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Out-of-home (OOH) advertising, also called outdoor advertising, outdoor media, and out-of-home media, is advertising experienced outside of the home. This includes billboards, wallscapes, and posters seen while "on the go". It also includes place-based media seen in places such as convenience stores, medical centers, salons, and other brick-and-mortar venues. OOH advertising formats fall into four main categories: billboards, street furniture, transit, and alternative.[1]
The OOH advertising industry in the United States includes more than 2,100 operators in 50 states representing the major out of home format categories.[citation needed][2] These OOH media companies range from public, multinational media corporations to small, independent, family-owned businesses. Currently, the United Kingdom and France are Western Europe's first and second largest markets for OOH, respectively. Data from Outsmart (formerly the Outdoor Media Centre), the UK's out-of-home advertising trade association, shows that digital out-of-home (DOOH) grew at a 29.7% CAGR from 2009 to 2014.[3]
Billboard advertising is a traditional OOH advertising format, but there has been significant growth in digital OOH (digital billboards and place-based networks) in recent years. For example, about 4,900 digital billboard displays have been installed in China and the US.[4]
Traditional roadside billboards remain the predominant form of OOH advertising in the US with 66% of total annual revenue. Today, billboard revenue is 73% local ads, 18% national ads, and 9% public service ads.[5]
Street furniture is made up of formats such as bus shelters, news racks, mall kiosks, and telephone booth advertising. This form of OOH advertising is mainly seen in urban centers. This form of advertising provides benefits to communities, as building and maintaining the shelters people use while waiting for buses.[citation needed]
Transit advertising is typically advertising placed on anything which moves, such as buses, subway advertising, truckside, food trucks, and taxis, but also includes fixed static and electronic advertising at train and bus stations and platforms.[6] Airport advertising, which addresses a traveling audience, is included in this category. Advertising on metro trains is becoming very popular these days, particularity in India. Municipalities often accept this form of advertising, as it provides revenue to city and port authorities.[citation needed] Walking billboard, vehicle branding, pamphlet distributions, road shows etc. are some more forms of transit media advertisements.
Street furniture, transit, and alternative media formats comprise 34% of total outdoor revenue in the US. Some of these formats have a higher percentage of national ads than traditional billboards.[7]
Digital out-of-home (DOOH) refers to dynamic media distributed across place-based networks in venues including, but not limited to: cafes, grocery stores, bars, restaurants, health clubs, colleges, arenas, gas stations, convenience stores, barber shops, airports and public spaces. PQ Media defines DOOH by two major platforms, digital place-based networks (DPN) and digital billboards & signage (DBB); DOOH networks typically feature independently addressable screens, kiosks, jukeboxes and/or jumbotrons. DOOH media benefits location owners and advertisers alike in being able to engage customers and/or audiences and extend the reach and effectiveness of marketing messages. It is also referred to as digital signage.[citation needed]
In the US the DOOH industry is expected to grow to $3.25 billion in 2021, representing 36% of the total OOH spending.[8]
The reason that this category is growing so rapidly is because busy people are typically busy at home and with the introduction and acceptance of digital video recorders (DVRs), it has diluted the frequency with which traditional TV commercials are viewed. Every day more TV viewers are skipping past commercials with their DVRs, making out-of-home advertising more appealing.[9] A Nielsen media research study in 2009 showed that 91% of DVR owners skipped commercials. As a result, traditional TV advertisers are hungry for an effective substitute, and digital out-of-home ads appear to be one of the solutions. Digital out of home advertising seems to be a cost-effective way for promoting or marketing any brand or product. Usage of billboards and displays for brand promotion is a less expensive way of advertising than TV, radio, newspapers and other mediums.[citation needed]
DOOH includes stand-alone screens, screens on buildings, kiosks, and interactive media found in public places. The availability of inexpensive LCD screens with built-in media players has opened the door for companies to add interactive video messages in point of purchase (POP) displays. The displays allow consumers to get additional information at the moment of decision on a product or service. Growth in the DOOH industry has been increasing in 2009, with more POP manufacturers, advertisers, and content developers moving to digital. Technological improvements are holding down costs, and low-cost digital signage is making it easier to reach consumers on a larger scale.[10] For example, beacons are small devices placed on out-of-home advertising structures that use Bluetooth technology to connect with mobile devices.
