Data and Research in OOH
the Role of Data and Research in the Development of Out-Of-Home Advertising: Reflections after the European Forum of the World out of Home Organization and Data and Research in OOH.
The out-of-home advertising (OOH) industry is undergoing a transformation driven by advanced technologies and increasing analytical capabilities. At this year's European Forum of the World Out of Home Organization (WOO) in Milan, topics related to research and data on out-of-home advertising audiences took center stage. As it turns out, in the digital era, out-of-home advertising can not only compete with online media but offer the same precision to reach audiences more effectively.
Data Fusion - the Foundation of Modern Measurements in OOH Advertising
One of the key topics addressed by Esben Elmoe, CEO and founder of AllUnite, was data fusion, which is becoming the foundation of modern audience measurements in OOH advertising. Traditional data collection methods, such as surveys or sampling applications, have proven to be inflexible and ineffective in the face of modern advertising market challenges. The breakthrough is the fusion of data from various sources, such as cameras, Wi-Fi, telecommunications data, SDK (Software Development Kit), and statistical data. Through their synergy, we gain information that more accurately reflects reality and allows us to better understand the behavior of advertising audiences.
For example, in Helsinki, data from Wi-Fi sensors was correlated with traffic data, achieving an impressive correlation coefficient of 0.9.
In Denmark, by combining sensor and SDK data, detailed heat maps were created showing visitor traffic at the Bella Center, both inside and in the surrounding areas. Such data combination enables precise planning of advertising campaigns, allowing marketers to tailor content to local needs and specific audience behaviors.
Transparent and Secure Data is the Key to Trust
Collecting and using data in out-of-home advertising brings the challenge of ensuring compliance with regulations and gaining user trust. The key is transparency - users want to know when and why their data is being collected, and have the ability to easily opt-out. Adhering to global standards such as GDPR or CCPA is an essential element of data collection.
Data collected with user consent can provide valuable and more accurate information that not only increases the precision of advertising campaigns but also builds trust in the industry. As practice shows, users are more willing to share their data when they are confident it is secure and used according to their expectations.
Data - Econometrics and Effectiveness in OOH
Emily Alcorn, Head of Effectiveness at Talon UK, highlighted the key role of econometrics in measuring the effectiveness of OOH advertising campaigns. Econometrics is a field that has been supporting research on the impact of advertising on sales since the 1950s, and today has become an integral part of media effectiveness measurement. Thanks to advanced econometric models, it is possible to better understand how OOH campaigns affect other channels and what effects they generate.
Research has shown that OOH can significantly enhance campaign results across all media channels. For example: out-of-home advertising increases the effectiveness of print advertising by 7%, radio by 17%, and social media by 20%. The biggest effect, however, is seen in search engines, where OOH support increases effectiveness by as much as 54%. Moreover, multi-channel campaigns achieve higher ROI, and abandoning offline advertising, such as OOH or TV, leads to a 49% decrease in digital campaign results.
Data in Practice: Research Findings
Examples of advanced data analysis applications are extremely inspiring and show how precise OOH can be.
Research conducted in Denmark has shown that data from Wi-Fi sensors and SDKs work excellently in monitoring traffic in shopping centers and other public spaces. In one case, data from shopping centers was correlated with data on the total number of visitors. It turned out that almost perfect agreement was achieved - the correlation coefficient was 0.99.
Such data allows advertisers to better plan, adapt campaigns to current conditions, and predict changes in consumer behavior.
BRAT and Mediapanel - a New Standard for OOH Audience Measurements
An important point of the forum was the discussion of research projects in Europe, including the Polish Mediapanel and the Romanian BRAT.
Waldemar Kruk (OOHLife.org, AMS S.A.) and Emil Pawłowski (Gemius) presented the success of Mediapanel, which, thanks to the integration of data from various media (TV, radio, internet, OOH), allows for understanding consumer behavior and factual comparison of OOH advertising with other media.
Mediapanel offers the only homogeneous study in Europe covering four main media. Thanks to it, the Polish OOH industry can present its results in the context of the entire market, which strengthens the position of OOH in conversations with advertisers. Mediapanel focuses on continuous measurement and tracking seasonal changes in media consumption, which allows for precise campaign planning and better understanding of local market specifics.
And the Challenges?
Despite dynamic development, the OOH industry faces numerous challenges.
In Poland, one of the main ones is increasing OOH's share in the entire advertising market (now OOH's share is about 5%). However, the growing popularity of DOOH (Digital Out-of-Home) and programmatic advertising has opened up new opportunities. A key challenge is keeping up with technological changes and implementing measurement methods that take into account market dynamics and are resistant to disruptions, such as those caused by the COVID-19 pandemic.
European WOO Forum in a few Points
The European WOO Forum showed that the future of OOH advertising lies in the substantive use of data and effective integration with other media channels.
Here are the most important lessons from this year's meeting:
- Data fusion
- allows for obtaining precise and more representative information about the audience
- enables planning campaigns with higher effectiveness
- Transparency and security of data
- build user trust
- are necessary for industry development in compliance with personal data protection regulations
- Econometrics and effectiveness measurement in OOH
- allows for better understanding of this channel's impact on other media
- increases the value of multi-channel campaigns
- Modern research
- using e.g., sensors and AI models provides the opportunity to better compare OOH with other media, which strengthens the industry's position in the market.
Out-of-home advertising has enormous potential that can be leveraged through integration with modern technologies and research methods.
The future of the industry depends on skillful use of data and creating campaigns that will reach audiences at the right time and place, increasing engagement and effectiveness.