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Billboard Valuation & Advisory Services

Cookies Are a Thing of the Past: How DOOH Is the Solution

Cookies Are a Thing of the Past: How DOOH Is the Solution

Is Digital OOH advertising the answer to a future without cookies?

Digital Out of Home (DOOH) advertising is quickly becoming the answer to a future without third-party cookies. As more users become increasingly aware of their data privacy, they are more likely to delete cookies or use browser settings that block them. Without cookies, marketers would not be able to track user activity, which would mean less effective targeting and lower ROI from ad campaigns.

 

Google recently announced that it will discontinue third-party cookies in its Chrome web browser. This move is part of Google’s Privacy Sandbox initiative, which aims to develop technologies for more privacy-preserving online advertising. DOOH advertising can fill the gap left by third-party cookies by providing an alternative way for marketers to reach their target audiences.

 

DOOH advertising offers numerous advantages compared to traditional digital advertising. For instance, DOOH displays are not affected by browser settings, as they are seen on physical displays. Furthermore, they are often placed in high-traffic areas, providing greater visibility and reach. Additionally, they can be GEO-targeted, as advertisers can choose exactly where to place their ads in order to reach the right audiences.

 

Overall, DOOH advertising is emerging as the answer to a future without third-party cookies, as it provides an effective alternative way for marketers to reach their target audiences. With its unique advantages, DOOH is quickly becoming a popular choice for advertisers, and it is likely to remain a key part of the marketing landscape in the years to come.

 

Contact us at info@signvalue.com or 480.657.8400

A look at Historical US OOH Revenue

Wait, Did You Say Recession? The OOH Industry Braces for an Economic Downturn

Based on the extreme volatility during the last three years, we wanted to zoom out and look back on the OOH market over a long period. OOH’s revenue in the United States has averaged 7.1% over the last 50 years. The steepest decline in revenue was in 2020 due to the pandemic, with a -29.1% drop. However, we have all watched the swift revenue growth in the two years that followed 2020.

The 1970s showed the strongest consistent revenue growth rates year-over-year coming in between 10% and 20% per year for several years. OOH experienced double-digit revenue growth rates for nearly a decade as a more nascent industry. As OOH has matured and adapted, growth has steadied. The takeaway is that OOH media is a steady and predictable industry that will continue to thrive despite any economic headwinds in the short term.

Contact us at info@signvalue.com or 480.657.8400

Digital Versus Static Billboards Pros and Cons [Infographic]

Digital Versus Billboards Static Pros and Cons [Infographic]

Static Billboards

Static billboards are your tried-and-true method of OOH advertising. They have been around since the mid-nineteenth century. Some even argue that they have been around longer, dating back to caveman drawings. However, I doubt cavemen were advertising holiday sales 😊.

Static billboards have 24/7 exposure and are typically made displayed using vinyl. They have multiple displays in one structure. The primary benefits of static billboards are mass communication, 24/7 exposure, geo-located ads, and relatively low CPM for long-term advertising.

Static Billboard Pros

1. More Affordable Than Digital Billboards

The most notable pro of static billboards is long-term affordability. If an advertiser plans on advertising for an extended run length, then static billboards are usually much more affordable, including upfront costs.

2. 24/7 Exposure

Static billboards display the same ad copy, unlike digital billboards that rotate displays. therefore, at any point a consumer passes by a static billboard, they always will see the static copy displayed. The non-stop increases the impressions of one static billboard compared to a comparable digital billboard.

3. 3D Dimensions

Vinyl billboards allow for expansion beyond a two-dimension plane. A prop or physical display can be placed in front or extended beyond the typical dimensions as a feature of the ad copy. A great example of taking advantage 3D effects is the Chick-Fil-A cows in front of a billboard, creating an effect as if the cows are painting the billboard itself. While new LED screens can have 3D elements, they cannot leave their set physical dimensions.

Static Billboards Cons

1.       Upfront Costs

Billboard companies charge advertisers an upfront fee to put up printed vinyl. The fee covers the cost of printing and a team to install the ad copy manually. The cost to install ad copy deters frequent copy updates and short-term advertising. 

2.       Ad Fatigue

The long-term nature of static billboard advertising can cause ad copy to go stale if a customer sees the same billboard copy on the commute to work 200 times. It is natural for a consumer to become bored with the same design over an extended period.

3.       Billboard Vinyl Can Deteriorate

If vinyl or paper is left up too long, it can begin to fade and deteriorate. Replacing faded ad copy also requires an additional fee.

Digital Billboards

Digital billboards are the new kid on the block. They have only been around since 2005, only 17 years! They have many of the same benefits and features as static billboards. However, they have a few downsides. The primary downside is that they have alternating display times of 6-8 second cycles with other advertisers. This suppresses the number of impressions any given digital billboard can have. The most notable benefits of digital billboards are their improved attention-grabbing nature, ease of production, and creativity options.

Digital Billboard Pros

1. Can Easily Change Ad Copy

Digital billboards can be operated remotely. It does not require a crew to put up the printed vinyl manually. Digital ad copy can be put up, taken down, or changed at a moment’s notice. Many creative and seasonal opportunities open up because of this feature. 

2. Digital Billboards Draw More Attention

The LED lights and changing displays on digital billboards draw more attention than vinyl billboards. Interesting, there is even a conversation that digital billboards are too distracting (or are too effective) for drivers on freeways.

3. Usually, No Production Fee

Since digital billboards can be operated remotely and do not require a team to attach the vinyl, upfront production fees are usually nonexistent. Therefore, digital billboards have low upfront costs.

4. Better for Short-Term Advertising

No upfront costs, seasonal ad copy, and quick turnaround time makes digital advertising for shorter ad campaigns. The primary consideration for short-term advertising is not production costs but if inventory is available. In busier seasons, such as the holiday season, digital inventory will be limited.

Digital Billboard Cons

1. Long-Term Costs Are More Expensive Than Static

While upfront costs are cheaper than static, long-run ad rates are sometimes significantly higher. Digital billboards have a premium price because they grab consumers’ attention better than static billboards typically.

2. Displays Rotate In 6-8 Second Time Slots

Unlike static billboards that can have one advertiser for years, digital billboards rotate between several different advertisers. Typically, every 8 seconds, the billboard display will change to a new ad. The transition can grab consumers’ attention but also miss other consumers when an ad isn’t showing. Also, sharing a digital billboard display with several advertisers lowers the overall cost of advertising.