7 ways to use AI in DOOH (digital outdoor advertising)
DOOH: Artificial Intelligence is being used more and more often in the advertising industry.
It is used in the creation of advertising materials, in analytical systems, and in the planning and implementation of advertising campaigns in the field of DOOH (Digital Out-of-Home). This direction covers digital signboards in public places, video walls in shopping centers and transport hubs, as well as interactive players for digital signage capable of adapting content in real time. The integration of AI into such technologies makes it possible not only to automate processes but also to drastically improve audience interaction.
By using video wall software based on machine learning, advertisers can dynamically change images, videos, or messages depending on the time of day, weather conditions, or even the emotional state of people in front of the screen. This makes the creative “alive” and significantly increases communication effectiveness. In addition, AI helps networks identify the most effective interaction scenarios with certain user groups, reducing costs on ineffective displays.
Main advantages of AI integration in digital outdoor advertising
– Personalization of content. Artificial intelligence analyzes audience behavior and demographic data, offering relevant content on digital signboards. Thus, advertising becomes closer to the user, evokes an emotional reaction, and increases engagement levels.
– Reaction to the environment. AI can automatically adapt content based on temperature, time of day, or even the number of people near the screen placement point. For example, a digital signage player can display ads for cold drinks in hot weather and warm drinks in cold conditions.
– Analytics of a new level. Video wall software gives marketers access to in-depth data analysis. AI detects patterns in consumer behavior, tests several advertisement variants, and automatically determines the most effective formats.
– Cost optimization. Thanks to AI, advertising campaigns in DOOH become more economical — instead of broadcasting ads generally, the system focuses only on target viewers, increasing ROI and reducing unproductive expenses.
Ways of integrating AI into digital outdoor advertising
1. Automatic face recognition and demographic analysis
With the help of Digital software, advertisers can determine the gender, age, and emotional state of potential customers. The digital signage player in pDOOH networks reacts to the characteristics of the audience and changes the advertising content in real time. An example of this approach is Samsung’s project in the London metro, where ads adapted to the gender and age of the viewer.
2. Predictive analytics and A/B testing
AI in Programmatic allows the analysis of thousands of interaction scenarios and the selection of the most effective creative. The program tracks the performance of advertising messages on digital displays, and the digital signage player automatically updates the content according to analytics. For example, Kellogg’s in Chicago increased conversion by 12% through flexible message testing.
3. Contextual targeting and personalization
Programmatic makes it possible to take into account external factors, such as the weather and the density of the people flow, which makes communication more targeted. Using software, McDonald’s in Japan adjusted the menu on Drive-Thru digital boards depending on the temperature, which increased the average check. pDOOH technologies accelerate ad personalization and increase engagement.
4. Deep audience analytics and cost optimization
System analytics in pDOOH helps brands identify the most effective interaction scenarios and focus budgets on the target audience. The close integration of AI and software makes it possible to significantly reduce unproductive costs and improve ROI. And the digital signage player becomes the key element of such a modern digital strategy.
5. Hypertransformation of advertising formats
Artificial intelligence is changing the approach to digital outdoor advertising, opening up new opportunities for creating creative ads. Modern video ads on LED billboards can adapt in real time and engage audiences with interactive mechanics. For example, Nike’s motion tracking campaign showed how innovations can truly increase emotional involvement.
Such formats are launched through automated control systems, making advertising screens part of a comprehensive communication process. The use of SSP and DSP for digital outdoor advertising allows you to deepen interaction with viewers, select the most interesting placement locations, and personalize content.
6. Combining online data and offline advertising
Technologies integrate data from different sources, combining users’ online behavior with outdoor advertising. Brands use SSP and DSP for DOOH to display relevant messages on advertising screens, relying on analytics from social networks or mobile apps. This increases the accuracy and effectiveness of advertising campaigns.
A vivid example of such integration is the Amazon Go system, which offers products by analyzing visitors’ preferences. A similar approach is used by networks, where content changes depending on the time, location, or audience, and LED billboards become an element of personalized marketing.
