Advertising DOOH 11 min read

What is Digital Out-of-Home (DOOH) Advertising? Key Concepts and Examples

Digital Out-of-Home (DOOH) advertising is a dynamic evolution in out-of-home marketing.

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Perion Marketing

Published on

07th Aug 2024

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Digital Out-of-Home (DOOH) advertising is a dynamic evolution in out-of-home marketing. Unlike traditional Out-of-Home (OOH) media, which includes static billboards and posters, DOOH incorporates digital screens and technology to deliver engaging and interactive content to audiences in public spaces. 
This approach enhances audience engagement through data-driven targeting, real-time optimization, and measurement. DOOH screens are often found in high-traffic locations such as shopping malls, transit stations, and urban centers, making it a powerful medium for brands to connect with consumers during their daily routines. 
Highlights

  • DOOH advertising is the digitization of traditional OOH printed billboards. It typically involves a digital LED screen and an internet connection. 
  • Programmatic DOOH is a step ahead, automating the buying and selling of DOOH screens through intelligent algorithms to streamline the process within an auction framework.
  • DOOH inventory spans hundreds of formats including billboards, localized advertising such as transit screens on bus shelters and train stations, and point-of-purchase screens
  • DOOH is unmissable and unskippable by nature – it grabs attention without being intrusive and allows for visually stunning content.
  • DOOH can be bought directly or programmatically. The latter simplifies the exchange process and is enhanced through data and computer science. 

How is DOOH Different From OOH

Out-of-Home (OOH) advertising is commonly found across several locations such as roadside panels and billboards, spectaculars at popular intersections, place-based such as elevators, businesses and gyms, and retail environments such as malls and in-store. The creative is static and is not dynamic, is oftentimes high-impact and bold, geared to captivate the attention of audiences at scale. 
Digital Out-of-Home (DOOH) advertising refers to the digitization of OOH screens and involves dynamic digital media that appears in public environments such as digital billboards, including digital signage screens you can find at retail stores, inside elevators, at public transportation stops, and more. This creative is more easily interchangeable and is sold as a spot in the loop or impression-based.

DOOH

OOH

Dynamic

Static

Digital screens

Static panels

Requires an internet connection

Manually installed

Flexible and precise targeting

Broad targeting

Direct or programmatically sold

Direct buying

DOOH Inventory Types and Formats

Programmatic DOOH

DOOH advertising includes a variety of formats, aiming to capture the audience’s attention in busy environments, including but not limited to:

  • Large Format Billboards: You can find these in high-traffic areas, such as highways, urban centers, and major intersections. 
    1. Roadside and Urban panels: Screens installed across urban landscapes such as roadsides, sidewalks, and other common areas in cities.
  • Place-based Advertising: These are screens located at specific points, like gyms, businesses, elevators airports, and shopping malls. 
  • In-store Displays: Screens placed in retail environments near or at the point of sale (POS). They can influence consumer decisions right before finalizing the purchase, which makes them effective in promoting impulse-buying products. 
  • Transit Advertising: Digital screens on buses, and trains, or at stations and stops which reach commuters and travelers. 
  • Interactive Screens: Touchscreen displays in public spaces used for interactive campaigns which usually collect data in real-time. 

Digital Out-of-Home (DOOH) advertising is versatile in its inventory types and formats, seamlessly adapting to different audiences, campaign goals, and budgets. Options range from large, expansive billboards to smaller bus-stop digital screens, offering nearly endless possibilities. 
Programmatic DOOH takes the process a step further. Until recently, the process of buying DOOH ads was not different from buying traditional OOH advertising. Buying the media space was done directly from the publisher or screen operator via an insertion order (IO). Programmatic DOOH (pDOOH) drives several efficiencies by automating the buying, selling, and delivery of OOH advertising. 
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How Does Programmatic DOOH Work? 

Programmatic DOOH (pDOOH) operates similarly to other programmatic advertising channels, utilizing algorithms and automated processes for buying and selling ad space. 

The media buyer uses a Demand-Side Platform (DSP) to purchase ad inventory through an Ad Exchange, which connects them to various Supply-Side Platforms (SSPs) that represent the media sellers (publishers). This automation increases efficiency, flexibility, and precision in targeting audiences for DOOH campaigns. 

 

 

 

What Are the Benefits and Challenges of DOOH?

DOOH’s popularity has grown recently, and it is forecasted to surpass 40% of the OOH global market in 2024 and reach a revenue of $29.8 billion in 2029.

