Out-of-home digital media is growing explosively
The Outdoor Advertising Association of America forecasts that up to 25% of all billboards will be digital in five years and a 2006 Veronis, Suhler, and Stevenson Communications Industry Report forecasts that out-of-home digital media will grow at a rate of over 20% a year. Additionally, Profitable Channels reports that digital out-of-home networks are growing at a rate of about 10 new networks per month. Their report estimates that about 700 digital out-of-home networks have been launched since 2002 and says that the out-of-home digital media industry segment accounted for $1.2 billion in national ad spending in 2006.
This article presents the new opportunity to take advantage of this growth by combining interactive media techniques with traditional out-of-home methods.
Out-of-home digital media is interactive
The next generation of ads appearing in locations like gas station pumps, health clubs or retail stores engage the consumer in new ways that did not exist for out-of-home advertisers until recently. Reaching people where they are with a compelling and interactive call to action drives engagement better than traditional advertising and is more measurable.
For example, advertisers can provide a call to action through text messaging to conduct turnkey promotions, contests and giveaways, as well as offer coupons and collect vital consumer data directly from a out-of-home digital ad. In a recent example, a large cosmetics company launched a new hair care product where they asked viewers to text their astrological sign for a chance to win a prize and receive daily horoscopes. After sending the text, consumers received an immediate reply to visit the website to enter the contest. More than 190,000 individual responses were sent to consumers which promoted the new product, drove website traffic and resulted in a substantial database.
Another example of interactive out-of-home advertising involved a large phone company that took this technology a step further with their “Picture Yourself Here” campaign. To promote a new camera phone, they snapped photos of passers-by at Dundas Square in Toronto. The photos then almost instantly appeared on giant LED screens across Toronto and created a huge buzz for the new camera phone as well as higher than expected first month sales. These examples among many more, highlight the fact that agencies with deep experience in interactive technologies can leverage their unique expertise to expand their business by creating contextually relevant and engaging interactive out-of-home digital creative for their clients.
Web-based rich media content is perfect for out-of-home digital media
The creative required for out-of-home digital ads is different than the creative used in traditional billboards, newspapers or TV. The animation typically used in a digital ad makes it a far more compelling medium than a traditional static billboard or newspaper ad. And while out-of-home digital media content can be full-motion video, the traditional 30 second television spot is less effective creative for digital out-of-home. A shorter spot with a clever combination of text and motion graphics, common on the internet, is often more effective. In addition, it is far less expensive to create a web-based, rich media ad than a 30 second television spot.
Advertisers are synchronizing internet advertising with out-of-home digital media campaigns
By synchronizing their out-of-home digital media advertising campaigns with online ads, advertisers can maximize the impact of their ad dollars. This is particularly true for advertisers targeting the hard-to-reach 18 to 34 year old. This age group spends more time online than any other age group today. However, when they are not online, they are on-the-go at places such as coffee shops, health clubs, sporting events or with friends at bars or restaurants. As a result, traditional media such as radio, TV and newspapers are no longer as effective in reaching this demographic – in fact, several industry sources have forecast that within five years marketers will shift up to $40 billion of media spending from traditional advertising media to new media including Internet, out-of-home digital media, cell phones and video games.
Out-of-home digital media allows advertisers to reach the 18-34 demographic where they are, while significantly improving the degree of engagement with them. By synchronizing their online and out-of-home digital media campaigns, advertisers can build their brand awareness, leading to higher message recall rates and better business impact.
As advertisers shift their ad dollars from traditional media to out-of-home and other forms of digital media, agencies that can effectively integrate interactive capabilities into the media mix are best positioned to provide advertisers with a measurable way to reach people where they are.