7. Dynamic personalization and generative AI in digital outdoor advertising creativity
With the development of generative artificial intelligence, digital outdoor advertising receives a fundamentally new level of personalization. Systems automatically create and adapt video ads for individual target groups or even each viewer, taking into account the context, location, or weather conditions. Generative AI generates unique visual content on LED billboards and advertising screens, making communication as relevant as possible.
DOOH networks with such technologies allow for the placement of dynamic messages that are constantly updated and create the feeling of live contact with the brand. This helps not only to stand out among competitors, but also to increase the level of audience trust and loyalty. SSP and DSP for digital outdoor advertising in combination with generative AI are a real tool of the new era of digital marketing.
Global digital outdoor advertising and programmatic market
– In 2025, global spending on Digital Out Of Home will reach $18.99 billion (Statista), and the worldwide out-of-home advertising market will be $49.8 billion (WOO, Taggify).
– Programmatic (pDOOH) currently stands at $2.2 billion, which is 10.9% of all DOOH revenues worldwide (Global Expenditure Report by WOO), and this indicator is steadily growing.
– Growth rates of digital outdoor advertising exceed traditional outdoor advertising: for example, in the USA, the digital outdoor advertising segment grows by 11.5% per year, and the entire OOH market in the USA already exceeds $10 billion (eMarketer, BrandXR).
Effectiveness and behavioral trends
– 76% of consumers take a targeted action after viewing advertising, confirming the high effectiveness of this channel (OAAA, The Neuron).
– 73% of the audience have a positive attitude toward DOOH formats, which exceeds similar indicators for online and social media (OAAA).
– In Europe, the introduction of programmatic technologies in digital outdoor advertising has already grown by 35% and reached 1.2 billion euros (Statista Europe, EACA).
Development of technology and creativity
– In Europe, digital outdoor advertising already accounts for 20% of all outdoor advertising revenue, and according to Statista forecasts, will reach $3.71 billion in 2025 (Market Data Forecast, Statista).
– The introduction of modern technologies (SSP, DSP, 5G, generative AI, AR) ensures an average increase in interaction with digital outdoor advertising screens of 30% compared to classical formats (BrandXR, eMarketer).
ROI and competitiveness
– The use of dynamic, automated campaigns in provides an increase in conversion of 10-12% compared to classic carriers (Kellogg’s, WOO).
– AR campaigns at premium locations increase engagement by 300% (BrandXR).
Problems and challenges of integrating artificial intelligence into digital outdoor advertising Display Solutions
The introduction of modern AI technologies into the sphere of Display Solutions opens new horizons but is also accompanied by significant difficulties. One of the main ones is the high cost of launching innovative systems. Quality software and equipment used for digital outdoor advertising require considerable investment, and payback may be noticeable only for large networks or brands with large-scale campaigns.
Ethical issues often arise related to the collection and use of data for content personalization. Advertising is increasingly using algorithms that analyze viewer behavior, and this raises concerns about privacy and the protection of personal information. Ethical issues have become especially relevant after the introduction of stricter regulations on the processing of personal data in EU countries.
Another challenge is the accuracy and reliability of technologies. The supply-side platform for Display Solutions can sometimes face difficulties in identifying the audience or correctly interpreting incoming data. Any mistake in displaying personalized ads can cause a negative experience for viewers and affect the reputation of the brand using such solutions.
Nevertheless, with a well-designed strategy and an ethical approach, the use of AI in digital outdoor advertising becomes a powerful tool for increasing the effectiveness of external digital communication. The discovery of new formats, increasing relevance, and accuracy of targeting are only part of the advantages.
Advision is a content management system for remote control, media planning of video and audio content broadcasting, and a supply-side platform for monetising advertising time. We also implement a Wi-Fi tracking system to measure quantitative indicators of the advertising audience. We help Digital Signage owners and DOOH advertising operators earn money from advertising, automate work processes, and build a reliable media infrastructure using AdTech and MarTech software solutions.
Contact us if you want to increase your profits and implement the latest technologies to solve your problems!
Share the news