«We don’t need outdoor advertising» – is it true? Debunking 6 stereotypes about DOOH advertising
Outdoor advertising for small and medium-sized businesses often seems complicated, expensive, and unclear.
At first glance, it may seem that digital signage and modern technologies are only for large companies. However, in reality, DOOH advertising opens up new opportunities for effective promotion even for small brands. By using video wall software or a digital signage player, you can easily manage content and reach your target audience at the right time and in the right place. Even with a limited budget, digital solutions make it possible to get the maximum result.
DOOH advertising (Digital out-of-home) is digital outdoor advertising that can be configured via the Internet and fully controlled online. Thanks to modern technologies such as pDOOH, advertisers have the opportunity to launch campaigns quickly and conveniently, without unnecessary intermediaries. Video wall software helps flexibly change content, and digital signage players ensure stable ad playback on different screens. This allows businesses to be more mobile and adaptive to market changes.
We have identified stereotypes that prevent small and medium-sized businesses from adopting DOOH advertising, and found out which entrepreneurs should definitely try this tool. Among them are those who already use digital signage to inform clients or are planning to expand their presence in the city. The use of pDOOH makes it possible to automate ad placement, and video wall software allows you to promptly change advertising messages depending on the situation.
How DOOH advertising works
If, when launching classic advertising, you turn to agencies, agree on technical specifications, structures, and other details, then to launch DOOH advertising it is enough to use a modern advertising system. By using video wall software or a digital signage player, you independently create and configure an ad that will be broadcast on digital signs in the necessary locations.
Next, the ad participates in an auction. Advertising systems offer various payment methods. For example:
– Direct: payment for the number of potential advertising contacts (OTS). Wi-Fi radars are installed on digital signs, which in real time read the MAC addresses of passersby’s devices. You pay for 1,000 possible user contacts with the ad, which allows you to effectively plan your budget.
– Oohdesk DSP: the cost per impression starts from the minimum price of a specific structure. This approach allows you to optimize costs and achieve maximum efficiency using pDOOH, modern digital signage, and video wall software.
Stereotype #1: Outdoor advertising is dying, all the power belongs to internet advertising
This is not true. According to Statista research, by 2027, spending in the Digital Out Of Home (DOOH) market will significantly increase and reach $254.7 million. This indicates that video advertising on LED billboards and digital screens continues to gain popularity among advertisers of all sizes. Here are a few more important indicators: in 2023, the digital segment in advertising grew by 63% and reached 8 billion UAH. Spending on digital placements also increased by 55%. This dynamic is explained by the fact that modern software for DOOH allows effective campaign management, while a digital signage player ensures high-quality content playback at various locations. All this makes digital outdoor advertising one of the most promising channels for attracting an audience.
Stereotype #2: Outdoor advertising is only for big business
This stereotype arose from two main reasons. First, due to the cost of placing ads on outdoor media, and second-because of the tasks this tool solves. Let’s consider each aspect in more detail. Cost was indeed a significant obstacle in the past, when digital technologies were not yet so developed. Before the emergence of Digital Out Of Home (DOOH), classic advertising was one of the main communication channels with the audience, and placement prices often discouraged representatives of small and medium-sized businesses. However, with the advent of modern DOOH software and LED billboards, the situation has changed significantly.
Today, when setting up a DOOH campaign, you can purchase only certain minutes or hours of broadcasting, optimizing your budget and reaching your target audience exactly when needed. A digital signage player allows you to flexibly manage the ad display schedule, and video advertising on LED billboards is becoming available even for small companies. Another common argument is that outdoor advertising does not work for performance metrics. This is also a myth that has remained in the past. Thanks to the integration of modern technologies, such as DOOH software, even small businesses can track the effectiveness of their campaigns, attract new customers, and increase sales through digital signage.
Stereotype #3: Not enough targeting options
Indeed, the number of targeting options in digital outdoor advertising is smaller than in classic internet advertising, but to claim that there are not enough is not entirely correct. The main types of targeting in DOOH networks are geographic and time-based. Geographic targeting allows you to choose not only cities but also specific advertising screens-for example, near landmarks, shopping centers, or busy intersections. Thanks to this, you can show ads exactly where your target audience is most often present. Time-based targeting enables you to select the days and hours when advertising will be most effective, which is especially important for local campaigns or seasonal offers.
Some services, such as Direct, also offer additional settings based on socio-demographic characteristics to increase the number of impressions on those screens where the share of the target audience is higher. LED screen software allows you to integrate such features into DOOH Display Solutions, and Wi-Fi radars installed on digital screens read the MAC addresses of passersby’s devices in real time. Based on this data, an anonymous audience profile is formed, taking into account socio-demographic characteristics and interests. If the share of the target group in the flow is higher than average, your ad enters the auction and is shown on the advertising screen.
