Best practices for managing DOOH advertising budgets
Imagine public spaces where electronic billboards change their content to appeal to the people who are most likely to see it. This is already a reality in some markets like Singapore, where Digital Out-of-Home (DOOH) advertising bridges the gaps between the virtual online environments and the outside world.
The main concept underpinning digital out-of-home advertising is fairly simple. Digital billboards, interactive kiosks, and other digital displays deliver dynamic, targeted messages based on the activity data on user’s mobile phones, in a way analogous to current modes of online advertising. Flexibility and real-time capabilities make it a compelling choice for marketers aiming to enhance brand visibility and engagement.
There are, however, some practical limits to DOOH. For one thing, appealing to crowds that are out in public requires a less individualised approach than one might employ for online ads. The amount of complexity you can employ must also be dialled in just enough so that it works for busy crowds, but it shouldn’t be so simple that the DOOH ad displays become fancy static ads that don’t live up to their potential.
However, the biggest factor is managing the cost of DOOH campaigns. DOOH is a new frontier in advertising and not all the kinks have been worked out in making them cost-efficient. Still, understanding what factors influence the cost of DOOH campaigns the most is important if you want to make the most of it. Consider the following:
- Location and traffic volume: City centres, transport hubs, and other high-traffic locations generally command higher prices due to their better exposure.
- Screen size: Larger screens and high-resolution displays necessarily come with increased costs over smaller screens.
- Campaign duration: As with other ad types, extended campaigns may enjoy discounted rates but is generally less true for desirable high-traffic areas. In most cases, longer campaign times mean higher costs.
- Seasonality: Like with traditional billboards, advertising during peak times or seasons can attract premium rates due to better audience interest and numbers.
- Creative complexity: DOOH ads are breaking new ground with clever new applications coming up all the time. Still, if a campaign requires particularly advanced technology or interactive elements, production costs can go up compared to more straightforward ads.
Ways to keep your DOOH ad costs in control
DOOH advertising may be an exciting new area to explore but, under the hood, managing the costs of your campaigns is broadly similar to any other online and offline equivalents. A combination of time-tested ad management and common sense should help keep your ad costs within reason and within budget. Read through these best practices before launching your next DOOH campaign:
1. Define clear and measurable success
This is just good practice for any campaign type, not just DOOH. Having specific and measurable objectives is how you know your strategy is working to begin with. Whether you aim to boost brand awareness, generate leads, or increase sales, having a clear picture of what success looks like will help decision-makers shape your budget allocation in the right direction.
2. Don’t give in to FOMO
The fear of missing out (FOMO) is a phenomenon that is all too commonplace in cutting-edge industries like advertising. Going into DOOH because you fear missing out will often lead to confusion about what it is you must expect from these campaigns, leading to misplaced spending and disappointment. Save your money for other campaign types until you have done your homework and are certain that DOOH ads are a good fit for your brand.
3. Select worthwhile partners
Once you’ve decided that DOOH is for you, guarantee your campaign’s success by partnering with reputable agencies and DOOH networks. It may be more expensive than going with other alternatives, but you will get so much more for your money when your campaign is planned and executed correctly.
4. Use day-parting to maximise eyes on ads
Day-parting involves scheduling ads during the hours when your target audience is most likely to see them. For example, if you have a fast food business, you could consider displaying breakfast offers to morning commuters. Similarly, if you run a bar or fine dining business, evening ads may make more sense. This strategy keeps you from paying during low-traffic periods, ensuring better cost efficiency.
5. Utilise programmatic buying
Programmatic platforms let you bid for ad placements in real time, allowing for much more efficient use of your budget compared to paying for a constant presence. To do this, you’ll need to use real-time data so you can display the ads wherever they’re most likely to perform well. While this can be a bit more complex than other implementations, it can reduce manual workloads and minimise the risk of overpaying for placements.
6. Invest in the fundamentals
At the end of the day, strong advertising fundamentals still matter more than technology. Investing in the content rather than just the delivery system is essential for capturing your audience’s attention, both on their phones and in the public spaces they inhabit. Likewise, not boxing yourself in and exploring multiple online and offline channels is likely to be more cost-effective than going all-in in just one narrow area.
Manage your DOOH advertising responsibly
DOOH advertising offers pioneers unparalleled opportunities to connect with audiences in public spaces. As exciting as the possibilities are, though, there are smart ways to do it. Immersing yourself in the factors that influence costs and budgets and following the best practices we shared should guarantee good results on your first DOOH campaigns.
