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The growing role of digital out-of-home advertising in the dynamic advertising landscape
Online advertising has dominated the media for the past two decades, largely due to its targeted and measured nature, which used to make customer acquisition quick and easy. Spending on digital advertising has continued to rise throughout the pandemic[1], but the tides are changing. The rise of online ad blockers and stricter government regulation of third-party data have made it more difficult than ever to deliver the right messages to the right audience. To that end, we’re seeing a shift away from stand-alone “Make Them Buy Us” campaigns that target audiences at the individual level to sustainable brand building strategies with mass audience appeal aimed at “Make Them Love Us.”
As a result, out-of-home (OOH) – a proven means of reaching mass audiences with a unique approach to targeted advertising – is gaining market attention. US OOH ad spending exceeded $2.6 billion last quarter alone,[2] and its share of total media budgets continues to grow as more brands and media buying agencies adopt a hybrid strategy. That’s why:
Lessons from digital advertising
Historically, online and mobile advertising has relied heavily on retargeting, something we all experience as consumers. You click on a Facebook ad to check out a cool shirt, and suddenly the brand is on every web page. While retargeting can increase reach and frequency and convert an engaged audience into a sale, it can also drive audiences to ad blockers, reduce trust, and lead to brand churn.
This experience led tostricter online privacy policies driven by consumer demand and ending the use of third-party cookies, retargeting tools. This approach also often means more competition for ad space, so you lose impressions to a niche player or pay more for low-cost inventory. With 1:1 targeted advertising channels (i.e. online, mobile) the ad serving is an impression, while in a medium like OOH one ad serving will reach many people simultaneously in the real world.
OOH: Channel to mass audience and more
Integrating OOH into media plans is a smart strategy for sustainable branding, as it is one of the most proven ways to advertise to a mass audience. Not only do OOH and DOOH help brands get noticed by many, but are also reported to drive recall at 40 percent and 47 percent respectively, beating mobile (35 percent) and TV (22 percent).[3]
Media also exerts influence beyond awareness. In fact, it is increasingly being integrated into media plans as a proven foundation and driver. In the recent Research by OAAA and Comscore Examining the actions consumers take online after viewing an ad, the results show that OOH is far more effective at generating results than TV, video, radio, banner and print ads. In fact, OOH has shown online activation rates 5x higher than expected given relative ad spend.
OOH is also one of the oldest, most established advertising channels and provides a certain credibility that other channels don’t have. The environment’s continued growth, despite global constraints, is a testament to its ability to adapt and evolve with the times. For example, the digitization of more OOH in recent years has made OOH more flexible, providing some of the advantages of mobile/online advertising that complement its inherent advantages.
At the same time, the evolution of programmatic technology in OOH has further advanced the medium. It also provides the flexibility required in the pandemic era. Programmable DOOH platforms make it easy to adjust budgets on the fly or tailor campaigns to match situational conditions and engage more authentically with your audience as they move through the day.
OOH vs. other mass audience media
Compared to television, which is becoming increasingly fragmented, and traditional print advertising, which has been in decline for years, OOH reaches a mass audience with the most effective cost per thousand (CPM). Although CTV, another medium, is growing, OOH has unique advantages.
Unlike TV and CTV, there are no fast-forward features or ad blockers for OOH, making it difficult for consumers to miss or skip OOH ads like they might with CTV or TV ads. The medium also provides large creative canvases that can help you make a splash or simply extend the reach of your video advertising on digital OOH screens in eye-catching locations.
In addition, the results of neuroscience a a two-year research project for OMA by Neuro-Insight show that a single look at a digital OOH ad appears to elicit an emotional response that is encoded in long-term memory more than what a 15-second TV spot can elicit.
Maintaining the right balance
Despite the imminent death of third-party cookies, it’s unlikely that retargeting will disappear entirely; however, this makes mass audience advertising mediums such as OOH more important than ever, especially when combined with individual channels. Recognizing the advantages and disadvantages of highly targeted and mass advertising and finding the right synergy between them can provide a more nimble, omnichannel approach to reaching your target audience at the right frequency and in the right context.
If you’re looking to maximize the effectiveness and reach of your multichannel campaigns with DOOH, take the complexity out of the process by setting up challenge strategy from Broadsign. A DOOH software media expert from our team will help you plan and execute through our dedicated DOOH channel buying platform or through one of our 30+ DSP partners.
[1] CNBC (April 2021)
[2] OAAA Annual and Quarterly Revenue (August 2022)
[3] Drum (April 2021)
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