Technological advancements and consumer calls for privacy protections are reshaping digital marketing. Digital out-of-home (DOOH) advertising is emerging as a powerful tool that reaches consumers when they are most likely to make a purchase while also complying with privacy-first legislation.
Digital out-of-home (DOOH) advertising is on the rise thanks to the convergence of increased connectivity, digital screens and electronic displays, and the expansion of programmatic buying and its integration with digital media.
One of the biggest benefits of DOOH programmatic advertising campaigns is their ability to engage and influence consumers at the right time. This is a key reason why DOOH is projected to account for nearly 25 per cent of in-store retail media ad spending by 2028 in the U.S., according to EMARKETER.
DOOH programmatic advertising offers other important benefits, too, including: high reach; cost effectiveness; data-driven targeting; dynamic creatives; flexible campaign management; interactivity; improved measurement; and transparency, which is increasingly critical in today’s privacy-first marketing environment.
Consumers’ calls for more transparency and control over how their data is used are growing ever louder. Regulators aren’t just listening. They are acting. The foundation of digital advertising is being transformed by consumer privacy regulations, such as the European Union’s General Data Protection Regulation, the California Consumer Privacy Act and Canada’s revised Personal Information Protection and Electronic Documents Act.
One of the biggest impacts of these new regulations is the phasing out of third-party cookies. To this point, third-party cookies have been fundamental to digital marketing. These cookies, or tracking codes, follow users online, capturing the sites they visit and purchases they make, as well as other online behaviours and interests. This information goes to third parties who unknown to the users. Since these cookies can collect personal data, they are now subject to the regulations outlined above, which require explicit user consent, disclosure of data collection practices and the ability for users to opt out.
To avoid regulatory risk, brands are now more focused on first-party data, which is customer/user information companies collect directly from their own properties and domains. It’s information that they own and that digital visitors consent to share. It can come from many sources, online and off, including websites, email and text messages, points of sale, customer relationship management, and, increasingly, DOOH programmatic advertising.
DOOH programmatic advertising is the automated buying and delivery of technology-fueled versions of traditional out-of-home ads – such as billboards and signs – that appear in public spaces. These ads are used to reach people when they are in places outside their homes, such as on the street, on public transportation, in markets and in shopping malls.
DOOH campaigns leverage geo-fencing, tracking, retargeting, personalization, attribution, and a range of formats, sizes and interactive features to engage audiences in a variety of public environments.
One simple way to maximize the impact of DOOH programmatic advertising is to align the format of the ad to the location where it will be displayed. Large, outdoor digital walls work best in high-traffic areas. Point-of-purchase ads are effective at influencing shoppers in retail aisles and near the checkout counter.
In today’s increasingly regulated marketing environment, it’s important to adopt a privacy-first approach to fully leverage the many advantages of DOOH advertising – especially data-driven targeting.
Focus on anonymous data collection: Data is the cornerstone of digital advertising – this will not change. One of the advantages of DOOH advertising is the effectiveness and regulatory compliance of the audience data it tracks, which is much less specific than online data, does not target specific individuals and does not result in personal information being stored. You can display relevant ads by using data collected by infrared sensors, transit turnstiles and event ticket sales, and employing statistical models to track foot traffic in given locations. This information will help uncover audience patterns and preferences that can be used to improve targeting to the right audiences – without using personal information. Cohort-based targeting delivers relevant ads on screens in public spaces by using anonymized, aggregated data to group individuals based on criteria such as demographics, purchase history and interests.
Employ contextual targeting: Contextual advertising leverages real-time data – such as location, time of day, weather and local events – to display and adapt dynamic ads that match the space where they appear. These ads reflect the general demographics or interests of people in a specific location. For example, an ad for sunscreen might appear on a sunny day in a high traffic area, such as a transit stop. None of the real-time data used is personal to any individual, protecting data privacy while also delivering highly relevant ads at the right time.
Leverage new technologies: Machine learning and a growing number of AI tools are bringing new real-time insights and efficiencies to all marketing strategies. DOOH campaigns are no exception. Use AI to analyze data to improve targeting, predict consumer behaviour and optimize content. Augmented reality and interactivity continue to offer new opportunities to engage consumers and build memorable brand experiences.
Integrate DOOH campaigns with social media: Get creative and reinforce messaging by taking a multichannel approach. Use QR codes on screens to direct your target audience to engage with your social channels. Build advance interest in your DOOH campaigns with unique social media hashtags. Feature user-generated content from your social channels in your DOOH ads.
Combine innovation with responsibility for success: Leveraging the interactivity, dynamics and relevance of DOOH programmatic campaigns with a focus on boosting transparency is a proven way to create highly engaging ads that reach consumers at the right time.
