Digital out-of-home advertising (DOOH) has been on a roller coaster ride, and from its peak in 2019 has subsequently experienced a dramatic fall in 2020.
In 2019, Business Insider highlighted that DOOH is the main driver of the growth of all out-of-home (OOH) advertising in the world overall. Insider Intelligence adds: DOOH accounted for as much as 28.3% of all OOH ads in 2019.
With Covid-19 restrictions forcing consumers to stay indoors, global DOOH spending is down - as much as 16.6% in 2020, while at the same time OOH is seeing its worst revenue decline on record.
The future of DOOH advertising
What is the most interesting for DOOH? The digital technology trend: by 2025, DOOH alone is expected to reach 32% of total OOH ad spend. According to a DPAA study, 81% of advertisers will recommend DOOH in their media plans.
Currently, store traffic has returned to pre-pandemic numbers and digital technologies have seen a sharp increase. It's once again an exciting time to invest ad spend in DOOH!
Here are the 4 biggest trends mentioned in DOOH advertising. Each of them will help you understand where you should place your brand's advertising budget in 2022.
Four key trends in DOOH advertising:
- Return of traffic after the pandemic => DOOH continuously growing
- Growth of DOOH => explosive growth of digital technologies and vice versa
- Dynamic DOOH => moving to a higher level, the role of dynamic digital content
- Improvements in advertising technologies => opportunity for brand growth
Store traffic is growing worldwide. In the UK alone, according to YouGov, footfall was up 4% in October compared to September, showing positive signs as we approach key shopping dates.
These rising numbers mean that brand advertising is more widely perceived. More than four in ten people are noticing OOH more than they did before the pandemic, according to the OAAA survey, with the number of people noticing it "a lot more" up 9% from September 2020.
Recognition is also evident in the fact that OOH revenues increased by 38% in Q2 2021, with DOOH accounting for a large share of this recovery. In fact, DOOH is up nearly 80% compared to the same period in 2020.
- Return of traffic after the pandemic => DOOH continuously growing
PQ forecasts that DOOH advertising is expected to reach $25 billion in revenues by 2025. With DOOH being the main driver of out-of-home growth and accounting for 7.3% by 2025, digital advertising can expect fruitful years. But where should you focus your spending?
According to the OAAA survey, OOH ads in retail (63%), fast food (62%) and food and beverage (60%) are most relevant to consumers. Grocery stores offer the greatest opportunity, which 85% of consumers say they will visit weekly or more often in 2022. The next best destination is retail stores, which 57% of consumers plan to visit at least once a week.
Travel will continue to grow - 78% of people are expected to commute at least part-time in early 2022. Holidays and air travel are expected to be a big growth area. As many as 72% of respondents say they will travel for vacation and 51% plan to fly by air in 2023.
Given these numbers, DOOH advertising will clearly gain momentum as store traffic and travel should continue to trend upward.
2. Growth of DOOH => explosive growth of digital technologies and vice versa
Statista predicts that global DOOH ad spend will grow by $9.2 billion in 2027 compared to 2019. As advertisers invest more spend in digital advertising, we will also see OOH screens being replaced by digital.
"PwC forecasts that by 2023, the growth rate for digital out-of-home advertising will be 8.44%."
As technology becomes more and more advanced, marketing and advertising professionals need to keep up. It's no wonder that, according to the DPAA, as many as 77% of advertisers have worked to increase their knowledge of DOOH in the past 18 months.
Knowledge and insight combined with increased technical capabilities mean that digital technology in OOH can help your ROI skyrocket.
3. Dynamic DOOH => moving to a higher level, the role of dynamic digital content
Data-driven DOOH advertising is increasingly important to help your advertising creative target the right people, at the right time, and convert. This is the TOP key trend in DOOH.
To increase your brand's ROI and engage your audience, your ads must have context. Not only that, they need to be relevant and timely.
Dynamism and the use of quality data are key to achieving these things. Data from smartphones, apps where consumers are registered, smart watches and other devices will change the DOOH space. Dynamic OOH advertising can leverage location data and traffic patterns of consumers in a given area to better understand the content and advertising that might interest them.
With access to masses of content in the palm of their hands, many people today feel that static advertising simply isn't enough. The content of the ad needs to grab attention and increase awareness of the brand or product. The message and visuals must be strong enough to incite recall and encourage action to engage.
Therefore, it will be imperative for the brand marketing team to leverage data for dynamic DOOH.
The role of dynamic digital content
Video and other dynamic content consistently proves to be engaging. Therefore, it's no surprise that DOOH's ad spend will grow significantly.
When we looked at the impact of video on advertising, we found that video can deliver an 85% higher CTR compared to static advertising.
Targeting consumers on public transport, in retail establishments or generally in the world with engaging content is a winning combination. Without the choice to cancel or repurpose an ad, consumers are more likely to engage and remember your creative (and convert).
4. Improvements in advertising technologies => opportunity for brand growth
Over the past two years, there have been incredible improvements in advertising technology. From one platform, you can create compelling creative for the biggest and smallest screens. With production automation, you can reproduce your creative for all ad sizes in minutes for a true multi-channel experience.
With the Lurity platform and scheduling software, you can combine the formats that are best suited for your type of message and target group: whether it's digital displays in shopping centres across Slovakia or the Czech Republic, at the Slovak Post Office, at Coop Jednota, in a wellness centre, at petrol pumps, or simply just on LED boards.
Plus, the marketing team can check in on the campaign you've deployed or exchange visuals and videos of the campaign running in real time. No matter where your digital signage is located, your team is in complete control of the campaign.
Key insights on DOOH advertising trends:
While Covid-19 has complicated the OOH situation, BUT it has also supported and accelerated the growth of the DOOH itself.
With 2022, increased shopping and travel trends, digital growth, dynamic opportunities, and improvements in advertising technology, DOOH advertising will thrive.
If you act on these DOOH advertising trends and incorporate this clever medium into your standard media mix, you can make sure your advertising campaigns target the right people, in the right place, at the right time, on a nice continuous basis. Investing a portion of your ad spend in this evolving space will allow your brand to get a leg up on the competition and grow nicely.
Source: https://www.bannerflow.com/blog/essential-dooh-advertising-trends-2022/Back to blog