Sensible . Affordable . Targeted
All of this happens without the consumer having to scan or tap an ad, text or take some other action. x Thirdly, when a consumer exposed to an OOH ad subsequently enters a store in which beacons are present, the beacon-paired app can detect that event, enabling the advertiser to attribute behaviors (e.g., store visits) to OOH ad campaigns. x Finally, these events and others can be recorded as part of an individual consumer's history and used to distinguish "first-time," returning, interested, engaged and other types of consumers based on previous beacon-triggered events. Stage 5 - Unified (MOHBE with Programmatic) – With programmatic platforms advertisers use real-time bidding to automatically purchase digital inventory (web, in-app, video and others) that matches and reaches specific, narrowly defined audience profiles. Growing rapidly across channels, programmatic is projected to account for more than half of all digital advertising within the next 18-24 months. OOH is also beginning to integrate inventories with programmatic platforms. With programmatic, unified MOHBE (beacons, mobile and out-ofhome) makes the combination even more powerful in four important ways: x First and foremost, programmatic simplifies the purchasing of ad inventory, which as PJSC’s Mark Boidman pointed out is badly needed in OOH.
x As programmatic advertisers bid on ads that closely match target audiences, richer profiles from MOHBE raise the value of OOH inventory, both static and digital. x The data captured by beacon-enabled apps on users' locations, history, interests and other criteria make the inventory of in-app ads more valuable. The vast majority of these ads will be sold programmatically, in either open or closed marketplaces. When the combination of OOH and mobile ads on partners’ apps boost yields, OOH media and their app partners stand to benefit. How the "surplus" will be divided remains to be determined.
x As beacons are deployed more widely, OOH will also be able to establish attribution (e.g., exposure to OOH ads boosts store traffic, conversions, etc.) and return on ad spend (ROAS). These metrics in turn provide the kinds of metrics that advertisers and media planners need to boost their investment in OOH. All in all, the combination of MOHBE (mobile + OOH + beacons) and programmatic bodes well for advertisers, OOH media and mobile app partners.
Stage 1 - Geo-targeted OOH – OOH media planners devote a great deal of effort profiling audiences by location and even places to determine the best matching locations and placements for various advertisers and campaigns. Historically, OOH media has relied on surveys and other conventional sources of data to profile audiences in locations based on age, gender, income and other demographic data. Now, third-party mobile data sources such as Placed and PlaceIQ provide much richer and more granular data, including demographics, user interests, travel history (including stores visited before and after), and even spending patterns. PlaceIQ profiles mobile audiences in a billion 100 x 100 square meter tiles, over 27 unique time periods. These profiles of mobile consumers by time and location serve two purposes: x Geo-targeted profiles allow media planners to match campaigns to audiences with much greater precision.
x They allow advertisers to estimate the impact of OOH advertising on mobile consumers' behavior – for instance, by determining the percentage of customers in the vicinity of a brand’s OOH ad that subsequently visits a retail store where the brand is sold. Geo-targeting enhances the precision of OOH audience targeting and the estimated impact of OOH media. With beacons (Stages 4 and 5), advertisers gain even greater precision in targeting – for example, consumers who are actually on a particular subway train; in a bus shelter; in a specific department, aisle or even near a particular display in a store – as well as attribution. Stage 2 - Adaptive DOOH – Data from mobile users allow digital OOH (DOOH) advertising to adapt to audiences not just by location but by time as well.
Like digital media on the Internet, Digital OOH (DOOH) can display ads dynamically, rotating and displaying ads in 15-60 second intervals. With DOOH the profiles of mobile users by location and time (e.g., day of week, daypart and even time of day) become even more valuable. For example, the profiles and interests of commuters traveling into the city via subway on a weekday morning are very different from those travelling into the city on the weekend. With DOOH ads and information shown in, around and on transit, malls, venues, and other locations can be tailored to audiences based on location and time of day. Similarly, when a concert, game or other major event is held at a venue, DOOH in and around the venue can tailor content to fans' profiles and interests. By detecting and adapting dynamically to mobile consumers, DOOH offers an even more flexible and powerful channel for brands, retailers and locations.