OOH Promises an Extraordinary Journey
The future is looking bright for the media industry.Global media network Carat released its Ad Spend Report this month, which is predicting global growth of 4.7 per cent and an upsurge in advertising spend to the tune of US$25 billion.
Out-of-Home (OOH) media, in particular, is shown to be performing well, with a predicted 3.9 per cent growth in Western Europe, following a strong Q1 in 2015. OOH share of total advertising spend stands at 7.0 per cent in 2015 and globally, Carat is forecasting a 4.3 per cent rise in OOH advertising spend in 2016. The report also notes that OOH spend has overtaken magazine spend for the first time.
Technology is taking OOH from strength to strength. Growth has been driven largely by Digital Out-of-Home (DOOH) and advances in targeting and accountability in the sector. Accountability is OOH’s biggest opportunity as online and mobile change the way that clients think about it. They are now looking for the same clarity from OOH when it comes to the return they get for their investment that they get from their digital activity. Pretty soon, OOH will need to provide metrics like audience measurement in near real-time.
There has been a dramatic increase in the use of data-led insights for selling, audience targeting and proving accountability for clients, and Route has been a major enabler of this. Some of the best campaigns use Route in conjunction with other data sources - retail zoning, anonymised mobile data, data from consumer panels like work.shop.play. and research questionnaires like TGI - that can be used to develop a holistic audience viewpoint.
When it comes to targeting, consumers are also used to a highly personalised experience online, so are now expecting this from other paid media channels. The recent Wall’s Goodbye Serious campaign at Westfield Stratford is just one example of how brands are now using OOH to interact with consumers in a far more personalised way. The ice cream brand hosted a pop-up shop at the shopping centre to attract shoppers. Fun and cheeky comments appeared on the DOOH screen throughout the day, interacting with people passing by and directing them to the shop.
As the ability of DOOH to fully capitalise on anonymous, aggregated data progresses, we will see increasingly sophisticated OOH campaigns, which in turn will encourage advertisers to invest more heavily in the medium.
When it comes to data capture and aggregation, OOH has historically lagged behind other forms of media. However, telcos are building their businesses for ubiquitous connectivity. Once that happens, we will be in the perfect position to provide data on everything – how many people pass through a certain location; how many engage with an ad. That data, used in real-time, is a great proposition.
We’ve found that tapping into external resources and creating partnerships yields ‘best in class’ data. Companies collect different data sets – transport systems collect information on audience flows, while credit card companies hold purchase data. Media owners need a complete picture to target consumers effectively.
In the next 10 years the media power players will be the Internet, TV, OOH, mobile and tablet. OOH should command greater market share than it does currently. We believe that the key to this lies in engaging hard to reach millennials who are not consuming media in a traditional manner. As TV audiences fragment, decline and age further, the last broadcast medium for young demographics will be OOH.
We want to make the medium interactive, addressable and measurable for our clients and transform ordinary journeys into extraordinary experiences for consumers.
Blog by Jason Cotterrell, first published in Digital Marketing Magazine