DOOH and retail media are two of the most exciting and innovative trends in retail marketing today. They offer brands new ways to connect with customers in physical spaces using digital displays and interactive features. But how can brands make the most of these opportunities? The answer is data. Data is the fuel that powers DOOH and retail media campaigns. This allows brands to tailor and optimize their messages, track and evaluate their performance, and integrate them with other marketing channels. However, its use entails navigating challenges and risks.
In this article, we dive into data's enhancement of DOOH and retail media strategies, weighing benefits and challenges.
Data can be either third-party or first-party. Data brokers, aggregators, and platforms are examples of organizations that collect third-party data since they do not have a direct relationship with consumers. Although, first-party data is information that a company, brand, or publisher collects directly from the audience and consumers.
It can enhance audience segments and profiles beyond the brand's customer base. For instance, businesses can harness GeoCTRL's location intelligence to their advantage by using high-quality GPS, WiFi, Bluetooth, and/or LiDAR data. In this way, brands can gain insights into consumers' movement patterns, most visited locations, and preferences. Thus, brands can customize their ads to align with consumers' real-world behaviors. Observing consumers' online and offline activities yields a valuable understanding of their needs and preferences and helps assess DOOH and retail media performance.
On the other hand first-party data is the information collected directly from customers who have purchased from a brand before. These customers are more likely to buy again. A study by Adobe found that they have a 67% higher conversion rate than new customers. In fact, by targeting customers with DOOH ads based on first-party data, brands can boost their retail campaigns and connect with people at optimal times and places. As show in a survey by BCG, first-party data can boost the conversion rate by 15% for retailers who use it effectively.
Using data for DOOH and retail media campaigns increases reach, relevance, and ROI. Based on Statista, global outdoor ad revenue will be around 35.63 billion dollars (22.37 billion (or 63%) will come from traditional OOH media and 13.26 billion (37%), respectively). According to the same source's projections, DOOH ad revenue worldwide is forecast to surpass $20 billion by 2028. These statistics show that DOOH is a powerful tool for retail marketing to reach more customers and increase its impact.
Some of the many benefits for brands leveraging data include:
If you are looking for a powerful way to reach and influence your target audience, you should consider combining DOOH and mobile ads. Therefore, DOOH ads can reach a large and diverse audience in public places, while mobile ads can deliver a more personal and interactive experience to the users. But how do DOOH and mobile ads work together? What are the benefits of such a fusion? Let's look into each of them:
By showing consistent and relevant messages across different screens, advertisers can increase the exposure and recognition of their brand. For instance, LEGO in Italy combined DOOH with mobile targeting to get more people to visit their stores. With this campaign, they increased foot traffic, driving around 37,000 visits.
By using geofencing, tracking, and retargeting technologies, advertisers can target specific audiences based on their location, behavior, and preferences. They can also track user conversions and interactions to evaluate their campaigns. As shown in a study by Ocean Outdoor, DOOH and mobile ads increased brand awareness by 23% and brand consideration by 21%. It also revealed that DOOH and mobile ads boosted online search activity by 54% and social media engagement by 40%.
Ocean Outdoor UK CEO Phil Hall stated: “Using DOOH content across social media unlocks significant value, delivering well beyond the priming effect of physical DOOH alone. These are serious benefits for advertisers, proving DOOH is a vital ingredient when used to make big statements and mark important moments, which by their very nature are incredibly shareable.”
By using creative and dynamic content that adapts to the context and environment, advertisers can capture the attention and interest of users. Beside, they can also use mobile devices as a bridge to connect and encourage users to take action. For example scan a QR code, visit their website, or download an app. RISE Coffee pairs their QR codes with a call to action (Unleash your roar) and discount incentive to influence buyer intent and increase scans. According to global research from Alfi, more than 68% of senior executives expect the use of QR codes in DOOH to increase by 20% or more in the future.
Despite having a multitude of opportunities, there are also some challenges and risks that brands need to be aware of and address. The three most challenging ones are data quality, privacy, and security.
Ultimately, combining DOOH and retail media with data yields exciting outcomes for brands. This partnership lets brands create targeted campaigns aligned with real-world behaviors, boosting engagement. Location intelligence data adds insights into movement patterns, making ads more relevant. Utilizing first-party data raises conversion rates, while data-based metrics fine-tune campaigns. Yet challenges like data quality and privacy demand attention. Remember, transparency, relevance, and respect are vital.
By using data responsibly, brands can revamp their DOOH and retail media strategies, delivering impactful customer experiences. The key takeaway? Embrace the fusion of DOOH, retail media, and data intelligence to ignite your retail campaigns!
