Commentary

Why Media Planners Made Digital OOH So Popular

It has been said many times that change is the only constant, and this is especially true in the media industry. The digital advertising landscape is experiencing a rapid rate of change, and media planners and buyers are at the center. Agencies are looking for media that optimizes consumer engagement. Advertisers seeking competitive advantage are turning to hyperlocal targeting strategies. Effectively reaching the increasingly mobile consumer is also a top priority.

Digital Out-of-Home media answers these challenges. DOOH is not only achieving scale, but is also delivering advertisers the brand engagement they need. No longer a drop in the advertising revenue bucket, DOOH revenues grew 16.3% to $6.47 billion in 2010 and is projected to expand 16.9% in 2011 (PQ Media). Here are three reasons the media planner/buyer community is allocating larger budgets to DOOH advertising:

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Engagement

Capturing the consumer's attention and successfully engaging them are two different propositions. After all, a consumer that has an interaction with an advertisement is far more likely to remember the brand. DOOH provides the means for engagement between the brand and consumer. Interaction between a DOOH screen and a consumer's mobile phone is possible through SMS, QR Codes and Near Field Communication. With more than 234 million Americans using mobile devices and 69.5% of U.S. Mobile subscribers using text messaging on their mobile device (ComScore), this presents a huge opportunity for engagement.  

Due to the high adoption of touchscreen smartphones, customers are also more likely to touch DOOH screens that are placed at eye level, which has been known to spawn very creative advertising applications from agencies. Best of all, this engagement is all accurately measurable, creating data-driven performance metrics for your campaigns.

Reach

Advertising to shoppers in close proximity to a brand's point-of-purchase has always been a key pillar of local media plans and buys. However, the availability and scale of effective local and hyperlocal media often made these strategies difficult to execute. With consumers seeking brand information while on-the-go, DOOH gives media planners, buyers the ability to target hyperlocally and engage them with a brand message in a contextually relevant environment.

Achieving reach is now possible in even tightly defined geographies by combining DOOH networks, resulting in a more effective and efficient buy. Strategically aligning both in-store and in-proximity advertising can help planners/buyers achieve the scale needed for successful campaigns.

Relevancy

The hallmark of every great media planner is the ability to think like the consumer they are targeting. Translating the consumers' mindset ensures contextual relevancy of your brand's message and is vital to the success of your campaign. DOOH has the ability to go beyond traditional demographics and reach consumers when they may be particularly receptive to your offer or message. Targeting consumers based on their mindset ensures greater relevancy and retention.

Mindset-based campaigns also allow media planners/ buyers to reach consumers in different places as they go about their day. Why limit yourself to advertising on one in-store network when you can reach your consumer in different places morning, noon and night?

The growth forecast for the DOOH industry is positive for the next several years and the medium has quickly become an effective part of the media mix for agencies and advertisers. DOOH plays an important role in the strategy and dollars are being shifted from TV and traditional out-of-home budgets. (See Survey: Strategic Planners To Fund Place-Based From TV, Online)

As dollars continue to shift, the DOOH industry is providing the advertising community with tools designed to make the planning and buying process easier. These tools eliminate administrative functions and burdens from media planners and buyers allowing them more time to focus on strategy for their clients.

1 comment about "Why Media Planners Made Digital OOH So Popular".
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  1. Faraz Khan from DOmedia, July 29, 2011 at 10:49 a.m.

    Great article Jennifer. You nailed three very important topics when it comes to accelerating the #DOOH industry. Back in May, Research and Markets reported that around 60 million NFC enabled devices will hit the market by 2014 - and it will be sure to create an exciting engagement opportunity for advertisers.

    With respect to buying & selling #DOOH, we've seen a push towards standardization from both the buyer & seller sides of the equation. If you take a look at the online media industry as an example, the rapid growth of the industry comes after standards are set and accepted.

    We at DOmedia (www.domedia.com) have partnered with the largest DOOH networks to create one place for media planners and buyers to go to help them create muti-market, multi-network media campaigns with the efficiencies you mentioned (eliminating admin functions and allowing more time to focus on strategy). In fact, it's our mission to simplify this specific media process. We're pushing for standardization not only in the way networks sell, but also how agencies buy.

    I hope you keep covering this rapidly changing industry and thanks for shining light on #DOOH.

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