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Trends In The OOH Advertising Industry For 2023

Out-of-Home advertising is among the oldest forms of advertising; however, recent technological changes and increased customer awareness require a reevaluation of advertising strategies. While it’s true that traditional OOH models are facing challenges, experts also believe that out-of-home advertising is coming back because consumers are getting tired of the constant bombardment of advertisements on their mobile phones.

Today’s consumers are much smarter and well-informed than they were 30 years ago; therefore, merely repeating a message to the average individual is not a viable strategy for return on investment. In 2023, along with a great website design, Google SEO, and content creation, advertisers will need to incorporate technology and customer preference in their advertising models to keep the spirit of advertising alive.

A recent KPMG report pointed out that outdoor advertising has witnessed an 11 percent annual growth rate (CAGR) over the past five years. If the trend continues, this advertising sector will continue the upward growth trend in 2023.

Smart advertisers can use the trend to increase their return on investment by implementing new ideas. Here is a look at the top10 trends and ideas that will revolutionize outdoor advertising in 2023.

1. Consistent Increase in Digital Outdoor Advertising

Like many other industries, the digital marketing trend also affects the outdoor advertising sector. This digital sphere trend is in-line with the existing demand where consumers are already accustomed to viewing 4K quality adverts. If implemented correctly, digital technology can facilitate outdoor advertisements because it uses 4K quality boosting high resolution and bright, colorful visuals that can attract users’ attention for longer periods.

Digital advertising and large digital billboards will continue to increase in the coming year because they are much easier and more convenient to move, which helps cut unnecessary expenses. Cost dynamics are also evident in the ability to run multiple digital outdoor advertisements on a single screen. Compared to static ads, multi-image advertisement gives owners more control over the medium and final ad results. For instance, some adverts perform better in a static form, whereas others may require visuals. Digital outdoor advertising can do wonders for brands that understand how to use it to their advantage.

Recent research suggests that digital outdoor advertising contributes to almost 30% of OOH revenues worldwide. Under these circumstances, advertisers who continue to reinvent themselves will likely succeed in subsequent years.

2. Brands are Embracing the Power of Storytelling

The human mind is designed to latch on to facts and opinions narrated in a story. Storytelling improves retention and helps consumers recall events. For instance, it will be hard to remember a new brand of toothpaste that does not differentiate itself from its competitors; however, introducing the same toothpaste in the form of a riveting story will likely get a response. Any brand with a compelling story to relate to its context is likely to impact subconsciously if the ad is narrated vividly.

According to experts, this storytelling trend will be witnessed much more in 2023. Using this strategy, outdoor advertising is embracing the concept by designing ads that only tell a part of the story, which makes the audience wait for the next ad in the storyline.

Recently, there has been a lot of buzz around the ingredients of good storytelling. Among these features is building a story character. In this scenario, the character faces a problem and seeks a resolution. Ultimately, the brand comes to the rescue as a problem solver.

It is imperative that brands pay close attention to generating creative out-of-the-box ideas for storytelling. This will improve engagement with the adverts. Merely putting out a story is not enough. The user must be able to connect with the story authentically before they can trust the story subconsciously.

3. Growth in Advertising Opportunities

Recent technological innovations have broadened the scope of placements of outdoor advertisements, particularly digital ones. Instead of large billboards, advertisers are using smaller advertisements in busy public places such as airports, waiting areas, public transport, and playgrounds. Blank walls have also emerged as a good alternative to traditional billboard advertising because these can be used to project advertisements.

A KMPG advertising report suggested that advertising outside the airport significantly contributed to the growth of outdoor advertising in 2019. It accounted for 27% of revenue share, likely to grow in 2023.

4. Advertisements have a Mind of their Own

2020 will be a year of improved and smarter outdoor advertisements.

In the recent past, most advertisements only marketed the product and the service. In 2023, advertisements will show information about a particular business, product, or service and predict the user profile of those who interacted with it. This feat will be accomplished by using sensors, facial recognition software, and other AI smart features.

