Out-of-Home Advertising Market Shifts Towards Interactive and Data-Driven Campaigns

Out-of-home advertising, or outdoor advertising, is a form of advertising that utilizes billboards, eye-catching posters, and distinctive signage to attract attention in high-traffic places. Traditional out-of-home (OOH) advertising remains relevant for brands, but there has been a shift towards interactive and data-driven campaigns. Statistics show that total spending on OOH advertising has increased by over $10 billion since 2020. Spending on digital OOH advertising has risen from $10.09 billion to $17.28 billion. Market projections indicate continued growth, with brands expected to spend over $25 billion annually on digital campaigns by 2029.

In this guide, we’ll explore the shift towards interactive and data-driven out-of-home advertising, discussing the benefits of new technologies and techniques and why brands embrace new strategies.

Interactive Out-of-Home Advertising

Out-of-home advertising is evolving. As new technologies become available and consumer preferences change, brands must react. Interactive OOH advertising represents a more dynamic approach, offering brands opportunities to allow customers to interact and engage with adverts. Traditional OOH advertising is characterized primarily by static billboards and posters that turn heads in busy areas. Interactive and digital campaigns use innovative features like augmented reality (AR) and touchscreens to boost engagement and persuade customers to buy. Research by the Content Marketing Institute suggests digital OOH adverts boost engagement by 66%.

Digital OOH advertising creates more interesting, unique, memorable, and engaging adverts. It also enables businesses and brands to connect with customers more deeply by personalizing content and spreading targeted messages.

Over a third of US advertisers already use interactive OOH advertising, and almost 40% are expected to increase spending in 2024/2025. Spending is increasing in line with new consumer trends. A 2023 survey shows digital OOH advertising among the top 5 marketing channels consumers prefer.

Examples of interactive out-of-home advertising methods include:

• Virtual try-on features and fitting rooms for clothing brands and stores
• AI-generated personalized adverts using facial recognition technology
• Interactive mirrors for beauty and cosmetics brands
• Weather-reactive interactive billboards
• Touchscreens
• Real-time social media interaction, for example, uploading selfies with specific hashtags.

Data-Driven Out-of-Home Advertising

Data-driven out-of-home advertising capitalizes on data accessibility to create targeted, impactful advertising strategies. Using cutting-edge technology and tools, brands can leverage data and analytics to optimize campaigns and target specific demographics. Utilizing tools like geolocation tracking and facial analytics, companies have the power and potential to streamline strategies and add laser focus to each advert. Pinpointing ideal customers increases lead quality to boost conversion rates and ROI (return on investment).

Using data to shape and customize advertising campaigns is advantageous for improving engagement and increasing sales, but it also offers insights into campaign reach and efficacy. Brands can collect and analyze data to track progress and monitor performance levels continuously. This enables advertising and marketing teams to identify strengths and weaknesses, address problems, and fine-tune elements for optimum results. Data can also provide valuable feedback to adapt and improve future campaigns.

Driving Forces: Why the shift to interactive and data-driven OOH advertising?

Two main reasons exist for the shift to interactive and data-driven out-of-home advertising campaigns. These include:

1. Advances in technology
2. Changes in consumer demands and preferences

Advances in technology

Technology is evolving constantly, providing new opportunities for brands to engage with customers and effectively promote their products and services. Advancements in technology have created openings for businesses looking for more dynamic and impactful ways to advertise products, which build on the success of traditional OOH advertising. Interactive OOH advertising goes beyond conventional measures. Digital displays, touchscreens, and personalized interactive adverts are more engaging and memorable, and they utilize new technologies to target high-quality leads (known as hyper-targeting). Brands now have an array of technologies and tools at their disposal to elevate advertising content, boost engagement rates, and encourage customers to move through the sales funnel.

Changing consumer preferences and new trends

The second factor to consider is changing consumer preferences. Consumers today expect more than good-quality products and value for money. Most want to get to know brands and are interested in values, ethics, and company culture. People want to learn more and are keen to engage with brands and follow them on social media. Customers are more likely to buy from brands they follow on social platforms, and they respond positively to personalized content and adverts. Research shows that consumers want to see relevant advertising. 71% of respondents said they would prefer ads that are tailored to their personalized interests and shopping habits.

Interactive and data-driven OOH advertising also provides opportunities to stand out in a crowded marketplace. Businesses can create customized ads and elevate customer experiences to gain a competitive advantage. Technologies like AR, for example, allow furniture stores, marketplaces, and brands to show customers what specific pieces will look like in their homes before they buy. This increases the chances of securing sales, reduces the risk of returns, and sets that store or brand apart. A recent study suggests that AR can increase purchase conversion rates by up to 94%.

Conclusion

Out-of-home advertising has been around for decades, but recently, there has been a shift towards interactive and data-driven campaigns. New technologies and tools enable brands to connect with customers on a deeper level, personalize customer experiences, and boost lead conversion and ROI rates by using customized, targeted interactive ads. Global spending on interactive OOH advertising is increasing rapidly. It hugely benefits businesses and advertisers to embrace new technology and move quickly. Data-driven campaigns enable teams to collect, analyze, and utilize data to target specific customers and demographics and track performance levels. This new way of advertising builds on the success of traditional out-of-home advertising while offering practical ways to create engaging, memorable ads that resonate with target audiences and drive results.

Are you looking for a platform to manage your out-of-home advertising inventory? Reach out to a member of our team today.

Originally posted on ADvendio.com on 30th July 2024.