DIGITAL OUT OF HOME (DOOH)

What is Digital Out-of-Home (DOOH) Advertising?

Digital Out-of-Home (DOOH) advertising refers to digital ads displayed on digital screens in public spaces, such as billboards, transit stations, shopping malls, airports, and other high-traffic environments. These screens use digital technology to show dynamic content, which can include videos, images, or interactive elements, allowing advertisers to engage audiences in real time.

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Unlike traditional static out-of-home (OOH) advertising, such as billboards or posters, DOOH ads are interactive and dynamic, offering greater flexibility and targeting capabilities. The content displayed can change throughout the day based on factors like time, location, weather, and audience demographics.

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When paired with programmatic buying, which is the automated process of purchasing and managing ad inventory in real time through technology platforms, DOOH becomes even more powerful, offering efficiency, precision, and scalability to advertisers.

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How DOOH Advertising Benefits Programmatic Buying

Programmatic buying in DOOH advertising allows brands to use real-time data to target specific audience segments based on factors like location, time of day, weather, or even current events. Here’s how this benefits advertisers:

1. Real-Time Targeting:

   • Example: If it’s raining in a particular area, a car dealership can show ads for their latest models that feature advanced weather-related features. Alternatively, if it's sunny, a clothing store can advertise summer apparel.

   • Programmatic buying can adjust content based on audience behavior or external factors like weather, location, and time of day.

2. Data-Driven Campaigns:

   • With programmatic buying, advertisers can leverage various data sources like audience demographics, location-based insights, and historical trends. This enables precise targeting of specific groups in relevant contexts.

   • Example: A university might use data to target potential students near high school campuses or during college fairs, ensuring their ads are shown to the most relevant audience.

3. Efficiency and Cost-Effectiveness:

   • Automating the purchasing and placement of digital ads through programmatic platforms ensures more efficient use of ad budgets. Advertisers can optimize campaigns in real-time, ensuring that every dollar spent is going toward reaching the right audience in the right place at the right time.

   • Example: A retailer can dynamically adjust ad spend across multiple digital screens based on real-time sales data, ensuring ads are shown only during peak shopping hours or high-traffic days.

4. Integration with Other Channels:

   • DOOH campaigns can be seamlessly integrated into broader digital marketing efforts. The content can align with other digital ads across mobile, social media, or online display ads, ensuring consistency in messaging.

   • Example: A restaurant running a social media campaign could use DOOH to reinforce the same messaging at high-traffic locations like shopping malls and bus stops, creating a cohesive customer experience.

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Types of Screens You Can Buy on in DOOH Advertising

The programmatic buying of digital advertising space allows advertisers to access a wide variety of screen types, each with its unique audience and setting. Here’s a breakdown of different screens available in the DOOH space:

1. Digital Billboards:

   • Location: Typically placed along highways, busy streets, and major intersections.

   • Audience: Mass audience exposure, especially to commuters and drivers.

   • Example: A luxury car brand could use a digital billboard on a highway to target high-income individuals on their daily commute. The ad could show a promotional video of their latest car model with a call-to-action to visit the dealership.

2. Transit Displays:

   • Location: Screens inside buses, trains, subways, and transit stations (e.g., bus shelters, metro stations).

   • Audience: Commuters and travelers.

   • Example: A travel agency might display ads on subway screens targeting commuters who are likely to be interested in last-minute vacation deals. A fitness brand could target subway riders with a gym membership offer, especially in areas near fitness centers.

3. Shopping Mall Screens:

   • Location: Digital displays inside shopping malls, often near entrances, escalators, or food courts.

   • Audience: Shoppers and pedestrians.

   • Example: A fashion brand could use screens in a high-end shopping mall to showcase their latest collection to shoppers who are likely already in a buying mindset. A pop-up sale could be advertised on these screens to attract immediate attention.

4. Airport Screens:

   • Location: Screens in airports, such as in terminals, gates, and baggage claim areas.

   • Audience: Travelers, business professionals, and tourists.

   • Example: An airline could run a campaign promoting exclusive offers or business class upgrades to passengers waiting at the gate. A tourism board could target international travelers arriving at an airport with advertisements promoting local attractions.

5. Stadium Screens:

   • Location: Screens in sports stadiums, arenas, or event venues.

