It is no secret that the development of digital technology has revolutionized marketing. The internet's growing presence in our lives and the active use of all kinds of data mean that consumers are overloaded with advertising. At the same time, marketers have to adapt their advertising strategies to the fact that consumers spend most of their time on mobile phones, tablets or computers.
In the digital age, ordinary «paper» billboards may seem out of place and old-fashioned. And yet the OOH advertising market is thriving and attracting more and more players. For example, the international media group Global recently entered the UK market by buying three outdoor advertising operators that together hold about 35% of the market. The digital giant Google is expanding its physical presence in the media space by entering outdoor markets in Germany and Asia.
– When heavyweights like Google get involved, you can be sure that OOH is becoming an increasingly attractive communication channel, – says Conrad Poulson, CEO of the research company Huq.
Face to face
One reason for this appeal is that consumers, whether they like it or not, have to notice billboards. Drivers stuck in traffic are very likely to look at the advertising along the road, and passengers waiting for a morning train on the London Underground will «automatically» read the ads on the tunnel walls.
– Advertising media are always in the line of sight, and unlike mobile devices they cannot be blocked. Even when OOH advertising is highly targeted, it never reaches the level of «creepiness» typical of other media, – adds Poulson.
The thing is, digitalization brings not only new opportunities to promote goods and services but also negative trends. For example, internet users can install ad blockers that block ad units and pop-ups, and TV viewers can skip commercials altogether. Mobile advertising can be targeted and personalized to the brand's wishes, but there is no guarantee that it will actually reach its target, whereas outdoor ads cannot be ignored so easily.
For safety's sake
In recent years we have witnessed several scandals in which automated ad technology placed brands' online ads next to unacceptable content, seriously damaging the brands' reputations. Last year, for example, several British companies, including Marks & Spencer, pulled their advertising
from YouTube when it turned out that their ads were being shown in extremist videos.
OOH ads are standalone messages. They do not appear next to an offensive article or video and therefore do not have similar problems.
– Agencies have to spend more time and resources assuring clients that their brands will appear in channels that are safe in terms of context and content, – says Michelle Langelaan, marketing director at VIOOH (a platform for buying and selling outdoor advertising space). – OOH remains a brand-safe media environment that allows companies to achieve high marketing effectiveness and reach large audiences to genuinely increase brand awareness.
Higher pay, more data
Some believe that instead of resisting the online era, the OOH industry should take advantage of the opportunities digital technology offers. For example, data is used to place advertising more precisely where it will be most effective.
For instance, Huq analyzed the habits of 10,000 health and fitness enthusiasts in Greater London to find out which outdoor advertising formats are the most effective in terms of exposure to the message relative to its cost.
You might assume that the best locations by this criterion would be in the city center and probably more expensive. However, Huq found the best places to advertise fitness in London boroughs such as Croydon, Walthamstow, Kingston upon Thames and Merton.
– Geotargeting lets you focus on specific target audiences (taking into account factors such as age, gender and interests) and helps determine which specific locations are best for outdoor advertising, – explains Poulson. – Depending on the audience media buyers are targeting, they may choose far from premium locations that nevertheless deliver a much better return on investment.
This kind of analysis not only allows advertisers to target advertising more effectively at a lower cost but also makes it more transparent.
The digital future
- The market is at a critical stage of its evolution, - says Conrad Poulson. – Using digital capabilities and big data leads to new levels of precision, effectiveness and, very importantly, accountability in media.
As part of this evolution, the OOH industry is becoming more and more digital. Thanks to «smart» technologies, it can even interact with the real world. In 2013, for example, a British Airways campaign ran at Piccadilly Circus on Clear Channel digital screens that reacted in real time to planes flying overhead.
– The industry is approaching a time when advertising like this becomes commonplace. Outdoor advertising will react to time, location, weather and all kinds of data feeds, – says Patrick Fisher, co-founder of Wildstone, a British outdoor advertising operator.
Another Wildstone co-founder, Damien Cox, pointed out that half of billboard revenue already comes from digital screens.
– I predict that in five years you will see very few (if any) traditional billboards. The number of sites will decrease, but their quality and «smart» nature will improve, – he says.
In any case, we can say that marketing has come «full circle»: first we had paper posters and billboards, followed by TV commercials, and then came online advertising on digital devices. And now the industry has returned to billboards – having made a «technological loop».
Based on materials from Cityam.com