Future of Out-of-Home Advertising
Out-of-home advertising is exciting and challenging at the same time. Before discussing the future of out-of-home advertising, let’s discuss the current challenges first.
If you were expecting me to define and tell you what Out-of-home (OOH) advertising marketing or advertisement, who should do it is and how to do it, then most probably you’re on the wrong article. You need to go back to your google search result page or change the Google search term.
Ok, so let’s discuss the challenges. Challenges are to find the answer to few questions:
- How to know few critical numbers like Impressions, Reach, CTR, CPA, and others?
- How do you find the intention and sentiments regarding the ad?
- How do you know the conversion from the ad or lead in the funnel?
- Do I have to sign a long-term agreement all the time?
I can keep going with the questions, but I made my point that this kind of advertisement seems less effective than digital marketing and channels.
I still think Traditional marketing channels have more reach and are more efficient than digital marketing channels.
Many mediators and agencies made it expensive and inefficient. But as of the current operational method, somewhere, it was necessary.
Of course, as with other things, it is very hard to predict the future of this thing. But with the current rate of technological advancement, we’ll solve all these issues and can buy the ad space without any mediator or agency, just like we buy the ad space on Facebook or Google.
How to Solve these challenges:
Buy Ad space-
If you like ad space and you want to buy it. The challenge is you don’t know whom to contact and the price for that ad space.
Right now, an instant contact medium is not necessary because you can’t buy in just a few clicks. You’ll have to find and contact the agency, who is controlling that and then negotiate the price, sign the contract, and then after 20-30 days, you’ll be able to book the ad space, which you can use after 1 or 2 months.
What if you can buy that ad space instantly or at least can see the vacant hours and buy that ad space only for a couple of hours of the day?
Sound exciting, right?
Who thought someone would ever run an ad to collect the email id? But technological advancement in ad space made it possible.
Think about it, would you ever buy ad space in the newspaper to increase your YouTube subscribers or build your email list?
Hello NO, right?
In terms of buying the offline banner, we’re still in that era.
In the same way, you can use the ad space in town and advertise your YouTube channel there to have some subscribers. Right now, you can’t even think of it, I know.
What about those critical numbers (CPC, CTR, Impression, Reach, Blah, blah, blah…)
Currently, you don’t have any solution to know how many eye-balls your ad got. You have to predict this area is crowded, so my ad will be more effective here.
We can say there is no reliable source to know this. Agencies will give you a projection of the number. (Which of course, will be more than the highest, and they’ll say, “It’s just average”)
Ok, let me clarify my point. I’m not opposing the agency culture, but digital technologies will make the process transparent, and you’ll get to know where your dollars are burning.
We’re discussing the future of offline banner advertising here, so it is necessary to discuss that just making a few steps in the whole digital process will not be enough. This industry will have to go till an extent where already digital marketing is.
And to do so, it’s important to provide the same kind of decision-making data, which marketers use to reach any decision.
If we can have the numbers like CPC, Impression, Reach in offline marketing, that would be revolutionary.
Today we have the technology to scan the vehicle’s number and speed. So, it is very easy to scan the viewing angle of passing eye-balls. We can consider impressions, and by the same technology and cameras, we can also calculate the reach.
But I’m not sure this will be against the privacy law because to calculate reach, those cameras will have to capture, store, analyze, and recognize the face. In many countries, this could be a privacy breach as well.
But if this is possible, you can calculate the frequency as well in a specific time frame.
Please let me know in the comments if you want to add something in this.
Offline Advertising is Expensive
Anything is expensive or not; it depends upon your perspective. Today anyone will say this, and full heads will nod into yes.
There are three reasons I can think of as of now.
1. Because there is no sustainable source to have these numbers, without reliable data, marketing is expensive.
2. There, you don’t have the luxury to try some campaigns for a very small budget. (As of now)
3. If you’re not into out-of-home advertising, you don’t have any idea about pricing or pattern for ad spaces.
Cost or being expensive is not an issue for people in the driving seat in this industry. They never feel it necessary to address this issue.
Ok, if you’re buying long terms hefty amount contract, you’ll get a discount. Happy?
We already have discussed the part of the solution in the challenge 1 part. Ok, let’s address the solution reasons wise:
Reason1: Lack of Data
We have discussed the method to have the data (at least approx.)
After having a dataset, which you can rely on will be relexifying for many advertisers. At least for those who are new to this Out-of-home industry.
Reason2: Long-tern contracts only
As we’ve already discussed that we can have a digital ad space and slot distribution panel. It will provide the luxury of testing the offline campaigns to advertisers with a small budget, and they can decide whether they want to scale this medium or not?
Reason3: Not idea about pricing
Digital ad space bidding and distribution panel will solve this problem in a jiffy.
I’ll continue the discussion in next article. Till then, I would like to have your views so I can include them as well in my next article. Please let me know your thoughts in comments.