A Guide To Digital Out Of Home Advertising: Staying Ahead in the Digital Age

Outside LED Screen Display Board

Digital signage usage has gained popularity amidst technological advancement. Digital displays are essential for businesses to enhance their digital presence and stand out from competitors. The general use of LED digital display screens to show various visual content (images, videos, animation text, and more) is considered digital signage. Digital signage are utilised in various scenarios, including advertising purposes, information sharing, entertainment, and even education.

One of the most popular and effective ways to use digital signage is for digital-out-of-home (DOOH) advertising. DOOH advertising is a form of outdoor advertising that uses digital screens to display ads in public places, such as streets, malls, airports, bus stops, and more. DOOH advertising has many advantages over traditional outdoor advertising methods. For example, DOOH advertising can show dynamic and interactive content that can be updated in real-time, tailored to specific locations and audiences, and measured for performance and impact.

According to a report by Grand View Research, the global DOOH advertising market size was valued at USD 15.1 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 10.7% from 2020 to 2027. The report also states that the increasing adoption of digital technologies, such as artificial intelligence (AI), cloud computing, big data analytics, and the Internet of Things (IoT), is driving the growth of the DOOH advertising market.

In this blog, we’ll explore how DOOH advertising can be a game-changing strategy to enhance businesses’ marketing efforts by reaching desired audiences and increasing revenue. We will also discuss some key trends and best practices for using digital signage effectively in the digital age.

The Rise Of Digital Advertising and Artificial Intelligence (AI)

The digital world has evolved rapidly in the past few decades, transforming how people communicate, consume information, and make decisions. The internet has enabled people to access vast information and content anytime and anywhere. The proliferation of smartphones and other mobile devices has also increased the connectivity and mobility of people. As a result, consumers have become more empowered and demanding, expecting personalized and relevant content that meets their needs and preferences.

These changes have also impacted the advertising industry, which has shifted from traditional methods such as print, radio, and television to digital methods such as online platforms, social media, and mobile apps, according to a report by eMarketer, the global digital advertising market size was estimated at USD 506.43 billion in 2021 and is projected to reach USD 667.58 billion by 2024. The report also states that digital advertising will account for 70.8% of total media ad spending by 2025.

The COVID-19 pandemic has further accelerated digital advertising growth, as people have spent more time online due to lockdowns and social distancing measures. The pandemic forced businesses to adapt to changing consumer behaviour and preferences by adopting more digital solutions and strategies. You can witness this by observing how businesses have increased their online presence and engagement through websites, social media platforms, e-commerce platforms, and online events.

One of the key drivers of digital advertising is AI-based technologies that enable businesses to create more effective and efficient campaigns. AI is a branch of computer science that aims to create machines or systems that can perform tasks that normally require human intelligence or cognition and can help businesses in various aspects of digital advertising, such as:

  • Audience segmentation and targeting: Analyze large amounts of data from various sources (such as web analytics, social media, CRM systems, etc.) and identify patterns and insights about their customers’ behaviours, preferences, needs, and intents. This help to segment customers into more granular and relevant groups and target them with personalized messages across different channels and devices.
  • Content creation and optimization: Generate high-quality and relevant content for campaigns (such as headlines, slogans, images, videos, etc.) using natural language processing (NLP) and computer vision techniques. AI can also help optimize content for platforms and formats (such as mobile-friendly websites or vertical videos) using responsive design and adaptive layout algorithms.
  • Campaign management and measurement: Automate and streamline various tasks involved in planning, executing, monitoring, and evaluating their campaigns (such as budget allocation, bidding strategies, performance tracking, ROI analysis, etc.) using machine learning and optimization models.

Leveraging Digital Signage With Effective Marketing Strategies

Digital signage’s versatility allows businesses to attract customers in a way that is engaging and memorable while effectively promoting their brand values. By leveraging digital displays, companies can create unique experiences that leave a lasting impression on their target audience. It is essential to consider these practices to achieve the best results from digital signage. 

It’s crucial to clearly understand your marketing goals and how digital signage can help you achieve them. Once you have a solid plan, create visually appealing content that captures passerbys’ attention. Another factor for success is displaying content in strategic locations. Placing digital displays in high-traffic areas such as shopping malls or airports can significantly increase the number of people who see your message. 

