Benefits And Challenges Of Using Specific Location Data Sources For OOH Measurement
In the past, Out-of-Home (OOH) impressions were measured by using traffic counts and anecdotal evidence based on the type of location. As OOH continues to digitize, agencies & brands get new features to play with when planning an outdoor campaign, while data and audience measurement strengthen to provide a more robust understanding of audiences during offline campaigns.
While measurement continues to be the most tricky challenge faced by all the outdoor stakeholders. The driving factor that will evolve the OOH industry is technology, making OOH a measurable medium and a preferred choice for marketers. Although no medium is perfect in offering a maximum return of investments - technological advancement has made OOH location measurement much easier.
Location Data Can Be Hugely Beneficial To Provide Offline Attribution
Mechanisms For Digital Campaigns
While most of the time location data can be hugely beneficial to retail and store owners, auto dealers, and restaurants, amongst other categories, location intelligence can benefit, even those without physical storefronts. Here are some of its benefits:
One of the abilities to use location data is better segmentation. You can place audiences into specific groups by identifying specific audience segments and their offline behaviors. It would be easy to identify groups such as those that stop in the store most often as those that and those that have not visited in a long time.
Location data allows for targeting audiences in real-time. There is an opportunity here to offer more personalized customer experiences through curated content as you know the person is in a specific relevant location.
Another way location data helps businesses in the long term is to provide better consumer insights. Understand consumer purchase intent and preferences. By combining location data with audience analysis, you can gain a rich understanding of complex behaviors - where your audiences travel to and how they spend their time.
Location data can help you match real-world experiences with consumers’ digital activities. You can even attribute investments to specific marketing investments. If you are attributing offline ads to stores, you can dive into the competitive analysis and understand consumers’ other preferences to compare your brand and other brands.
However, Measuring Outernet Media Isn’t So Straight Forward
As the medium is unique and reaches many people at a go. In order to get a good estimate of your audience, employing several different measurement systems is the best way to go.
Impressions are able to determine who your ad is reaching. Impressions are measured by averaging out the number of times a person saw the ad. Travel surveys, data modeling may also constitute calculating impressions.
Demographics help advertisers understand who their content is reaching and what interest do this group of people have. The trip paths of audiences are studied to understand the audience behavior, which will help determine what type of target audience category they fall into.3. Digital Footprints
By linking promo codes, social media accounts, links, and other online information that is incorporated into an advertisement, advertisers are able to link audience offline activities to online actions.
4. Dwell Time
The time in which people ‘dwell’ in that area. This could be when people are exchanging travel points, waiting for a train or bus, or being stuck in traffic. The longer the dwell time, the more likely the person would have seen the ad.
Challenges Of Measuring Location Data
Measuring the effectiveness of an outdoor campaign remains a challenge. It has been difficult to properly understand how, when, where, and if an OOH campaign has reached the right people, let alone measure its effectiveness.
Many businesses that are interested in location data have concerns when processing the data. The challenge involves transforming the data into a workable format and measuring how accurate the data calculations can be.
Let’s take a closer look at an example. ‘Brand X’ had an OOH campaign which was played on a Highway, between 10 AM to 1 PM every day for 1 week.
Total Duration - 21 Hours
Total Days - 7 Days
The Total Potential Views generated by this digital ad, in our present methodology computes it to be:
Potential Views: 70,000
However, it does not take into account that, the digital screens played the ‘Brand X’ ad for only 1 SPOT in a Loop and an Hour had 4 Loops for this Media Asset.
The ‘Brand X’ ad was served only 4 times in an hour, however, the audiences measured are for the entire duration. Most publishers provide the total number of impressions for a screen per hour.
A shift in DOOH measurement is needed to provide transparency and accuracy of audience measurement.
Keeping location data clean and normalized is another concern of both the data providers and users. The challenge usually involves transforming the data into a workable format. While processing the data, we need to verify the data is up to date, and accurate.
Besides that, marketers should create accurate geofenced areas where their campaigns are based on a drawn radius around their target location. This allows marketers to filter and segment their data more effectively and keep the data hygienic.
The potential of location data remains enormous as much as how the challenges in data collection and measurement will come along the way. We must address these challenges for us to be able to provide standardized documentation and solutions that help the consumer to use the data to its fullest.
Harness The Power Of Location Data
The world produces 2.5 quintillions of data every day. By 2020, 20 billion devices will be connected globally. With more connected devices starting to emerge, the amount of data generated from these devices is overwhelming.
Together with digital businesses and apps, along with IoT, a huge amount of location data will be produced. At the same time, wearables, smart appliances, smart homes, transactional data, blockchain and more will add on to a tremendous wealth of consumer data.
There’s no question that location intelligence will see exponential growth over the next couple of years. This will create a whole new connected ecosystem that will power personalization of everything. In the long term, marketers will be able to develop location-based engagement applications that customers trust and use.
The Outernet Academy is a part of the Outernet Marketing Innovation Group a.k.a OMIG. OMIG is a group of elite brands from multiple industries that will put out their knowledge and best practices in Out-of-Home. To learn more, click here.
- Content 17: Why Location Intelligence Matters in Out-of-Home?
- Content 18: Types of data used in location intelligence
- Content 20: How is location intelligence applied in OOH campaigns today?