Digital out-of-home advertising is one of the most effective ways to reach consumers. And, as with all forms of advertising, it's constantly evolving. The latest development in DOOH is artificial intelligence (AI) and the internet of things (IoT). AI and IoT are changing the landscape of DOOH, making it more personalized, interactive, and effective. Brands are already using AI-powered DOOH to great effect, and the medium's future looks very bright.

 

AI and IoT are changing the landscape of DOOH, making it more personalized, interactive, and effective. Brands are already using AI-powered DOOH to great effect, and the medium's future looks very bright.

 

This blog post will explore how AI and IoT are changing DOOH, how brands use them, and how you can get started with AI-powered DOOH advertising.

 

1. Emerging technologies AI and IoT in outdoor ads

 

Digital out-of-home advertising (DOOH) is one of the most rapidly growing sectors in the advertising industry, with spending on DOOH reaching $32.9 billion globally in 2018 – a year-on-year increase of 12.4%.

 

  •  A key driver of this growth is the increasing adoption of emerging technologies such as artificial intelligence (AI) and the internet of things (IoT). These technologies are transforming the way DOOH campaigns are planned, executed, and measured, making them more effective and efficient than ever before. AI is being used to create more targeted and personalized DOOH campaigns to engage consumers better. For example, using AI, advertisers can target people based on their location, demographics, and mood.

 

  • Meanwhile, IoT enables real-time tracking and measurement of DOOH campaigns, allowing advertisers to see how many people have seen their ad and what effect it has had on them.

 

  • AI and IoT are set to majorly impact the future of DOOH advertising, making it an even more powerful marketing tool for businesses of all sizes. IoT is also providing new opportunities for interactivity and engagement with consumers. For example, IoT-enabled DOOH ads can provide information about nearby products and services or even offer coupons and discounts.

 

  • This interactivity is only going to increase as more and more businesses adopt IoT-enabled DOOH advertising. The combination of AI and IoT makes DOOH advertising more effective and efficient than ever. Businesses not already using these technologies in their DOOH campaigns miss out on a major opportunity to connect with their target consumers.



2. Benefits of Emerging technologies AI and IoT in outdoor ads

 

As the world becomes increasingly digitized, businesses are turning to emerge technologies like artificial intelligence (AI) and the Internet of Things (IoT) to help them better understand and reach their audiences. Outdoor advertising is no different.  

 

There are many benefits to using AI and IoT in outdoor advertising, including the ability to create dynamic, data-driven creative, target audiences more accurately, deliver real-time interactive experiences, and even recognize faces and vehicles.

 

But perhaps the most compelling reason to adopt these technologies is the ability to geo-target ads and analyze audience behavior in real time. This allows businesses to make the most of their outdoor advertising campaigns and better understand the ROI of their efforts.

 

If you're considering using AI and IoT in your outdoor advertising, read on to learn more about these technologies' benefits.



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2.1 Dynamic, data-driven, automated creative

 

It's no secret that advertising is in a state of flux. The industry is under pressure as consumers shift their attention away from traditional media, such as television and print, to digital channels. This has led to a decline in ad spending and an increase in ad blocker usage. Advertisers must find new ways to reach and engage their target audiences to stay relevant.

One solution gaining traction is using emerging technologies, such as artificial intelligence (AI) and the Internet of Things (IoT), in outdoor advertising. By harnessing the power of data, AI and IoT can help create dynamic, data-driven, and automated creative that is more likely to capture consumers' attention.

 

Outdoor advertising has the advantage of being able to reach a wide audience with minimal effort. However, it cannot be easy to stand out from the crowd and create memorable ads. This is where AI and IoT can help.

By using data collected from sensors, AI can generate real-time insights that can be used to create targeted and personalized ads. For example, if a sensor detects a pedestrian looking at an ad for a new pair of shoes, AI can serve up an ad for a nearby shoe store. This type of targeted advertising is much more likely to result in a sale than traditional methods, such as billboards or bus shelter ads.

 

IoT can also be used to automatically adjust the content of an ad based on changes in the environment. For example, an ad for raincoats could be served up on digital signage if it starts raining. Or if there is a sudden spike in temperature, an ad for air conditioners could be displayed. This type of contextual marketing is extremely effective as it allows businesses to quickly adapt their messaging to meet the needs of their target audience.

Emerging technologies like AI and IoT are changing the landscape of outdoor advertising. By harnessing the power of data, they are helping businesses create dynamic, targeted, and personalized ads that are more likely to capture consumers' attention.

 

2.2 Predictive analytics & audience targeting

 

Predictive analytics is an exciting and relatively new field that is already having a major impact on outdoor advertising. By using predictive analytics, advertisers can target their ads more effectively and reach their target audience more precisely.

