Digital Out-of-Home (DOOH) advertising has completely changed how brands connect with audiences in public spaces. With the use of digital screens and clever programmatic tools, it's now easier than ever to run dynamic, highly targeted campaigns that can adapt in real time.
However, DOOH advertising is not without its issues. Fortunately, if brands are able to tackle these challenges, they can maximise the power of this innovative marketing tool. Here are seven of DOOH's biggest hurdles and their respective workarounds.
Challenge 1: Measuring Results and Attribution
One of the trickiest parts of DOOH is figuring out how effective it actually is. Online ads can track every click, view, or conversion, but that's not the case with DOOH, as you can probably imagine. Success is often measured using guesstimates, like impressions based on foot traffic or data from nearby mobile devices. That gives a general idea of exposure, but it doesn't give precise results, making it harder for brands to justify their investment or optimise their campaigns.
Solution: Link It Up with Digital Campaigns
To improve measurement, brands can combine DOOH with their digital channels. For example, integrating geofencing into DOOH campaigns can help track how people engage with a brand after seeing an ad. Suppose someone walks past a digital screen showing an advert, then searches for the product or visits the store later—geofencing can tie that behaviour back to the ad.
Pairing DOOH with pay-per-click marketing (PPC) campaigns might be even more effective. Including a digital call-to-action or promoting a website link alongside a DOOH ad allows brands to track traffic and engagement. This bridges online and offline activity, making DOOH a valuable part of a larger marketing strategy.
Challenge 2: Fragmented Platforms and Lack of Standards
The DOOH space can feel a bit chaotic because there is no established standard. Vendors offer different platforms, metrics, and pricing structures, making it hard for advertisers to plan and manage campaigns across different networks. Comparing performance and negotiating prices also become much more complicated as a result.
Solution: Programmatic Buying to the Rescue
Programmatic DOOH platforms can simplify the buying process. Advertisers get access to multiple inventories through a single interface, so they don't have to deal with different vendors. These platforms also offer features like real-time bidding, dynamic creative optimisation, and consolidated reporting.
Even better, many programmatic platforms use standardised metrics to make comparing campaign performance easier. That not only simplifies planning but also helps advertisers figure out the best ways to spend their money.
Challenge 3: Ad Overload in High-Traffic Areas
Digital screens are everywhere these days, especially in busy urban spaces, so most people tend to tune them out and don't really see them anymore. The overexposure desensitises the target audience, particularly in high-traffic areas like shopping centres or transport hubs. When people stop paying attention to the ads, engagement drops and that creates a problem that needs to be addressed.
Solution: Creative and Relevant Ads
The key to cutting through the clutter is creativity and relevance. A Nielsen study found that nearly two-thirds of DOOH viewers have taken at least one action after seeing one. These include visiting a brand's website, searching for it online, or even going to a physical store. Additionally, over half of these actions were taken on mobile devices.
The trick is to focus more on creative excellence and relevance. For example, invest in ads that adjust based on the weather, time, or location. These are more likely to catch people's attention. Brands should also add interactive elements like QR codes to get viewers to engage and improve brand recall.
Challenge 4: Tech Glitches and Operational Issues
Sometimes, the best-laid plans go wrong. A screen might go dark, the resolution might look grainy, or the wrong ad might play in the wrong location. Running a large-scale DOOH campaign across multiple sites can be an operational nightmare because there are so many moving parts.
Solution: Proactive Monitoring and Maintenance
Avoid these issues by working with DOOH providers who offer robust monitoring and support systems. In most cases, they check screen performance and placement accuracy regularly to catch small problems before they become bigger ones. Choosing the right content management systems (CMS) with advanced features can also help with scheduling and making sure the right ads run at the right times.
Challenge 5: Privacy Concerns
Targeting is a big part of what makes DOOH effective, but it often relies on data like location tracking and demographics. With growing privacy concerns and regulations like the General Data Protection Regulation (GDPR), advertisers need to be careful about how they collect and use data. Mishandling this can lead to legal trouble and a loss of trust from consumers.
Solution: Ethical Data Use
The key is being open and following the rules. Brands should use data that doesn't identify individuals and focus on broad trends instead. Clearly explaining how data is collected and giving people easy ways to opt in can help build trust. Having a simple, easy-to-understand privacy policy is also important.
Challenge 6: The Cost of Prime Locations
Want your ad to appear in a prime spot like Times Square or Singapore’s Orchard Road? You’d better have a hefty budget in that case. Premium DOOH locations come with premium price tags, which can be a major barrier for smaller brands looking to compete in these highly trafficked areas.
Solution: Think Outside the Prime Spots
The good news is that there are lots of less expensive options that still work well. Brands can focus on busy places like suburban shopping centres or commuter routes during rush hours. Tools that analyse audience behaviour can also help find hidden gems—locations that are less obvious but still effective. It's all about getting the most value, not just going for flashy, high-profile spots.
Challenge 7: Limited Interactivity
One downside of DOOH compared to mobile or social media ads is the lack of personalisation or interactivity. Consumers expect brands to give them engaging and personalised experiences, so this can be a drawback. Creating mass produced digital ads can be a good way to spread word about your products and services, but it loses a lot of the charm that can spark engagement from more personalized ads.
Solution: Use New Tech to Boost Engagement
Emerging technologies like augmented reality (AR) and near-field communication (NFC) are making DOOH more interactive. Picture a digital screen where you can virtually try on sunglasses or explore branded content using augmented reality (AR).
Combining DOOH with mobile campaigns can also boost engagement. For example, adding a QR code that lets people download an app creates a smooth experience connecting what they see on the screen with their actions online.
Unlocking DOOH’s Full Potential
DOOH advertising is a great way to connect with large and varied audiences. Although it comes with some challenges, using tools like programmatic buying, creative ideas, and responsible data practices can help brands make the most of it. As technology improves and new ideas emerge, DOOH will stay a key part of modern advertising. By addressing these challenges, brands can make sure their campaigns stand out, even in the busiest spaces.
Recommended For You:
Digital Out-of-Home (DOOH) Advertising: Data-Driven Strategies for Effective Marketing
