The Second Transition of Digital Out-Of-Home

October 27, 2019
 – 
Teemu Kurri
Digital out-of-home advertising is booming. Media sales is tailing social media and SEO and the organic growth of DOOH networks has been estimated around 20–30% yearly. While the industry is still experiencing the effect of the first transition — the digitalization — we are already entering the next phase.

What is this transition and why should you care about it? Digital out-of-home has traditionally been relatively slow to adapt data-driven practices or strategies. The data revolution is now a way past its infancy and the business opportunities it creates for digital out-of-home (too) just cannot be neglected. The medium — with the help of data and AI — will in the near future be commercialised in mainly target groups not only in locations or media slots. This change will increase both the quantitative and qualitative value of the network owners’ inventory.

Historically the physical poster enabled the advertiser show one message at a time. The location can, by itself, be outstanding and a good place to reach a certain audience. Still, from the standpoint of the inventory owner the business is static — it doesn’t scale up quantitatively.

Digital out-of-home changed this logic in the first transition. Instead of one advertisement you could now display a loop of adverts. The business scaled up quantitatively. The change in business logic increased advertisers’ interest in the medium, the positive cycle started and accelerated itself. Still, a good location is scarce resource. You can’t multiply it endlessly.

As we now enter the age data and artificial intelligence, the business logic is once again about the change dramatically. This creates opportunities for both network owners and advertisers. As data about the audiences, content and context is collected and used to form different audiences and target groups for sale we optimise the use of the inventory. We are both increasing the qualitative value of the inventory by offering more and more precise target groups to audiences and the same time increase also again the quantitative value of the inventory as more advertisers can jump in and find perfect audiences. Even outside the prime locations. This is the second transition of digital out-of-home.

Microtargeting increases both inventory and reach.

We call this new phase the age of microtargeting. As DOOH networks start to understand and analyse their context, audience and also the nature of the content that is played, the target groups get more precise, granular and rich. The machine learning capabilities of the AI enables each microlocation — uniquely and as a network — to learn from the results and behaviour they produce and to optimise continuously. Ultimately, the microlocations that share knowledge not just in their own network but also between networks get really good in their work and automate the process. The future guru DOOH marketing planner will be a person that understands the logic of microtargeting and learns to use it powerfully.

At Doohlabs, we are forerunners in utilising microlocation data and designing new data-driven solutions for the marketers and network owners.

Our platform excels in gathering all the data microlocation can provide and mashing it into the actual contextual customer behaviour on site and also other available data sources.

Our AI creates intelligent and live playlists by combining & interpreting the data, tagging ads automatically with advertisers’ metadata and different attributes such as tone, sentiment, profile, etc). These live playlists are adapted in real-time to changing the context of the microlocation displays in the network.

Get in touch and let’s discuss how we can improve your bottom line!

www.doohlabs.com