Advancements in Digital OOH Advertising

In the fast-paced, ever-evolving digital landscape of today, change remains the only constant. In this era of rapid technological advances and heightened global consumerism, Digital Out-of-Home Advertising has emerged as a true game-changer for businesses looking to broaden their reach and stand out (of-home!) from the deluge of mobile digital marketing strategies. Recent technological breakthroughs, such as AI, the Internet of Things (IoT), and the power of Big Data, have paved the way for a revolution in traditional marketing methods. Now, DOOH advertising can target audiences like never before, leveraging these innovations to engage consumers precisely where they are present, heralding a new era in advertising's tech-driven evolution.

This blog will delve into the dynamic world of Digital Out-of-Home Advertising, exploring its impact, innovations, and strategies that set brands apart in an increasingly crowded digital marketplace.

Defining Digital Out-of-home media and advertising. Out with the Old in with the new.

Out-of-home, or OOH, advertising is the media that is targeted to reach people outside of their houses mostly in dense public spaces. Traditionally, OOH advertising involved static signage such as vinyl billboards that you would see by the side of interstate highways and inner-city districts. However, as the rest of the world digitised over the past few years so has OOH advertising with the incorporation of IoT and cloud technologies to deliver automated & dynamic outdoor advertisement experiences.

Think of Digital OOH advertising as OOH advertising 2.0, addressing key limitations of traditional OOH. It provides marketers with multifaceted benefits, including the ability to make automated data-driven decisions for precise audience targeting, tailor campaigns in real-time according to current events, geography or weather conditions and accurately measure the impact of OOH marketing campaigns.

For example, a restaurant chain can leverage DOOH advertising to promote different menu items based on location, weather and inferred audience demographics – like when McDonald’s UK used weather-reactive DOOH advertising for its seasonal frozen drink promotions. 

When temperatures rose above 22 degrees Celsius, the campaign creative would switch to showcase the refreshing and cooling options available. And when temperatures soared above 25 degrees Celsius, signage would automatically update to include text detailing the current temperature and location. This type of customised, timely advertising is just one of the many benefits that DOOH offers to marketers looking to engage and connect with their target audience.

Advancements in DOOH Advertising Technology

In the current era of fast-paced technological advancements, several developments are being made in Digital OOH advertising including in how OOH media is delivered, how viewers are targeted, and how campaign advertising performance is measured for media buyers. In the sections below we look at four technologies that are currently driving innovation within the DOOH industry

1. Programmatic DOOH advertising

Programmatic Digital Out-of-Home, also known as programmatic DOOH or pDOOH, represents the automatic process of purchasing, selling, and delivering out-of-home advertising. This technology is well-established in online media inventory purchases, where buyers set specific conditions for media acquisition. Once these conditions are met, ads are automatically purchased through the utilisation of Supply Side Platforms (SSPs) and Demand Side Platforms (DSPs).

Initially, the integration of programmatic technology in the OOH sector faced challenges due to inadequate infrastructure. However, recent strides in IoT, cloud infrastructure, and 5G networking have enabled DOOH to embrace programmatic technology fully.

With programmatic technology in DOOH, advertisers can now create ads triggered by real-time events like weather, sports outcomes, local events, and geographic locations. This empowers marketers to craft highly engaging outdoor advertising experiences based on factors that the audience encounters at the time of ad viewing. Additionally, programmatic DOOH leverages big data and AI for precise audience targeting by inferring viewer demographics using AI or detecting them through cameras.

The possibilities are vast. Using data triggers for programmatic DOOH campaigns opens the door to creative and memorable advertising. For instance, consider Foodora's programmatic DOOH campaign, which effectively promoted its food pick-up service by using weather, time of day, and location data as triggers. On sunny days during lunch hours, digital displays encouraged restaurant pick-up, while on rainy days, the displays promoted food delivery services. This precise audience targeting using programmatic technology resulted in a remarkable 300% increase in Foodora's food pick-up service customers. It vividly illustrates the power of programmatic DOOH in modern advertising.

