More than two-thirds of US consumers say digital out-of-home (OOH) advertising catches their attention, and the majority say it is less annoying than ads onTV, radio, the internet, and in magazines, according to data from a report by EPM Communications.
Moreover, more than one-third (36%) of consumers say they take action as a result of digital OOH ads, EPM said, citing data from SeeSaw Networks/OTX. Among those age 18-24, that number rises to 51%.
The report, “Digital Out-of-Home Media,” which draws on industry data from SeeSaw, the Cinema Advertising Council and Arbitron, also states that digital OOH advertising – which is a $1 billion business and growing -? places second (48%), after television (56%), in terms of the percentage of people who find it “entertaining,” and only 26% of consumers say digital signage advertising is annoying, when compared with ads on the internet (67%), radio (52%) and TV (51%).
As recently 2006, running an ad on high definition TVs in supermarkets, malls or arenas was largely experimental, EPM said. However, lower technology costs are making digital signage more accessible to marketers who have the opportunity to reach various audiences where they live, work, travel, shop and participate in recreational activities.
The report states that the compelling numbers behind the digital OOH phenomenon prove its value, and offers recommendations and considerations for starting digital OOH ad campaigns. It also highlights several key areas of future opportunity for placement of digital signage to capture the attention in the following venues:
Supermarkets, malls and retail: In-store TV networks and other digital signage at retail figure prominently into the practice of “shopper marketing,” and can significantly influence shoppers as they make their purchase decisions. Key things to consider before advertising in such venues include high costs, a lack of a captive audience because shoppers are continually “on the move,” and stiff competition with other stimuli on the shopping floor.
Transit terminals, sidewalks, highways: Catching consumers’ attention as they move from one location to another is becoming more attractive to advertisers, who are increasingly including mobile phone and website “calls-to-action” to accompany screen advertising. Key considerations include a sometimes-high cost, ensuring that spots are short and to-the-point, and making messages effective without audio.
Taxis, offices, gas pumps and planes: These locations and others, such as elevators and fitness centers, generally capture a higher-income audience whose time for TV viewing at home is increasingly limited, but who have several minutes in which they are “captive” to a screen. Considerations include varying audience dwell times, high rates and the fact that shorter spots usually yield higher recall rates in certain venues.
Bars and restaurants: Digital screens in restaurants, clubs, bars and nightlife locations enhance the value proposition of static “billboard” advertising and can often reach the notoriously elusive 21-34-year-old demographic. Things to consider for ads in these venues include varying audio levels, interactive screens that offer deeper reporting data and the opportunity to offer complementary marketing initiatives in the form of branded drink coasters, collateral and talent appearances.
Arenas: The third-party installation of hundreds of digital displays in the concourses of professional sports and entertainment arenas enables advertisers to bypass sporting leagues and event organizers yet still reach desirable target audiences. Key considerations include audiences with relatively short viewer-time, the calculation of rates based on Arbitron and ticket data formulae, and the opportunity to extend digital display messages to sideline signage and JumboTron scoreboards. Opportunities also exist to include mobile phone and web calls to action and Bluetooth interactivity.
Cinemas: Digital ads in movie theaters are claiming a bigger slice of markers’ budgets, drawing funds away from new media and TV spot production, according to EPM. In-cinema advertising reached $650 million in 2007, up 42% over 2006.When considering these types, be mindful of theaters’ unique A/V requirements, which may require ads for other venues to be resized, recut and remixed – even provided in film format. A growing number of in-cinema campaigns are also extending off the screen with other opportunities to continue marketing efforts.
“Finding the right person at a company to implement a digital out-of-home campaign remains the greatest single challenge for clients, agencies, and network sales reps alike,”? said Ira Mayer, president and publisher, EPM Communications. “‘Digital Out-of-Home Media’ provides complete contact information for more than 100 key players among network & service providers, network aggregators, agencies experienced in digital out-of-home campaigns, research firms and consultants, and trade groups.”