 

One of the key benefits of predictive analytics is that it allows advertisers to anticipate the needs and wants of their target audience. This means that they can create ads that are more likely to be relevant and interesting to their target consumers. Predictive analytics can also help advertisers identify potential new customers and better understand the behavior of existing customers.

 

Another significant benefit of predictive analytics is that it can help improve ad campaign effectiveness. By using predictive analytics, advertisers can ensure that their ads are seen by the people most likely to be interested in them. This can lead to increased sales and a higher return on investment for the advertiser.

 

Predictive analytics is still in its early stages. Still, it has the potential to revolutionize outdoor advertising. As more companies begin to use predictive analytics, we can expect to see even more innovative and effective campaigns being created.

 

2.3 Real-time interactive & AR experiences

 

In recent years, businesses have been incorporating interactive and augmented reality (AR) experiences into their outdoor advertising. This is because these technologies can provide consumers with a more engaging and immersive experience. AR experiences can also provide more information about a product or service, benefiting businesses.

 

Some businesses have already started experimenting with AR in their outdoor advertising campaigns. For example, Ikea has created an AR app that allows users to see how furniture would look in their homes before they purchase it. McDonald's has also created an AR game that can be played on billboards, which provides a fun and interactive experience for customers.

There are many benefits of using interactive and AR experiences in outdoor advertising. Businesses can create more engaging and immersive consumer experiences, leading to increased brand awareness and sales. Additionally, these technologies can provide more information about products and services, benefiting businesses.






2.4 Facial and vehicle recognition

 

Facial and vehicle recognition are two of the most important emerging technologies in outdoor advertising. Advertisers can use these technologies to target their ads more effectively and reach their target audience more precisely.

Facial recognition technology can identify people in a crowd and target them with specific ads. For example, suppose an advertiser knows that a person is interested in a particular product. In that case, they can target that person with an ad. Additionally, facial recognition can be used to track people's reactions to ads, which can help advertisers improve their campaigns' effectiveness.

 

Vehicle recognition technology can be used to identify the make and model of a vehicle, which can be helpful for businesses that want to target ads specifically at certain types of vehicles. For example, a business that sells tires may want to target ads at people who own SUVs or trucks. Additionally, vehicle recognition can be used to track the movement of vehicles, which can be helpful for businesses that want to track the effectiveness of their advertising campaigns.

 

2.5 Geo-Targeting and analysis

 

Geo-targeting is a process of identifying the geographical location of an individual and targeting them with ads based on that location. Geo-targeting can target ads to specific countries, regions, cities, or even neighborhoods. Advertisers can use geo-targeting to reach their target audience with greater precision and effectiveness.

 

Geo analysis is analyzing data to identify patterns and trends in geographical locations. Geo analysis can be used to identify areas with a high concentration of potential customers or areas with a high demand for a certain product or service. Geo analysis can also be used to identify trends in customer behavior, which can be helpful for businesses in planning their marketing and advertising strategies.



3. How AI and IoT are Changing Out-of-Home Advertising

 

Out-of-home advertising has been around for centuries, but it has recently undergone a digital transformation. This has been driven by technological advances, particularly artificial intelligence (AI) and the internet of things (IoT).

 

AI and IoT are changing out-of-home advertising in several ways. 

 

  • Firstly, they are making it more targeted and personalized. AI can collect data about an individual's demographics, interests, and behavior and use this to target them with relevant ads. For example, a person who frequently searches for holiday deals online might see an ad for a travel company on a digital billboard while commuting to work.

 

  • Secondly, AI and IoT are making out-of-home advertising more interactive. For example, billboards equipped with sensors can detect the presence of passers-by and display targeted ads accordingly. And if someone stops to interact with the billboard, this data can be used to personalize future ads further.

 

  • Thirdly, AI and IoT are making out-of-home advertising more efficient. For example, by using real-time data about traffic conditions, billboards can display different ads at different times of day to maximize their impact. And by tracking people's reactions to ads, AI can continually optimize campaigns for better results.

 

AI and IoT are thus having a major impact on out-of-home advertising, making it more targeted, personalized, interactive, and efficient.

This is just the beginning – AI and IoT will enable even more sophisticated forms of out-of-home advertising in the future. For example, billboards could be equipped with facial recognition technology, allowing them to target ads specifically at individuals. And they could be linked to other data sources, such as weather forecasts, to personalize their content further.

The possibilities are endless – and with AI and IoT, out-of-home advertising will become even more effective and influential.



4. How to get started with AI-powered DOOH

 

There are a few ways to get started using AI in out-of-home advertising. One way is to use programmatic buying to purchase ad space. This involves using software to automatically buy ad space in real-time based on data about consumer behavior. Another way is to use AI-powered analytics to understand consumer behavior better and make more informed decisions about where to place ads. You can also use AI to create more personalized and targeted ads based on consumer preferences. If you're not sure where to start, a few companies offer AI-powered DOOH solutions, such as Adomni and Verifly. You can also check out our blog post for more information. AI is changing the face of advertising, and it's important that you want to be successful.

