The ways the digital and the technology are changing the OOH
source: Screen Media Daily
Digital out-of-home is no longer standing by and being just a follower or a passenger. It has changed the face of outdoor advertising – and the future’s looking bright for this medium. According to the Advertising Association/Warc Expenditure Report, quoted by Campaign, DOOH claimed a 31% share of total out-of-home adspend in 2015 – set to rise to 40% in 2017. And PwC predicts that DOOH advertising revenues will overtake traditional spend in 2020, growing at a rate of 15% a year for the next four years.
“It’s no surprise, then, that in a 2016 Ocean survey of executives from media agencies and outdoor specialists, 86.3% identified DOOH as having the biggest growth potential over mobile, video on demand and other media channels. That growth is being fuelled by a rapid expansion of DOOH inventory, new technologies and innovative creative that plays to the medium’s strengths,” added the famous advertising magazine.
Taking a look at the Romanian situation, several major industry specialists agree that the main international trends are around digital OOH media. More and more of the OOH trades will go programmatic, following the development of more advanced markets where programmatic OOH is already a norm. Moreover, it’s very likely that the virtual and hologram revolution which began this year, fueled by large international technology players like Google, Facebook and other mobile technology firms, will be the beginning of a significant new trend in OOH reality, overlapping with a virtual reality experience.
The advantage that digital OOH has over traditional OOH is that one can better control the programmatic process, granting more flexibility in everything, from planning to the display of ads at a specific moment, in a desired context, to a desired audience.
Another big trend in the OOH industry nowadays is that OOH programming will help DOOH to grow faster than expected. Moreover, programmatic advertising doesn’t belong to only one media channel; it can be extended from online and mobile to other media, like TV, radio and OOH. And all media must be very well measured in order to be traded in a programmatic way.
More trends and influences that the marketers must watch for in DOOH are:
The number of digital screens will increase significantly due to several factors, including the significantly lower cost to produce LED screens.
source: Digital Signage
New developments in hyper-targeting. OOH planning systems are integrating with data sources including mobile carrier data, online browsing behavior and shopper purchase records. Marketers will be able to utilize OOH to target micro-specific segments on the move.
Real-Time OOH trading will steadily increase, as more OOH vendors integrate inventory into demand-side-platforms. The format’s ability to target consumers in real-time based on previous location histories has led to automotive, travel and retail advertisers dipping their toes in the water. Location-based mobile and digital out-of-home media are part of a larger multiscreen ecosystem that effectively amplifies brand messages to create a deeper level of engagement with active consumers.
source: Bell Media
OOH will become more intelligent as forward-thinking brands take advantage of developments in Internet-connected screens, facial/object recognition and external data feeds. A convergence of art and science will lead to OOH creative that self-optimizes based on how people react. Dynamic content triggered by data feeds already allows advertisers to change creative in real-time based on external conditions including CRM data, weather, sports scores, traffic and social media sentiment.
Beacon adoption will grow, focused on analytics. Smart marketers will utilize Bluetooth Low Energy Devices (beacons) for data collection to gain a better understanding of their customers’ in store behavior. Large retailers already have rolled out beacons across their network of stores; this provides a wealth of valuable data such as popular products and aisles, with the ability to track store promotions right to the register.
Targeting drivers. Car manufacturers are the early adopters of smart billboard technology. In partnership with OOH Media, Porsche launched the world’s first interactive billboard campaign in Australia in January 2015. It used image recognition software to detect Porsches and display a company ad saying, “It’s so easy to pick you out in a crowd.” Lexus followed suit later in the month with a similar but more sophisticated Australian ad campaign. It used an algorithm to match vehicle information with environmental information, such as local traffic and weather conditions, to generate 80 variations of the same ad.
Porsche is teaming up with video surveillance software manufacturer Milestone Systems and IBM Analytics to deliver targeted billboard ads to specific vehicle models on their way to Australia’s Melbourne airport. These smart billboard software applications do not yet identify specific drivers, but Sydney University of Technology professor Jim Macnamara says that is coming soon.
In the United States, some smart billboard ads are targeting drivers based on speed. For instance, in 2014, Cisco used a billboard near San Francisco International Airport to promote its Cisco Live event by delivering messages of varying length, with faster drivers getting shorter messages.
OOH will be a core part of social and mobile strategies, and we will see more campaigns with OOH as a centerpiece. Coca-Cola launched an integrated digital campaign in Times Square as an extension of its hugely successful “Share a Coke” campaign, incorporating large digital billboards, Google search data, mobile and a socially activated call to action.
OOH will start being recognized as a direct response medium. As cardless payments including mobile payments gain traction with merchants, consumer usage will increase beyond early adopters. This boom in contactless “card-free” mobile payments is forecast to more than double this year, and over the next five years, U.S. mobile payments alone are forecasted to grow from $52 billion in 2014 to $142 billion by 2019 (Forrester). OOH will increase its relevance along the consumer journey; a format perceived primarily as a brand-awareness driver can now become an instrument in driving real-time purchase.
