Out of Home and Digital Out of Home: What you need to know

Google and Facebook ads are not the be-all and end-all. There are other forms of advertising, which can sometimes bring in much better value.

DOOH and OOH

These are not the sounds of Homer Simpson in distress. In fact, DOOH stands for "digital out-of-home" advertising, while OOH stands for "out-of-home" advertising.

Out-of-home advertising refers to any type of promotional displays that reach consumers when they are outside their house. This includes billboards, posters, transit ads (on buses, subways, etc.), and more.

Digital out-of-home advertising, on the other hand, specifically refers to OOH ads that are digital or electronic in nature. This includes screens, digital billboards, digital signs in airports or shopping malls, and digital ads on public transportation. The effectiveness of DOOH is often improved because of geofencing, camera and smartphone tracking, personalization, retargeting, and other modern marketing optimization techniques.

Out-of-home (OOH) advertising has several advantages that make it a great option for many businesses:

1. High visibility. OOH advertising is typically placed in high-traffic areas, which means that it has a high potential to be seen by many people. This can be particularly effective for building brand awareness.
2. Targeted reach. OOH advertising can easily target specific demographic groups or geographic areas. For example, a business could place ads in neighborhoods where their intended audience is likely to live, or on public transit routes that their target audience is likely to use.
3. Cost-effectiveness. OOH advertising can be a more efficient option compared to other types of advertising, such as TV or radio ads. Because the OOH ads are typically large and eye-catching, they can have a big impact even with a relatively small budget. Especially if the business decides to get creative with them!
4. High engagement. OOH advertising can be particularly effective at engaging consumers who are out and about, such as commuters or shoppers. Digital OOH advertising can also incorporate interactive elements, such as touchscreens, which can further engage consumers.
5. Longevity. Unlike TV or radio ads, OOH advertising can have a longer lifespan. For example, a billboard or poster can be seen by people over a period of days, weeks, or even months, becoming a part of their daily routine. Meanwhile, seeing the same online ad a second time usually produces a negative response.

Digital ads can sometimes feel intrusive or annoying to consumers, particularly if they are served in large quantities. OOH advertising, on the other hand, is often more passive and can be integrated into the environment in a way that feels natural.

Meanwhile, if there is a desire to shock and awe people, DOOH tends to create a certain flair and leave a lasting impression. It allows advertisers and agencies to unleash their creativity and drive memorable campaigns. There are plenty of fun and bold ads to be inspired by:

Isn’t It a Dying Market?

Advertising through Google or Facebook tends to get all the attention online. For obvious reasons: it’s right there, you can see it. This might create the illusion that all other forms of advertising have all but ceased to exist.

In fact, it's quite the opposite. The popularity and audience response to other forms of ads are actually on the rise. People are beginning to appreciate out-of-home displays more than online advertising, which many people feel fatigued by, especially in the years following the pandemic. Meanwhile, digital OOH has become increasingly popular in recent years due to advances in technology which allowed for more dynamic and interactive ads that can be targeted to specific audiences.

PwC, a UK-based Big Four firm, showcased revenue data for OOH and DOOH advertising:

OOH spend grew by 28.9% in 2021 compared to 2020. And was showing average YoY growth of 8.3% before that.

This growth outpaces global ad spend, which rose 19.6% in 2021, and 8.0% in 2022, according to a report from Japan's Dentsu Group. They also cite like PwC figures for OOH advertising: 24% rebound in 2021 and 9.9% growth in 2022 to reach $38.3 billion worldwide. Within this, traditional OOH spend is increasing very slowly (1-3% YoY), while more modern DOOH accounts for most of the growth.

The only two ad markets showing decline in post-pandemic years, according to Dentsu, are traditional television and printed media (magazines and newspapers). Both markets are increasingly shifting towards the digital formats, which their users prefer.

Digital ad spending is growing the fastest, however if you want to advertise offline and capture the attention of people who commute, travel, or engage in outdoor activities, DOOH seems to be the best choice.

Popular interactive GM DOOH ad. This is easily achieved today by most companies willing to try.

Fortunately, it is now just as convenient as setting up Google or Facebook ads — thanks to several DSP solutions, which allow advertisers to browse relevant offers, select the best location and monitor their campaign in real time.