What is Digital Out-of-Home Advertising and How Does It Work?

Advertising has undergone a profound transformation. Traditional print, radio, and television ads have given way to more dynamic and data-driven methods of reaching consumers. The rise of the internet and mobile devices has enabled advertisers to connect with their target audiences in more personalized and interactive ways than ever before.

However, as consumers become increasingly connected and technology-savvy, the challenge for advertisers is to break through the noise and capture attention effectively.

One innovative solution to this challenge is Digital Out-of-Home (DOOH) advertising. DOOH represents a fusion of traditional outdoor advertising and digital technology, offering advertisers a unique and impactful way to engage with consumers.

What is Digital Out-of-Home Advertising?

Digital Out-of-Home (DOOH) advertising refers to the use of digital displays and technology to deliver advertising messages to consumers in public spaces.

These digital displays can take various forms, such as digital billboards, video screens in transit stations, interactive kiosks in shopping malls, and even ads on elevator screens. 

Unlike static billboards or traditional posters, DOOH advertisements can display dynamic content, adapt in real-time, and be remotely controlled.

Key Characteristics and Benefits

Real-World Placement

One of the fundamental advantages of DOOH advertising is its presence in the physical world. These digital displays are strategically located in high-traffic areas, making them difficult for passersby to ignore. Whether it's on a busy street, at a train station, or inside a shopping center, DOOH advertisements are strategically placed to capture the attention of a broad and diverse audience.

Digital Screens and Dynamic Content

DOOH screens can display dynamic and visually engaging content. Advertisers can use videos, animations, and interactive elements to create compelling messages that resonate with viewers. Unlike static billboards, DOOH ads can change content throughout the day to align with different audiences and messages.

Enhanced Targeting Capabilities

DOOH advertising offers advanced targeting options. With the help of data analytics and geolocation technology, advertisers can tailor their messages to specific demographics, locations, and times of day. For example, a coffee brand can display morning ads near office buildings and evening ads near residential areas.

Measurable Outcomes

Unlike traditional out-of-home advertising, DOOH provides data-driven insights. Advertisers can track metrics such as impressions, engagement rates, and conversion rates in real-time. This data allows for optimization of campaigns, ensuring that advertising budgets are used effectively.

Resilience to Ad Blockers:

DOOH advertising is immune to ad blockers, which have become increasingly common in online advertising. Ad blockers prevent digital ads from displaying on websites, depriving advertisers of their intended audience. DOOH bypasses this problem by existing in the real world, ensuring that ads are always visible to passersby.

Creativity and Engagement

DOOH advertising requires a certain level of creativity to grab viewers' attention. In a world inundated with digital content, advertisers must create visually appealing and engaging messages that stand out in the physical environment. This creativity fosters memorable brand interactions and drives engagement.

Immunity to User Skipping

Unlike online ads that users can easily skip or ignore, DOOH ads are more challenging to overlook. They are typically displayed on large, high-quality screens that demand attention, and viewers are often in situations where they have time to engage with the content.

Types of Digital Out-of-Home Advertising

Digital Out-of-Home advertising encompasses a diverse range of formats and locations, each with its unique advantages and characteristics. Here are some of the most prominent types of DOOH advertising:

Digital Billboards

Digital billboards are perhaps the most recognizable form of DOOH advertising. These large LED screens are strategically placed in high-traffic areas, such as major highways, city centers, and busy intersections. What sets them apart from traditional billboards is their ability to display dynamic and eye-catching content. Advertisers can change messages quickly, target specific times of day, and even incorporate real-time data like weather or traffic conditions for more relevance.

Transit Advertising

Transit advertising involves placing digital screens or static posters on public transportation vehicles like buses, trams, and subways. It's an effective way to reach commuters and travelers, capturing their attention during their daily journeys. Advertisers can use geolocation data to tailor messages to specific routes or locations, making transit advertising highly targeted.

Airport Advertising

Airports are bustling hubs with a diverse and affluent audience. Digital screens in airports can display a wide range of content, from brand promotions to flight information and entertainment. Advertisers often use airport advertising to make a strong impression on travelers who may have time to browse and shop.