   • Audience: Sports fans and event attendees.

   • Example: A sports drink brand could advertise during a major football game, targeting fans in the stadium with an ad that promotes their new product line.

6. Digital Kiosks and Interactive Displays:

   • Location: Screens placed in public spaces like shopping malls, airports, and tourist centers. They may include touchscreens for interactive experiences.

   • Audience: Consumers looking for interactive engagement or information.

   • Example: A restaurant chain might use interactive displays in a mall to allow users to browse the menu or make a quick order for pickup, while advertising ongoing promotions.

7. Retail Digital Signage:

   • Location: Digital screens inside retail stores.

   • Audience: Shoppers and customers inside retail environments.

   • Example: A cosmetics brand could use in-store digital signage to showcase tutorials on how to use their products or promote seasonal discounts to customers already in the store.

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Industries That Benefit from DOOH Advertising

DOOH is versatile and effective across many industries, offering a dynamic way to engage target audiences. Here are some key industries that benefit from DOOH advertising, including Education:

1. Retail:

• Target Audience: Shoppers, consumers in high-traffic areas, and people waiting in line.

• Example: A clothing retailer could use screens in a shopping mall to promote flash sales or seasonal discounts, driving immediate foot traffic to their store.

2. Automotive:

• Target Audience: Drivers, commuters, and car buyers.

• Example: A car brand could use digital billboards along major highways to showcase the launch of their latest model, featuring a call to action to visit their nearest dealership for a test drive.

3. Entertainment & Events:

• Target Audience: Moviegoers, concert fans, and event attendees.

• Example: A movie studio could display trailers for upcoming films on digital screens in theaters, targeting moviegoers right before they enter the cinema. A concert promoter could use DOOH to promote an upcoming show in high-traffic areas.

4. Travel & Tourism:

• Target Audience: Travelers, tourists, and those near airports or transit stations.

• Example: An airline could run a targeted campaign at an airport, promoting discounted fares to international destinations.

5. Food & Beverage:

• Target Audience: Restaurant-goers, fast food lovers, and consumers near food establishments.

• Example: A fast-food chain could use DOOH screens in food courts or near bus stops to advertise meal combos or limited-time offers.

6. Education:

• Target Audience: Students, parents, and prospective students.

• Example: A university could run ads on digital billboards in high-traffic areas like shopping malls or subway stations, promoting open days, application deadlines, or scholarship opportunities. On college campuses, digital signage can be used to advertise student events, lecture schedules, or campus-wide initiatives.

7. Health & Wellness:

• Target Audience: Health-conscious individuals, fitness enthusiasts, and those seeking wellness products or services.

• Example: A gym chain could use digital screens in shopping malls or transportation hubs to promote membership offers, fitness challenges, or health tips.

8. Financial Services:

• Target Audience: Potential customers interested in financial products, loans, or banking services.

• Example: A bank could display mortgage rate promotions on digital screens at busy transit stations or shopping malls, reaching commuters or shoppers with relevant financial offers.

9. Technology:

• Target Audience: Tech enthusiasts, early adopters, and potential customers for gadgets or software.

• Example: A tech company could run ads in airports or malls to promote the release of their latest smartphone or gadget.

10. Telecommunications:

• Target Audience: Smartphone users, business professionals, and tech-savvy individuals.

• Example: A telecommunications company could target commuters in transit stations with promotions for new data plans or mobile phones, emphasizing convenience and speed.

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Time of Day and Day-parting

The time of day is a critical factor in pricing for DOOH ads. Similar to programmatic buying on digital platforms, pricing for DOOH can vary based on the time of day and the amount of audience exposure. This practice is known as dayparting, where the cost of the advertisement depends on when the ad is shown. High-traffic periods typically carry higher rates:

• Peak Times: High-traffic periods, such as morning and evening commutes or weekend shopping hours, usually come with a premium price. These are the times when audiences are most likely to be in the vicinity of digital screens, leading to increased exposure.

  • Example: A digital billboard on a busy street in a city might cost significantly more during the morning rush hour when commuters are traveling to work compared to late evening hours when traffic is lighter.

• Off-Peak Times: Ads run during off-peak hours (such as late night or early morning) are typically priced lower, as the audience reach is smaller. However, these times can still be effective for certain types of campaigns that target specific demographics (e.g., late-night advertisements for apps or services targeting young adults).

