What is DOOH
Out-of-home advertising is focused on marketing to consumers when they are ‘on the go’ in public places or specific commercial locations.
Digital-out-of-home (DOOH) refers to placed-based networks in venues. DOOH networks feature addressable screens, kiosks, e-boards and other devices. DOOH media helps to target customers and/or audiences more efficiently. Coverage waste is reduced by putting the right message in the right environment at the right time to the right target group.
DOOH is a flexible medium that is cost efficient, and allows for the application of measurable tactics.
Reasons why this medium is so powerful
- It is measurable
- The right message at the right time to the right target group
- Hyper-targeting (demographic, geographic, income group, etc.)
- Cost effecitve
- “Time to campaign” – short planning and realization time
There is an emerging trend where customers will "pull" information for products and services that they are interested it. This is a paradigm shift from the traditional "push" strategy of consumerism. Consumers are informed, and want to be in control of what they consume and when. DOOH caters to this desire and facilitated this consumer trend, while also acting as an aggregator that can link to sister technologies like smart phones and web applications.
One of the greatest advantages of DOOH is that it allows for the categorization of target markets based on the tier of service they consume on any specific vertical. If they consume 5 star products and we market to them in a 5 star venue, the likelihood of them having an affinity for the higher end product is infinitely larger than the consumers that would be found in a 2 star venue. This segmenting allows for specific targeting. DOOH is flexible: the message, the timing, the offer and the message can all be tailored and fine tuned to result in the desired ROI of the campaign.
DOOH media is made up of different sized screens placed in public and commercial locations where the target audience walks, shops, works, dine, commutes and stays over night. E.g. hospitality, entertainment and retail venues or airports and shopping malls etc.
Three segments of DOOH venue types are identified:
- Place based – Inside commercial environments.
- Retail – Positioned in key locations found close to consumer products that are available for sale.
- Outdoor – Along highways and interstates or on the sides of buildings.
DOOH media is a very cost efficient marketing tool. Hyper targeting results in the message reaching a very specific group, or even a subset of a specific group. The digital OOH rate range lies between USD 1.50 to USD 36.00 per thousand impressions (CPM). The venue’s CPM depends on different criteria like number of screens, length, location, audience etc.
Within emergent media, DOOH offers the most reasonable CPM entry point of USD 1.50 per thousand impressions
Present situation and forecast*
Presently 67% of US-residents aged 18 or older are continuously reached by DOOH media. In Canada 76% of those who recall seeing digital out-of-home displays in the past month noticed seeing them at multiple venues. It is one of the fastest growing mediums in North America.
In 2007 DOOH spending in the US was USD 2.1 billion versus USD 30 million in Canada. In the next few years spending will continue to aggressively grow in that segment. In 2013 USD 4.530 billion in spending is expected for the US while in Canada the spending will be doubled.
In Canada USD 59 million will flow into digital OOH segment compared to USD 528 million in traditional OOH media in 2013. At the same time forecast in the US market for OOH media is USD 5.75 billion while for DOOH media USD 4.53 billion spending may be expected.
As Marketers and Brands look to DOOH as a medium for the advertising spend, the forecasts of 13.2% CAGR are very easily achievable and possibly error on the side of being conservative.
* Source: Adcentricity, one of the most trusted leaders in DOOH Media 2010
The Experts Weigh In
«The approach isn’t all that different from other types of creative development – understand the product, the audience, and the nature of the medium. DOOH, of course, requires some unique considerations: location, type of venue, availability of audio, etc. All of these factors can be very important to developing a successful DOOH ad.»
Jeremy Lockhorn, VP Emerging Media - Razorfish