What Is Digital Out-of-Home Advertising?

Have you seen those dynamic digital ads on billboards, bus stops, or urban screens? That’s digital out-of-home advertising (DOOH). Wondering why these ads seem to be everywhere you look? It’s because DOOH combines the visual impact of traditional outdoor ads with the latest digital technology, making it a powerful tool for modern marketers.

This form of advertising is becoming increasingly popular and is projected to grow at a CAGR of 13.20% from 2024 to 2032. DOOH allows advertisers to engage with audiences in real-time, using content that can be updated instantly based on data such as time of day, weather, or traffic patterns.

In this post, we’ll define digital out-of-home advertising, discuss its various formats, and explain why it’s becoming an essential part of the advertising mix. 

Key Takeaways

• DOOH advertising combines the high visibility of traditional outdoor ads with the flexibility and targeting of digital marketing, making it a powerful tool for modern marketers.
• There are three main types of DOOH formats: large format (e.g., digital billboards), location-based (e.g., ads in gyms or theaters), and point-of-purchase (e.g., screens at checkout counters).
• DOOH enables omnichannel targeting, allowing brands to reach audiences across multiple touchpoints and boost engagement on other platforms like mobile and social media.
• Interactive DOOH formats, such as those using AR or QR codes, create memorable experiences and provide valuable data on audience engagement.
• DOOH delivers contextually relevant ads, tailoring messages based on location, time of day, and weather, increasing ad effectiveness and enhancing viewer experience.

Table of Contents

• Key Takeaways
• Definition: What Is DOOH Advertising?
• Types of Digital Out-of-Home Ad Formats
  • Large Format DOOH
  • Location-Based Advertising
  • Point-of-Purchase DOOH
• Advantages of Digital Out-of-Home Advertising
  • Omnichannel Targeting
  • Interactive and Engaging Formats
  • Reach Customers with Contextually Relevant Ads
• FAQs
• Conclusion

Definition: What Is DOOH Advertising?

DOOH advertising, or digital out-of-home advertising, is the modern evolution of traditional outdoor advertising. It’s essentially any digital media you encounter in public spaces outside your home. Think of it as outdoor advertising 2.0—dynamic, data-driven, and capable of delivering measurable results.

Unlike static billboards, DOOH uses digital screens to display ads in high-traffic areas. These can range from massive LED billboards along highways to smaller screens in elevators or at gas pumps. The key advantage? They’re dynamic. Ads can change based on time of day, weather, or even real-time data.

A great example is the British Airways “Look Up” campaign. Digital billboards in London displayed a child pointing to actual BA flights passing overhead in real time. This campaign showcased DOOH’s ability to blend real-world events with digital advertising, creating a memorable and interactive experience.

Source: BMedia Group

DOOH has come a long way since its inception. What started as simple digital replacements for static billboards has evolved into a sophisticated network of screens capable of targeted messaging and interactive experiences.

Types of Digital Out-of-Home Ad Formats

DOOH advertising comes in various formats, each with its own unique advantages. Let’s break down the three main types you’ll encounter:

Large Format DOOH

Large format DOOH is all about making a big impact. These are the attention-grabbing displays you can’t miss—think Times Square-style billboards or massive screens on the sides of buildings.

One of the biggest benefits of large-format DOOH is its sheer visibility. These displays can reach thousands of people at once, making them perfect for brand awareness campaigns and creating a ‘wow’ factor.

A prime example is Netflix’s interactive billboard for “Black Mirror: Bandersnatch” in Times Square. They created a massive choose-your-own-adventure game that pedestrians could play in real-time using their smartphones. The campaign captivated everyone in the vicinity and generated significant buzz on social media, bringing in $6 million in its first year alone, demonstrating how large-format DOOH can create immersive, shareable experiences that extend far beyond the physical location.

Source: DailyMail

This campaign showcases the power of large format DOOH to blend the physical and digital worlds, creating memorable brand interactions that resonate with audiences long after they’ve left the area.

Location-Based Advertising

Location-based DOOH is all about reaching people in specific contexts. These ads appear in places like movie theaters, gyms, hotels, or doctor’s offices—anywhere people spend time outside their homes.

The power of location-based DOOH lies in its context. You can tailor your message to match the environment, making it more relevant and impactful. For instance, a sports drink brand might advertise in gyms, reaching people who are most likely to think about hydration.

JetBlue executed this brilliantly with their “Just Alright Doesn’t Fly Here” campaign in New York City. They placed DOOH displays in strategic locations like subway stations and billboards in traffic-heavy areas, targeting travelers who were likely experiencing “just alright” moments in their daily commute.

Source: LBB Online

The ads featured the fictional “Alright Brothers,” a humorous nod to the Wright Brothers, who were credited with taking airline customer service to new lows. These witty, contextually relevant messages contrasted sharply with JetBlue’s promise of a better flying experience, showcasing features like more legroom and free in-flight entertainment.

This campaign demonstrates how location-based DOOH can create memorable, relatable experiences that directly communicate a brand’s value proposition. By engaging commuters during their everyday struggles, JetBlue captured attention and left a lasting impression about its commitment to superior customer service compared to competitors.