Retail and Mall Displays

Shopping malls and retail stores offer excellent opportunities for DOOH advertising. Digital screens inside malls can showcase product promotions, advertisements, and even interactive experiences. These displays can enhance the overall shopping experience and drive foot traffic to specific stores or products.

Street Furniture Advertising

Street furniture advertising involves placing digital screens on bus shelters, benches, kiosks, and other urban structures. These displays serve both informational and advertising purposes. They are strategically positioned in urban areas to capture the attention of pedestrians and commuters, providing valuable exposure for brands.

Stadium and Arena Displays

Sports stadiums and arenas are ideal venues for DOOH advertising, attracting large, passionate crowds. Digital screens in these venues can display ads, live scores, and instant replays, offering a dynamic and engaging experience for spectators. Advertisers often use this medium to align their brand with the excitement of sports and entertainment events.

Digital Screens in Elevators and Offices

Digital screens inside elevators, office buildings, and corporate spaces offer a captive audience. These screens can display a variety of content, including advertisements, news updates, and corporate messages. Elevator advertising, in particular, is known for its ability to reach professionals in business districts and commercial buildings.

ATM Toppers

ATM toppers are smaller digital screens placed on top of Automated Teller Machines (ATMs). They provide an opportunity for targeted advertising to customers using the ATM. Messages can promote banking services, discounts, or nearby businesses, making them effective in capturing the attention of a specific audience at a key moment.

Each of these types of DOOH advertising has its own strengths and applications. The choice of format depends on the campaign's objectives, target audience, and budget. With the flexibility and interactivity that digital screens offer, advertisers can create engaging and memorable experiences for consumers, ultimately driving brand awareness and conversions.

How Does Digital Out-of-Home Advertising Work?

Infrastructure and Technology

Screens and Displays

The backbone of DOOH advertising is the hardware – digital screens and displays. These can vary widely in size and format, from large LED billboards to smaller screens in elevators or bus stops. These screens are equipped with high-quality displays capable of showcasing dynamic, high-resolution content.

Content Management Systems (CMS)

Behind the scenes, Content Management Systems (CMS) play a crucial role. A CMS allows advertisers to upload, schedule, and manage content on their digital screens. It enables real-time changes, ensuring that advertisers can adapt their messages quickly. Content can include videos, images, animations, and interactive elements.

Connectivity and Data Transmission

Digital screens are connected to the internet to receive content updates. Connectivity is vital for remote management and monitoring. Many DOOH screens utilize high-speed internet connections to ensure smooth content delivery. Some screens even support cellular connectivity, making them versatile for placement in various locations.

Content Creation and Scheduling

Dynamic vs. Static Content

One of the key advantages of DOOH advertising is the ability to display dynamic content. Advertisers can create visually appealing and interactive content that captures the audience's attention. Dynamic content can be changed frequently, allowing for real-time updates, promotions, or customized messaging based on various factors like time of day or weather conditions.

Targeted Messaging and Personalization

DOOH allows for highly targeted messaging. Advertisers can tailor content to specific locations, demographics, or even individual viewers. For example, a fast-food chain could display breakfast promotions in the morning and dinner specials in the evening. Personalization enhances engagement and relevance, increasing the effectiveness of the advertising campaign.

Targeting and Audience Analytics

Geolocation Targeting

Geolocation is a powerful tool in DOOH advertising. Advertisers can use GPS data to display location-specific content. For instance, a retailer can advertise a nearby store's location or offer directions. Geolocation targeting ensures that messages are contextually relevant to the audience.

Audience Profiling and Segmentation

Audience analytics play a pivotal role in DOOH. Cameras or sensors on digital screens can collect data on viewer demographics, behaviors, and engagement levels. This data can be anonymized and aggregated to create audience profiles and segments. Advertisers can then use these insights to refine their content and targeting strategies.

Campaign Management and Measurement

Tracking Impressions and Engagement

DOOH advertising provides robust metrics for campaign performance. Advertisers can track impressions (the number of times an ad is displayed), engagement rates (interactions with the content), and even view duration. This data helps advertisers understand which messages resonate most with their audience and make real-time adjustments to optimize performance.

ROI Assessment

Measuring return on investment (ROI) is a critical aspect of DOOH advertising. Advertisers can tie specific campaigns to outcomes such as increased foot traffic, website visits, or sales conversions. This data-driven approach enables advertisers to evaluate the effectiveness of their DOOH campaigns and make informed decisions about future investments.

