DOOH – significance, opportunities & forecast for digital outdoor advertising

Digital out-of-home (DOOH) is currently on the road to success. But why is this type of media so popular? When and why should advertisers include digital out-of-home advertising in their media planning? JOM explains…

DOOH – What does that actually mean?
Outdoor advertising – also known as out-of-home – includes all advertising media in public spaces. With the help of billboards in prominent locations such as railway stations, for example, a large reach can be achieved. Digitalisation has once again taken outdoor advertising to the next level: Digital out-of-home enables advertising media to be displayed on digital screens – both indoor and outdoor – in public spaces. Unlike many other digital channels, DOOH is a one-to-many medium, as the screens are usually placed in highly frequented locations and the messages.

What should advertisers know about digital out-of-home?
Compared to OOH, digital out-of-home advertising no longer has to rely solely on static advertising media. The advertising media can be used both as still images and as moving images, animations, cinegrams, etc. However, there may be restrictions in exceptional cases so as not to distract traffic.

DOOH generally has relatively short lead times, both for booking and for delivery of the advertising material. This has the advantage that it is possible to react quickly within a campaign if necessary. In addition, the budget can be used flexibly so that campaigns can also be realised with smaller budgets. When planning campaigns, the choice of time period and location is crucial. This is because target groups can be reached in different situations via the various touchpoints without any targeting being stored. To do this, it is necessary to analyse the target group and decide on this basis which screens should be booked and over what period of time the campaign should run.

The advertising media can be played out dynamically, i.e. the appropriate advertising media can be played out depending on the trigger set. Dynamic Creative Optimisation makes it possible to play out different campaign motifs depending on specific data such as the weather and time of day. However, DCO campaigns require a significantly longer lead time than conventional DOOH campaigns and the creation effort is also higher, as several different motifs have to be created depending on how many different triggers are set. To make this possible in principle, advertisers should utilise first, second or third-party data to derive targeting.

DOOH campaigns can be booked either by insertion order (IO) or programmatically. IO is generally used to book fixed networks and time periods in which limited targeting is possible, for example by day or region. Programmatic booking, on the other hand, allows detailed targeting with the help of first and third-party data, as purchasing is contact-based here. Targeting in programmatic booking can also be set according to point of interest, trigger or target group. Programmatic DOOH also enables targeting to be extended across different channels and end devices, so that media planners can build up contact path logics and thus understand who has already had contact with an outdoor advertising medium – in order to then target them again via mobile placements or channels such as ATV (Addressable TV) and CTV (Connected TV).

How does DOOH work and how can success be measured?
Digital outdoor advertising is very popular because the channel is so versatile. DOOH can be used to build brand values and create advertising memories in the upper funnel as well as create a sales impact in the lower funnel. And thanks to the large number of touchpoints, enormous reach can be achieved.

In order to be able to prove the impact, advertisers should consider in advance which goals they want to pursue and which KPIs they want to target with their campaign. DOOH campaigns usually focus on branding objectives, but the influence on performance indicators can also be proven. In fact, measurement methods for both areas can be combined. Brand effects can be proven, for example, via footfall measurements that identify visitors in the store and check whether they have had contact with an advertising medium.

Current developments and forecast
Digital out-of-home advertising is currently on course for real success, as confirmed by the Nielsen advertising trend: In 2023, digital outdoor advertising could increase sales by 25 per cent.

The number of digital steles is also increasing, meaning that new touchpoints are constantly being added, such as in doctors’ surgeries or fitness studios. Although urban regions are currently better developed than rural areas, DOOH still reaches almost 81 per cent of the population nationwide every week, according to the “Public/Private Screen Study by IDOOH”. Among 14 to 29-year-olds, the reach is as high as 91 per cent.

This positive trend in digital out-of-home advertising is set to continue in the future. This is because DOOH is benefiting from the weakening mass media: while TV is losing reach and viewing time, especially among younger target groups, digital out-of-home has proven reach potential within these target groups. However, DOOH can not only capitalise on TV budgets, but also benefit from digital media: Because with the impending cookie phase-out, target group and environment planning will become increasingly important.

And as the DOOH network continues to expand and new touchpoints are developed, environment and target group planning via digital outdoor advertising is becoming increasingly easier to implement. Media planners should therefore definitely consider digital out-of-home for their media mix.