 

 

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5. How IoT and AI changing the future of DOOH

 

IoT and AI are two of the most transformative technologies of our time. And they're both radically changing the out-of-home advertising landscape.

 

Here's a look at how IoT and AI are shaping the future of digital out-of-home advertising:

 

5.1 More targeted and personalized ads

 

IoT and AI are making it possible to target ads more precisely than ever. By collecting data about consumers' location, behavior, and preferences, advertisers can create ads tailored to each individual. This personalization is made possible by programmatic buying, which uses software to automatically purchase ad space in real-time based on data about consumer behavior.

 

5.2. Smarter, more effective ads

 

IoT and AI are also making ads more effective by helping advertisers track and measure consumer response in real-time. By understanding how to make instant changes to improve results. This data-driven approach results in more relevant ads and is more likely to generate a consumer response.

 

5.3. Increased use of interactive and immersive ads

 

IoT and AI are making it possible to create more interactive and immersive ads. By using sensors and other devices, advertisers can collect data about consumers' surroundings and use it to create ads that are relevant to their current location and situation. For example, a sensor could detect that a consumer is at a red light and for a shop. Or, if a consumer is walking through a park, they might see an ad for a fitness tracker that's designed and used. This type of advertising is more effective than traditional ads because it's more relevant to the consumer's current situation.

 

5.4. More interactive ads

 

IoT and AI are also making ads more interactive. Using sensors and beacons, advertisers can gather data about consumers' interactions with their surroundings. This data can be used to trigger certain types of ads in real-time. For example, if a sensor detects that a consumer is standing in front of a particular product, an ad for that product could be displayed on a nearby digital screen.

 

5.5. More efficient ads

 

IoT and AI are making out-of-home advertising more efficient by helping advertisers understand consumer behavior and make more informed decisions about where to place ads. Advertisers can use AI-powered analytics to track consumer behavior across different channels and touchpoints. This data can be used to optimize ad campaigns in real time, ensuring that the right people see each ad at the right time. This data-driven advertising approach results in more effective campaigns and higher ROI for advertisers. In one study, AI was used to improve the effectiveness of out-of-home advertising by 15%.4. Increased personalization of IoT and AI also enable more personalized out-of-home advertising experiences. By collecting data about individual consumers, advertisers can target ads to specific demographics and interests. 

 

For example, a consumer who has previously shown an interest in a particular product or service is likely to see an ad for that product or service near a digital screen.

 

This increased personalization makes out-of-home advertising more effective and relevant to consumers. In one study, personalization increased

 

6. Brands with AI-powered DOOH Advertising

 

Companies using AI in out-of-home advertising include Coca-Cola, McDonald's, Ford, and Samsung.

 

  • Coca-Cola has been using AI in out-of-home advertising since 2017. That year, the company installed "happiness machines" in movie theaters across the United States. The machines used AI to detect when people were happy and dispensed a free Coke.

 

  • McDonald's is another brand that has been using AI in out-of-home advertising. In 2018, the company installed digital billboards in Australia that used facial recognition to target ads to specific demographics. The billboards could detect whether a person was male or female, their age range and whether they were happy. If the person were deemed happy, the billboard would show them an ad for McDonald's Happy Meals.

 

  • Ford is another example of a brand using AI in out-of-home advertising. The company has installed billboards that use facial recognition to target ads to specific demographics. The billboards can detect whether a person is male or female, their age range and whether they are happy. If the person is deemed happy, the billboard will show them an ad for a Ford car.

 

  • Samsung is another example of a brand using AI in out-of-home advertising. The company has installed digital billboards in South Korea that use facial recognition to target ads to specific demographics. The billboards can detect whether a person is a male or female, their age range, and their emotions. This type of AI technology is becoming increasingly common as brands attempt to create more personalized experiences for their consumers.

 

Conclusion

 

One of the most effective ways to reach consumers has always been outdoor advertising. However, it has only lately become possible for advertisers to make better use of the medium thanks to technological advancements. But now, mostly because of AI and IoT, things are changing.

 

Digital OOH advertising panels, sometimes called digital signage, are currently interactive and immersive, capturing the attention of onlookers as they walk or drive by and giving businesses a chance to communicate with their target market in a way that was never previously conceivable.

 

Emerging technologies that improve user experiences and provide new opportunities for targeting and engagement are what will shape DOOH in the future. Although they are only now starting to be applied to DOOH advertising, technologies like QR codes, artificial intelligence, and the metaverse have the potential to revolutionize the industry. The advancement of these technologies will make DOOH an even more potent and dynamic kind of advertising.