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%.
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.
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.
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?
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.
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.
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.
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 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.
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.
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.
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
The stringent policies and procedures are great tool to ensure that distraction for the driver is minimum.
Until now we have sufficiently covered the DOOH market in the USA. It’s time to know the trends prevailing in the DOOH industry.
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.
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.
To facilitate the users, digital display manufacturers have introduced smart features like AI, mobile interaction, contention creation, live feeds and stuff like.
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.
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.