DOOH, short for digital out-of-home, is one of the most exciting sectors of the advertising landscape in 2024. The industry is now worth an estimated $16.89bn but is growing rapidly and is expected to hit $32.63bn by 2030. Moreover, people are back to spending more time outdoors after the pandemic and they are more familiar with digital ads than ever before.
Research also shows that premium DOOH increases brand trust by 13% while a growing percentage are now ready to take action after seeing DOOH ads, such as visiting a website. However, only companies and advertisers who appreciate the need to adapt by building a strategy that reflects the situation in 2024 will thrive.
In this guide, we’ll uncover the top five trends that are shaping DOOH advertising strategies. By the end, you should be positioned to navigate the intricacies of DOOH technologies and evolving consumer behaviors to dominate the field.
1. Programmatic DOOH Growth
Programmatic advertising is now deemed a preferred method for many media buyers as it saves both time and money. Research shows that only 28% of US advertisers currently work exclusively with programmatic DOOH campaigns, although a further 32% use a combination of programmatic and manual buying. Given the changing face of DOOH, a transition to purely automated buying and selling is inevitable.
For starters, programmatic advertising allows for ad placement purchases to be made instantly thanks to a trigger-based methodology that relies on real-time data. This ultimately gives advertisers an opportunity to express tailored brand messages to the right audiences at the optimal moments. The result is a more powerful impact with each ad placement.
The ability to optimize campaigns through data-driven buying creates an agile advertising strategy that reflects the circumstances of any given moment. It also ensures that DOOH ad campaigns will be adjusted as soon as they are no longer performing. It will lead to more impactful ads and improved cost-efficiency with guaranteed results.
2. Omnichannel Integration
Omnichannel integration is already a key feature of DOOH advertising but is set to redefine the sector throughout 2024 and beyond. It is known that the average consumer encounters multiple touchpoints before making a decision. Moreover, consistent branding can increase revenue by 33%. Ensuring that DOOH achieves this by integrating with social media can amplify the reach with great results. Including hashtags is a simple solution to do this.
Crucially, integrated DOOH campaigns will bring greater value while they can additionally use real-time data to deliver relevant ads that link to both online and offline analytics. This allows for dynamic ads that adapt to changing markets and situations while also leveraging success from big developments or time-sensitive offers or brand messages.
Omnichannel integration is a powerful tool for expressing the right message to the right audience at the right time. Ultimately, linking back to inventories or the content seen in other online and offline ad placements will develop a professional and versatile strategy that also enhances brand recall and customer loyalty.
3. Hyperlocal and Contextual Advertising
Contextualized and relevant adverts will always make the biggest impact. DOOH’s dynamic capabilities facilitate personalized content and hyperlocal campaigns. This can be used to drive foot traffic to specific stores, which is particularly ideal for businesses with multiple locations. OOH, and particularly DOOH, already gains a high level of consumer response and recall. Satisfying the demand for hyperlocal ads that resonate will boost this further.
The value of hyperlocal ads is shown online, where 50% of transactional searches fit this aim. In the physical world, hyperlocal ads carry greater relevance to consumers in the vicinity of the ad billboard screen. Dynamic campaigns can also adapt with contextual content that is determined by the time of day or events happening in the space.
The impact of each ad can subsequently become far greater, especially as the changing nature of the ads gets people who pass it daily to keep taking note. Crucially, hyper-focused content can lead to a greater percentage of conversions found right away. Alternatively, it encourages consumers to conduct online research.
4. Environmental Sustainability
Environmental sustainability is something that at least 78% of consumers care about, which is why it should be a priority for brands and advertisers alike. It is particularly noteworthy in the DOOH industry because digital ads are customer-facing assets. Likewise, they often form the first point of contact during the buying journey. So, it is a chance to set a positive tone from the outset.
Organizations are now expected to implement sustainable practices. Common examples include the use of renewable energy sources, LED lighting, and solar-powered displays. Unfortunately, media owners who fail to adopt sustainable practices may be viewed as irrelevant and irresponsible by the public. It will translate to reduced revenue.
Conversely, though, adopting sustainable tech within the DOOH campaigns is something that can be promoted as another USP. Switching from print OOH advertising to DOOH instantly makes a difference. Going the extra mile to adopt green processes will give consumers another reason to resonate with the brand.
5. Scale and Precision through AI
The US DOOH sector is expected to grow from $2.94bn to $3.16 this year, and it is largely due to the growing capabilities of combining the precision of target advertising and upscaling the efforts. This is spearheaded by artificial intelligence (AI) and other advanced technologies like augmented reality (AR). Firstly, AI can be used to create graphics. It can also optimize timings to fit with environmental considerations.
Screen diversification is a particularly powerful strategy that leverages success from emerging and growing technologies. Screens are no longer just billboards and can feature AR, holograms, and interactive features to create truly immersive experiences. This sends engagement through the roof and creates unforgettable brands.
Precision and scaling are further supported by the data-driven aspects of AI, which include bottom-funnel metrics and extend to making informed decisions regarding collaborations or embracing new solutions.
Conclusion
DOOH is one of the fastest-growing and rapidly evolving areas of modern advertising. Frankly, it’s not hard to see why given its ability to engage audiences and integrate with omnichannel endeavors. When supported by AI, interactive features, and data-driven decisions regarding placements as well as content, impressive results are assured.
Take the first step towards building a DOOH strategy that can dominate the market by calling the ADvendio team today.
This was originally posted on ADvendio.com on the 26th March 2024
