The world of marketing moves at a rapid pace, yet nothing appears to break from traditional out-of-home advertising. OOH gives brands the opportunities to connect and engage with members of, and around, their target audiences in the real world. Billboards, transit ads and digital signage, among others, have been tried and true methods for decades. But as the digital marketing transformation continues to spread throughout myriad industries, one question remains: Are OOH marketers ready for the rise of AI, and can AI deliver better and more unique kinds of data?
The state of OOH marketing
Traditionally, OOH marketing has relied on a combination of art and intuition. Marketers have typically measured success using factors like foot traffic, demographics and location such as high-traffic areas to determine where to place OOH media. The effectiveness of these advertising campaigns has often been measured using broad metrics like estimated impressions and brand recall studies. While these methods have merits, they also have clear limitations in both precision and adaptability.
The introduction of digital out of home (DOOH) advertising has already begun to shift the paradigm. DOOH allows for more dynamic and targeted messaging, with content that can be changed in real time. However, the full potential of digital OOH and OOH marketing, in general, may only be realized through the integration of AI.
The potential of AI in OOH marketing
AI holds the promise of revolutionizing OOH marketing by providing better and different types of data that can enhance decision-making and campaign performance.
- Real-time data analytics. AI can process vast amounts of data in real time, allowing OOH marketers to adjust campaigns at a moment’s notice and as needed, making it a highly attractive tool in a marketer’s arsenal. For example, AI can analyze weather conditions, traffic patterns and consumer behavior to optimize ad placements and content dynamically. This level of responsiveness is something traditional home advertising methods cannot match.
- Predictive analytics. AI’s ability to predict trends based on historical data is invaluable. OOH marketers can use predictive analytics to identify the best locations and times for ad placements, anticipate consumer responses and allocate budgets more effectively.
- Audience targeting and personalization. AI can help OOH marketers better understand their audiences by analyzing data from various sources, including mobile devices, social media and purchasing behavior. This information allows for more precise targeting and personalized messaging, making campaigns more relevant and engaging.
- Enhanced measurement and attribution. One of the most significant challenges in OOH marketing has been measuring campaign effectiveness. AI can provide more accurate attribution by tracking consumer interactions with OOH ads and linking them to online and offline behaviors. This data-driven approach offers a clearer picture of ROI and campaign impact.
- Creative optimization. AI can analyze the performance of different creative assets and recommend adjustments to improve engagement. For instance, AI might suggest changing colors, fonts or messaging based on what resonates most with the target audience. This continuous optimization can lead to more effective campaigns.
How willing are OOH marketers to adopt AI?
The willingness of OOH marketers to adopt AI is influenced by several factors:
- Perceived value. OOH marketers are beginning to recognize the value that AI can bring. From predictive analytics to real-time data processing, AI offers capabilities that can enhance the effectiveness of OOH campaigns. The ability to deliver hyper-targeted messages based on real-time data is a game-changer. However, the perceived value must be strong enough to justify the investment in AI technologies.
- Technology integration. The integration of AI into existing OOH platforms and processes is another consideration. For many marketers, the adoption of AI requires a shift in mindset and operations. Those who have already embraced digital transformation are more likely to adopt AI. In contrast, those still relying on traditional methods may be slower to change.
- Education and training. A significant barrier to AI adoption is the knowledge gap. Marketers need to understand how AI works, how to interpret AI-generated data and how to apply AI insights to their campaigns. As more educational resources and training programs become available, this barrier will likely decrease.
- Cost. The cost of implementing AI can be a deterrent, especially for smaller companies with limited budgets. However, as AI technology becomes more accessible and cost effective, cost will likely become less of a barrier.
- Industry trends. As with any technological shift, industry trends play a significant role in adoption. If major players in the OOH space start using AI successfully, others are likely to follow suit to stay competitive.
The path for AI in OOH marketing is clear
The willingness of OOH marketers to adopt AI is growing, driven by the technology’s potential to transform how campaigns are planned, executed and measured. While challenges such as cost, education and integration remain, the benefits of AI are becoming increasingly apparent. As AI technology continues to evolve and become more accessible, it is likely to play a central role in the future of OOH marketing as well as other forms of advertising.
For OOH marketers, the question is not whether to adopt AI but how quickly they can do so to stay ahead of the curve. Those who embrace AI will be well-positioned to deliver more targeted, engaging and effective campaigns resulting in increased brand awareness to help surpass the competition in an increasingly competitive landscape.
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Opinions expressed by SmartBrief contributors are their own.