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Trends In The OOH Advertising Industry For 2021

Out-of-Home advertising is among the oldest forms of advertising; however, recent changes in the technology and increase in customer awareness require a reevaluation of the advertising strategies. While it’s true that traditional OOH models are facing challenges, experts also believe that out-of-home advertising is making a comeback because consumers are getting tired of the constant bombardment of advertisements on their mobile phones.

Today’s consumers are much smarter and well informed than they were 30 years ago; therefore, merely repeating a message to the average individual is not a viable strategy for return on investment. In 2021, along with a great website design, Google SEO, and content creation, advertisers will need to incorporate technology and customer preference in their advertising models to keep the spirit of advertising alive.

In fact, a recent KPMG report pointed out that outdoor advertising has witnessed an 11 percent annual growth rate (CAGR) over the past five years. If the trend continues, this advertising sector will continue the upward growth trend in 2021.

Smart advertisers can use the trend to increase their return on investment by implementing new ideas. Here is a look at the top10 trends and ideas that will revolutionize outdoor advertising in 2021.

1. Consistent Increase in Digital Outdoor Advertising

Just like many other industries, the outdoor advertising sector is also affected by the digital marketing trend. The trend towards this digital sphere is in-line with the existing demand where consumers are already accustomed to viewing 4K quality adverts. If implemented correctly, digital technology can facilitate outdoor advertisements because it uses 4K quality boosting high resolution and bright colorful visuals that can attract user’s attention for longer periods.

The digital advertising and large digital billboards will continue to increase in the coming year because they are much easier and convenient to move, which helps cut the unnecessary expense. The dynamics of cost are also evident in the ability to run multiple digital outdoor advertisements on a single screen. Compared to the static ads, multi-image advertisement provides owners more control over the medium and on the final ad results. For instance, some adverts perform better in a static form whereas others may require visuals. In fact, digital outdoor advertising can do wonders for brands that understand how to use it to their advantage.

Recent research suggests that digital outdoor advertising contributes to almost 30% of OOH revenues worldwide. Under these circumstances, advertisers who continue to reinvent themselves will likely succeed in subsequent years.

2. Brands are Embracing the Power of Storytelling

The human mind is designed to latch on to facts and opinions that are narrated in the form of a story. The storytelling improves retention and helps consumers recall events. For instance, it will be hard to remember a new brand of toothpaste that does not differentiate itself from its competitors; however, introducing the same toothpaste in the form of a riveting story will likely get the response. Any brand that has a compelling story to relate to its context is likely to make an impact subconsciously if the ad is narrated vividly.

According to experts, this storytelling trend will be witnessed a lot more in 2021. Using this strategy, outdoor advertising is embracing the concept by designing ads that only tells a part of the story, which makes the audience wait for the next ad in the storyline.

Recently, there has been a lot of buzz around ingredients of a good story-telling. Among these features is building a story character. In this scenario, the character faces a problem and then seeks its resolution. In the end, the brand comes to the rescue as a problem solver.

It is imperative that brands pay close attention to generating creative out-of-the-box ideas for storytelling. This will improve engagement with the adverts. Merely putting out a story is not enough. The user must be able to connect with the story in an authentic manner before they can trust the story subconsciously.

3. Growth in Advertising Opportunities

Latest innovations in technology have broadened the scope of placements of outdoor advertisements, particularly digital advertisements. Instead of large billboards, advertisers are using smaller advertisements in busy public places such as airports, waiting areas, public transport, and playgrounds. In fact, blank walls have also emerged as a good alternative to traditional billboard advertising because these can be used to project advertisements.

A KMPG advertising report suggested that advertising outside the airport is a significant contributor to the growth of outdoor advertising in 2019 as it accounted for 27% of revenue share, which is very likely to grow in 2021 as well.

4. Advertisements have a Mind of its Own

2020 will be a year of improved and smarter outdoor advertisements.

In the recent past, most advertisements only marketed the product and the service. In 2021, advertisements will not only show information about a particular business, product or service, it will also predict the user profile of those audiences who interacted with it. This feat will be accomplished by the use of sensors, facial recognition software, and other AI smart features.

