DOOH & Digital Advertising

DOOH is digital advertising displayed on screens in public spaces: Definition - Digital out-of-home encompasses any digital advertising screen outside the home: billboards, transit, retail, venues, etc. vs Traditional OOH - Replaces static billboards and posters with dynamic digital displays. Advantages - Dynamic content (video, animation), dayparted messaging, quick campaign changes, programmatic buying capability. Formats - Large format billboards, street furniture, transit (buses, trains, stations), place-based (malls, gyms, offices), point-of-sale. Measurement - Improving with audience measurement, mobile data, computer vision. Market size - DOOH is fastest-growing segment of out-of-home advertising; billions in annual spend globally. Key players - Media owners (JCDecaux, Clear Channel, Lamar, Outfront), brands, agencies, technology providers. Programmatic DOOH - Automated buying bringing digital advertising efficiency to outdoor media. DOOH combines the impact of outdoor advertising with the flexibility and targeting of digital.

Programmatic DOOH enables automated, data-driven digital outdoor ad buying: How it works - Advertisers buy DOOH inventory through demand-side platforms (DSPs), similar to online display advertising. Real-time bidding - Impressions sold in real-time auctions based on audience data, time, location. Targeting capabilities - Time of day, weather triggers, audience demographics, geographic targeting, contextual relevance. Benefits for advertisers - Flexibility (change campaigns instantly), efficiency (automated buying), targeting precision, cross-channel integration. Benefits for media owners - Fill unsold inventory, access new advertiser budgets, dynamic pricing optimization. Platforms - Vistar Media, Hivestack, Broadsign, Place Exchange, The Trade Desk (DOOH integration). Data sources - Mobile location data, traffic patterns, audience measurement, weather APIs. Challenges - Inventory fragmentation, measurement standardization, creative adaptation for different screens. Growth - pDOOH is fastest-growing segment of DOOH; major brands increasingly including in media mix. Still evolving - Standards and practices continuing to develop as industry matures.

DOOH measurement has evolved significantly: Traditional metrics - Daily Effective Circulation (DEC), impressions based on traffic counts. Modern measurement - Geopath (US industry standard), Route (UK), using mobile data for audience measurement. Impression calculation - Combines traffic data, visibility studies, and dwell time to estimate impressions. Audience measurement - Demographics, behaviors inferred from mobile data, surveys. Computer vision - Cameras measure actual viewers, attention, dwell time; privacy-compliant aggregation. Attribution - Mobile device tracking can link DOOH exposure to store visits, app downloads, web conversions. Proof of play - Verification that ads actually displayed as scheduled. Key metrics - Impressions, reach, frequency, CPM (cost per thousand impressions), audience composition. Challenges - Privacy regulations affecting mobile tracking, varied measurement across networks, standardization ongoing. Industry organizations - Geopath, OAAA, and others working on measurement standards. Measurement improving - DOOH increasingly measurable, approaching digital advertising accountability.

DOOH offers significant advantages over static out-of-home: Content flexibility - Change creative instantly; multiple ads rotate on single screen; video/animation possible. Dayparting - Different messages for different times; breakfast ads morning, dinner ads evening. Quick turnaround - Launch campaigns in hours, not weeks; respond to events in real-time. Targeting - Programmatic enables audience targeting, weather triggers, contextual relevance. Measurement - Better audience measurement, attribution, proof-of-play verification. Cost efficiency - Share screen with multiple advertisers; pay only for your time. Premium pricing - DOOH often commands premium CPMs due to engagement and capabilities. Capital investment - Digital requires significant infrastructure investment by media owners. Production costs - Digital creative may cost more than static; but no printing/installation costs. Hybrid approach - Many OOH companies operate both static and digital inventory. When static wins - Long-term branding, very low budgets, locations where digital isn't practical. DOOH growth - Rapidly gaining share of total OOH spend.

Retail media networks monetize in-store digital signage through advertising: Definition - Retailer-owned advertising networks selling ad space on their digital displays to brands. How it works - Brands (often suppliers selling in-store) pay to advertise on retailer's digital screens. Advantages for retailers - New revenue stream, monetize customer traffic, strengthen vendor relationships. Advantages for brands - Reach customers at point of purchase, influence decisions in-store. Major networks - Walmart Connect, Kroger Precision Marketing, Target Roundel, CVS Media Exchange. Ad types - Endcap displays, checkout screens, entrance displays, shelf-edge screens. Targeting - Target by store, demographics, purchase history (via loyalty data). Measurement - Link ad exposure to actual purchases using loyalty data; closed-loop attribution. Growth - Retail media fastest-growing advertising channel; billions in annual spend. Considerations - Retailers must balance advertising revenue with customer experience. Implementation - Requires significant digital signage infrastructure, ad sales team, measurement capabilities.