2. Cameras and Motion Sensors

Cameras and motion sensors have become integral components of cutting-edge digital displays, enabling the implementation of interactive ad experiences that engage viewers and deliver ad content based on user actions. Interactive DOOH commercials boast significantly higher engagement rates. According to a study by Ultraleap, interactive DOOH advertisements yield twice as many conversions as static DOOH ads and have a 21% longer dwell duration. The study also reveals that viewers spend 50% more time viewing interactive advertisements, which are 52% more effective at building brand awareness compared to static ads.

For instance, Skoda’s innovative ad campaign, featuring interactive advertisements in mall locations to promote their new SUV model, serves as a compelling example of engaging audiences. This technology incorporates motion sensors and cameras in digital displays to detect viewer actions and enhance data collection.

Beyond interactive advertisements, cameras are now being integrated into DOOH screens to enhance first-party data collection for advertisers. This data is used to precisely target audiences through computer vision applications like facial recognition. With audience measurement platforms such as Quividi, many OOH screens now come equipped with cameras that capture real-time information, including impressions, dwell time, gender, and age of people exposed to an ad.

This data allows for the accurate measurement of campaign impressions and audience demographics. The increased accessibility to data from motion and facial recognition, along with dynamic content opportunities, enables the delivery of tailored creative materials to the ideal audience, thus enhancing DOOH advertising’s relevancy and effectiveness.

3. AI and Machine learning in Digital OOH advertising

Another emerging technology that has made waves in DOOH is artificial intelligence (AI). A report by Allied Market Research shows that the Digital OOH advertising market is expected to grow from  $18.80 billion in 2020 to $58.67 billion by 2031, and much of this growth is fuelled by incorporating AI and machine learning techniques in DOOH campaigns. Research shows that by 2028 the AI marketing industry is predicted to be worth over 100 billion dollars with most marketers from the US, India and China utilising AI and machine learning for enhanced ad targeting. With the advent of big data analytics marketers in this era are rapidly employing AI and machine learning models to improve their DOOH campaigns across the board.

One key application of AI in marketing is advanced data analytics for precise audience targeting based on travel patterns and location-based data. With over 80% of data collected on the internet being location-based, many DOOH marketers are incorporating location-based intelligence by processing this data using machine learning techniques to better identify geospatial hotspots for their target demographics. For example, fast-food restaurant chains advertising on mobile DOOH platforms like Shiine can use footfall and road traffic insights from different areas to target different product categories, thus increasing the ad’s relevance to viewers. Most location-based data collected online is updated in real time, enabling advertisers to implement AI-powered travel-pattern analysis to understand their customers’ usual routes. They can then utilise mobile DOOH platforms like Shiine to reach potential customers as they travel their habitual routes.

Strategic Hyperlocal AI-powered Reach Planning (SHARP) by Laqshya Media in India is an exceptional example of AI and machine learning implementation for reach analysis. This OOH measurement tool relies on machine learning to provide AI-optimised recommendations based on footfall and traffic data collected from over 50,000 geo-tagged sites. With AI-powered metrics, SHARP can segment audiences by age, gender, NCCS group, and various other target groups, enabling precise targeting.

In addition to AI-powered big data analytics, marketers are also leveraging advanced computer vision and AI models in conjunction with cameras and motion sensors to enhance viewer engagement with DOOH media. A remarkable example of interactive AI in action (literally!) is GMC’s DOOH campaign for the Acadia SUV in the USA, which incorporated AI-powered responsive facial recognition. The campaign utilised sensors and cameras to capture viewers’ facial expressions and processed this data using AI-powered facial recognition software. The display then delivered personalised video ads, which could be anything from a video ad to a staring contest or a cheeky joke, all based on the viewer’s data. This level of interactivity and personalisation represents the future of DOOH advertising.

4. Mobile technology integration

When paired with mobile technology, Out-of-Home (OOH) advertisements enable convenient access for viewers and opportunity for action. The synergy between mobile and DOOH advertising technology has ushered in an era of omnichannel campaigns enabling brands to effectively connect with their audiences across various platforms.

One of the key advancements of DOOH advertising is the application of geofencing. A geofence is a virtual geographical boundary which enables advertisers to identify and target customers when they cross the boundary of a geofence from their phones using WIFI, cellular or GPS data. Geofencing can be used to develop omnichannel marketing campaigns and retarget a customer with different media channels when they are in proximity of a DOOH display.