Beacons allow you to communicate with the viewer. They also tell you frequency. With these technologies you could, for example, with certainty that from 3-5 p.m. on a Monday this is how many men or women walked in front of your sign and also what percentage are new people, which are repeat people, etc..
DOOH is present in a variety of venues including gas stations, grocery stores, restaurants, gyms and ride-sharing vehicles.[citation needed]
With digital TVs in gas stations, nearly 52 million customers are getting snippets of weather, sports highlights, celebrity gossip and commercials with their gas each month, according to Nielsen. The weekly reach is actually larger than most of the prime-time TV shows. The largest company in the space is Gas Station TV with 27.5 million monthly viewers at more than 1,100 stations across the US, according to Nielsen.[12] In addition to the large number of viewers, the audience profile of TVs at gas stations is unique. All are drivers and 76% are adults from age 18-49 with a median age of 40 and median household income over $70,000.[13] According to the Nielsen Intercept Studies, 89% of the consumers are engaged and watching TV at the gas station and 88% love watching when fueling because they have nothing else to do.[full citation needed]
In supermarkets, networks like Grocery TV and Starlite Media have established digital screens at various points in grocery stores to provide brands with opportunities to reach customers along their purchase journey. In addition to building brand awareness some of these networks are also able to tie direct results such as sales lift to advertising campaigns.[citation needed]
In gyms, Zoom Media (GymTV) engages fitness-minded audiences with lifestyle content, fitness tips, and music.[citation needed]
In 2015, DOOH has also started to extend to in-transit advertising. Tablets are installed inside ride-sharing vehicles like Uber, Lyft and Grab. Digital ads are displayed inside the screens allowing brands to reach high-value passengers. This type of DOOH leverages technology to improve ad distribution and better OOH audience targeting. GPS of tablets are used to enable location-based marketing. Brands can specify geo-fences to determine where their ads will be shown to passengers.[citation needed]
See also: Demand-side platform, Supply-side platform, and Ad exchange |
Within the DOOH industry, advertisements may be purchased through programmatic platforms. Programmatic platforms ask marketers to specify desired audience characteristics and automatically locate the media vehicles to deliver that audience. These platforms may allow buyers (the demand side) to plan, execute and monitor campaigns across multiple media platforms (the supply side) using a familiar workflow.[14][15] A major difference between programmatic digital out-of-home (pDOOH) and traditional OOH or DOOH is that programmatic automates the process of buying, selling and delivering inventory across multiple screens with enhanced capabilities. These enhanced capabilities include the creation of measurable, highly-targeted campaigns by utilizing geolocation data to activate the best DOOH screens in real-time based on consumer behaviour and audience movement patterns.[16] Additionally, programmatic allows buyers to set specific parameters or conditions (also known as triggers) for a campaign or inventory and unleash the potential to power campaigns with unlimited data sets from a myriad of data sources. Only when the selected conditions are met will an ad or content be served onto the screen.[17]
As the media buyer, there are a number of benefits to buying out-of-home ad space programmatically.[18]
As a media owner, there are a number of ways the programmatic technology can benefit you.[18]
Printed out of home refers to static media distributed across physical spaces.[20] These are:[citation needed]
This product can also be used for outdoor movie nights.[citation needed]
Other types of non-digital OOH advertising include airport displays, transit and bus-shelter displays, headrest displays, double-sided panels, junior posters and mall displays.
Different jurisdictions regulate outdoor advertising to different degrees.[citation needed]
Media fragmentation, competition from online media, as well as the need for greater efficiencies in media buying prompted companies to offer billboard inventory aggregation services Interactive services are becoming increasingly more common with the move to digital outdoor advertising, such as allowing the public to connect, share and interact through their mobile devices in particular through WiFi connections.[citation needed] The technology behind these aggregated services continue to rise to the standards of mobile advertising when it comes to measurement and design abilities.[25]
Space advertising, by use of an array of small satellites that reflect sunlight, has been evaluated by researchers at the Skolkovo Institute of Science and Technology.[26]