Place-based networks are DOOH networks in specific venue types: Definition - Digital advertising networks focused on particular locations or audience environments. Common venue types - Gyms/fitness, doctors' offices, bars/restaurants, gas stations, elevators, taxis/rideshare, airports, malls. Audience targeting - Reach specific demographics in contextually relevant environments. Examples - Captivate (elevators/lobbies), Gas Station TV, Grocery TV, GSTV, PatientPoint (healthcare). Value proposition - Captive audience, relevant context, measurable impressions. Network operator model - Company builds/manages network, sells advertising. Venue model - Venue owner gets share of ad revenue for hosting screens. Content mix - Typically advertising plus editorial/entertainment content. Advertiser benefits - Target specific audiences, geographic flexibility, brand safety. Considerations - Venue quality, screen placement, audience measurement methodology. Starting a network - Requires venue relationships, technology platform, ad sales capability, significant scale. Place-based networks enable targeted reach of specific audiences in relevant contexts.

DOOH creative differs from other digital advertising: Visibility first - Large text, high contrast, bold visuals; content must read from distance. Brief messaging - 2-8 second exposure typical; single clear message per creative. Video consideration - Motion attracts attention but message must work without sound. Multiple formats - Create for different screen sizes, orientations, resolutions in network. Animation - Subtle motion effective; avoid fast cuts or complex animations. Dayparting creative - Different versions for different times; breakfast vs dinner, weekday vs weekend. Dynamic content - Weather triggers, real-time data, countdown timers increase relevance. Brand presence - Clear, prominent branding; viewers may not stop to study. Call to action - Drive to website, app, location, or brand awareness. Testing - View creative on actual screens in actual environments. Format specifications - Each network has specs; verify before production. Production - Many agencies specialize in DOOH creative; leverage their expertise.

Signage networks can generate advertising revenue several ways: Direct sales - Sell advertising directly to local businesses, vendors, sponsors. Network aggregators - Join networks that aggregate inventory for programmatic selling (Vistar, Hivestack, Place Exchange). Revenue sharing - Partner with media company who handles sales for share of revenue. Self-serve platforms - Enable small advertisers to buy directly through online platform. Sponsorship - Offer content sponsorship rather than interruptive ads. Hybrid model - Mix own content with advertising; balance revenue with viewer experience. Requirements for monetization - Significant reach (thousands of screens or high-traffic locations), audience measurement, ad serving technology, sales capability or partner. Considerations - Advertising may impact primary signage purpose; maintain content balance. Revenue potential - Varies widely; high-traffic, premium locations can generate $20-100+/screen/month. SSP integration - Supply-side platform integration needed for programmatic; requires technical implementation. Start small - Test advertising with select sponsors before full monetization.

Several options exist for buying DOOH advertising: Direct buy - Contact media owners (Clear Channel, JCDecaux, Lamar) directly; good for large campaigns. Agency - Work with OOH specialist agency or media agency with DOOH expertise. Programmatic DSPs - Buy through demand-side platforms (The Trade Desk, DV360, Vistar, Hivestack). Self-serve platforms - Some networks offer self-serve buying for smaller budgets. Planning process - Define objectives, target audience, geography, timing, budget. Targeting options - Location, time, audience demographics, weather, contextual triggers. Creative requirements - Each network has specifications; plan for multiple formats. Measurement setup - Ensure attribution tracking in place; brand lift studies available. Budget considerations - CPMs vary widely by location ($5-50+); minimum budgets often required. Campaign types - Awareness (reach/frequency), activation (drive action), local (specific markets). Starting out - Programmatic DSPs offer flexibility and lower minimums for DOOH newcomers. Work with specialists - OOH buying has nuances; consider expert guidance initially.

DOOH targeting has evolved significantly beyond simple location: Geographic - Country, market, zip code, proximity to locations. Time-based - Day of week, time of day, dayparting, specific dates. Audience - Demographics (age, gender, income) based on mobile data and surveys. Behavioral - Consumers who have visited certain locations, purchased certain products. Weather triggers - Serve different creative based on temperature, conditions. Contextual - Relevant messaging for location (gym = fitness, airport = travel). Point of interest - Target near competitors, complementary businesses. Real-time data - Stock prices, sports scores, news events trigger content. Retargeting - Re-reach DOOH-exposed audience via mobile or online. Inventory type - Select specific venue types (malls, transit, street-level). Custom audiences - Upload first-party data for targeting (privacy-compliant). Limitations - Not as precise as online targeting; probabilistic vs deterministic. Effective use - Combine targeting dimensions; don't over-target (limits reach). DOOH targeting increasingly sophisticated while maintaining privacy compliance.