It’s important to understand that, unlike internet advertising, where targeting can be very precise (for example, only for women aged 18–35), in DOOH advertising, everyone passing by the screen sees the ad, but at a certain moment, there are more representatives of the target group among them. You pay for the number of advertising contacts (OTS)-that is, for the potential number of people with target characteristics who could have seen your ad on DOOH Display Solutions. For example, if the service knows that on average women aged 18–35 make up 20% at this location, it analyzes the flow of MAC addresses and shows the ad only when their share increases. This allows you to optimize costs and increase campaign effectiveness.
At the same time, it is important to consider certain nuances: Wi-Fi radars do not read all devices, so there may be errors in determining the audience profile. The ad is broadcast only when there are more target users than the average indicator; otherwise, the ad does not enter the rotation. In general, DOOH networks offer enough opportunities for effective targeting setup if you use them wisely and considering the specifics of digital outdoor advertising.
Stereotype #4: Complex rules for creating creatives
Creatives for DOOH advertising have their own specifics, which distinguish them from internet banners or videos. The main difference is that you need to interest a “cold” audience-people who are just passing by or standing at a stop, not planning to make a purchase. Video on advertising screens is broadcast on average for only 5 seconds, so you need to convey the offer and brand as clearly and concisely as possible. LED screen software allows you to quickly change creatives, adapting them to different locations and times of day, which increases communication effectiveness.
To help advertisers, DOOH Display Solutions services develop detailed instructions for creating creatives. They describe the main requirements: do not overload the message, do not use static images without dynamics, avoid generic appeals without local context, do not overuse technological effects, and do not sell “head-on.” The main thing is to ensure that the passerby remembers the offer, the brand, and understands how to take advantage of the offer.
It is important to remember that advertising screens are not just a place for a bright picture, but a tool for building an emotional connection with the audience. By using LED screen software, you can quickly test different approaches, analyze audience reaction, and promptly adjust advertising messages. This allows you to achieve better results, even if you do not have much experience in creating creatives for DOOH.
Stereotype #5: Uncertain statistics
Statistics for DOOH ad impressions are collected differently than in regular internet advertising, but this does not mean at all that they are non-transparent or that it is more difficult to evaluate the effectiveness of promotion. Thanks to modern technologies and systems, in particular the centralized video management system, the collection of statistical data has become more accurate and accessible for advertisers. Today, DOOH advertising allows you to receive detailed analytics on reach, which helps businesses make informed decisions about future advertising strategies.
Wi-Fi radars installed on digital screens read the MAC addresses of passersby’s devices, which makes it possible to form anonymous and depersonalized user data. This data is transmitted to the centralized video management system, where it is processed for further analysis. In this way, the advertiser receives not only quantitative but also qualitative audience indicators, which significantly increases transparency and control over campaigns.
As a result, in DOOH advertising statistics, you can thoroughly study the total number of impressions, expenses per day and for the entire campaign period, the average cost per impression, as well as the volume of potential contacts with your message (OTS) – that is, the audience that could have seen your ad. This approach makes it possible to assess the effectiveness of placements as accurately as possible and to promptly respond to changes in audience behavior.
Thanks to the centralized video management system, advertisers get the opportunity not only to control impressions but also to promptly adjust strategies, increasing the effectiveness of their DOOH advertising campaigns. This makes digital outdoor advertising a modern and flexible tool for achieving marketing goals.
Stereotype #6: No possibility to build a sales funnel
Previously, it was almost impossible with outdoor advertising to reach people who had already seen your ad. Today, thanks to the development of DOOH advertising and centralized video management systems, it is possible to launch retargeting and effectively work with an audience already familiar with your brand. This opens up new opportunities for building a full-fledged sales funnel, where every contact with the client is taken into account and used for further marketing actions.
In the Direct system, for example, it is possible to launch advertising campaigns targeting anonymous offline audience segments. The mechanism is not disclosed in detail, but usually it works like this: based on the MAC addresses of users’ devices that could have seen your digital outdoor advertising, an audience profile is formed, taking into account socio-demographic characteristics, geography, and interests. This allows you to more accurately identify potential customers and increase the relevance of advertising messages.
Depersonalized user segments are automatically added to the advertising platform and updated daily until the end of the campaign. You can launch remarketing campaigns targeted at users who have potentially seen your outdoor advertising, which significantly increases the effectiveness of promotion and helps build a sales funnel. Thus, DOOH advertising becomes not only a tool for reaching a new audience, but also a means for working with already interested customers.
Thanks to the centralized video management system, advertisers receive tools for precise audience targeting and optimization of advertising budgets. This allows not only to increase the effectiveness of advertising campaigns, but also to ensure transparency at all stages of interaction with potential buyers, which is an important advantage of modern DOOH advertising.
When advertising becomes closer
DOOH advertising has long ceased to be just a picture on a screen. It has become part of the city, a convenient tool for business, and an understandable way of communicating with people. Thanks to modern centralized video management systems, brands can quickly respond to changes, test ideas, and see real results.
Today, digital screens are an opportunity to be noticed exactly where it is needed. And most importantly, it is a chance for every business to become a little closer to its customers in the rhythm of the big city.
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