“OOH offers audience reach opportunities unsurpassed in the media landscape, particularly reaching young and upmarket audiences. The blurring of media boundaries, epitomised by the digital OOH landscape and the rise of mobile, should offer smarter solutions to brands feeling the pinch or exploiting consumer sentiment opportunities, particularly those targeting millennial audiences and expecting an immediate response,” concludes talonoutdoor.com.
The best media mix for your brand in 2017
The media market is changing under our eyes, each year bringing something new. It’s more than obvious that, even if you are representing a smaller brand, it’s not enough to rely on a website or social media page alone if you want to be competitive in the marketplace. Moreover, the media channels that used to work very good for you two or three years ago may very well not be the best ones to use anymore.
According to Initiative and their report Media Fact Book 2016, in Romania the TV continued to be in 2015 the rising engine of the media market, having a push of volumes of 7 percent compared to 2014 and reaching the EUR 212 million margin. Other channels that grew were the online (a boost of 12 percent and reaching EUR 57 million) and the radio (a 5 percent boost, until EUR 19 million). The OOH remained stable at EUR 28 million. Moreover, Initiative estimated that the media market would reach in 2016 EUR 351 million this year, following a 6 percent growth. The evolution on each channel is similar to the one in 2015 – the TV market will grow with 6 percent, the online with 12, the radio with 5, while the OOH will remain the same and the print would continue to drop still with 10 percent. In this context, the approaching of the digital next to the TV in the consumers’ preferences are, the amplitude that the mobile took, the influence of the multi-screening or the forever bigger importance of the content’s quality has over the rise of the media budgets.
With a well-chosen media mix, you can build the kind of name recognition and buzz for your company that isn’t possible with single-pronged approach. A mixture of owned, paid and earned media will help ensure your marketing efforts are reaching your target audience.
Consumers want brands that are useful and accessible, and most of all, entertaining. Marketers will continue to pull out all the stops to counter declining ad receptivity. In 2017, we’ll see more branded content and less regular advertising. Get ready for more native content, short and long form video, branded filters, and emoji and PR stunts. But it won’t end here. The specialists forsee that the marketers will forge ahead with new technologies such as 360 video, augmented reality, virtual reality and artificial intelligence (chatbots performing customer service and sales functions), making the landscape ripe for new creativity. Marketers will also closely monitor effectiveness as studies start to show which formats consumers find annoying and intrusive, particularly on mobile.
These advancements create new challenges for marketers. Far from a controlled consumer view of a brand (TV, outdoor, instore), marketers will face multiplatform, multi-device, in and out of walled gardens, all differently experienced by every consumer. Geotargeting will be seen as a commercial opportunity and Snapchat itself is using geofilters to let people know where to find a Snapbot vending booth. Brands will move quickly into customized/personalized creative content, delivered in a targeted way via programmatic buying. We will see more sequential content as marketers consider using retargeting for a more strategic and persuasive catenation of consumer messages.
In a media landscape of ongoing dramatic change, advertisers will more aggressively adopt multiple media alternatives to reach and connect with their audiences throughout 2017. Synergies will become more important than any single channel and the collective weight of all channels put together. Marketers will be focused on understanding the role each media plays within a broader plan and how they rub off to produce synergistic effects. The concept of synergies has been around for some time but what has changed is the planning aspect and the application of a discipline to the selection of channels to maximize its impact. Cross media studies conducted by Kantar Millward Brown show that globally 25% of media effectiveness has been attributed to synergies, and nearly 40% in APAC. These numbers are not only growing but increasingly we are seeing non-TV synergies emerging as advertisers and agencies start to get their heads around this. The two broad parameters needed to leverage synergies are – creative synchronization and media duplication and phasing.
source: Digital Land
„A “big idea” is important for creative synchronization to occur, but it’s also about adapting the message to the medium and following a common theme across a campaign. For example, it’s unlikely that a 30 second TV ad will work as well on YouTube or Facebook because these media have different characteristics. But they offer opportunities for forming different kinds of relationships that meet consumer needs at different times and occasions. Optimising media duplication and phasing can go a long way in driving synergies but as a first step, marketers will need to ensure that every medium has a role to play within the broader media mix. Roles will be in terms of driving ‘reach and or frequency’ or various aspects of how people think, feel and make decisions about the brand,” said Straford Rodrigues, Media & Digital Director, APAC at Kantar Millward Brown.
Therefore, every brand needs to create its media plan accordingly to its target, expectations and business plan. The strategy is more important than ever: setting clear objectives, finding the right opportunities, integrating your message and your true content, exploring, creating, producing and measuring.
Apart from the media planning itself, don’t forget the fact that the content is the KING and it needs to be as powerful, sincere and creative as possible.