How Do You Measure ROI on an OOH Campaign?

While calculating ROI in Digital Out-of-Home (DOOH) advertising can be challenging, there are several key strategies and metrics that can help you measure and assess its impact effectively.

1. Impressions: Measure the number of impressions generated by your DOOH campaign. You can use metrics like Daily Effective Circulation (DEC), Opportunity to Contact (OTC), and Visually Adjusted Contact (VAC) to estimate how many people have seen your outdoor advertisements.
2. Digital Engagement: Track the impact on your website's organic search traffic and user engagement. Monitor changes in site traffic volume, search rankings, and keyword behavior using tools like Google Analytics or SEO tools like Keywords Everywhere, Ubersuggest, SEMRush, and Ahrefs.
3. Slogan Analytics: Use campaign-specific slogans in your DOOH ads and track how often these keywords are searched online during the campaign. This can be done using keyword tracking tools.
4. QR Codes: Include QR codes in your DOOH advertisements, and track the data in Google Analytics. Create unique QR codes for different campaign tactics to measure ROI by asset type.
5. Promo Codes: Use promo codes in your outdoor ads and measure the number of codes redeemed. This can help you gauge the effectiveness of your campaign in driving sales.
6. Unique Campaign URL: Create campaign-specific landing pages with unique, easy-to-remember URLs. Monitor website traffic that originates from these landing pages to attribute it to your outdoor ad campaign.
7. SMS Marketing: Implement SMS marketing in your DOOH campaign, offering discounts or promotions to customers who text a specific code to a designated phone number. Track the number of text messages received and redemptions.
8. Hashtag Metrics: Include campaign-specific hashtags in your ads and track their usage on social media platforms. Monitor the number of conversations and discussions related to your campaign.
9. Mobile ID Tracking: Utilize mobile ID tracking to connect online and offline advertising. This technology helps track the online interactions of individuals who saw your outdoor ads based on their location data. It allows for pixel tracking on your website and digital ad retargeting.
10. Foot Traffic Studies: Implement geofencing to determine how many people who were exposed to your outdoor ads subsequently visited your physical store. This helps measure the impact of DOOH on foot traffic.
11. Sales Trends: Monitor changes in sales during your DOOH campaign, comparing them to website visitor data and other marketing tool metrics. Sales trends can provide a direct measure of campaign impact on revenue.

Future Trends in Digital Out-of-Home Advertising

Integration with IoT and Smart Cities

The future of DOOH advertising is poised to be tightly integrated with the Internet of Things (IoT) and smart city initiatives. Digital screens will become nodes in the urban landscape, providing real-time information, safety alerts, and advertising simultaneously. For instance, smart bus shelters could display bus schedules, weather updates, and targeted ads based on local events and commuter profiles. This integration not only enhances user experiences but also opens new avenues for data-driven advertising.

Enhanced Interactivity and Personalization

Interactivity is set to become a defining feature of DOOH advertising. Touchscreen displays, mobile app integration, and QR code scanning will allow viewers to engage directly with ads. Advertisers will leverage this interactivity to gather user preferences and feedback, leading to highly personalized content. Imagine a digital billboard that lets viewers customize the content they see or provides discounts based on real-time user interactions.

Augmented Reality (AR) and Virtual Reality (VR) in DOOH

The incorporation of Augmented Reality (AR) and Virtual Reality (VR) into DOOH advertising will take immersive experiences to the next level. AR can overlay digital content onto the physical environment, allowing viewers to interact with branded elements. VR can transport viewers to entirely virtual worlds, creating memorable brand experiences. For instance, a cosmetics brand could use AR to let pedestrians virtually try on makeup, or a travel agency might use VR to showcase exotic destinations on a digital screen

Conclusion

Digital Out-of-Home (DOOH) advertising offers marketers a compelling platform to engage with consumers on a grand scale, precisely when individuals may not be engrossed in their personal devices. In contrast to traditional Out-of-Home (OOH) advertising, DOOH empowers advertisers to harness the latest advancements in advertising technology for the purpose of personalization, targeting, and comprehensive performance measurement of their out-of-home campaigns.