In plain words, digital out-of-home (or simply DOOH) advertising is a type of advertising, which is digitally displayed across outdoor public spaces (e.g. on the streets, transport stops, in shopping malls, or else).
DOOH Ad Specifics
- Pricing Models
Quite predictably, DOOH advertising doesn’t imply the use of CPM or CPV pricing models and utilizes the concepts of “share of voice” (percentage of inventory, bought by an advertiser/ad network for ad display) and “loop frequency” (buying multiple ad spots in a loop) instead.
- Direct vs. Programmatic Ad Deals
While the industry is demonstrating gradually greater interest towards the programmatic DOOH approach, which should drive ad optimization speed & flexibility, the DOOH ad segment is mostly about premium direct ad deals, with no complete programmatic ad buying infrastructure having been introduced market-wide yet.
- Ad Targeting
The targeting specifics in the DOOH niche implies the lack of conventional audience targeting tools (i.e. targeting viewers by their device OS, IP address or ad IDs).
Instead, the scope of audience data, available to marketers includes general location demographics and day-parting trends, usually combined with IR sensor data, mobile location information and instant weather updates.
Benefits of DOOH Advertising
Initially emerged from the printed OOH banners, DOOH advertising somewhat brings “offline advertising online”, which makes it an exceptionally lucrative niche for marketers.
Namely, DOOH advertising enables taking advantage of online ad tech, like audience targeting, while being immune to ad blocking and skipping, which makes it a ~100% viewable, unavoidable alternative to online rich media and video ad creatives.
Certainly, DOOH ads require high quality of creatives, as well as exceptional relevance of the advertising message itself to prevent viewers’ ad blindness and keep them engaged with the ad. Yet, their ability to ensure unparalleled viewability is a big Plus.
More importantly, the concept of DOOH implies ad delivery in a brand safe environment, which potentially makes it a valuable part of a successful omnichannel marketing campaign (in tandem with YouTube ads, outstream video, CTV advertising campaigns, and more).
As for the future perspectives, most analysts agree that the continuous evolution of VR/AR and 5G tech will inevitably fuel the development of the more advanced, data-driven and highly-interactive DOOH ad units.
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Learn more about actionable metrics measurement in digital video advertising in the AdPlayer.Pro guide on our blog.