For example, when a consumer is detected to be within viewing distance of a Shiine mobile advertisement for McDonald's, this can be used as a trigger for further targeted advertising. Depending on how the geofence is configured for McDonald's it could prompt mobile push notifications on the Maccas app, trigger text messages or send targeted ads on social media. Many businesses ranging from retail to hospitality have all started using geofencing to engage with consumers in a relevant way, based on the consumer’s real-time location and behaviour.

Another emerging technology bridging the consumer experience between out-of-home and mobile platforms is QR codes. The widespread adoption of QR codes has added a new dimension to the interactive possibilities of DOOH advertising. Advertisers have implemented QR codes to effectively drive traffic from DOOH displays to mobile phones enabling swift consumer action in response to OOH advertisements. A recent study by Alfi, an AI enterprise SaaS advertising platform, highlights the growing significance of QR codes in DOOH advertising. Nearly 98% of marketing executives surveyed anticipated a surge in QR code usage within the next two years. This data suggests that QR codes are not only here to stay but also on the cusp of a broader and more influential role in DOOH campaigns.

An exemplary case that highlights the potential of QR codes is KFC UK’s 2016 DOOH campaign. By scanning QR codes with their Snapchat app, users unlocked a branded filter offering in-store deals and promotions. This pioneering ‘snap to unlock’ feature in the UK illustrated how QR codes can seamlessly bridge the physical and digital worlds, creating a distinctive and effective campaign. The future of DOOH advertising is evolving in tandem with mobile technology, QR codes, geofencing and the endless possibilities they bring to create immersive, engaging, and effective advertising experiences connecting the real world to the digital experience.

How to use DOOH Advertising to Enhance Your Brand Messaging?

Intelligent Location-Based Advertising

Digital OOH advertising is all about precision – reaching your target audience at the right place and at the right time. As discussed in the previous sections, the abundance of movement data allows us to tap into location-based intelligence, enabling the strategic targeting of your customers based on their travel patterns and movements. Shiine elevates your brand visibility to the next level by placing your messaging on digital displays atop rideshare vehicles, ensuring that your message is not only highly targeted but also mobile. Our innovative platform takes location-based intelligence to new heights, offering the full spectrum of options to target locations and routes that align perfectly with your preferred demographics.

Do you want your advertisement to shine near the nearest music event in town? With Shiine, it’s a breeze. You can effortlessly customise your triggers according to your demographic preferences and automate your advertisement delivery when conditions are optimal. Shiine empowers you to make your brand message mobile and your targeting ultra-precise, ensuring your campaign is always where your audience is.

Real-time Relevance

Addressing real-time changes in the context of ad viewers is the cornerstone of effective DOOH advertising, just as exemplified by Foodora’s campaign, which tailored its food pick-up service promotions to weather conditions. At Shiine, we not only uphold this principle but amplify it. Through numerous API integrations with real-time weather reporting, sporting results, emergency response services, and various other dynamic real-time data sources, we have the capability to seamlessly synchronise your brand’s messaging with the ever-evolving needs of your audience.

With Shiine’s innovative platform, we position your brand’s message on engaging digital displays atop rideshare vehicles, enabling you to adapt and respond in real-time. Whether it’s adjusting your message for a specific event, catering to prevailing weather conditions, or responding to the time of day, we keep your brand on the move, perfectly aligned with your audience’s journey. Our service transforms DOOH advertising into a real-time, dynamic, and highly relevant experience for your customers, ensuring your message remains fresh and pertinent, no matter where they go.

Data-Driven Insights

In the current data-rich era of Digital Out-of-home advertising, data-driven insights are the currency of success for advertisers. The rapid advancements in the Internet of Things (IoT) and cloud infrastructure have made it easier than ever to collect accurate, real-time data for comprehensive reporting. At Shiine, our digital infrastructure seamlessly integrates cutting-edge IoT and cloud technologies to offer a unique and powerful solution for tracking dynamic DOOH campaigns. We provide real-time, precise data about the geo-tagged the extent of your reach and leverage sources such as the West Australian Department of Transportation (DoT) and Google Analytics to identify dynamic brand impressions.

Our data-driven approach ensures you have immediate access to essential metrics, including your campaign’s reach, inferred impressions, and real-time progress. We are committed to empowering you with the knowledge needed to make informed decisions, refine your strategy, and maximise the effectiveness of your DOOH campaign.