Digital marketing has disrupted the Out of Home (OOH) industry. Agencies have been pouring more budgets in Facebook, Youtube and other digital channels. Many brands shifted their strategies and lessened their OOH implementations.
Challenges of the OOH industry
* Lack of Measurements– there are a lot of data that can be extracted in digital. Age, demographics, impressions, views, etc. Many marketing executives require data to measure the ROI and impact of their campaigns. Getting these data prove to be a challenge when it comes to billboards/lampposts. This what makes OOH less attractive with many advertisers.
* No Ads Targeting– the struggle with OOH is marketers can’t run ads targeting compared to its digital cousins. You can’t target billboards and lampposts to display ads relevant to the demographics of its viewers. You can’t do targeting by age and gender. Many brand managers feel that this is not efficient and is wasting a lot of their budget.
* Limited Engagement– Unlike its digital counterparts, there is no call to action or engagement metrics that could be easily tracked through traditional OOH. Facebook has inquire, book and buy buttons that drives people to convert. Instagram has comments feed that allows brands to measure engagement of their contents.
Given all these challenges, how can OOH cope up with these changes? How can media planners leverage new technologies to make out of home more relevant to their clients?
The Answer is in Technology
Artificial intelligence and facial detection are promising techs that will innovate the OOH industry. Combine them with devices like tablets, kiosks and touch-based LEDs, you will see a truly smart digital out of home (SDOOH).
Through facial detection, these devices use cameras to identify the age and gender of its viewers. Marketers can now run OOH ads targeted to demographics surrounding it. If majority of its audience is female age 25 to 35, they can run promos/contents that fit for that demographic. Facial detection is also ran by artificial intelligence. It gets smarter and more accurate in estimating demographics. The more it is getting data, the smarter it gets.
Touch-based devices allows OOH to become more interactive. People viewing the ads can now click on call to action buttons. They can get promo codes, subscribe on mailing lists, get updates via SMS. This allows OOH the ability to track conversions similar to digital.
Example of SDOOH
AdMov is one example of an SDOOH. This platform uses facial detection and touch based technologies. It is being used by companies to reach the riders of Grab and other ride sharing services.
Using the camera of the tablet, marketers can run personalized ads to the riders. They can run targeted ads based on age and gender on an OOH setting. This allows brands make their contents more relevant to the viewers. According to the study of Epsilon, 80% of consumers are more likely to do business with a company if it offers a personalized experience.
Since Admov is using tablets, companies can run ads with call to actions. They can drive and measure conversions similar to other digital channels. Large companies have used the platform to run surveys to the riders. These companies leverage it to mine valuable marketing data. The system has an engagement rate 6% to 10%.
Technology will have a big impact on OOH. It will be exciting times for media planners to explore SDOOH and provide more value for their clients. Stay tuned, we will unveil exciting new techs that can help your campaigns.
Author: Bobby Ben Davis Cristuta
Bobby is the CMO and Co-founder for Admov Philippines. He is a serial technopreneur. He is passionate in delivering emerging marketing channels and bring Manila as destination for innovative advertising technologies.