DOOH pricing models vary by buying method and network: CPM (Cost Per Thousand) - Standard digital pricing; pay per thousand impressions. Average CPMs: $5-15 for general inventory, $20-50+ for premium locations. Share of voice - Buy percentage of impressions on screen; common for traditional buys. Flat rate - Fixed price for specific screens/time periods; common for direct sales. Programmatic pricing - Real-time auction-based; prices fluctuate by demand. Factors affecting price - Location (Times Square vs rural), traffic volume, screen size, audience demographics, time of day, seasonality. Minimum budgets - Many networks require minimums ($5,000-25,000 for campaigns). Production costs - Creative development separate from media; $1,000-10,000+ depending on complexity. Comparison shopping - CPMs vary widely; compare networks and buying methods. Negotiation - Direct buys often negotiable, especially for longer commitments. Value assessment - Consider audience quality, not just raw impressions; premium CPMs may deliver better results.

DOOH relies on multiple technology layers: Display hardware - Screens (LCD, LED), media players, connectivity. Content Management System (CMS) - Software managing content scheduling and distribution. Ad server - Manages ad delivery, trafficking, frequency capping, targeting rules. Supply-Side Platform (SSP) - Enables programmatic selling of inventory. Demand-Side Platform (DSP) - Enables programmatic buying of inventory. Audience measurement - Mobile data providers, computer vision, survey panels. Dynamic creative - Tools for creating data-driven, dynamic content. Campaign management - Planning, buying, reporting tools. Proof of play - Verification that ads displayed as scheduled. Attribution - Linking exposure to outcomes (store visits, sales). Key technology providers - Broadsign, Vistar Media, Hivestack, Place Exchange (SSPs/DSPs). Specialized CMS - Scala, Signagelive, ScreenCloud, Four Winds. Data providers - Geopath, PlaceIQ, Cuebiq. Integration - Modern DOOH requires integrated technology stack for programmatic capability.

DOOH is evolving rapidly with several key trends: Programmatic growth - pDOOH growing faster than direct; expected to be majority of DOOH spend. Retail media - Retailers building in-store advertising networks; major growth area. Measurement advancement - Better audience measurement, attribution, cross-channel integration. Creative optimization - Dynamic creative, real-time content, personalization at scale. Omnichannel integration - DOOH as part of broader digital campaigns, not siloed. Sustainability - Demand for energy-efficient displays, carbon measurement. 3D and anamorphic - Spectacular creative using forced perspective (like Seoul waves). Interactive and mobile - QR codes, NFC, AR experiences bridging physical and digital. AI and automation - Automated planning, optimization, creative production. Privacy-first - Adapting to privacy regulations while maintaining targeting effectiveness. Consolidation - Media companies acquiring and merging DOOH assets. New inventory - Expansion into new venues, EV charging stations, delivery vehicles. DOOH is one of the most dynamic segments of advertising.

DOOH CPM (Cost Per Thousand impressions) varies significantly by format and location: Billboard/large format - $5-15 general markets, $30-50+ premium locations (Times Square: $100+). Street furniture - $8-20 depending on market and traffic. Transit - Buses/trains: $8-18, stations: $10-25, airports: $25-50+. Place-based networks - Gyms: $10-20, waiting rooms: $15-30, elevators: $12-25. Retail - In-store: $12-25, checkout: $15-30, mall common areas: $15-35. Industry benchmarks - Average DOOH CPM approximately $7.62 (H2 2024 industry data), compared to online display averaging $2-5. Factors affecting CPM - Location quality, traffic volume, audience demographics, screen size, time of day, seasonality, inventory availability. Impression multiplier - Some networks apply multipliers for estimated additional viewers per device detection. Premium vs remnant - Premium inventory (specific screens, times) commands higher rates; unsold remnant available at discount. Regional variation - Major markets (NYC, LA, Chicago) significantly higher than secondary markets. Value beyond CPM - Consider audience quality, attention, context, not just raw CPM comparison.

Impression multipliers estimate additional viewers beyond directly measured ones: Concept - A single detected viewer (via mobile, sensor, or traffic count) may represent multiple actual viewers. Example - Traffic counter shows 1,000 vehicles; multiplier of 1.3 estimates 1,300 viewer impressions (accounting for passengers). How multipliers are determined - Traffic studies, survey research, camera audits, venue-specific research. Common scenarios - Vehicles (1.2-1.5 multiplier for passengers), waiting rooms (multiple views per person), retail (group shopping). Industry standards - Geopath (US), Route (UK) provide audited multiplier data. Buyer consideration - Understand how impressions are calculated; some networks more aggressive with multipliers. Verification - Reputable networks base multipliers on audited research; request documentation. Impact on pricing - Higher multipliers = lower effective CPM; but ensure multipliers are justified. Best practice - Compare networks on verified, audited impressions; don't just accept claimed numbers. Standardization efforts - Industry working toward more consistent impression calculation methodologies.