  • Example: A restaurant chain might run a campaign late at night targeting night-shift workers or individuals looking for late-night dining options, with a lower cost per impression.

• Weekdays vs. Weekends: The time of week also influences pricing. Weekends may be pricier in retail-heavy areas like malls, whereas weekdays might command higher prices in areas with a heavy commuter presence.

  • Example: A fitness brand might focus on advertising during weekends in shopping malls, as people have more time to shop, while a local event could advertise on weekdays to catch the commuter audience on their way home.

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Location and Audience Reach

The location of the digital screen is a major factor in pricing. Screens that are positioned in high-traffic areas, or locations with highly engaged audiences, tend to be more expensive.

• High-Traffic Urban Locations: Screens located in major cities or densely populated urban areas with high foot traffic are typically priced higher. This is due to the potential to reach a larger and more diverse audience. These prime locations are sought after by big brands looking to target mass audiences.

  • Example: A digital billboard in Times Square, New York, is one of the most expensive placements due to the enormous daily foot traffic and the location's global visibility.

• Suburban or Lower-Traffic Locations: Screens in suburban areas or less busy locations (such as small town centers or less busy commercial zones) tend to be cheaper because they reach fewer people.

  • Example: A small digital display in a local shopping plaza in a suburban area will likely have much lower costs compared to one in a major downtown area.

• Targeted Audience: Pricing also varies depending on the type of audience the screen reaches. For example, screens that cater to niche audiences, such as business professionals in airports or fitness enthusiasts at gyms, may be more expensive if the demographic aligns with a brand's target customer.

  • Example: A luxury watch brand may choose to place ads on digital screens in high-end shopping malls or in airport terminals, targeting affluent consumers. These placements would be more expensive than a more general-purpose screen.

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Time of Year (Seasonality)

The time of year can heavily influence pricing in DOOH, especially around major holidays or events, when demand for ad space surges. Advertisers often pay a premium for high-demand periods when consumer activity is heightened.

• Holiday Season: During key retail periods such as the holiday season (November to December), digital ad space becomes much more expensive, as brands fight to capture the attention of holiday shoppers.

  • Example: A retail clothing brand might have to pay a higher rate to advertise in December when malls are bustling with holiday shoppers, compared to a more off-peak month like January or February.

• Events and Festivals: Large public events or festivals (e.g., sporting events, concerts, major holidays) can also increase the price for digital advertising space. These events attract large, captive audiences, making ad space more valuable.

  • Example: During the Super Bowl or the Olympics, digital ad space near event locations or on high-traffic highways can see a substantial price increase due to the large crowds attending the event.

• Weather-Driven Pricing: Weather can also impact pricing. For instance, advertisers may pay more for screens that cater to commuters when it’s raining, as people are more likely to drive or use public transportation, leading to increased visibility.

  • Example: A brand promoting umbrellas or rain gear might choose to advertise during rainy periods, when visibility is higher, and would pay a premium for ad space during such weather conditions.

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Duration of the Campaign

Pricing also depends on the duration of the campaign. Short-term campaigns, especially those with quick turnaround times or last-minute placements, are typically more expensive on a per-day or per-spot basis. Long-term campaigns, which are planned well in advance, may offer discounts or better rates.

• Short-Term Campaigns: If an advertiser needs quick placement (for example, a flash sale or limited-time offer), the pricing will likely be higher for a short-run campaign.

  • Example: A car dealership running a 48-hour flash sale campaign in a busy downtown location might pay a premium for the short-term, high-urgency placement.

• Long-Term Campaigns: Brands running longer campaigns, such as a month-long promotion or brand awareness campaign, may secure better rates.

  • Example: A national restaurant chain running a multi-month campaign could negotiate a better rate compared to a one-week promotional push.

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Digital Out-of-Home (DOOH) advertising, when combined with programmatic buying, offers a powerful and dynamic way for brands to engage with their audiences in physical spaces. The ability to target audiences based on real-time data, along with a wide range of screen types available for purchase, makes DOOH a versatile and highly effective advertising medium. Whether it's targeting students for educational ads, shoppers for retail promotions, or travelers for tourism campaigns, DOOH offers immense potential for reaching the right audience in the right place at the right time.