Digital out-of-home

So what makes DOOH media so popular? Here are a few highlights: 

Benefits of DOOH

Versatility, flexibility, and impactful are the main advantages of DOOH advertising. Let’s review some key benefits of starting a DOOH campaign. 

 

  • Flexibility and reach, allow brands to engage audiences with bright, engaging, and unmissable content in a variety of locations. 
  • Better visual potential: Digital screens, unlike physical billboards, can quickly showcase stunning visuals. They offer brands numerous opportunities to engage audiences through technology and creativity.
  • Grabs the audience’s attention without being invasive: DOOH displays exist in the audience’s surroundings without being in their personal space, achieving what online ads usually can’t—attract the audience’s attention without being intrusive.
  • Are unmissable and unskippable. Avoiding typical disruptions in online ad delivery such as ad blockers, DOOH is an unskippable medium with strong evidence that they reach consumers, as noted in a recent study by the AA.
  • When powered by programmatic, DOOH allows more accurate audience targeting and retargeting. Programmatic DOOH combines data such as geographic location, audience demographic, and audience behavior insights to better understand the audience preferences and interests and reach them at the right time, in the right place, with the right message.

 

Easy and accessible: From planning to execution of a campaign, programmatic platforms simplify many processes, saving you time and energy. Makes it easy to optimize the campaign in real time, delivering meaningful outcomes.

Global scale: Whether buying in one or multiple markets, the right programmatic DOOH platform can provide access to global supply at the click of a button. 

 

Challenges of DOOH Media 

Digital Out-of-Home comes with its own set of challenges. As versatile as it is, there is always room for improvement. Here are a couple of hurdles advertisers should consider when starting a DOOH campaign. 

  • Requires consideration in the creative process

Campaigns are often created with one, or a select few mediums in mind. It is important the DOOH is a consideration at the conception level for campaigns to thrive. Inclusion in the creative process only further guarantees the success of a truly cross-channel campaign. 

  • Cross channel measurement 

DOOH is a one-to-many medium, unlike mobile and online which are one-to-one. Measurement requires an understanding of impressions that equate to each channel specifically, luckily, most DOOH DSPs have impression multiplier solutions to help compute the impression-per-play of an ad. 

Benefits of pDOOH for Publishers and Advertisers 

When activated programmatically, this innovative medium works dynamically and is enhanced by unique targeting and measurement capabilities in real time. Building on the benefits of Digital Out-of-Home, a programmatic DOOH campaign offers benefits for advertisers and publishers as well: 

Publishers

Advertisers

Can monetize unsold inventory and expand the pool of potential customers

Have more control over campaign parameters

Have more control of inventory, from location to format.

Can optimize the campaign in real-time

Can measure the success of content served across owned inventory

Can reach more audience datasets and customizable segments

May have additional income streams for unsold inventory.

Can buy across multiple publishers at the same time

Allows to measure the impact of ads through footfall attribution

How to Measure the Success of Your DOOH Campaign? 

One of the key questions when starting a DOOH campaign is how to check if it’s successful. There are several key performance indicators (KPIs) you can use when setting up your campaign to measure success: 

  • Delivery KPIs and impressions completed
  • Reach & frequency metrics
  • ROI or ROAS or lower funnel performance metrics
  • Brick-and-mortar visitations
  • Brand lift metrics

3 Best DOOH Campaign Examples 

DOOH campaigns can show outstanding creativity and deliver stunning and eye-catching results. Here are three of the best examples of 2024. 

1. Fire and Emergency New Zealand’s DOOH Campaign by Perion’s Hivestack.

Best DOOH Campaign Examples

Fire and Emergency New Zealand aimed to increase awareness of fire prevention among locals and prevent wildfires among tourists. The campaign in New Zealand used 90 large-format digital billboards and 209 gas station screens. 

Hivestack, collaborating with MBM, designed a campaign that used geofencing in rural and urban areas to target audiences around DOOH screens. 

The creatives used a recognizable image, the “Half Grapefruit”, to present the current fire risk. The content was dynamically adapted based on fire-risk assessments and geofencing. For example, presenting messages like “Check it’s alright before you light” in areas where the audience might make BBQ and outdoor fires.

The API endpoint provided by NIWA ( New Zealand’s Environmental Science Institute gave the Hivestack DSP accurate and timely risk observations to display the right message at the right time and the right location. 

What were the results? 

While the goal was to achieve an awareness of 75% of people, the campaign reached 85% of people evaluating the fire risk before engaging in activities that may risk fires. 

