Imagine driving down a highway and passing a billboard and seeing a static ad for a travel booking service. The ad is brightly colored and eye-catching, with a picture of a tropical destination that looks inviting. Now, imagine yourself passing the same billboard but this time, the ad is dynamic. Not only do you see a tropical beach, you also see the crashing waves and swaying palm trees. In fact, the destination looks suspiciously familiar to an island you've been searching for cheap flights to.

This is an example of a 3D billboard serving a digital out of home (DOOH) ad that has been dynamically optimized for your viewing pleasure. Not only is DOOH advertising’s “shiny new toy” it is fast-becoming a scalable performance marketing strategy that drives results. 

What is digital out-of-home advertising and why should all brands consider adding it to their marketing mix? Keep reading to find out.

What is Digital Out-of-Home Advertising?

Digital out-of-home (DOOH) advertising refers to promotional media that is dynamically and digitally displayed in public spaces. Unlike traditional advertising, which includes printed billboards and signage, DOOH leverages digital screens to serve ads on digital billboards, outdoor screens, shopping malls, train stations, airports, and more. 

Given its digital nature, this form of advertising offers increased creativity, flexibility, targeted messaging, real-time data analysis, and seamless integration with other marketing channels. It also allows for dynamic content changes, precise and privacy-compliant audience targeting and the ability to blend out-of-home (OOH) campaigns with social media and paid advertising initiatives for cohesive, omnichannel marketing campaigns that make an impact.

The Rapid Rise of DOOH

DOOH advertising has grown significantly over the last few years. According to Grand View Research, in 2023, the global DOOH advertising market size was valued at $15.13 billion. It’s expected to grow at a compound annual growth rate (CAGR) of 11.6% from 2023 to reach $32.63 billion in 2030. 

In the U.S. alone, DOOH advertising revenue increased by 1.1% in Q3 of 2023 compared to the previous year. This amounted to $1.96 billion in ad revenue. Because of its increasing urbanization, overall, North America accounts for over 37% of the DOOH advertising market.

What’s driving the DOOH advertising trend?

How did the rise of DOOH ads come about? Through a blend of changing consumer tastes, expansion of programmatic advertising, the influx of out-of-home infrastructure as well as other factors. 

• Rising Urbanization: The world’s urban population has increased rapidly over the last few decades. In fact, according to the World Population Review, the world's urban population has risen from 751 million in 1950 to an estimated 7.87 billion in 2021. As of 2018, approximately 55% of the global population lived in urban areas. This has contributed to more transit hubs and higher foot and vehicular traffic, as well as prime opportunities for out-of-home advertising placements. 
• Expansion of Digital Screens: No longer are digital displays relegated to individuals’ personal mobile devices. Today, the rise of digital and interactive display screens and other infrastructure has created a fertile ground for DOOH ads. 
• Programmatic Advertising Integration: The integration of programmatic advertising in the out-of-home space has streamlined the purchasing and ad placement process. Today, with programmatic technology, advertisers can acquire DOOH ad space and dynamically optimize campaigns in real-time, making DOOH advertising more accessible to a broader spectrum of businesses.
• Increasing Demand for Creative and Interactive Displays: Finally, there is a growing demand for creative and interactive DOOH displays that enable advertisers to leverage full-motion video and animation. It seems advertisers are becoming increasingly aware of the effectiveness of interactive ads on a large-scale…
  
  

Types of DOOH Ads

There are many different types of DOOH ads, including:

• Digital Billboards: These are large digital screens that display ads in high-traffic areas like highways, city centers, and shopping districts. They offer dynamic and eye-catching content to capture audience attention effectively. They can also leverage anamorphic 3D technology to attract even more attention and engagement. 
• Gas Station Screens: Digital screens at gas stations that display ads for nearby businesses or products. These placements attract customers' attention while they refuel their cars.
• Wifi Hotspot Kiosks: Digital displays in major cities that also serve as wifi hotspots. These placements give advertisers the opportunity to reach tech-savvy audiences in urban areas.
• Dynamic Displays in Airports: Screens in airport arrival halls that showcase ads for hotels, airlines, or travel-related services to target travelers.
• Food Court Ads: Digital displays in and around malls' food courts that promote food chain offers or restaurant deals to shoppers.
• Car Ads on Roadside Displays: Dynamic displays of car ads along roadsides, often near showrooms of the brand being advertised, to attract potential buyers.
  
  

The Benefits of DOOH Ads

According to eMarketer, more than half (54.6%) of the US population will be digital gamers in 2024. 

The rise of DOOH advertising has unlocked numerous benefits for brands looking to captivate and engage their target audience in more dynamic ways.

Creative Innovation and Flexibility

From full-motion video to interactive displays and real-time updates, DOOH allows for more engaging and dynamic creative content. DOOH also enables faster turnaround times for ad changes, sometimes within an hour, compared to the longer production times required for traditional OOH advertising. DOOH also enables the ability to run multiple ads throughout the day to target different audiences dynamically at different times.

Enhanced Personalization

With DOOH ads, advertisers can leverage privacy-compliant mobile data and location-based targeting to deliver more personalized and relevant ads to specific audiences than ever before. DOOH ads can also be dynamically optimized to reflect real-time events, weather, or other contextual factors to enhance relevance.

Cost-Effectiveness and Scalability

With DOOH ads, brands eliminate the need for printing, installation and other manual labor components of physical ads. This, in turn, offers more cost efficiency. Additionally, DOOH's digital display network facilitates easy scaling and deployment across diverse locations, enabling brands to efficiently broaden the reach of their ads.

Measurement and Analytics

Perhaps the most beneficial aspect of DOOH ads in comparison to their traditional counterparts is the ability to track performance metrics, such as anonymous GPS data, to provide better insights and optimization opportunities. With its integration of sophisticated measurement and analytics tools, DOOH enables advertisers to make data-driven decisions to further enhance their advertising approach.

TL;DR

Digital out-of-home (DOOH) advertising is redefining advertising and public space promotions. Projected to reach $32.63 billion by 2030, fueled by urbanization, the expansion of digital screens, programmatic advertising, and the demand for interactive displays. DOOH allows for real-time content updates, targeted messaging, and comprehensive integration with other marketing channels, making it a crucial addition to modern marketing strategies. For brands looking to captivate audiences in innovative ways, DOOH presents a valuable opportunity for impactful, measurable advertising that seamlessly blends with the digital age.

Elevate your advertising strategy with interactive, DOOH-optimized ads that capture attention and drive results. CRAFTSMAN+ can help. Get in touch with our team today!