The smart advertisement will aid in enabling outdoor billboards to interact with the target audience. As a result, augmented reality and virtual reality will make outdoor advertising campaigns more visceral and engaging.

5. Mobile Integration in Outdoor Advertising

Outdoor marketing is all about enhancing the user experience. To increase customer interaction, certain brands have integrated mobile and outdoor advertisements. The use of technology helps potential customers interact with advertisements and share valuable data in real-time with the brand. The feedback from the customer helps provide a more customized user experience. Examples of such interactions are instant connections with customer’s mobile when they come in the range of advertising billboards. The use of a beacon is also becoming commonplace because beacons enable advertisements to literally jump inside the customer’s phone.

6. Multi-Channel Integration

In 2021, the outdoor advertisement will also integrate with social media and the television. The integration will also help grow other mediums using motion capability in digital out-of-home advertising and scalable content. The multi-channel integration is instrumental in ensuring that the message delivered across all mediums is coherent and consistent with the brand’s image. It means that the brand’s TV adverts will fall in line with their DOOH efforts leading to a clear communication platform of brands with their audiences.

7. Focused Reach will Lower Expenses

In the past, out-of-home advertising focused on a broader audience to get access to specific demographics. The “fishing” approach doesn’t work anymore. In the future, outdoor advertising will be able to reach target customer who brands want to reach and whenever they want to reach them.

This is all possible due to improved media measurement tools allowing brands to get in-depth insights of their consumers. Large quantities of data will be analyzed and leveraged by brands without wasting the advertisement budget and time.

In 2021, outdoor advertising ads will be equipped with Bluetooth beacons to broadcast information of the audience who interacted with the ad. Using the information, advertisers would make adjustments to tailor the ad according to the needs and wants of the consumers in that particular location. Such changes will significantly increase the chances of an outdoor ad to be noticed by the targeted audience. Overall, the data will be collected to improve campaign targeting and for delivering a more contextually relevant advert.

8. Outdoor Advertising will get more Creative

This year, managers will need to take a data-driven approach to advertisement. Using the power of data science, companies can laser-target their desired demographics to use campaign budgets, effectively. Just like digital marketing technology, beacons, radio beams, and the Internet can be used to understand the pattern of interaction for outdoor advertisements. Ultimately, managers will need to come with innovative ideas on how they can use the “big data” to streamline outdoor advertising models.

9. The rise of in-house Marketing teams

In recent years, companies are increasingly starting to realize the power of an in-house team that can streamline their marketing efforts across all channels. Instead of relying on a third-party to deliver an advertising solution, many large companies have started to invest in maintaining in-house teams that can help them save costs and increase efficiency.

In 2021, financially capable companies will use in-house team teams. Accordingly, they will only interact with experts for specific knowledge rather than engaging them on a full time basis. In contrast to media houses, the role of consultants, independent contractors, and part-timers is likely to increase.

In-house teams solely dedicated to working on one specific brand will create laser-focused efforts generating ideas and reducing costs associated with a typical OOH advertising campaign. These campaigns will be complemented by occasional contact with experts and consultants.

10. End Of Empty Promises In 2021

Brands must understand that authentic and genuine exposure is the only way to do long term business. As such, transparency will be the key to success in 2021. Everything from the promises, the work conditions, use of harsh ingredients, and political affiliations are increasingly scrutinized.

This implies that advertisers can no longer get away with dubious claims and hollow promises. Purpose-led advertising will be the rule of the future as advertisers will either adapt to this trend or suffer the consequences. Similarly, brands will be more careful with their outdoor advertising efforts because authenticity will earn the audience trust and help advertisers get more businesses.

Despite the rise in online channels, outdoor advertising including DOOH will cement its status as a viable option among advertisers; however, brands must ensure that their outdoor advertising ads are in sync with their social ads. It will not be an overstatement to suggest that OOH is not dead and it will improve further in 2021.