2. Helena Rubinstein Omnicon Media Group (OMG)

Helena Rubinstein Omnicon Media Group (OMG)

 

L’Oreal luxury skincare brand, Helena Rubinstein, wanted to promote their new product, “POWERCELL Youth Reinforcing Serum” in Hong Kong. The brand launched a programmatic DOOH campaign to boost product awareness and increase footfall in local stores. One of the brand’s goals was to accurately measure the effectiveness of the campaign. Programmatic DOOH was the perfect choice to achieve all these goals. The one-month campaign utilized target marketing to achieve maximum impact, effectively measuring success for future initiatives. 

 

What were the results?

The campaign generated over 2.5 million impressions and won Gold at the Drum Marketing Awards APAC. The Footfall Lift Study (FLS) indicated a 382% increase in product awareness, a threefold increase in in-store visits, and a 231% rise in new customer recruitment. 

 

 

 3. Monet’s Garden – Hivestack 

Monet’s Garden – The Immersive Experience expanded to Sweden after presenting in New York, Vienna, and Zurich. SINE Digital used the Hivestack platform to launch a programmatic DOOH campaign across key locations in Sweden. The campaign aimed to boost interest and drive foot traffic. It featured eye-catching digital creatives that offered potential visitors a preview of the immersive experience. Hivestack’s “custom audience” feature targeted individuals who had previously visited similar attractions, like museums and exhibitions. The campaign was displayed on DOOH screens in various environments, including bars, malls, airports, and subway stations across Stockholm and nearby areas. 

What were the results?

A Footfall Study evaluated the campaign effect on visits to Monet’s Garden. The results showed the visits increased 4.28 times, with a 328% increase in attendance from the exposed group compared to the control group, surpassing all key performance indicators. 

What’s Next for DOOH? 

Digital Out-of-Home advertising continues to evolve with technological advances, offering exciting prospects for brands. Here’s what we can expect in the following years: 

  • DOOH in omnichannel marketing 

Programmatic DOOH facilitates integrating it with other marketing channels to create a cohesive brand experience. Cross-device with mobile marketing, for example, leverages the strengths of both mediums. This synergy enhances overall campaign effectiveness, ensuring consistent messaging across multiple touchpoints. 

  • Interactive screens

Touchscreens or gesture-based interfaces, increase engagement and create memorable experiences for their audiences. 

  • Social media integration

DOOH allows for real-time interactions, such as live updates, social media integrations, and fostering a direct connection between brands and consumers. This immediacy enhances brand loyalty. 

  • Gather real-time data

Modern DOOH campaigns don’t end with displaying ads, they can also collect and analyze data in real time. Marketers can use these data to get insights into consumer behavior and campaign performance. This data-driven approach allows for swift adjustments and optimization, increasing campaign effectiveness. 

  • The impact of AI in DOOH

Artificial intelligence has also arrived at DOOH, enabling personalized content delivery and predictive analytics. AI can optimize ad placements, tailor messages to specific audiences, and analyze vast amounts of data for improved decision-making. 

Take the next step in your DOOH campaign with Perion’s expertise. Contact our experts. 

 

Request more info today

 

 

FAQ

Why choose programmatic digital Out-of-Home advertising?

Programmatic Digital Out-of-Home advertising (DOOH) dynamically targets audiences with personalized messages, real-time updates, and interactive content, making it a powerful tool for engaging consumers in public spaces. 

Is DOOH advertising effective?

Research proves that DOOH is effective in engaging audiences and enticing action from viewers. According to the Out-of-Home Advertising Association of America, 73% of consumers are favorable to DOOH ads. 

What is the difference between DOOH and digital display advertising?

Digital display advertising refers to any type of online ad, including mobile, or computer ads. DOOH is the digital answer to traditional Out-of-Home advertising. The term refers to digital media you can find in public places. 

Who is the best audience for DOOH?

Essentially anyone who leaves their home. When leveraging programmatic DOOH technology the entire campaign planning is built around the audience using data to understand the highest indexed screens to reach the target audience. 

The Bottom Line 

Digital Out of Home (DOOH) advertising represents the evolution of traditional outdoor advertising by leveraging innovative technology to deliver interactive, dynamic, engaging content. Future trends in DOOH include increased use of AI and machine learning to optimize ad placement and audience targeting. 
Programmatic DOOH, in particular, offers significant benefits such as automated ad buying, precise targeting, and real-time performance measurement, which makes DOOH a highly efficient and effective advertising technique. The advances in technology, for example with 3D and interactive displays, will continue to transform the advertising landscape. 
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