketers need to be aware of its full potential and dismiss it because they believe it is too costly, too complicated, or cannot be targeted effectively. That said, digital out-of-home (DOOH) offers marketers a highly efficient tool to reach customers in ways not previously achievable via conventional out-of-home advertising, frequently supplementing and optimising a brand’s multi-channel marketing plan.
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What is DOOH?
Hardware and software are brought together in digital out-of-home advertising (DOOH) to create moving billboards.
Imagine a traditional billboard that is a high-definition digital screen constantly updated depending on factors like weather and viewership data.
Creative and relevant digital out-of-home advertising is possible. Ads may be tailored to the individual depending on real-time factors such as sports results, traffic, and even aeroplanes flying above. Digital out-of-home (DOOH) commercials may be customised to gather consumer data, gauge viewer attitude toward your business, and create leads in real time.
As a result, there will be more people watching, more people remembering the brand, and more people taking action.
DOOH advertisements are more likely to elicit responses from customers because of their unique nature. Half people say they are aware of DOOH “always” or “most of the time.” This contrasts with the widespread “digital ad blindness” that has emerged in recent years.
Programmatic DOOH is now a reality. Advertisers may now buy out-of-home advertising at specific places and at certain times from cutting-edge digital out-of-home advertising businesses like Lamar and Broadsign. New entrants are also considering the custom development of DOOH platforms in the industry.
More than eighty per cent of advertising executives worldwide believe programmatic DOOH provides “excellent value.”
In addition to these advantages, programmable DOOH also offers the following:
- Possibility to set off automatic purchase processes
- Techniques for reaching out to unique customers
- improved brand recognition and memorability
- The greater the reach, the cheaper the unit cost.
Top features of programmatic DOOH
Here are six features of programmatic DOOH that marketers could benefit from:
1) Various styles and sizes
Although you may not have seen them at first, DOOH displays are in a wide variety of public and private settings. The market has expanded much beyond the original concept of large-format digital billboards. It includes various other speciality venue types, such as gyms, doctors’ offices, petrol stations, taxis, grocery shops, etc. The customer journey is littered with thousands of indoor and outdoor screens, providing enough opportunity for advertisers to reach their intended demographic at highly relevant points in the trip.
2) Allows sophisticated, geo-specific weather targeting
Consider this: you are a customer who suffers from allergies, and the pollen count in your location is unusually high. You walk by a digital screen with an eye-catching ad for the season’s must-have allergy treatment; better yet, the ad copy provides the distance to the closest shop.
Brands can activate timely and relevant messaging by reaching audiences with the proper message when local weather circumstances are most likely to affect consumer behaviour. This is due to the integration of cutting-edge meteorological data and advertising technology. For instance, IBM Watson’s Weather Targeting service is integrated directly into Vistar Media via a relationship and partnership. This form of location-based targeting allows for more nuanced approaches to communications to increase the likelihood of reaching the right individuals at the right time.
3) Brands can get extremely creative
DOOH’s ability to allow for more than one static creative at a time is a big selling factor. From advertising sports scores in real-time during a major game to providing directions to the closest shop and localised images, marketers can harness dynamic creative capabilities for out-of-home advertising, allowing personalisation at scale.
Brands may take advantage of dynamic creativity in the form of attractive video content with a highly personalised message relevant to the activation time. Wyzowl found that 84% of customers had been persuaded to buy a product or service after seeing a video ad for it. Thus, there are even greater advantages when integrating video with DOOH advertising. In reality, advertisers may put their high-quality assets to use in out-of-home advertising settings that are ideal for them. Video DOOH can expand companies’ reach and effect in various settings, including pubs, casual restaurants, cafes, hotels, movie theatres, and more.
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4) Streamline purchasing, organising, and activation phases
For one, programmatic technology streamlines and automates the process of purchasing and overseeing out-of-home (OOH) advertising. More simplified processes allow marketers to buy out-of-home advertising in bulk with less back-and-forth. This saves them the trouble juggling several contracts, reporting formats, measurement data, etc.
