Location-based advertising isn’t a new concept and has existed for some time now. However, the growth of Digital Out-of-Home (DOOH) media has accelerated its adoption. With more than half the global population connected by a GPS-enabled device, location data have also become an important data source to plan and measure location-based advertising campaigns.
Today, programmatic DOOH (pDOOH) is almost identical to its digital counterpart where campaigns are planned, activated, measured, and optimized using technology but are being delivered in the real world on public screens rather than on personal devices. Climate triggers, location-based targeting, increased usage of consumer data, and mobile targeting is transforming the market by offering unique opportunities to advertisers to reach the audiences on the move.
Global location-based advertising is expected to register a 17.4% growth rate (Diagram 1.0) from 2020 to 2027. The increased use of social media, the proliferation of data, and regulatory measures of consumer data are expected to propel the growth further.
Diagram 1.0 Location-Based Advertising Market Size, Share & Trends Analysis Report By Type (Push, Pull), By Content (Text, Multimedia), By Application (Retail Outlets, Airports, Public Spaces), By Region, And Segment Forecasts, 2020 - 2027
Where Does Location Fit In The Programmatic DOOH Landscape?
Location Intelligence is designed to understand consumer movement, what brand locations they interact with, and where they spend most of their time outdoors.
pDOOH, on the other hand, is the most flexible form of DOOH buying as advertisers can choose to only run their ads automatically when certain criteria are met and within a given budget or other constraints. pDOOH opens up various buying capabilities to advertisers. Namely, ad-serving, impression-guaranteed buying, and Share-of-Voice (SOV) buying.
When location intelligence is combined with advanced programmatic buying capabilities on high-impact screens, advertising budgets can be used more effectively. Here are some ways brands have been using location data and DOOH to deliver campaigns that deliver higher engagement and better results.
One of the most common uses for location intelligence is to power ad-serving technologies. Advertisers can target audiences with unique characteristics based on their product interest, target audience's high concentration hours, and other real-world conditions. These audience segments are constructed based on insights from location intelligence.
For example, in a campaign that was run by Netflix promoting its latest K-drama series, dynamic triggers were set up to serve the right creative. The show ‘Forecasting Love & Weather’, was set up to respond to weather conditions where when it was raining, the creatives that appeared on the billboard would be ‘rainy’ creatives. Likewise, when it is sunny, ‘sunny’ creatives appear.
- The Offline-Online Experience
Location intelligence is based on consumer behavior and can assist brands to link online activities to offline behaviors. With this approach, companies can use location intelligence to add a layer of mobile advertisements targeting offline foot traffic in stores, restaurants, and different commercial locations of interest.
A personalized DOOH campaign executed for an online E-commerce company drove maximum Call-to-Action (CTA) behaviors which further increased social and website traffic. Consumers were likely to download the mobile application and visit the website because the E-commerce appeared to be more credible with its brand being advertised on billboards.
- Targeting Lookalike Audiences
Rather than focusing entirely on their personal clients, many organizations use location intelligence to study their competitors by monitoring visits to rival locations. They also can understand where the customers move before and after visiting the store. Using this information companies can launch vanquishing campaigns to win over their competitor’s clients.
For instance, a company could use location analytics to learn that over half your competitors’ customers regularly visit their store late in the evening. By optimizing DOOH ads to show in the late evening and near locations that competitor customers are found frequently visiting, you can better reach those consumers when they’re ready to make a purchase or visit a store.
Location Data will Continue to Drive pDOOH
Location-based targeting presents many opportunities for advertisers to resonate with their target audiences. When combined with Programmatic DOOH, it is a highly effective strategy that marketers can deploy. Audiences will start to see more content that is relevant to them, wherever they may be on the sales funnel. However, the foundation of any successful campaign is knowing what works and what doesn’t.
If you are ready to leverage audience and location data signals to deliver more efficient outdoor advertising campaigns, book a free trial with us today.