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The State of Digital Out-of-Home (DOOH) Advertising

By September 27, 2024October 8th, 2024Education, Industry 18 Min Read

Webinar insights from industry experts at DPAA and Advertiser Perceptions

Digital out-of-home (DOOH) has emerged as a potent medium in the fast-moving ecosystem of digital advertising, melding the impact of traditional billboards with the precision of digital targeting and programmatic capabilities. As marketers seek innovative ways to capture audience attention in an increasingly fragmented media environment, DOOH offers a compelling solution that bridges the physical and digital realms.

In a recent webinar hosted by Kochava, key thought leaders in the field convened to explore the evolving landscape of DOOH advertising. Barry Frey, President & CEO of Digital Place-Based Advertising Association (DPAA); Noah Klas, VP of Membership at DPAA; Sarah Bolton, EVP of Business Intelligence at Advertiser Perceptions; and Grant Simmons, VP of Kochava Foundry, shared their insights on the current state of DOOH, its integration with other media channels, and the opportunities and challenges that lie ahead. Their collective expertise provided attendees with a comprehensive view of how DOOH is reshaping the advertising landscape—and what marketers need to know.

Setting the Stage: The Evolving DOOH Landscape

Frey kicked off the discussion by highlighting the transformative technologies reshaping DOOH, painting a picture of an industry in the midst of a technological revolution. His opening remarks set the tone for a deep dive into the current state and future potential of DOOH advertising.

  • DOOH is emerging as a powerhouse in the advertising world, offering unique strengths in brand safety, addressability, and sustainability.
  • The global reach and effectiveness of DOOH are surpassing traditional media outlets, marking a significant shift in the advertising landscape.
  • QR codes and cutting-edge technologies such as augmented reality (AR), virtual reality (VR), and 3D displays are reinventing the DOOH experience for consumers.

The session then unfolded to reveal several key insights:

1. DOOH Is Gaining Momentum in Advertising Strategies

Bolton shared compelling findings from the recent DPAA 2024 Omnichannel Decision Makers Study, for which her company, Advertiser Perceptions, led research efforts.

  • A striking 80% of advertisers plan to incorporate DOOH into their campaign recommendations within the next year.
  • 70% now view DOOH as an integral part of a video everywhere strategy, effectively extending TV and video planning into the out-of-home space.
  • Improved advertiser education is driving this surge in DOOH adoption, highlighting the importance of industry knowledge in fostering innovation.

These points underscore the growing recognition of DOOH’s potential to reach audiences in powerful, contextually relevant ways, bridging the gap between traditional out-of-home advertising and digital marketing strategies.

2. The Blurring Lines Between Media Channels

Simmons highlighted crucial trends that he and his Kochava Foundry team are noting in the DOOH advertising landscape:

  • Video content is increasingly permeating all media channels, with DOOH becoming an essential component of this holistic approach.
  • Traditional boundaries between social media, digital advertising, and out-of-home are becoming increasingly indistinct.
  • This convergence necessitates the development of integrated video teams capable of creating cohesive campaigns across multiple platforms and channels.
  • Within this new landscape, programmatic DOOH is emerging as a key advantage, offering flexibility and targeted reach.
  • The medium is measurable from both a brand and performance point of view.

This integrated dance among digital media presents both challenges and opportunities for advertisers, requiring a more cohesive approach to campaign planning and execution across diverse media channels.

Video strategy is extending through all the media channels. And the lines between social and out-of-home are getting blurred.

Grant SimmonsVP, Kochava Foundry

3. Leveraging DOOH for Customer Acquisition

The webinar revealed promising insights into the effectiveness of DOOH for customer and user acquisition:

  • Unlike some digital ad formats, DOOH ads often demonstrate improved conversion rates with higher exposure frequency—and a longer window of customer touchpoint influence.
  • This makes DOOH a potentially powerful tool for customer acquisition when integrated into a comprehensive video strategy.
  • Advertisers can leverage this trend by strategically increasing ad frequency in high-traffic DOOH locations to maximize conversion potential. The propensity to convert increases with DOOH, unlike other mediums where saturation can cause ad fatigue.

These findings suggest that DOOH is positioned to play a crucial role throughout the marketing funnel, both in building brand awareness and driving conversions over time.

Want access to the full webinar presentation? Contact us.

4. Navigating Challenges in the DOOH Landscape

The speakers went on to identify several key challenges facing the DOOH industry:

  • Measurement is perceived as a significant hurdle, with advertisers struggling to accurately track performance and compare results with other media sources. However, DOOH is in fact eminently measurable. (Explore Kochava DOOH measurement capabilities here.)
  • Ad fraud is an ongoing concern. While third-party verification offers some protection, the industry must remain vigilant and develop robust safeguards.
  • Creative development for DOOH requires a unique approach, necessitating close collaboration among brands, agencies, and media owners.

The experts emphasized that these hurdles can be overcome, unlocking significant potential in the DOOH space, particularly as marketers become more savvy at leveraging available measurement technologies and creative strategies.

5. Future Trends Shaping DOOH

Looking ahead, the panel identified several key trends poised to shape the future of DOOH:

  • A growing emphasis on advertiser education to fully unlock the channel’s potential
  • Increased integration of DOOH into cross-channel planning and buying
  • Technological advancements that open new avenues for creative and engaging ad experiences, including interactive displays and AI-driven content adaptation

These all point to a future wherein DOOH becomes an increasingly sophisticated, data-driven, and integral part of the advertising ecosystem, offering unprecedented opportunities for brands to connect with audiences in meaningful ways.

Improved advertiser education is one of the biggest drivers of digital out-of-home becoming more of a go-to media type, because the various capabilities and newer digital enablement and innovations of the channel are all relatively new to market—and that is exactly why we’re here today.

Sarah BoltonEVP of Business Intelligence, Advertiser Perceptions

Catch the Full Webinar on Demand

The complete on-demand webinar, New DOOH Opportunities for Performance Marketers: Results From DPAA Omnichannel Decision Makers Study, is available now! As the lines between digital and physical advertising continue to blur, DOOH is positioned to play an increasingly important role in comprehensive marketing strategies. For marketers looking to stay ahead of the curve, understanding and leveraging DOOH is crucial.

To address the growing need for effective DOOH measurement, Kochava is shaping the future of this dynamic field through innovative solutions including outcomes-based reporting, MediaLift® for calculating incremental lift, and always-on near real-time reporting. These tools enable marketers to measure DOOH campaigns against meaningful outcomes, from app installs to store visitations and more. For a deeper dive into DOOH, readers are encouraged to explore this companion piece about the evolution of DOOH as well as the full DPAA 2024 Omnichannel Decision Makers Study.

As the DOOH landscape keeps evolving, staying informed about the latest trends, measurement methodologies, and industry partnerships is essential for marketers aiming to maximize the impact of their out-of-home advertising efforts. Whether you’re a seasoned DOOH veteran or just beginning to explore this exciting medium, the insights shared in this webinar provide valuable guidance for leveraging DOOH in your marketing mix.

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