Imagine driving down a highway and passing a billboard with a static ad for a travel booking service. The ad is brightly colored and eye-catching, with a picture of a tropical destination. Now, imagine passing the same billboard, but this time, the ad is dynamic. You see crashing waves, swaying palm trees, and the destination looks suspiciously familiar to an island you've been searching for 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 brands consider it? Read on to find out.

What is Digital Out-of-Home Advertising?

Digital out-of-home (DOOH) advertising refers to promotional media displayed digitally in public spaces. Unlike traditional printed billboards, DOOH leverages digital screens in shopping malls, train stations, airports, and city centers.

Because it is digital, this format offers increased creativity, targeted messaging, real-time data analysis, and seamless integration with other marketing channels. It allows for dynamic content changes and privacy-compliant audience targeting that blends OOH campaigns with social media and paid advertising initiatives for a cohesive, omnichannel approach.

The Rapid Rise of DOOH

According to Grand View Research, the global DOOH market was valued at $15.13 billion in 2023. It is expected to grow at a compound annual growth rate (CAGR) of 11.6%, reaching $32.63 billion by 2030.

In the U.S. alone, DOOH revenue reached $1.96 billion in Q3 of 2023. North America currently accounts for over 37% of the global DOOH market due to increasing urbanization.

What’s Driving the DOOH Advertising Trend?

• Rising Urbanization: Approximately 55% of the global population now lives in urban areas. This has created more transit hubs and higher foot traffic, providing prime opportunities for ad placements.

• Expansion of Digital Screens: Interactive display screens are no longer limited to personal devices; they are now integrated into the physical infrastructure of our cities.

• Programmatic Integration: Programmatic technology allows advertisers to acquire DOOH space and optimize campaigns in real-time, making it accessible to businesses of all sizes.

• Interactive Demand: There is a growing demand for full-motion video and animation that captures attention more effectively than static images.

Types of DOOH Ads

• Digital Billboards: Large screens in high-traffic areas that often use anamorphic 3D technology to boost engagement.

• Gas Station Screens: Displays at the pump that capture attention while customers refuel.

• Wifi Hotspot Kiosks: Urban displays that serve as hotspots, reaching tech-savvy city dwellers.

• Airport Displays: Screens in arrival halls targeting travelers with hotel or flight-related services.

• Food Court Ads: Digital displays in malls promoting restaurant deals to hungry shoppers.

The Benefits of DOOH Ads

Creative Innovation and Flexibility

DOOH allows for full-motion video and real-time updates. Advertisers can change creative content within an hour, compared to the weeks required for traditional print production.

Enhanced Personalization

Advertisers can use privacy-compliant mobile data to deliver relevant ads based on location, weather, or current events. For example, an ad for umbrellas can trigger automatically when it starts to rain.

Cost-Effectiveness and Scalability

By eliminating printing and manual installation costs, DOOH offers higher cost efficiency. Its digital nature allows brands to scale campaigns across hundreds of locations instantly.

Measurement and Analytics

Unlike traditional billboards, DOOH can track performance metrics using anonymous GPS data, providing advertisers with the insights needed to make data-driven optimization decisions.

TL;DR

DOOH is redefining public space promotions. Projected to be a $32.63 billion industry by 2030, it combines the massive reach of billboards with the precision of digital tracking. It is a crucial tool for modern brands looking for impactful, measurable, and innovative ways to connect with audiences.

Ready to elevate your strategy with interactive, DOOH-optimized ads? Contact the CRAFTSMAN+ team today!