The steady growth of out-of-home (OOH) and rapid expansion of digital out-of-home (DOOH) is enhancing the way retailers and brands influence consumers out in the physical world.
“For years, the advertising industry raced toward the digital world,” said DPAA President & CEO Barry Frey, at the DPAA Global Summit, held in New York last month. “Today, the digital world is
racing toward us. Out-of-home advertising…once a reach and awareness medium …has truly
become full-funnel.”
Here’s what the evolution of OOH and retail spaces means for engaging shoppers across the full funnel.
Streamlining OOH’s reach and measurement
Consolidation in the OOH industry pools together inventory for more integrated campaigns, and makes better measurement possible for advertisers.
Programmatic capabilities make it easier for advertisers to integrate OOH into cross-channel campaigns. Programmatic represents approximately 10% of DOOH spending, according to de Gaspé Beaubien, citing Ari Buchalter, Chief Strategy Officer at Broadsign.
“The drivers are increasingly in place: omnichannel DSP adoption, better targeting, better measurement, and growing demand for real-world media,” said de Gaspé Beaubien.
The ability for advertisers to more easily access OOH inventory comes at a time when consumers desire more real-world experiences. Ads in real-world environments are also more believable to a majority of consumers.
This means retailers can drive traffic to physical locations through OOH, while engaging those who show up with experiences in the store.
“We're also seeing renewed interest in experiential marketing and product sampling,” said de Gaspé Beaubien.
“We are reaching consumers on their daily journey: on their path to purchase and increasingly more at the point of purchase,” said Frey. DOOH is now starting to see retail media budgets, finally…because the IRL daily journey of global consumers ends up at the physical store where 80% of purchases are made vs. online.”
If RMN campaigns are integrating more OOH, the retailers themselves are also seeing value in real-world ads.
American Eagle’s recent controversial campaign with Sydney Sweeney generated attention, with a lot of the buzz generating on social media and digital news outlets.
However, American Eagle’s record Q3 revenues had less to do with the campaign, and more to do with gains in the Aerie brand, where comparable sales rose 11%, EMARKETER reported.
Despite gaining lots of upper-funnel awareness with controversial ads, American Eagle is focused on real-world experiences at the mall.
“For us, the call to action internally really has become, how do we become the happiest place in the mall?” said American Eagle CMO Craig Brommers, at the DPAA Global Summit.
Even when attention is created online, consumers of all ages are showing up at the store.
He added: “[Consumers are on] their phones and saying, 'I'm headed to the Aero store' or 'I'm going to see Beyoncé, I bought this outfit.' Or they're coming in and saying, 'I noticed that this influencer was wearing this product, where can I buy it?' So, the journey is different. The end result is the same, so many of them are actually converting in the physical store.”
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