Why Digital Out-of-Home Advertising Is a Perfect Match for Startups

By Spencer Hulse Spencer Hulse has been verified by Muck Rack's editorial team
Published on July 25, 2022

Effective advertising is often the difference between success and potential failure. It can elevate campaigns and companies to the next level, especially if done well or in a manner that goes viral. And among the many types of advertising, a long-standing choice is OOH (out-of-home) advertising, which is traditional outdoor advertising.

OOH is all about advertising to consumers who are in public places, commuting to work, or in specific locations where they have a chance to stop and see the ads. It includes billboards, bus and car ads, and standing signs in busy shopping malls.

Digital out-of-home (DOOH) takes things further, still targeting people out and about but adding AdTech to the mix. Tools and technology such as geofencing, tracking, retargeting, personalization, and more are used to deliver powerful advertisements that play to individuals. Moreover, DOOH moves at a faster pace than traditional OOH.

Because the medium is digital, advertisements can be sold, changed, looped, and interacted with without human involvement or manual labor. That not only makes targeting easy, but it is better for advertisers as well. Advertisers can even adjust in real-time, and the ads do not suffer the same negatives as online ads, such as users skipping them or ad-blocking technology.

The Digital out-of-home (DOOH) advertising space has even seen annual increases of +13% in advertising spend and membership growth of +25%. Those numbers have been observed by various professionals in the industry, including Barry Frey, President and CEO of DPAA, the leading global trade marketing association connecting out-of-home media with the advertising community.

DPAA provides DOOH industry leadership to publishers, technology, programmatic, content, and data companies. It fosters collaboration between the DOOH community and ad agencies, providing leadership, best practices, and standards in areas such as mobile integration, location data, and programmatic.

Many people have noticed the trend and digital out-of-home advertising’s inherent ability to stay nimble, positioning it to exceed the expected growth of other dominant media channels – something that is ideally suited for startups.

According to a study by GroupM, WPP’s media investment group, DOOH campaigns drive direct action by consumers, including encouraging them to find more information online. Moreover, they found that 28% of consumers found the media format more innovative than others, having creative ads.

And the DOOH format is something consumers are paying more attention to, which is precisely what startups and growing companies want. Part of the reason is that consumers find the ads to be current, interesting, and humorous. Around 37% even cited that channels featured entertaining ads, while 63% said it made their journey’s more entertaining.

The entertainment value can be somewhat attributed to the ability to change ads as needed and not have them be entirely static, which is the case with traditional OOH. Moreover, it drives around 50% of consumers to connect them with their favorite social media channels.

On top of the entertainment value, more than half of consumers said DOOH ads gave them all the information they needed to make a purchase, with almost as many saying it encouraged them to make the purchase on the spot. Even if they did not make a purchase, 77% found DOOH ads informative overall.

For startups, which might not be well known to consumers, these are all benefits. It is entertaining and thus memorable, delivers information well, and drives consumers to take action better than traditional OOH. That, along with the nimble nature of the medium gives a growing company what it needs to find success.

Moreover, with organizations like DPAA out there to make the transition into DOOH easier, there isn’t a better time to experience the benefits the growing medium has to offer. That is especially so as the role of DOOH in today’s omnichannel mix is more clearly fleshed out.

By Spencer Hulse Spencer Hulse has been verified by Muck Rack's editorial team

Spencer Hulse is the Editorial Director at Grit Daily. He is responsible for overseeing other editors and writers, day-to-day operations, and covering breaking news.

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