Digital advertising on real estate: A private/public sector gold-mine?

By Kerry Bianchi

Businesses are tapping into digital out-of home (DOoH) advertising as an economical and more effective alternative to traditional advertising, Accenture Interactive has found. TV and print ads may still take the lion’s share of ad budgets but increasingly the digital playing field is where customers are, giving companies the opportunity to meaningfully engage them with their respective brands.

DOoH includes stand-alone screens, kiosks, and interactive media found in public places. The boom can be attributed to both the availability of inexpensive LCD screens with built-in media players co-equal with the rise in home TV viewers skipping ads using their digital recording devices. This has put the onus on advertisers to seek new, dynamic means of engaging with consumers.

Public authorities are attracted as they can earn healthy on-going revenue by leveraging their high traffic locales to provide wide coverage in a local area to advertisers. By customising digital billboards with timely/localised/demographic messages advertisers can benefit from real-time, targeted media placement while the owners of these spaces are able to reap the benefit of offering an attractive ad delivery that commands a new or expanded non-traditional revenue stream.

In the current economic climate, when companies and public organizations are both exploring new business models and non-core sources of revenue, real excitement is increasing around DOoH advertising. The feasibility of leveraging digital media in public places has caught the attention of potential DOoH landlords and advertisers alike.

The future is here already:

• A Reading town trial proves there is marketing potential for near field communication (NFC)-enabled ads, as long as companies have something compelling to offer. NFC is a form of contactless communication between devices like smartphones or tablets. The big question is whether the technology will progress beyond novelty – whether consumers will tire of NFC-enabled ads if they become common.

• Tesco launched a trial ‘virtual store’ at Gatwick where customers selected products from a virtual fridge using a smartphone app. They filled their ‘baskets’ when leaving the UK, using some of the 70 minutes of airport downtime, scheduling home delivery for their return.

Ocean Outdoor recently studied the brain’s response to outdoor advertising in order to better validate its impact. Using neuroscience insights, this study found that so called “premium” ad sites generate stronger emotions in the viewer and are more thoroughly encoded into viewers’ memories than less well placed signage. Digital signage generated stronger responses because human brains are programmed to respond to dynamic changes in their environment.

In the current economic climate, when companies and public authorities are exploring new business models, the potential of DOoH is huge.

By tapping into DOoH advertising as an alternative source of revenue, companies can take advantage of the relatively more economical and more effective alternatives to traditional forms of advertising. In addition, place-based networks and digital billboards and signage in controlled public environments allow a greater tailoring of messages – by time of day, specific event or location – delivering a more relevant and interactive experience.

About the author

Kerry Bianchi is a managing director at Accenture, leading Accenture’s Media Management practice. She manages a team of media and research professionals across 28 global offices covering North America, EMEA, APAC and LATAM. She brings over 20 years of experience in media and marketing, focused on helping clients gain the most value from their investments and marketing organizations. She draws from past management experiences at leading advertising agencies as well as at multi-channel media owners where she led sales and marketing as well as new product acquisitions, partnerships and launches.

About the company

Accenture Interactive helps the world’s leading brands drive superior marketing performance across the full multichannel customer experience. Working with over 4,000 Accenture professionals dedicated to serving the marketing function, Accenture Interactive offers integrated, industrialized and industry-driven marketing solutions and services across consulting, technology and outsourcing powered by analytics.

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