Small budget, big results: Why brands should turn to dynamic advertising
Opinion
With marketing budgets squeezed, dynamic digital OOH offers cost-effectiveness, ease of implementation and adaptability.
Advertising has undergone a significant transformation in recent years, marked by the emergence of diverse media channels and the integration of innovative technology. This evolution, however, brings its own set of challenges, particularly for advertisers in the OOH sector that are navigating economic complexities.
The question is: how can the OOH industry maximise its resources to optimise budgets and achieve tangible results? The answer lies in dynamic advertising.
Contextual relevance
Once considered a rarity, believed to take up 2-3% of the OOH market, dynamic digital OOH (DOOH) has shown it can yield results even on smaller budgets. It is estimated that dynamic currently accounts for around 10% of all GroupM campaigns.
Dynamic DOOH utilises any digital formats such as digital billboards and six-sheets, but stands out by featuring content that changes based on events. These events can either be pre-set, adjusting throughout the day for known occurrences like day turning into evening, or pre-programmed, responding in real time to weather conditions or breaking news stories.
This approach lets advertisers create more attention-grabbing and engaging content that resonates with the audience by displaying contextually relevant messaging and visuals based on their surroundings.
Increased visibility
A good example is the Times Radio programmatic campaign by News UK, where dynamic creative optimisation (DCO) was leveraged to react instantly to UK events.
The ads displayed creative that changed in response to updates from political parties during the UK elections. A variety of messages were served depending on the time, day and location. It put Times Radio at the forefront of debate and analysis, with ads activated within one to two hours of news going live.
Meanwhile, Virgin Active’s “Find Your Mix” campaign created a personalised connection with passers-by. The work incorporated dynamic location callouts, with each advertising site showing the name of the nearest Virgin Active club. This successfully led to increased visibility and foot traffic, and attracted potential customers with tailored messaging.
Benefits for consumers
In the fast-paced world of advertising, where real-time reactions and dynamic content are crucial, DCO is like its conductor. It customises ads in real time to match the audience’s interests, responding quickly to current events, trends and audience behaviour.
Research projects such as Clear Channel’s The Moments of Truth have illuminated the effectiveness of dynamic DOOH. Contextually relevant messaging increases effectiveness by an average of 17%, with dynamic DOOH campaigns showcasing an average sales uplift also of around 17%. The inclusion of specific location calls offers a a 6% uplift over an OOH advertisement alone. These figures underscore the tangible impact dynamic DOOH has on consumer behaviour and campaign outcomes.
According to GroupM’s Out of Home: The Year Ahead 2024 study, there was 53% growth in dynamic campaigns in 2023 compared with 2022. This surge isn’t merely a reflection of consumer demand but is significantly pushed by the expertise of OOH specialists.
Implementation
Dynamic DOOH campaigns offer an accessible and straightforward implementation process because, once the overall creatives are chosen and locations are finalised, visuals can be altered with ease. Furthermore, the integration of rigorous verification processes used across all OOH, such as Verify (powered by DOOH.com), adds to the reliability and integrity of dynamic campaigns.
Combining a single strong creative campaign and area-specific data to reach the target audience, dynamic DOOH ensures the relevancy of an ad campaign while saving time, resources and ultimately money. This cost-effective method allows brands to use one creative while continuing to see enhanced conversions and increased ROI from their advertising investments.
A wider canvas
While static billboards remain a cost-effective means of achieving extensive reach, DOOH provides a canvas that can enhance overall effectiveness. Creative agencies are exploring new frontiers, producing visually stunning and immersive ads designed to capture attention and actively engage the audience.
With its fast-paced innovations and adaptability, dynamic DOOH’s continued integration into advertising strategies will not only reshape the industry but also offer brands unprecedented opportunities to effectively connect with their audiences.
Neil McKenney is chief operating officer at DOOH.com