Attribution connects DOOH exposure to measurable outcomes: Mobile-based attribution - Track devices exposed to DOOH screens via location data, then measure if those devices later visit advertiser location, website, or app. Store visit lift - Compare store visits from exposed vs unexposed audiences; measure incremental visits. Website/app attribution - Identify DOOH-exposed devices that later visit advertiser digital properties. Sales attribution - Match exposed audiences to purchase data (where available, e.g., retail media). Brand lift studies - Survey-based measurement of awareness, consideration, purchase intent changes. QR/short code tracking - Direct response tracking via unique codes. Search lift - Measure increase in branded searches correlated with DOOH campaign timing. Attribution providers - Cuebiq, PlaceIQ, Foursquare, GroundTruth, specific to mobile location. Challenges - Privacy regulations limiting tracking, probabilistic vs deterministic matching, multiple touchpoint attribution. Campaign setup - Attribution requires advance planning; ensure tracking implemented before launch. Improvement - Attribution capabilities improving rapidly; DOOH becoming more measurable like digital channels.

Brand safety considerations for DOOH advertising: Location vetting - Verify screens aren't near controversial venues, adult entertainment, or off-brand environments. Content adjacency - Understand what other content/ads share your screen rotation. Network quality - Work with reputable media owners; verify screens are well-maintained. Proof of play - Confirm ads ran as scheduled; request verification documentation. Real-time monitoring - Some platforms offer live monitoring of ad delivery. Creative guidelines - Networks have content standards; ensure your creative complies. News/event sensitivity - Plan for pausing campaigns during sensitive news events. Programmatic safeguards - Use SSPs with brand safety controls; specify inventory requirements. Site lists - Build approved site lists for programmatic; exclude problematic locations. Verification partners - MOAT, IAS, DoubleVerify expanding into DOOH verification. Due diligence - Visit actual locations when possible; verify quality. DOOH generally has higher brand safety than online (no user-generated content adjacent), but due diligence still important.

Starting a DOOH network requires multiple components: Venue relationships - Secure agreements with venues willing to host screens; negotiate revenue share or placement fees. Hardware deployment - Commercial displays, media players, connectivity, mounting, enclosures. Technology platform - CMS for content management, ad server for commercial inventory, reporting/analytics. Sales capability - Ad sales team or partnership with sales organization. Programmatic integration - Connect to SSPs (Vistar, Hivestack, Place Exchange) to access demand. Audience measurement - Implement measurement methodology (Geopath membership, mobile data, sensors). Scale requirements - Meaningful advertiser interest requires significant reach; hundreds to thousands of screens typically. Capital investment - $2,000-10,000+ per screen location; significant upfront investment. Revenue model - Advertising revenue share with venues, typically 40-60% to network operator. Timeline - 12-24+ months to reach meaningful scale and revenue. Challenges - Venue acquisition, sales pipeline development, technology integration, measurement credibility. Alternative approach - Start with owned/operated venues before expanding to partnerships.

DOOH increasingly integrates with broader digital campaigns: Sequential messaging - Expose audiences via DOOH, then retarget on mobile/online. Unified reach - Include DOOH in total reach/frequency planning across channels. Cross-channel attribution - Measure DOOH contribution alongside other touchpoints. Common data - Use consistent audience definitions across channels. Creative coordination - Consistent messaging adapted for each channel's strengths. Real-time sync - Coordinate DOOH with other channels during moments (events, product launches). Mobile bridge - QR codes, NFC connect DOOH exposure to digital engagement. Programmatic unification - Some DSPs enable DOOH buying alongside display, video, mobile. Planning tools - Cross-channel planning tools increasingly include DOOH inventory. Measurement challenges - Different measurement methodologies across channels; normalization needed. Best practices - Plan DOOH as part of campaign from start, not afterthought. Identify DOOH's unique role (awareness, local activation, retail proximity). Ensure consistent measurement and reporting. DOOH brings digital targeting and flexibility to the physical world.

Dynamic creative optimization (DCO) automatically customizes DOOH ads in real-time: How it works - Creative template with variable elements; data triggers determine what version displays. Trigger types - Weather (show hot drink when cold), time of day (breakfast vs dinner), inventory (promote in-stock items), sports scores (real-time updates), location (localized messaging). Benefits - Relevance increases engagement; automated customization at scale. Technical requirements - DCO-capable ad server, data feeds, templated creative design. Creative approach - Design base template with swappable elements (images, copy, pricing, CTAs). Data integration - Connect to weather APIs, inventory systems, sports feeds, other data sources. Testing and learning - Dynamic creative enables rapid testing of different elements. Complexity spectrum - Simple (2-3 versions by time) to complex (dozens of variables). Adoption - Growing rapidly; DCO becoming expected capability for major campaigns. Challenges - Creative production, data reliability, approval workflows for variations. Best practice - Start with proven trigger types (weather, time) before complex personalization.