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The Internet of Things enables personalised and location-based digital-out-of-home (DOOH) advertisement

AUG 21, 2023 | Paras Sharma| Joydeep Bhattacharyya
region: ALL Arts & EntertainmentReal EstateRetail & WholesaleAccommodation & Food ServiceInformation & CommunicationAdministrative Internet of Things

In April, Transforma Insights published a report ‘Public Information & Advertising Screens: Adoption of digital information screens for enriched customer experience’, which discussed in great detail how enterprises are increasingly deploying digital-out-of-home (DOOH) screens such as kiosks, billboards, and signage to offer enriched customer experience, reduce manual labour, and earn additional revenue.

In this blog, after briefly describing the advantages of DOOH screens, we explain how increasing implementation of IoT devices delivers highly personalised location-based advertising.

What are the advantages of digital-out-of-home (DOOH) screens?

Compared to traditional out-of-home advertising, digital-out-of-home screens are able to provide a more focused advertising platform. DOOH helps advertisers to create impactful, entertaining, and dynamic advertisements that are targeted to specific audiences based on data such as location, weather, time, and demographics. For instance, McDonald’s ran a DOOH campaign that used weather data to display different product offerings (such as when the temperature was high, summer drinks and food options were displayed).

The motivation for using such approaches is clear: it increases customer engagement and therefore sales. A recent survey by Yahoo and MFour reveals that 56% of respondents who were exposed to digital-out-of-home (DOOH) ads impulsively bought an advertised product. The survey also revealed that 65% of the purchases were unplanned, and only after interaction with the advertisement, customers were triggered to purchase the products.

Connected public information screens are pushing personalised advertising in the DOOH medium

The niche of personalised marketing is rapidly changing, and in addition to the still dominant online marketing segment, advertisers are also embracing digital-out-of-home screens to catch people’s attention and offer personalised marketing ad by considering their demographics and emotional attributes. To cite an instance, GMC, the car manufacturer ran a dynamic real-time advertising campaign using facial recognition, where if digital kiosks detected a family with children, they would display family video ads. In another example, Yoplait launched an outdoor digital sign that captured a person’s mood and offered a free smoothie in return.

IoT connectivity enables location-based advertising

Connected DOOH screens are being increasingly deployed to offer location-based advertising solutions. Various businesses are using taxi-top advertisement, for which they install digital screens atop taxis to display dynamic ads using an internet connection. These internet-enabled digital screens display images in both video and image formats. The ads are displayed in high definition, which inevitably attracts customers.

For instance, American Express ran location-specific ads on 125 taxis in New York, US. These taxis displayed ads related to the offerings of American Express, whenever they passed an American Express merchant. In non-American Express merchant areas, the taxis displayed ads about the neighbourhood along with the logo of American Express.

Connected DOOH screens will more than double in the next decade

According to Transforma Insights’ research, the total number of connected devices in the Public Information and Advertising Screens application group will grow from 5.3 million in 2022 to 12.9 million in 2032. Throughout the forecast period, the market will be dominated by Greater China, North America, and Europe, jointly accounting for more than half of the total market.






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