As we stride into 2024, the landscape of Digital Out of Home (DOOH) advertising is evolving rapidly. In this article, we will explore the key trends that are set to shape the industry throughout the year. From cutting-edge technologies to sustainability initiatives, 2024 is poised to be an exciting year for DOOH.
1. Programmatic Evolution:
The year 2024 heralds the continued growth of Programmatic Digital Out of Home (PrDOOH) technology. With a drive towards standardisation, more OOH media owners are expected to embrace programmatic trading.
This approach not only streamlines the buying and selling of ad space but also empowers advertisers with data-driven, highly targeted campaigns. Real-time adjustments and trigger-based buying enable tailored messages, maximising impact and cost efficiency.
As media planners increasingly integrate prDOOH into their plans, we anticipate a surge in programmatic transactions and a paradigm shift in how advertisers approach digital out-of-home.
2. Contextual and Hyper-local Engagement:
Hyper-local targeting is gaining momentum due to its ability to reach audiences at specific locations on a granular level. Reaching exactly who is in a location at specific times of day is attractive to advertisers looking to narrow in on their target audience rather than a mass blanket reach approach.
Contextual factors such as humidity, time of day and local or seasonal events, brands can deliver personalised content relevant to their target audiences environment. First-party data, from companies like Quividi are imperative to understanding and measuring exactly which audiences are present at locations at specific times.
By leveraging hyper-local and/or contextual factors, advertisers can deliver the right message to the right person at the right time = engagement and attention. Grandvisual, Flux and Liveposter are fantastic examples of companies producing exciting, contextual, dynamic content.
3. Transparency in Ad Delivery:
In 2024, transparency will take centre stage in DOOH advertising. Media owners are focusing on delivering precisely what they promise, addressing the challenges of over-delivery and under-delivery. Robust measurement tools, from the likes of Confirm, TraceOOH and SeeDOOH, become imperative as brands demand a clearer understanding of each channel’s contribution to their audience objectives. The heightened focus on measurement justifies increased investments in prDOOH, solidifying its place in advertising budgets.
At LDSK, our approach is that updated data points should help validate delivery and allow for the readaptation of campaigns to ensure they consistently hit their targets without giving away unnecessary airtime. By doing this, we also enable the opportunity to sell guaranteed direct campaigns, a massive opportunity in the current market.
4. Creativity and Technology Integration:
The synergy of creativity and technology will continue to redefine DOOH in 2024. From AR and VR to 3D and AI, brands are exploring innovative ways to engage audiences. Creative digital OOH executions not only stop people in their tracks but also deliver significant increases in attention, purchase consideration, and memory encoding. The possibilities of these developments are set to be fully realised, providing brands with new avenues to build brand share.
Over the 2023 holiday season, Jumbo Supermarket, with AV partners First Impression, used anamorphic content, usually only seen in major cities on big screens, to create a heartwarming 3D seasonal greeting. Powered by LDSK’s player, the message was shown in all Jumbo stores across the Netherlands. This is an excellent example of when creativity combined with technology can result in impactful experiences, creating a shopping experience that will amaze visitors and leave a lasting impression.
5. Retail Media's Ascendance:
In the evolving Retail Media ecosystem, DOOH is becoming a pivotal player. Integrating first and third-party data, DOOH connects the worlds of home and store, offering a unique opportunity for brands to engage with consumers in the last metres before purchase and bring performance marketing to onsite media. Insider Intelligence forecasts retail media as the fastest-growing media channel up to 2027.
The expansion of retail media is palpable, as evidenced by the updated US retail media ad spend forecast, projecting a higher growth trajectory than initially estimated. The forecast anticipates a culmination of $109.40 billion in spending by 2027, making retail media the fastest-growing ad channel, with an annual growth rate exceeding 20%.
By 2027, retail media is expected to rival social media as the second-largest ad spend channel, trailing only behind search. Furthermore, it is projected to surpass the combined expenditures on connected TV, digital audio, and traditional television advertising, solidifying its prominence in the advertising landscape.
The integration of smart DOOH within retail media networks unlocks the potential for marketers to elevate their shopper marketing initiatives. The increasing significance of in-store media within the RMN landscape underscores the value of omnichannel strategies, reaching consumers on their journey to and at the point of purchase.
6. Capturing Attention in 2024:
At a time when attention is a precious commodity, OOH stands out as a critical driver of consumer attention. A significant correlation between consumer preference and media channels that capture attention emphasises the importance of OOH and DOOH. Kantar’s recent Media Reactions Study for 2023 showed a significant correlation (90%) between media channels that capture consumer attention and those where they prefer to see ads. Among 16,000 surveyed, in-person media channels were preferred by consumers, with OOH and DOOH scoring among the top five favoured by consumers.
In 2024, marketers are set to maximise the potent mix of Classic and Digital OOH, tapping into the joyful re-awakening of people exploring their environments.
7. Commitment to Sustainability:
Sustainability takes a front seat in 2024 as the DOOH industry responds to the global call for environmental responsibility. The industry is actively adopting sustainable practices from energy use to printing, lighting, and operational procedures. Brands are expected to engage more with OOH, aligning with their commitment to building a sustainable future. Addressing concerns about energy consumption, like Daktronics, the DOOH industry is incorporating renewable energy sources, LED lighting, and solar-powered displays to ensure a more eco-friendly advertising landscape. At LDSK, we are committed to continuously improving our server speeds and improvements to efficiency across our entire platform.
As we embark on the journey through 2024, the digital out-of-home landscape promises innovation, sustainability, and a deeper connection with consumers. Brands and advertisers embracing these trends will capture attention and contribute to a more sustainable and engaging future.
Are you prepared to maximise the potential of your media network in 2024? Contact us today to unleash unprecedented opportunities and redefine your success in the coming year with LDSK!