The smart advertisement will aid in enabling outdoor billboards to interact with the target audience. As a result, augmented reality and virtual reality will make outdoor advertising campaigns more visceral and engaging.

5. Mobile Integration in Outdoor Advertising

Outdoor marketing is all about enhancing the user experience. To increase customer interaction, certain brands have integrated mobile and outdoor advertisements. The use of technology helps potential customers interact with advertisements and share valuable data in real time with the brand. The feedback from the customer helps provide a more customized user experience. Examples of such interactions are instant connections with customers’ mobile when they come in the range of advertising billboards. A beacon is also becoming commonplace because beacons enable advertisements to jump inside the customer’s phone.

6. Multi-Channel Integration

In 2023, outdoor advertisements will integrate with social media and television. The integration will also help grow other mediums using motion capability in digital out-of-home advertising and scalable content. The multi-channel integration is instrumental in ensuring that the message delivered across all mediums is coherent and consistent with the brand’s image. It means that the brand’s TV adverts will align with their DOOH efforts leading to a clear communication platform of brands with their audiences.

7. Focused Reach will Lower Expenses

In the past, out-of-home advertising focused on a broader audience to get access to specific demographics. The “fishing” approach doesn’t work anymore. In the future, outdoor advertising will be able to reach target customers who brands want to reach and whenever they want to reach them.

This is all possible due to improved media measurement tools allowing brands to get in-depth insights into their consumers. Brands will analyze and leverage large quantities of data without wasting the advertisement budget and time.

In 2023, outdoor advertising ads will be equipped with Bluetooth beacons to broadcast information to the audience interacting with the ad. Using the information, advertisers would make adjustments to tailor the ad according to the needs and wants of the consumers in that particular location. Such changes will significantly increase the chances of the targeted audience noticing an outdoor ad. The data will be collected to improve campaign targeting and deliver a more contextually relevant advert.

8. Outdoor Advertising will get more Creative

This year, managers will need to take a data-driven approach to advertisement. Using the power of data science, companies can laser-target their desired demographics to use campaign budgets effectively. Like digital marketing technology, beacons, radio beams, and the Internet can be used to understand the interaction pattern for outdoor advertisements. Ultimately, managers will need to come up with innovative ideas on how to use “big data” to streamline outdoor advertising models.

9. The rise of in-house Marketing teams

In recent years, companies are increasingly realizing the power of an in-house team that can streamline their marketing efforts across all channels. Instead of relying on a third party to deliver an advertising solution, many large companies have started to invest in maintaining in-house teams that can help them save costs and increase efficiency.

In 2023, financially capable companies will use in-house team teams. Accordingly, they will only interact with experts for specific knowledge rather than engage them full-time. In contrast to media houses, the role of consultants, independent contractors, and part-timers is likely to increase.

In-house teams working on one specific brand will create laser-focused efforts to generate ideas and reduce costs associated with a typical OOH advertising campaign. These campaigns will be complemented by occasional contact with experts and consultants.

10. End Of Empty Promises In 2023

Brands must understand that authentic and genuine exposure is the only way to do long-term business. As such, transparency will be the key to success in 2023. Everything from the promises, the work conditions, the use of harsh ingredients, and political affiliations are increasingly scrutinized.

This implies that advertisers can no longer get away with dubious claims and hollow promises. Purpose-led advertising will be the rule of the future as advertisers will either adapt to this trend or suffer the consequences. Similarly, brands will be more careful with their outdoor advertising efforts because authenticity will earn the audience’s trust and help advertisers get more businesses.

Despite the rise in online channels, outdoor advertising, including DOOH, will cement its status as a viable option among advertisers; however, brands must ensure that their outdoor advertising ads are in sync with their social ads. It will not be an overstatement to suggest that OOH is not dead, and it will improve further in 2023.