Digital Out of Home: Future of Advertising
The Digital Out of Home Advertising market is expected to grow at a compound annual growth rate of 10.35% over the forecast period to reach a market size of US$33.372 billion in 2026 from US$16.750 billion in 2019. DOOH advertising is a type of marketing channel wherein promotional media is dynamically and digitally presented in public outdoor (out of home) locations including digital billboards and outdoor signs and a network of displays in locations like malls and healthcare facilities. While out-of-home advertising is not a new innovation, in fact, it is one of the world's oldest traditional advertising methods, the digitization of outdoor advertising is accelerating. People are reached by out-of-home advertising when they are on the go. Since more individuals are spending less time at home and are less exposed to conventional media, advertisers are seeking new methods to reach this audience in their busy, mobile lifestyles. Advertisers utilise OOH to build long-term brand recognition and to cut through the clutter and rivalry that frequently accompany traditional media.
The stand-along style frequently offers OOH an advantage. Furthermore, out-of-home advertising may be utilised to cast a wide net and reach as many people as possible. Some types, on the other hand, might be particularly targeted; for example, posting an ad in a sports arena allows you to reach a specific audience of fans SBI Life Insurance launched its first programmatic digital out-of-home (OOH) campaign in India in 2019, dubbed "Main Se Hum Campaign," in 2019. It was planned by WATConsult, Dentsu Aegis Network (DAN digital)'s and social media agency, in conjunction with DAN's Programmatic Arm – Amnet. This innovation aimed to assist the brand in reaching out to whole new audiences & build a programmatic connection. Using Lemma Technologies' RTB (Real-Time Bidding) technology and Google DV360 as a demand partner, AMNET executed this DOOH campaign.
The Adoption of Digital Billboards Over Traditional Billboards Is Anticipated to Drive Market Growth
Outdoor displays are frequently utilised in the transportation, sports, and hospitality industries. Billboard advertising primarily consists of huge ads placed in high-traffic locations for passing pedestrians and cars to see. This draws a huge number of customers since the advertising are prominently displayed on express highways and in high-density consumer exposure locations. Digital billboards are created with computer software to provide for outdoor advertising. Text that is constantly changing or flashing has an influence on customers and enables broad exposure to the intended demographic. Many government organisations rely on digital billboards to deliver emergency alerts and empower citizens to assist law enforcement. Digital billboards are widely used in the United States. While crossing the street, US consumers are often drawn to these billboards. As a result, these elements are stimulating the Digital Out of Home Advertising Market. Daktronics (US) is a global leader in the production of outdoor displays. Outdoor displays are designed with a severe environment in mind. Due to their built-in cooling mechanisms, these screens are generally waterproof and can endure extreme temperatures.
A partnership between Global (the media and entertainment business) and Broadsign (the company that created the top OOH (out-of-home) marketing platform) was announced in April 2021. A new content management system (CMS) called Broadsign Control has been integrated into Global's growing network of roadside and subway displays as well as airport and shopping mall displays across Britain, allowing the firm to expand its operation well beyond the year 2021. In the same year, a digital out-of-home (DOOH) advertising solution company named Atedra also announced its partnership with a global digital OOH marketplace, VIOOH. This collaboration provided agencies and advertisers with access to VIOOH inventory, including US inventory from JCDecaux North America, as well as the ability to activate campaigns using Atedra data and analytics.
The Rising Adoption of AR/ VR Will Drive Growth
The rising use of VR and AR, cloud-based platforms, and IoT is expected to create substantial possibilities for the sector. Furthermore, the incorporation of DOOH with VR and AR is assisting businesses in increasing the engagement and reach of their initiatives. Benefits Cloud-based solutions' such as flexibility, accessibility, and improved content management are driving the market growth. Wendy's, a renowned fast-food restaurant, chose to use virtual reality (VR) technology as a marketing tool in 2019. The restaurant chain designed an avatar for the popular VR-powered game Fortnite. The company then launched a Twitch stream in which this avatar stormed into restaurants and smashed freezers, reminding viewers of its ongoing efforts to offer ‘Fresh, Never Frozen.' Due to this campaign Wendy's social media mentions increased by 119%. With its Oculus Quest 2 headset, Facebook now leads consumer VR. The company just revealed that it would soon begin testing in-headset VR advertisements inside Oculus Quest apps. Volvo also intends to promote and create new and engaging customer experiences through the use of virtual reality.
Innovations in Digital Out of the Home Market
Facial recognition technology is being utilised to detect facial expressions in a new out-of-home (OOH) campaign. In 2019, Lion Dairy & Drinks, AJF Partnership, and Starcom collaborated with JCDecaux to develop an OOH experience for the Yoplait Yoghurt Smoothie "Fix your hanger" campaign. JCDecaux used facial recognition technology to detect if passers-by were pleased or 'hangry,' and then offered them coupons to try the new Yoplait Yoghurt Smoothies. When a face was identified near the panel, a message pops up inviting passers-by to 'Smile or frown for a free smoothie.'
An Increase in Social Media and Influencer Marketing Can Pose a Challenge
Social media and influencer marketing can benefit from the availability of big audiences via the internet and are cheaper than the large digital screens used in DOOH.
The Impact of the Outbreak of COVID-19 on the Digital Out of the Home Market
The operational profitability of several markets has been impacted because of the COVID-19 pandemic. One such market that is expected to have a slowdown in growth in the coming years is digital out-of-home. Media and advertising, among other fields, are anticipated to see considerable disruption in earning potential in the next years. While digital advertising platforms have dominated chances for engaging consumers because of the obvious link between time spent at home and media consumption, the conventional Out-Of-Home (OOH) advertising industry is expected to shrink in the coming years.
