• by Alex Romanov , March 9, 2011

The digital out of home (DOOH) market is predicted to grow by double digits this year, a trend that is attributable as much to the channel's efficacy as to its novelty. Yet standalone DOOH, for all of its innovative nature and growth potential, does not stand alone at the pinnacle of out-of-home signage marketing.

DOOH marketing reaches its full potential when paired with another channel offering high-growth and high-marketing-potential: mobile. The result, known as multi-channel DOOH, is poised to become one of the most effective marketing mediums to date.

As such, the real growth potential for DOOH lies at the intersection of mobility and digital technology, by leveraging consumer behavior and the proliferation of mobile devices with interactive, intelligent digital signage.

Bridging the Mobile and Digital Gap

Coupled with proximity technology, the DOOH channel allows marketers to deliver content in a contextually relevant environment and at the moment of maximum influence. Industry analysts are projecting a substantial rise in global digital out-of-home media revenues in 2011, a 16.9% increase, according to PQ Media. The confluence of DOOH and mobile, however, is prompting other analysts to predict consumer behavioral shifts on a larger scale.

Jose Avalos, digital signage director for Intel, put it this way in a Wall Street Journal report last year: "I see increased interaction between DOOH and mobile, Web and social media applications. For instance, if I see something I like, I can text my opt in to the marketer, the special offer comes to my cell phone and then I can virally share that coupon or special offer code with my friends and family in real time."

The proliferation of smart mobile devices has put a new potential marketing touch point into the pockets of a majority of consumers. More than ever, consumers are comfortable with using their devices for commercial purposes, whether that means to shop, seek offers, or otherwise participate in retail commerce directly through their devices.

Compounding this evolution in consumer behavior is the fact that digital signage technology is redefining what is possible in terms of consumer interactions. Advances in technology mean that digital signs can now interact and transact. They can identify and interact with nearby mobile devices to send users relevant content in real time, resulting in a true mobile consumer interaction. Through this technology, digital signs can adjust messaging in real-time, while simultaneously transmitting a message to the devices -- contingent, of course, on consumer opt-in.

The multichannel DOOH technology is especially significant because it allows marketers to directly communicate with consumers who are located within a certain radius to deliver offers that can be redeemed at point of sale, while also gathering useful business intelligence - both significant benefits. By providing consumers with offers at exactly the optimal time, marketers can directly impact the bottom line and drive revenues.

In short, the technology now exists to make Avalos' vision come to fruition, and it is possible for marketers to leverage these multi-channel interactions for maximum effect.

DOOH is the entry point into a new interactive world defined by multi-channel, proximity-based marketing. While DOOH is predicted to experience growth in the coming year, the true potential for the channel exists at the intersection of interactivity and mobility.

The digital signage channel is in a full convergence with mobile devices that will make digital signage measurable and accountable, yielding ROI and BI (business intelligence) for the first time. No other medium can offer this blend of immediacy and relevance in a physical setting -- and the potential impact for marketers is tremendous.

The digital world is heading, it seems, in the direction of convergence.