How Data Is Transforming Australia’s OOH Advertising Industry

In this guest post, Christopher Blok, director of partnerships at Unpacked by Flybuys, takes a look at the impact data is having on the out of home industry…
In the dynamic world of advertising, the out-of-home (OOH) industry in Australia has been quietly experiencing a digital revolution. With a keen eye on data-driven strategies, this once traditional medium is now thriving and evolving at an unprecedented pace, consistently achieving year-on-year revenue increases. Thanks to the innovative integration of technology, coupled with the advent of programmatic digital out-of-home (pDOOH), the industry has found new life and relevance in the digital era.
According to the Outdoor Media Association (OMA), the OOH industry has witnessed impressive revenue growth with a half year net media revenue of $543.5M, up 11.9 per cent on the same period last year. This growth can be attributed to a combination of factors, but the role of data in shaping the industry’s future cannot be overstated.
In the past, OOH advertising was often seen as static and lacking the precision and immediacy that digital channels could offer. However, the industry has taken a bold leap forward by embracing data and analytics, ushering in a new era of targeted, relevant, and impactful advertising.
The Synergy of Digital and Programmatic OOH
Digital out-of-home (DOOH) has played a pivotal role in this transformation. The integration of digital screens and programmatic technology has enabled advertisers to deliver highly targeted and dynamic content. This flexibility has not only increased engagement but has also opened doors to real-time data analysis, allowing advertisers to adapt their campaigns on the fly.
Advertisers have realised the potential for data-driven decision-making with investment in DOOH having grown significantly. Further data from the OMA reflects the growing importance of DOOH, with it now accounting for 68.1% of net media revenue. This investment is well-founded, as data empowers advertisers to make informed choices about ad placement, creative content, and audience targeting.
pDOOH is a notable example of how data has transformed the OOH landscape. pDOOH allows advertisers to buy and deliver OOH ads programmatically, similar to online display advertising. By leveraging data and automation, pDOOH not only enhances efficiency but also makes OOH advertising more accessible to a broader range of advertisers, including small and medium-sized businesses.
The Data-Driven Revolution
Data-driven OOH campaigns can be highly tailored to specific demographics, locations, FMCG purchases and even environmental conditions. For instance, a coffee brand can target ads to run during morning rush hours near popular cafes, or a sunscreen brand can increase ad frequency on sunny days at beachside locations. The possibilities are endless, and data is the driving force behind these innovations.
Moreover, data analytics in OOH is not limited to campaign planning. It extends to performance measurement as well. Advertisers can gather real-time data on impressions, engagement, and conversion rates, allowing them to refine their strategies and optimise campaigns for better results.
The integration of data analytics, digital technology, and programmatic capabilities has not only increased revenue year on year but has also made OOH advertising more relevant and effective than ever before. As we move forward in this digital age, it is clear the Australian OOH industry’s reliance on data will continue to be the key to its sustained success. Advertisers who harness the power of data in their OOH campaigns will undoubtedly reap the rewards of a medium that has reinvented itself for the 21st century.
In the OOH sector, oOh!media are revolutionising the way transactional data is used to implement more effective OOH campaigns and measure performance based on real world behaviours. Following its recent partnership with oOh!, Unpacked by Flybuys data is available for activation across oOh!’s network to target category buyers at scale, with the opportunity to then close the loop through reporting of campaign outcomes based on sales based metrics. Recent measurement reporting shows that brands who activated a data led approach across the oOh! network drove a +48 per cent increase in total customers, increased total sales volume by +52 per cent and drove +53 per cent increase in market share*.
Conclusion: A Bright Future Ahead
As we look at the out-of-home industry in Australia, it has experienced remarkable growth, driven by its embrace of data-driven strategies, particularly in the digital and programmatic domains. The marriage of data and technology, particularly in the realms of DOOH and pDOOH, has ushered in a new era of effectiveness and relevance for this medium. As advertisers continue to harness the power of data, we can expect the OOH industry to not only thrive but also play an increasingly crucial role in the broader advertising ecosystem. Australia’s OOH industry is proving that it’s not just about being out of home; it’s about being in the data-driven future of advertising.
References
OMA – https://www.oma.org.au/sites/default/files/uploaded-content/website-content/24082023_out_of_home_half_year_results_for_2023.pdf
*oOh! measurement report outcomes, 6 FMCG brands, Campaign Period vs. Pre Period, July – October 2023
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