The future of OOH

by carly_mchugh | 1 December 2022 5:30 pm

By Scott Mitchell

As we wrap up 2022, it is crucial for media owners and brand marketers to reflect on the challenges, trends, and successes they experienced over the past year, to accurately plan and predict what is to come for the advertising industry. Dynamic creative, a focus on sustainability, the expansion of audio out-of-home (OOH), and even the emergence of advertising in the Metaverse, are just a few of the advancements likely to continue their evolution in 2023
and beyond.

When it comes to making lasting impressions, OOH media is a no-brainer for marketers who want to integrate their brand into a consumer’s daily journey, in a way which yields maximum impact for the brand with minimal disruption to the consumer. In fact, by 2026, digital out-of-home (DOOH) advertising is anticipated to grow by 10.3 per cent and reach a global market size of US$33.3 billion (C$42.7 billion)—up from US$16.7 billion (C$22.1 billion) in 2019.¹

In light of this development, it is critical for sign owners and operators to keep their finger on the pulse of trending advertising best practices, to ensure they are aligned with the future of OOH and are using it in the optimal way for their clients.

Adapting to financial uncertainty

Earlier this year, as pandemic restrictions loosened, many advertisers had to address a unique challenge to realign with shifted consumer behaviours. This also presented an opportunity for media owners to re-engage with brands looking to grow along with their target audiences.

Later, rising interest rates and a looming recession became the underlying reasoning behind most business decisions. As we move forward into the new year, it is important advertisers continue to consider these factors when selecting the appropriate media to meet brand and consumer needs.

Flexible advertising strategies

After multiple shifts in 2022, some brands have been unwilling to commit to large-scale, locked-in investments. This is where programmatic offerings come into play. Programmatic DOOH advertising has the added value of flexibility and can accommodate tightening budgets and resources while still retaining customer loyalty. It offers marketers an opportunity to shift campaign messaging, allocate budgets across various advertising mediums, and even pause, shift, and reduce spending as necessary. In fact, programmatic DOOH has been on the rise, thanks to its flexibility, targeting, and measurement capabilities. Sixty-seven per cent of media buyers say the flexible buying options are a major reason for considering programmatic DOOH.²

Maintaining brand loyalty

Investment in DOOH real estate is key to flourishing with clients in 2023. Brands need to advertise to retain brand loyalty—especially in times of uncertainty—but they want the flexibility to do so without commitments and on short notice. These moments of uncertainty are when consumers tend to change their behaviour to identify other options which are better aligned with their location, budget, and values. Brands that neglect to invest in brand equity may see the short-term benefits to their budget, but they will risk a long-term decline in sales. On the other hand, this could be a game changer for challenger brands, as it provides the opportunity to entice consumers with a new deal by ramping up on advertising when others cut back.

Emerging advertising trends 

Dynamic creative and video

With consumers’ attention being pulled in multiple directions, as well as the need for constant stimulation, dynamic creative and video advertising are some of today’s most powerful digital marketing tools. By leveraging video content in DOOH, for example, brands can even utilize their existing high production assets and activate them in a larger omnichannel capacity. Not to mention, dynamic creative unlocks personalization at scale for marketers, allowing them to advertise live sports scores, weather and traffic updates, promotional offers, localized imagery, and more. This type of creative flexibility allows for messaging which can be highly tailored for relevance in a specific moment in time.

Looking into 2023, we can expect an even more heightened focus on creative assets in data-driven campaigns and programmatic activations in relevant environments, such as grocery stores, restaurants, and gyms. Programmatic DOOH is increasingly becoming top-of-mind for media buyers, especially with the concern of tightening budgets.

Sustainability in OOH

Addressing the global climate crisis will rightly be an underlying consideration in the OOH industry well beyond 2023. When we think about the flashy DOOH billboards that catch our eye, we also have to think about the energy it takes to power them. As a result, we are starting to see some of the top advertising companies in the world announce plans to reduce their carbon impact, in terms of developing, producing, and running advertising. This is sure to only gain momentum in the coming years, with advertisers prioritizing their investment in responsible media.

The Metaverse opportunity

This past year has been huge for the Metaverse, and brands like Chipotle and Miller Lite have already started to implement test-and-learn consumer experiences. When we look at those successes, there may also be an opportunity to approach OOH media in ways which are not subjected to the limitations of the physical world, while combining the one-to-many nature of OOH with direct, personal interactions in the digital sphere. We are still in the early days of OOH advertising in the Metaverse, but there seems to be unlimited possibilities for advertising space in virtual worlds.

Audio OOH

Audio OOH is an emerging category within the OOH media landscape. It offers a strong opportunity for brands to influence consumers with engaging messaging, seamlessly blended into a retail environment. With platforms specializing in audio OOH, advertisers can buy audio-only inventory on an OOH exchange, including musical playlists, paid commercial spots, and brand messaging. By activating this type of advertising, retail marketers are furthering their impact on immediate purchase decisions by reaching shoppers directly through a unique auditory experience.

Looking at the year ahead

As media buyers address the ongoing challenges of inflation and other economic issues going into 2023, emerging trends like dynamic creative, sustainability in OOH, the Metaverse, and audio OOH will continue to expand the opportunities for sign owners and operators. In light of recent global, social, and economic shifts, brand marketers will be looking to OOH advertising to engage with their target audiences consistently and effectively—and ultimately yield a high return on investment. 

Notes

¹ For more information, visit https://www.prnewswire.com/news-releases/insights-on-the-digital-out-of-home-advertising-global-market-to-2026—increasing-adoption-of-arvr-is-driving-growth-301317637.html.

² For more information, visit https://info.vistarmedia.com/blog/nine-facts-about-dooh.

Scott Mitchell is managing director for Canada at Vistar Media, a provider of programmatic and software solutions for digital out-of-home. Since joining Vistar in 2017, Mitchell has launched the Canadian office and grown operations to a fully staffed team with strategic partnerships across the entire programmatic landscape. Prior to joining Vistar, he held positions at TubeMogul (now Adobe) opening Canadian operations and working with agencies, as well as in the Enterprise (SaaS) business working with brands directly. Mitchell also worked at Yahoo! Canada, leading the consumer packaged goods vertical. For more information, email info@vistarmedia.com.

Source URL: https://www.signmedia.ca/the-future-ooh/

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