Why Advertise on DOOH? Key Benefits and Advantages

For centuries, outdoor advertising has served one main purpose: to reach the largest audience possible within a specific period of time.

Whether it was stone structures erected in ancient civilizations to publicize laws and treaties, billboards in the mid-1800s that advertised when the circus came to town, or today’s spectacular digital displays, the formats may have changed, but the goals have remained the same—namely, building brand awareness and making a huge impact.

To do that, advertisers are increasingly using digital out-of-home (DOOH) advertising, which combines the benefits of traditional out-of-home (OOH) advertising with the dynamic capabilities of modern digital technology, to reach and engage audiences at scale.

According to EMARKETER, 38% of US marketing decision makers planned to up their DOOH budget in 2024, with US ad spend projected to increase by 11.2%. Although only comprising roughly 15% of total OOH ad inventory, DOOH is forecasted to generate over a third of OOH ad revenues in 2024, reaching $3.2 billion USD.

Despite its growth, DOOH is still a relatively new channel—at least when compared to other well-known channels like native, display, and video—making some marketers hesitant to go all-in with their ad buys.

But, as we’ll get into it, DOOH provides many opportunities beyond building brand awareness to drive consumer engagement and deliver measurable results.

Read on to learn more about the benefits of DOOH advertising, the reasons behind its growth, and how to use it to your advantage.

What Is DOOH Advertising?

DOOH advertising uses digital screens and displays to deliver targeted ads in high-traffic areas, such as shopping malls, transit stops, airports, elevators, highways, streets, and other public spaces. It combines the precision, flexibility, and real-time capabilities of digital advertising with the large-scale reach, visibility, and impact of traditional OOH advertising, making it a versatile tool for engaging audiences and maximizing brand exposure.

Why DOOH Advertising Is Gaining Popularity

There are many reasons for DOOH advertising’s growth, from technological advancements and urbanization to new ad-buying methods and expanded inventory. For example, DOOH is expected to account for nearly a quarter of in-store retail media ad spending by 2028.

But, according to the Out of Home Advertising Association of America (OAAA), one of the biggest drivers behind DOOH’s growth is its ability to “[intercept] consumers when they’re most likely to act.”

In a study from the OAAA and The Harris Poll, 76% of respondents reported taking an action after seeing a DOOH ad, such as watching a video (38%), going to a restaurant (36%), making a purchase (30%), or visiting a store (29%).

With 83.7% of US retail spending happening in-store, DOOH is proving itself to be not only an ideal channel for boosting brand awareness, but also a powerful tool for driving conversions further down the funnel.

As a result, programmatic DOOH ad spending is projected to reach a major milestone in 2025, crossing the $1 billion USD threshold and accounting for 30% of all DOOH sales the following year.

Benefits of DOOH Advertising for Brands

DOOH’s record-breaking double-digit growth can be attributed to many things, but at the end of the day, it comes down to its ability to reach and engage audiences in physical environments as they go about their day-to-day lives.

Here are the main benefits of DOOH advertising and why brands are adding it to their media mix:

High Reach and Engagement

Digital signage isn’t cheap. As a result, media owners often strategically place DOOH displays and digital billboards in high-traffic locations—like shopping malls, transit stops, and gas station pumps—to maximize their visibility and reach a wide audience.

Cost Effectiveness

Thanks to large, iconic screens in prime locations like Times Square and Piccadilly Circus, DOOH advertising is sometimes perceived to be more expensive than other forms of advertising (more on that later). 

But CPMs for DOOH often range between $2 to $15, depending on the screen type, location, and campaign scope, making it comparable in cost to the low-end of premium CTV inventory.

Data-Driven Targeting

DOOH provides precise and flexible targeting, allowing advertisers to go big with their targeting or narrow it down based on the location, time of day, and which demographics will likely see an ad.

For example, advertisers can use tools like dayparting, which shows different ads during different times of the day, to promote breakfast deals at nearby cafes in the morning when people are looking for a quick bite on their way to work, and concert venues in the evening when commuters are more likely to seek after-work activities.

Flexible Campaign Management

With programmatic DOOH, advertisers can quickly swap creatives, adjust targeting, and scale campaigns up or down as needed based on changes to inventory and overall campaign performance, reducing lead time and production costs. Unlike traditional OOH, it offers flexible, short-term commitments that allow advertisers to launch, pause, and adjust campaigns as needed—just like with other programmatic channels—to make the most of their ad budgets.

Dynamic Creatives

Unlike traditional OOH, which is static and made out of materials like vinyl or paper, DOOH advertising can use videos, animations, and other interactive elements, like 3D visuals and QR codes, to capture the attention of consumers.

Here’s a DOOH ad example the StackAdapt Creative Studio team mocked up that uses motion graphics to draw attention to Eko’s line of digital stethoscopes. 

Ad messaging and creatives can be tailored based on time of day, weather (think DOOH ads for snow tires or tropical vacations coinciding with the first snowfalls of the year), and live countdowns for concerts or sporting events urging consumers to buy tickets before they sell out. 

