What is Digital Out-Of-Home Advertising?

Advertisers have realized that out-of-home communication is necessary for a successful marketing campaign. Lifestyles are changing as more people are spending time out of the home resulting in increased consumer mobility. More people are living farther from work so that commutes are much longer. Television now consists of hundreds of channels allowing people to increase their channel surfing activities.

With more businesses looking for new and innovative ways of getting their message or product out to the public, they have now turned to technology for help. One of the fastest growing methods of advertising is digital out-of-home advertising.

Also referred to as digital signage, In-Store TV, and place-based dynamic media, digital out-of-home advertising is making significant media progress. Digital out-of-home advertising is a method of marketing where one would view advertising normally viewed on the television or internet in a specific place-based location: In other words, the digital media advertisements are broadcasted outside of the home. Digital out-of-home advertising varies by screen size, placement, content, ad format, environment, and audience.

The choice of the method of advertising and type of programming are based on the following criteria:

Format: Advertising screens can vary from small screens to large screen displays. Methods of format can include television style video, flash animation, and infomercials. As well, some advertisements have audio and a text format.

Environment: Advertisers want the screens displayed in areas that will reach their target audience. This can include shopping malls, medical offices, supermarkets, taxis, bus stops, movie theaters...etc. Age, gender, and types of people that usually frequent the area are taken into consideration. For instance, if an advertiser wants to target teens, they would not place a screen in an area that is usually frequented by senior citizens. Other environmental considerations include the general attitude of the viewers. For instance, will the viewers be in a business environment, educational environment or a social setting?

Advertising Vehicle Measurements: Metrics are divided into two features: audience views and Return on Investment (ROI) Exposure Metrics. Consideration is given to the physical area in which the audience will be able to hear or see a specific advertisement. They will take into account such statistics as the number of individual visits to the area, the number of people who observe the advertising screen, and the number of minutes the audience remain in the advertising area.

Content: Many television networks such as CBS, ABC, and NBC, are using digital out of home screens to promote their shows. They are placing screens in stores, bus terminals, and at airports. For youth based advertising, shows that target young people are placing screens in areas where young people congregate such as fast food restaurant chains.

Advertising growth is determined by the performance of the ads, increasing display inventory, and the simplicity of ad planning and placement. Internet advertising budgets are now being applied to out-of-home advertising. The Out-Of-Home Video Advertising Bureau states that "Video Advertising Networks and Screens is a $1.01 billion industry that is growing at 25.4% annually to a projected $3.2 billion by 2011." Future displays and locations are expected to rapidly increase. More businesses are now creating innovative and strategic campaigns for this advertising medium.

Digital-of-home advertising offers a wide variety of opportunities for marketers to communicate with consumers. To use it successfully, advertisers must keep up with consumer lifestyles and trends as they travel throughout the day. If they don't keep current with consumers needs, they will have a difficult time targeting their audience. Those who have used digital out-of-home advertising, and utilized current consumer data, have found tremendous advertising success.