What the evolution and future of digital out-of-home advertising could look like

Digital out-of-home (DOOH) advertising continues to rapidly transform the advertising landscape, melding physical and digital realms and creating dynamic, engaging experiences.

Imagine walking through a bustling urban square, where dazzling LED billboards capture your attention while adapting content in real-time to meet the interests of the surrounding throngs. Picture digital screens in your local grocery store that display colourful ad specials—and also interact with you, offering personalised promotions based on your shopping preferences.

This is an exciting frontier of advertising, where the boundaries between digital and physical blur, creating immersive moments that captivate consumers on the go.

What is DOOH?

Digital out-of-home advertising refers to digital media displayed in public spaces, such as digital billboards, screens in transit stations or stores, and interactive kiosks. Unlike traditional out-of-home (OOH) advertising, generally consisting of static images, DOOH utilises digital technology to display dynamic content that can be updated in real-time, enabling advertisers to deliver relevant and timely messages to their target audiences.

DOOH operates through a network of digital screens managed by tech platforms that control the display, distribution, and timing of ads. These platforms enable programmatic buying, wherein advertisers bid for ad space in real-time based on specific audience criteria, while targeting capabilities ensure that ads effectively reach their optimal audience.

Key benefits of DOOH advertising

DOOH offers a wide range of advantages that make it a powerful tool in the modern marketing arsenal. Technological innovations offer unprecedented opportunities to create highly engaging and targeted campaigns. Advertisers can exploit DOOH’s flexibility and real-time adaptation to adjust campaigns nimbly in response to current events, consumer feedback, or even inventory levels. 

Data-driven targeting enables marketers to pinpoint audiences based on specific geography, times of day, or topical events. Leveraging technologies such as QR codes, social media hashtags, and augmented reality, DOOH offers the possibility of seamless integration with mobile and online platforms, creating an immersive cross-channel consumer experience. This amplifies the reach of a campaign while engaging consumers in an interactive, memorable way.

For consumers, these advancements mean more enjoyable and relevant advertising experiences. In addition to commercial content, digital screens provide timely, practical information such as weather or transit alerts. Such utilities make DOOH a valuable info source as well as an entertaining advertising medium.

How is DOOH measured?

Historically, DOOH advertising has been viewed primarily through the lens of brand marketing, focusing on broad awareness and perception metrics. However, the landscape is shifting, and DOOH is increasingly recognised for its ability to drive real-world outcomes, making it essential to measure its performance with the same rigor applied to digital advertising channels.

Performance measurement in DOOH

DOOH can and should be measured through a performance lens, leveraging advanced analytics and data-driven insights to evaluate its impact. Here’s how:

• Conversion tracking: Modern DOOH platforms integrate with mobile and online systems to track conversions directly attributable to DOOH exposures. For instance, a digital billboard promoting a retail app can be linked to app installs and in-app purchases, providing clear metrics on the ad's effectiveness.
• Incremental lift analysis: Tools such as MediaLift by Kochava Foundry utilise synthetic control group modelling to measure the incremental lift generated by DOOH campaigns. This involves comparing the behaviour of exposed audiences to a control group that did not see the ads, isolating the true impact of the DOOH exposure on key performance indicators such as store visits, website traffic, and sales.
• Real-time data and reporting: DOOH campaigns benefit from near real-time data collection and reporting. Platforms can provide in-flight performance insights, allowing advertisers to make adjustments on the go. This agility ensures that campaigns remain optimised for maximum impact throughout their duration.
• Audience targeting and retargeting: By capturing data from devices within the proximity of DOOH placements, advertisers can identify potential consumers for retargeting across other channels. This multi-touchpoint strategy enhances the overall effectiveness of the campaign, ensuring that the message resonates with the audience across different contexts and devices.
• Footfall attribution: Advanced location-based analytics can measure the increase in foot traffic to physical stores following exposure to DOOH ads. This is particularly valuable for retail and QSR (Quick Service Restaurant) brands looking to drive in-store visits and purchases.

The Shift to Performance-Based metrics

The shift towards performance-based metrics in DOOH is driven by the need for accountability and demonstrable ROI. Advertisers are no longer satisfied with just knowing that their ads were seen; they want to understand how those views translate into tangible business outcomes. This evolution is supported by advancements in measurement technologies, which provide detailed insights into the consumer journey from exposure to conversion.

By viewing DOOH through a performance lens, advertisers can unlock its full potential, leveraging its unique ability to engage audiences in the physical world while driving measurable digital outcomes.

This approach not only enhances the value proposition of DOOH but also aligns it more closely with the broader digital marketing ecosystem, where performance and accountability are paramount.

Future trends

As the DOOH advertising landscape continues to evolve, several key factors are poised to shape its future, showcasing the transformative potential of DOOH as it integrates cutting-edge technology and sustainability practices to create more engaging and responsible advertising solutions.

Future DOOH displays will become increasingly intelligent, leveraging location-based marketing to present highly relevant advertising based on where the viewer is. These ads may synchronise with mobile devices, ensuring a seamless and contextually relevant experience. Marketers will devise campaigns that transition smoothly from DOOH to mobile to web, creating a cohesive experience across multiple platforms.

Artificial intelligence (AI) will play a crucial role in dynamically personalising ad content based on real-time factors. Moreover, AI will offer precise modelled metrics on ad views, including detailed consumer characteristics, enabling advertisers to optimise campaigns effectively and calculate ROI more accurately. Machine learning algorithms promise to facilitate real-time programmatic auctions of DOOH ad spaces, making the buying process even more efficient and tailored to specific audience segments.

Virtual and augmented reality technologies will introduce new layers of interaction and engagement in DOOH advertising. Brands may leverage virtual reality (VR) to offer fully immersive, 360-degree ad experiences within public spaces, captivating audiences and providing a deeper level of engagement. Augmented reality (AR) filters on DOOH displays could enable consumers to visualise products in a real-world setting via their smartphones, enhancing the consumer’s connection to brands and/or products. Both technologies will lead to the creation of on-the-spot, interactive product demonstrations or hands-on experiences.

The widespread adoption of energy-efficient and solar-powered digital displays will meaningfully reduce electricity expenses and appeal to environmentally conscious consumers and brands. A growing number of providers will manufacture displays utilising recyclable or biodegradable materials, advancing the industry's dedication to sustainability. Savvy advertisers have already started integrating digital out-of-home advertising into their comprehensive digital marketing plans.

In conclusion, DOOH can and should be viewed through a performance lens. Historically, it has been thought of in the brand marketing camp, but it drives real-world outcomes and can be measured as such. The future of DOOH is bright, and its potential to deliver measurable, impactful results makes it an essential component of any modern marketing strategy.

This article was written by Grant Simmons, VP Kochava Foundry.