Learn About Emerging DOOH Market in The USA

The emerging DOOH market in the USA

 

 

2019 is certainly going to be a banner year for DOOH in the USA. It is the single traditional or you can say conventional media category that will exhibit tremendous growth. The figures are expected to gross up about $33.5 billion. Growth rates are expected to rise by +3.4%. The success drivers of out of home advertisement are digital signs and other digital out of home products. For the year 2018, these success drivers grew by 16%.

 

Explaining DOOH in a simpler way

 

                                  DOOH market

 

DOOH is an abbreviation for digital out of home. It means dynamic media allocated across place-based systems and networks in multiple venues. It includes kiosks, gas stations, transit points, malls, roads, educational institutes, fitness centers and much more. Their application is immensely diverse. DOOH can be characterized by 2 major platforms digital billboards & signage and digital place-based networks (DPN). DOOH products work on the principle of mutualism. It simply means that it benefits both the owner and advertiser exactly in the same way. It does so by engaging the target audience and effectively deliver the content. Enhanced access of media to masses is the key feature of these digital out of home advertisement. They are also known as digital signage.

 

Why the DOOH market is progressing in the USA

 

People in the USA have more refined choices than others. They always prefer to clutter free stuff since they are time savvy. DOOH is gaining pace because it’s greatly impacting and mess free. It is also hassle-free as compare to conventional mediums. You can simply skip ads running on televisions. Additionally, TV has cable cutters too. Digitals may have view ability issues and frauds. Luckily, DOOH ads can neither be skipped nor fast forwarded.

 

DOOH market is also growing since it works on the principle of content first strategy. It simply means that it retains and engages the viewers to go through the ad message. People normally act blind to traditional static billboards. They are also known to suffer from ‘’head down disorder’’. Why? Because they are fully occupied with their smartphones and social apps.

 

DOOH market is boosted because of DVRs

 

DVR stands for digital video recorders. Since life today is so fast, it is simply impossible to lay back at the couch and view commercials in the same old way. DVRs have made it possible to skip all this time consuming commercial activity. As a result, commercial viewership like we used to have in older days have dropped tremendously. As per the results of Nielsen Media study carried in 2009, 91% of DVR owners prefer to skip commercials and they follow the habit in routine. Thus, conventional TV advertisers are always hunting for effective alternative and digital out of home is the most appropriate solution. Do you know advertisement through billboards and LED displays are much cost-effective advertising solution than radio, TV, print or any other media form?

 

OOH advertising industry in the United States

 

In the United States only out of home advertising include above 2100 operators working in 50 states. They are representing well the OOH categories. These DOOH advertising agencies include almost all sort of businesses. They range from family-owned, SMEs to large public corporations. At present France and the UK are the largest OOH industries from Western Europe.

 

The effectiveness of DOOH ads in the USA

 

In terms of effectiveness, DOOH ads lead print media by 14% and digital search by 40%. The return on investment revenue (ROI revenue) is $5.97 for every single dollar expended for DOOH advertising. According to Forbes, DOOH advertising pushes 4times increased online activity for every dollar spent in comparison to radio, TV, or print.

 

The emerging trend of DOOH

 

Conventional billboards were the trendsetters in out of home advertising. But emerging technology and innovations led to the invention of digital billboards and digital displays. In recent times a phenomenal growth has been recorded in digital billboards placement. Approximately 4900 digital billboards have been set up in the USA and China recently.

 

Purchasing DOOH ad in the United States

 

Programmatic buying of DOOH advertisement in the United States is the latest trend. Actually, it is a software enabled-purchase with no human intervention. It eliminates the need for price negotiations, RFPs, and putting orders manually. Programmatic buying requires no or very rare communication with the media owners. Programmatic platforms require the marketer to identify the exact target audience and automatically trace the media vehicles to transmit the content to the audience. Additionally, for the buyer side, programmatic platforms provide an opportunity to plan, implement and monitor ad campaigns through several media platforms.

 

The growth of the DOOH industry

 

The DOOH industry alone in the US grew to $2.9 billion in the year 2015. It represents approximately 40.8% of entire out of the home advertisement. While the revenues gain pace and growing at 10% reached to $3.7 billion in 2017. The US is leading global DOOH industry earning about 25% of the total ad revenues. Next players are the UK, China, and Japan. Australia is acquiring fifth position in the growth chart followed by India, Taiwan, South Korea, and Argentine. DOOH industry is also making its place in under developed countries for its numerous advantages.

 

dooh market trend

 

Increased viewership of DOOH

 

Bars, restaurants, gas stations are becoming popular places for outdoor advertisement. With digital displays in gas stations almost 52million viewers are enjoying snippets of sports highlights, weather reports, celebrity insights, and advertisements. These whooping figures are for a single month. The weekly access to audience is much higher than any of the lead prime time shows. It is easier to know the target audience of such places. For instance, in the USA the drivers are normally 18- 50 years old earning over $70000 annually on average. According to studies 89% of customers at the gas station definitely watch the running content, and 88%out of them really like this habit since they have nothing else to enjoy. You may ask what about smartphones engagement. Remember! You should always switch them off on gas stations as they can play havoc.