With digital screens, the sky is the limit in terms of creativity. 

Interactivity

DOOH advertising can integrate interactive elements like QR codes, touch screens, motion sensors, and augmented reality that encourage user engagement and help advertisers better understand and measure the impact DOOH campaigns have on sales or store visits.

For example, advertisers can use QR codes to direct users to landing pages, claim special offers, or marketplaces to download apps, allowing them to track engagement and conversion rates more accurately.

Viewability

Even the least tech-savvy person can download an ad blocker to their web browser or upgrade from a free ad-supported streaming service to a subscription-based tier to see fewer ads. It’s not as easy in real-world environments, making DOOH advertising one of the few unskippable ad formats out there.

Improved Measurement

With DOOH measurement, advertisers can access insights similar to other digital channels, like impressions tracked by the number of unique devices passing by an ad, and use brand lift and footfall attribution studies to measure the effectiveness of campaigns and make data-informed decisions that impact their strategy and ROI.

Works Well With Other Channels

In the past, advertisers had to either deal directly with media owners for traditional insertion orders (IO) or use DOOH-specific DSPs to launch campaigns. Now, platforms like StackAdapt simplify the process by enabling you to launch integrated multi-channel campaigns from a single platform. 

Advertisers can also repurpose creatives from display, video, and CTV campaigns to maintain consistency across channels and reinforce messaging while reducing creative costs.

According to the IAB, DOOH can also complement other digital marketing channels, like search and social media, as part of your marketing strategy by directing consumers to visit particular landing pages or use specific hashtags.

Navigating Potential DOOH Advertising Concerns

Because DOOH is a relatively new channel when compared to other forms of advertising, there are some common misconceptions that may prevent media buyers and brands from fully investing in it.

One of the biggest is its cost. As previously mentioned, brands or agencies considering DOOH sometimes have the perception that it’ll cost more than traditional OOH or other digital channels. But there are several factors—including the location, traffic volume, demographics, billboard size, campaign duration, timing, and seasonality—that can influence the cost of DOOH advertising. 

For example, a billboard in Toronto’s Yonge-Dundas Square would probably be more expensive than a digital screen in a shopping mall due to the high number of people passing by it at any given time. Similarly, a screen in a shopping mall would likely be more expensive in the lead-up to the holidays when there’s higher foot traffic than over the summer months.

Advertisers are often willing to pay a premium for DOOH ads in high-visibility areas like popular shopping destinations and downtown cores. But smaller screens in high-traffic locations, such as bus shelters, convenience stores, and elevators, can still offer strong visibility, often at a lower CPM.

Educating stakeholders on the range of pricing options based on different screen types and budgets can help mitigate potential concerns with brands and buyers.

Another potential concern is measurement and attribution. While most digital channels provide one-to-one targeting and tracking, because DOOH is a one-to-many channel (i.e., multiple people could potentially view a specific ad at the same time), and there’s no tracking pixel to know if your creative was played or not, some advertisers fear it may be difficult to accurately measure the effectiveness of campaigns.

To address this problem, media owners and adtech companies increasingly rely on methods like eye-tracking technology, mobile location data, and surveys to capture consumer engagement, helping advertisers refine their campaigns and optimize ad placements with a higher level of accuracy.

For example, StackAdapt Footfall Attribution is more accurate than traditional foot traffic studies because we tie exposed Mobile Advertising IDs (MAIDs) directly to visitor MAIDs, eliminating the need for cross-device tracking to confirm that the same device visited a store. In contrast, standard non-mobile channels would require mapping from an IP address or a cookie to a MAID to connect a specific impression to a visit.

Finally, because DOOH ads are shown in high-traffic locations, some advertisers worry about reaching too broad an audience. Although DOOH targeting may not be as precise as targeting on one-to-one digital channels, advertisers can place DOOH ads in contextually relevant locations by targeting venue types and geographic areas to drive conversions. For example, a brand promoting chocolates as Valentine’s Day gifts could target screens within a specific geo-radius to direct commuters to purchase them at a nearby grocery store.

How to Maximize the Impact of Your DOOH Advertising

Over the past decade, DOOH has gone from a novelty channel in digital advertising to a powerful tool for getting your message in front of customers and building brand awareness at scale.

Before you start executing your DOOH strategy, here are some final tips and suggestions to help you get the most out of your DOOH campaigns.

• Use Interactive, Dynamic Creatives: Experiment with QR codes, URLs, and venue-specific CTAs—like directions to nearby restaurants and retail locations—to drive conversions, in-store and online, and better understand campaign performance. 
• Take a Multi-Channel, Full-Funnel Approach: Use DOOH as part of a full-funnel strategy to build brand awareness and retarget users on other one-to-one devices and channels to reinforce messaging and drive conversions.
• Embrace Programmatic: Take advantage of programmatic DOOH by using a DSP to optimize ad delivery and ensure your ads reach the right audience at the right moment while maximizing your ad budget.

Want to learn more about the benefits of DOOH advertising and how to launch DOOH campaigns that build brand awareness and convert? Request a demo.