Instead, any team, no matter how large or small, can manage complicated campaigns by saving time and effort through the centralisation of media planning, purchasing, and analysis on a single platform.
5) Combining DOOH with other media forms
It’s easy for marketers to overlook out-of-home advertising’s potential to enhance their efforts’ impact when working with many channels. For instance, mobile works well with digital out-of-home (DOOH) advertising. This is because both target customers while they’re on the move and provide timely, relevant messages based on their location and activity. Therefore, by integrating DOOH and mobile, marketers may strengthen bonds with their target audiences who have previously been exposed to their commercials.
By integrating DOOH with a device ID passback solution, which helps determine the device IDs that viewed a brand’s DOOH campaign, businesses may retarget customers after they have been exposed to the brand in the real world. Device ID passback is not exclusive to mobile; it enables advertisers to retarget exposed viewers via digital display, connected TV (CTV), social media, audio, and more. These features allow businesses to keep their brand in consumers’ minds throughout their shopping experience by integrating their online and offline marketing efforts.6)Â
6) DOOH may be effective over the whole marketing cycle
It has been difficult to calculate the return on investment (ROI) of out-of-home (OOH) media since its conception. However, advancements in location technology have made this possible. The effect of DOOH exposure may be assessed in various ways, including brand lift, foot traffic, web conversion, sales lift, and more. At the same time, online campaigns are often driven by direct site interaction and conversions.
Companies currently provide their customers with a sophisticated set of measurement tools (both internal and external). This helps brands see the full funnel of their campaigns’ effects. There are various types of studies that can be conducted to determine the efficacy of digital out-of-home advertising. These include brand studies (which measure top-of-funnel KPIs such as awareness, consideration, purchase intent, and favorability), foot traffic studies (which measure increases in-store visits), online conversion studies (which measure DOOH’s effectiveness across a wide range of online KPIs, from web conversions and behaviors to app downloads and in-app actions), and sales lift studies (which determine (measures incremental sales lifts).
Regarding out-of-home (OOH) advertising, programmatic technology opens up a whole new world of sophisticated targeting, creative, and results-driven options, and this trend shows no signs of slowing down.
Positives and drawbacks of programmatic DOOH
Programmatic is well suited for simplifying out-of-home advertising and branding procedures. Advantages include:
- Rapidity to market with CPM adaptability
- Less restrictive contract restrictions and more personalization
- Increased advertising campaign adaptability and short-term control
- DMPs enable pausing or cancelling of active campaigns
- Live optimizations & behavioral triggers are included.
- Geofencing to segment target groups and demographics
Some disadvantages may render programmatic DOOH undesirable in some circumstances, despite its advantages for suppliers and publishers. Among the problems of programming are:
- Programmatic advertisements are provided depending on inventory availability relative to the target demographic, allowing limited control over cherry-picking units.
- There may be greater minimum expenditure requirements than conventional advertisements, making them less accessible to startups.
- Despite the complexity of DMPs, programmatic DOOH needs to include some reporting capabilities and transparency in other media formats.
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Is programmatic the right strategy for you?
While programmatic can simplify buying and selling, is it the correct strategy for you? Additional considerations before engaging in programmatic DOOH involve:
- Do you have a defined target audience and corresponding marketing channels?
- Do you intend to use programmatic as a component of a cross-channel advertising strategy (targeting the same intended audience as digital or mobile efforts, for example)?
- Do you emphasize reaching the intended audience above the precise location and context of your message?
- Are you able to adapt to the many programmatic DOOH campaign performance measurement techniques?
Conclusion
Programmatic DOOH is sweeping the advertising world, but is it suited for your business? It is not suggested as the only driver of complicated media campaigns. However, it may be an effective addition to conventional out-of-home advertising inventory and other advertising media.
Continue reading iTMunch for the latest news and articles related to programmatic advertising. Learn more about our programmatic advertising.
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