It’s also important to create visually appealing, informative, and engaging content! You can use various elements such as videos, animations, graphics, text, and sound to make your content more dynamic and interactive. To keep your content fresh and unique, experiment with different media formats, such as slideshows, playlists, live feeds, or social media posts. You should also consider the context and location of your digital displays and tailor your content accordingly. Weather data, time of day, or customer demographics can be used to personalize content and make it relevant to your target audience.

QR Code Scanning Is Gaining Popularity 

The method of QR scanning has been gaining steady momentum in recent years. Based on QR TIGER’s database, QR code scans quadrupled in 2022, and in the first quarter, Malaysia ranked 8th among countries with the highest scanning activity. QR codes can be integrated into digital signage, digital displays, and LED signage, making them a powerful tool for driving customer engagement. 

The audience can quickly scan the code with their smartphones by simply displaying a QR code on digital signage or displays. Customers can access your website, social media, or special promotions directly from the digital display, eliminating the need for them to manually search for your business online or type in a URL. You can also use interactive features such as touchscreens or NFC tags to encourage customers to interact with your digital displays and learn more about your offerings. Doing so can increase customer engagement and loyalty and build stronger customer relationships.

Malaysians Spend 1 hour 12 minutes Commuting.

According to the OAAA, the average person spends 70% of their time outside their home, making out-of-home advertising an excellent way to reach a broad audience. Digital Out-of-home advertising–also known as DOOH advertising–targets consumers outside their homes. It is a highly effective form of advertising because it reaches people when they are in a receptive mindset and in a position to take action. Unlike traditional media such as TV or radio that require customers to be at home or in their cars, DOOH advertising can reach customers who are on the go or in public spaces such as streets, parks, malls, airports, or stadiums.

These locations offer high visibility, reach, and frequency for advertisers, as they can expose their ads or messages to many people who are likely to be interested in their products or services. For example, advertisers can use DOOH advertising to promote events, launches, or campaigns happening nearby or in real time. Digital signage can also help you segment your audience based on location, behavior, preferences, or needs. For example, you can use geofencing technology to send targeted messages to customers near your store or venue. 

Advertise Promotions To Generate Revenue

One way to generate revenue through digital signages or displays is to give a cut of ad revenue or invite other businesses to show their marketing content on the screens; it works great for businesses in remote locations looking to tap into concentrated audiences. Digital display screens can provide a lucrative source of revenue for businesses by displaying advertisements and promotions from other companies to offset the costs of implementing digital display screens and create an additional source of income. These can be done by:

  1. Selling ad space or sponsorships to relevant advertisers: Maximize your earnings by renting out your unused space, which can help cover your operational expenses. You can also establish fruitful partnerships with brands that align with your target audience or values.
  2. Cross-promoting your products or services with complementary brands: Broaden your customer reach, maximize cross-selling and up-selling chances, and elevate your sales figures. Additionally, this is an occasion to design value-added deals or packages that enhance your product or service offerings.
  3. Showcasing your social proof or testimonials from customers or influencers: Establish trust and credibility with potential customers, boost word-of-mouth referrals, and sway their purchase decisions. Take advantage of this chance to inspire user-generated content (UGC) that highlights your brand advocacy.
  4. Displaying your awards or recognition from industry bodies or media outlets: Enhance your credibility and reputation in your industry, boost your brand recognition, and stand out from your competitors. Showcase your accomplishments and successful track record, highlighting the unique value you bring to the table.

Using Digital Display Screens for Out-Of-Home Advertising Can Benefit Your Business

Businesses of any size can benefit greatly from using digital display screens. These screens enhance the customer experience, streamline operations, and increase revenue. By utilizing digital display screens, you can communicate with your audience in an engaging and cost-effective way. Take advantage of the potential benefits and explore the possibilities of using digital display screens to take your business to the next level. 

DOOH advertising is a powerful tool that can help you streamline operations and generate revenue for your business. If you’re interested in learning more about DOOH advertising or starting your campaign, feel free to contact us anytime. We’d love to hear from you and help you achieve your goals with DOOH advertising.