Point-of-Purchase DOOH

Point-of-purchase DOOH is all about influencing decisions at the moment of truth. These are the screens you see at checkout counters, store shelves, or gas station pumps.

The main advantage here is the proximity to purchase. Unlike traditional banner advertising that might be seen earlier in the customer journey, point-of-purchase DOOH reaches consumers when they’re already in a buying mindset. This makes it easier to influence their decisions, promote last-minute products, or upsell complementary items.

A great example is Walgreens’ cooler screens. 

Source: CNN

Walgreens replaced traditional glass doors on refrigerated sections with digital screens. These screens display product information, prices, and promotions, updating in real time. It’s a perfect blend of advertising and useful information right at the point of purchase.

Remember, the key to successful DOOH advertising is choosing the right format for your campaign goals and target audience. Each type has its strengths, and often, a mix of formats can create a powerful, multi-touchpoint campaign.

Advantages of Digital Out-of-Home Advertising

DOOH advertising offers many advantages that help brands elevate their reach and impact.

Omnichannel Targeting

DOOH isn’t just about standalone billboards anymore. It’s a key player in omnichannel marketing strategies, allowing you to reach your audience across multiple touchpoints in their customer journey.

Here’s how it works: You can use DOOH to create initial awareness and then reinforce your message through other channels like mobile or social media. For example, a consumer might see your ad on a digital billboard during their commute and then receive a related mobile ad when they’re near your store.

This synergy between DOOH and other channels amplifies your message. According to recent Nielsen studies commissioned by the Out Of Home Advertising Association of America (OOOA), over half of DOOH viewers engage in actions on their mobile devices after seeing a digital billboard or street furniture ad.

But remember, the key to successful omnichannel targeting is consistency. Your DOOH ads should align with your overall campaign messaging and visual identity to create a seamless brand experience.

Interactive and Engaging Formats

Gone are the days of static, one-way communication. DOOH now offers interactive experiences that can truly captivate your audience.

Augmented Reality (AR) is a game-changer in DOOH. Imagine a bus shelter ad that lets passersby try on virtual sunglasses or test drive a car through their smartphone. That’s not science fiction—it’s happening now.

QR codes are another powerful tool. They bridge the gap between physical and digital, allowing viewers to instantly access more information, enter contests, or make purchases.

Pepsi MAX nailed this with their “Unbelievable” campaign in London. They used AR technology to make it appear as if robots, tigers, and UFOs were invading the city—all visible through a bus shelter ad. People could interact with these elements in real-time, creating a memorable and shareable experience.

Source: The Verge

The beauty of these interactive formats is that they engage your audience and provide valuable data on engagement rates and user behavior.

Reach Customers with Contextually Relevant Ads

Context is critical in advertising, and DOOH delivers the right message at the right time and place.

With DOOH, you can tailor your ads based on factors like location, time of day, weather, or even current events. This means your message is always relevant to your audience’s current situation.

For example, a sunscreen brand could display ads on beach-side screens, but only when the UV index is high. Or a coffee shop could promote hot drinks on cold days and iced coffees when it’s warm.

Spotify executed this brilliantly with their “Listen Like You Used To” campaign. They displayed different playlists on DOOH screens based on the specific location and the era it was associated with. 

Source: D and D

In London’s financial district, they showed ’80s playlists, while in hipster areas, they displayed ’90s indie tracks. 

Source: D and D

This level of contextual relevance increases the effectiveness of your hyperlocal advertising efforts and enhances the viewer’s experience. Instead of feeling intrusive, your ads become useful and engaging.

FAQs

Why is DOOH so popular?

DOOH is gaining popularity because it combines the high visibility of traditional outdoor advertising with the flexibility and targeting capabilities of digital marketing. It’s unskippable, immune to ad blockers, and reaches audiences when they’re out and about, often near points of purchase.

What is the future of digital out-of-home advertising?

The future of DOOH looks bright, with advancements in AI, real-time data integration, and interactive technologies. We’re likely to see more personalized, context-aware ads and greater integration with mobile and other digital channels for truly seamless omnichannel experiences.

What is the difference between DOOH and OOH?

While both target audiences outside their homes, DOOH uses digital displays instead of static billboards or posters. This allows for dynamic content, real-time updates, and more targeted advertising. DOOH also offers better measurement and analytics compared to traditional OOH.

What is the most common form of DOOH?

Digital billboards are currently the most common form of DOOH. However, we’re seeing rapid growth in place-based media like screens in retail stores, elevators, and transit hubs. The “most common” form can vary depending on the specific market and location.

Conclusion

DOOH advertising is revolutionizing how brands connect with audiences in the physical world. It combines the best of both worlds: the broad reach and impact of traditional outdoor advertising with the flexibility, targeting, and measurability of digital marketing.

As we move into a cookieless future, DOOH’s ability to deliver relevant messages without relying on personal data will become increasingly valuable. Whether you’re looking to boost brand awareness, drive foot traffic, or increase sales, DOOH should be a key consideration in your marketing mix.

DOOH is all about connecting with your audience in the real world, at the right moment. It’s time to step out of the digital noise and into the physical spaces where your customers live, work, and shop.