 

Major innovation in DOOH application

 

Since 2015, DOOH has got another innovative application. In-transit advertising is something creative and appealing. Ride-sharing vehicles like Lyft, Uber, and Grab are installed with the tablets. Brands have a golden opportunity to reach highly valued customers via digital ads. The GPS feature is a great tool in tracing the customer location. Thus, the advertisement can be more targeted and precise. Brands can easily determine geo-fences to specify the right ad for the right audience.

 

Stringent DOOH regulations in the USA

 

Despite of all potential benefits, DOOH advertising in the USA is not a piece of cake. It’s something that requires close scrutiny with set policies and procedures. Let’s discuss a few of them

  • All sort of billboards are completely banned in the states of Alaska, Hawaii, Vermont, and Maine
  • The rest 46 states do allow various forms of out of home advertising
  • Government control billboards at all levels. The Highway Beautification Act (HBA) governs the regulatory framework that requires the installation of all billboards in industrial and commercial areas. Both municipal and state authorities issue billboard permits. The states as per the regulations of HBA hold authorities to even ban any billboard. Normally this happens if the displayed content is an appropriate or legal requirement is violated.
  • This is the era of digitalization. So, sooner or later digital billboards will definitely pave their way in our lives. Considering the importance of digital advertisement many states in the USA have taken necessary steps to regulate and standardize digital billboards. They normally display static content that changes every 6-8 seconds.
  • Digital billboard regulations do not allow scrolling or animation. They feature light sensors to adjust according to ambient lighting. It is to ensure zero glare.

The stringent policies and procedures are great tool to ensure that distraction for the driver is minimum.

 

Major trends relating to digital signage

 

Until now we have sufficiently covered the DOOH market in the USA. It’s time to know the trends prevailing in the DOOH industry.

 

DOOH signage goes eco-friendly

 

  • With each passing day, technology and innovation are transforming digital signs into something better and smarter. Vendors feel motivated to help customers with the finest products. Luckily besides aiming at expanding consumer base, the digital display manufacturers are concerned about the environment too. Let’s explore the potential benefits of replacing conventional billboards with digital signs.
  • Paper wastage has substantially reduced. There is no more need to reprint time and again the advertisement content. Therefore, the advertisers can easily shuffle the images and other content.
  • The total Carbon footprint all related to production and shipment of paper has reduced.
  • Very less or no use of adhesives, inks, and chemicals in the printing process.
  • The world has observed a giant leap relating digital signs that operate on minimal voltage and power. Thus, conserves energy yet avoid heat loss in environment
  • Outdoor advertising displays possess automatic brightness control feature. It regulates the brightness as per requirement. For instance it dims the screens at night or on cloudy days.
  • You can still display your content by selecting LED digital displays and signs that do not demand further air condition or heating. Low power consumption makes them cost-effective. Thus digital signs remain the best and the most sustainable option for both earth and the business.

 

Digital sign hardware trend

 

Digital signage is continuously improving in looks and weight. A million dollar thanks to hardware that is now sleeker and more powerful and robust than ever before. Brighter displays with 8k resolution are taking the world by storm. The alluring image quality is enough to mesmerize the viewer. However, the main aim is to imprint brand loyalty and ad message on customer’s mind.

 

Smarter software are the newest trend

 

Normally we go after looks and same goes with the digital signs. The large meticulous screens undoubtedly overshadow the operating systems and running software. However, computer software is an essential ingredient to display brilliant images and content. Fortunately, to empower end-user, digital sign software today are both smarter and simpler to handle. We are quite hopeful that as the innovation continues dynamic content will possibly shift from fringe to the mainstream.

 

Advance features

 

To facilitate the users, digital display manufacturers have introduced smart features like AI, mobile interaction, contention creation, live feeds and stuff like.

 

DOOH signage and smart cities

 

Whether you agree or not DOOH is really changing the overall appearance of our cities and towns. Apart from expanded business activity rapid urbanization is the real cause. It is impossible to cater growing population in current cities.

According to the survey report of 2018, 55% of the entire world’s population reside in urban areas. The figures will increase by 68% by the end of 2050. So, naturally 2.5billion people will be exploring jobs and dwelling option in already established areas.

The smart city is a unique concept in this regard. Smart cities mean areas that incorporate technology to enhance service quality and exhibit more efficiency. As DOOH continues to develop in line with environmental, technological, social and physical trends, it appears that digital signs will be compulsory part of this.

 

Don't let anybody fool you

 

From the above fruitful discussion, it is quite clear that digital signs and DOOH is the future of advertisement. The market is full of digital display manufacturers. However, unfortunately, most of them lack the premium expertise and state of the art technology. Since a digital sign is a handsome investment and runs for at least 100,000 hours you can sacrifice it. We will advise you to always pick the manufacturer operating in the industry at least for a decade. Why? Because the right manufacturer knows well the industry norms and practices along with emerging trends. One such reliable name is DAKCO who offer meticulous LED display solutions for both indoors and outdoors. Knowing the precise requirement and working condition of each display unit DAKCO excels like no other.

 

 

 

 

 

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