Why DOOH is the Vital Link from In-Home to In-Store Along the Path to Purchase
Prime Big Deals Day kickstarted the holiday shopping season with enticing online offers. Yet, nearly half (48%) of U.S. consumers still favor in-store shopping. A staggering 85% of all retail sales continue to occur in brick and mortar locations, where digital out of home (DOOH) and retail media networks are front and center. Underscoring the imperative to reach consumers along their path to purchase, marketers cannot afford to ignore the opportunities in out of home (OOH) for influencing consumer purchasing decisions. So the question remains: Are marketers missing a vital opportunity to bridge the gap between in-home and in-store by reaching consumers on the go?
New innovations in OOH and the expansion of DOOH inventory offer marketers untapped opportunities for capturing consumer attention throughout their daily journeys with full motion, digital video content across more screens and formats — from street furniture and transit shelters to restaurants and retail destinations. According to Insider Intelligence, U.S. DOOH will make up 31.4% of OOH ad spend this year and is projected to reach $2.87 billion, with double-digit growth expected through the end of 2027.
In parallel, we’re seeing a boom in retail media networks with ad spending more than tripling since 2019. U.S. retail media ad spending is projected to reach $45 billion this year, according to Insider Intelligence. This influx in ad spending has increased the investment in inventory of physical screens at retailers, up 60% year over year, according to Place Exchange.
To engage and convert shoppers at point-of-sale destinations, brands are beginning to recognize the value of OOH as the final touchpoint in the consumer's path to purchase to drive full-funnel outcomes. With the integration of DOOH and rapid expansion of retail media networks, marketers can supercharge their shopper marketing with advanced measurement and attribution solutions, linking OOH ad exposure to critical business outcomes.
Consider this: 68% of consumers recall OOH ad messaging during their daily journeys, often while enroute to retail destinations. This creates a prime opportunity to raise awareness and drive in-store visits. What’s more, the effectiveness of these ads soars to a 71% ad recall rate when strategically positioned directly outside of stores, according to an OAAA & Morning Consult study. The report also found that once inside a store, three-fourths of adults (75%) notice OOH ads, with higher rates among adults aged 30-44 (81%) and those earning over $100K (81%). Most importantly, these in-store ads drive action, with 42% of consumers reporting that in-store ads directly influence their purchase decisions — delivering an incremental lift of in-store sales.
Increasingly, marketers are now able to leverage a growing array of digital screens to unlock the full potential of their omnichannel marketing strategies. The integration of DOOH and retail media enables brands to take advantage of advanced targeting, premium inventory, and outcomes-based measurement to effectively engage and influence consumers across the shopping journey. Moreover, advertisers have the flexibility to execute DOOH campaigns — either through a Demand-Side Platforms (DSPs), or via an expert-led managed service.
Consider the Role DOOH Plays as Part of Brands’ Shopper Marketing Strategy
Reach Highly Engaged Audiences at Scale: Already, DOOH is being embraced by a diverse range of retail locations, including big-box stores, department stores, grocers, pharmacies, and convenience stores. According to Place Exchange, there are now more than 850,000 screens across the U.S., collectively generating over 100 billion monthly impressions. This scale offers an expansive and unmissable creative canvas for brands to engage with diverse audiences in their surroundings for maximum reach and impact.
Intelligent, Sophisticated Data & Targeting: The evolution of data-driven OOH provides advertisers with precise targeting capabilities. With DOOH, advertisers can tap into both first-party and third-party data, enabling precise and effective audience reach. Armed with this intelligence, advertisers have access to shopper loyalty information and real-time consumer behavior data to ensure that their ads reach the intended audience — delivering highly relevant and impactful campaigns.
High Quality, Premium Inventory: DOOH screens are inherently premium digital assets, designed to be video-enabled and dynamic to ensure contextual relevance in ad messaging. The availability of premium quality screens at meaningful scale enables brands to bring their stories to life in the real world in more creative and captivating ways, ensuring that their messaging aligns seamlessly with the environments where their ads are seen.
Achieve Measurable Outcomes: OOH has evolved from a traditional brand-building channel to a medium that delivers full-funnel outcomes. No other media matches its effectiveness in engaging on-the-go consumers and delivering timely deals and promotions to nearby shoppers, as well as influencing in-store consumers at the most relevant moments during the purchase process. Furthermore, brands can now measure how many consumers visited their stores through footfall studies and quantify incremental in-store purchases resulting from OOH ad exposure. These tangible results highlight the value of integrating DOOH into an effective shopper marketing strategy.
Posted at MediaVillage through the Thought Leadership self-publishing platform.
Click the social buttons to share this story with colleagues and friends.
The opinions expressed here are the author's views and do not necessarily represent the views of MediaVillage.org/MyersBizNet.
Patrick Murray
Patrick Murray is Talon’s Vice President of Marketing, overseeing the execution of US brand initiatives that include thought leadership, public relations, content, and events. With a decade of experience in media and advertising, Patrick’s expert…
