Digital outdoor advertising has expanded rapidly in recent years, evolving from traditional billboards to dynamic digital displays that captivate passersby with vibrant, interactive content.
Growth is not just about size. It's about sophistication. DOOH is now better integrated with cutting-edge technology, giving advertisers new opportunities to engage with consumers in real-time and real-world situations. But what can we expect to happen with DOOH in 2024 and beyond? Here are my thoughts.
Key predictions for DOOH in 2024
As 2024 progresses, DOOH advertising is about to undergo major changes due to technological advancements and evolving market dynamics. Some of the predictions shaping DOOH's near-term future include:
1. Seamless omnichannel integration
Integrating DOOH into a broader omnichannel marketing mix will redefine advertising strategies. By seamlessly merging with online and mobile platforms, DOOH is becoming a key component of integrated marketing. This integration allows brands to create a consistent storytelling experience that flows smoothly across different channels. DOOH amplifies these brand messages, ensuring consistency and engagement across all consumer touchpoints, enhancing campaign effectiveness and recall.
2. Artificial intelligence
AI is revolutionizing DOOH advertising with smarter, more efficient creative production and dynamic creative optimization. By leveraging AI, advertisers can adjust content in real-time based on data-driven insights about audience behavior and preferences. For example, AI supports more personalized messaging, such as ad content based on weather conditions or time of day.
The role of AI will also extend to improving data analysis and advertising technology, making DOOH campaigns more targeted, responsive, and effective. In the future, facial and spatial recognition could allow messages to be tailored to specific consumers or objects, such as car make and model. These options make your ads more relevant, optimize resource allocation, and maximize your return on investment.
3. Diversification of screens
The transition from static billboards to dynamic, interactive screens greatly expands the horizons of DOOH. This change will be enhanced by the use of new technologies such as holograms and augmented reality to create immersive and engaging experiences for people. By incorporating 5G connectivity, DOOH will be able to receive data faster and deliver high-definition streaming. These technologies enhance the visual appeal of DOOH while creating new ways for ads to connect and engage viewers, making them more interactive and fun.
4. Sustainability
Sustainability is currently a key focus in the DOOH industry, with further efforts being made to reduce environmental impact. Advertisers and technology companies are using eco-friendly methods such as energy-efficient LED lighting and sustainable materials. Due to a low number of impressions, the board may be turned off from 2am to 6am. We can certainly expect DOOH companies to use solar panels in the future to minimize energy usage. There is also a movement toward digital-only content that reduces the need for physical materials and reduces waste. These green practices demonstrate a dedication to caring for the environment, appeal to sustainability-conscious consumers, and improve a brand's image and appeal.
5. Scale and precision
In today's DOOH campaigns, it's important to balance reaching a broad audience while being specific with your message. Thanks to AI and machine learning, advertisers can create custom ads for large audiences without losing focus on targeted messages. This approach allows campaigns to reach large numbers of people while still catering to individual preferences and behaviors. The result is ads that are more effective and appealing to different types of viewers. This trend has led DOOH to move towards more sophisticated campaigns that combine features to reach more users for maximum impact while remaining relevant.
The future of DOOH for the rest of the 2020s
Looking ahead to the rest of the 2020s, the DOOH advertising sector is on the brink of major change due to new technology and market changes.
1. Market growth and forecast
I predict that by 2030, the DOOH market will grow significantly and could reach billions of dollars in size. This expansion will be driven by an increase in digital displays in public spaces, better screen technology, and a preference for dynamic advertising over static advertising. Combining DOOH with mobile and online advertising is also playing a big role in this growth, allowing for more granular and trackable campaigns.
2. Technological progress
The future of DOOH is closely tied to technological advances. Upcoming technologies such as 5G, Internet of Things (IoT), and advanced data analytics will make DOOH advertising more effective and widespread. These technologies will lead to more interactive and data-focused advertising, giving advertisers new ways to engage and understand their audiences. This advancement in technology also opens up new, creative and efficient ways to use DOOH advertising.
3. Regional analysis
DOOH is growing in various forms around the world, with Asia Pacific and North America at the forefront. Asia Pacific is growing rapidly with fast-paced urban development and digital upgrades, while North America is driving new technologies and creative ideas. These regional differences demonstrate how different regions are adopting and innovating with DOOH, influenced by local consumer habits, technology availability, and regulations.
4. Challenges and opportunities
The DOOH industry faces challenges such as changing regulations, privacy concerns, and the need for consistent measurement methods. However, these challenges also provide opportunities for growth and the opportunity to implement new ideas. Advertisers and technology companies can take the lead in solving problems, such as creating privacy-friendly data collection methods and standardizing how DOOH effectiveness is measured. Addressing the challenges is critical to advancing the industry and realizing the full potential of DOOH.
Key points in the evolution of DOOH
As we move through the remainder of the 2020s, digital out-of-home advertising stands at a pivotal point where innovative technology meets creative marketing strategies. Its evolution promises to usher in a new era of advertising, redefining public space and providing advertisers with novel ways to engage audiences.
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The opinions expressed by SmartBrief contributors are their own.
