AI and Data Revolutionizing Digital OOH Advertising

The Evolution of Digital Out-of-Home Advertising

Over the past 20 years, digital out-of-home (DOOH) advertising has seen exponential growth. Two decades ago, the market was almost non-existent, but today, according to the OAAA, DOOH accounts for about a third of all OOH advertising spending in the U.S., growing at a rate of 5% to 10% annually.

Initially, this growth was driven by the conversion of static billboards to digital screens. Advances in digital screen technology, cost efficiency, and regulatory changes facilitated this shift. However, with most suitable traditional billboards already converted to digital, new innovations are now driving the next wave of growth in DOOH advertising.

Key Trends Shaping the Future of DOOH

Marketers looking to leverage DOOH advertising should pay close attention to three emerging trends:

1. New digital screen conversion opportunities

2. Advancements in data-driven targeting

3. AI-powered customized creative

1. New Frontiers for Digital Screen Conversion

The first wave of digital transformation in OOH advertising focused on converting static billboards and later expanded to public transit systems. Today, digital screens can be found in subway stations, airports, and major urban hubs.

The latest trend in DOOH is the digitalization of street-level media, such as bus shelters and digital kiosks. These assets are often highly regulated due to their close ties to municipal governments. However, cities are now recognizing the public benefits of digital street furniture, including real-time transit updates and interactive information panels.

A great example of this is Minneapolis' recent network of digital bus shelters, which provide both transit alerts and advertising opportunities. For marketers, these new and eye-catching digital displays are a prime opportunity to reach urban audiences effectively.

Why Marketers Should Leverage Digital Street Furniture

• High visibility: Newly deployed screens attract attention.

• Urban reach and frequency: Repeated exposure ensures brand recall.

• Contextual messaging: Advertisers can deliver the right message at the right time in high-traffic urban areas.

2. Advances in Targeting Data and Tools

In the early days of DOOH, the primary focus was on hardware improvements. Today, the biggest advancements come from data and software, allowing marketers to integrate DOOH into their broader digital marketing strategies.

One of the greatest advantages of digital signage over static billboards is the ability to select the exact place and time for an ad to run. Innovations in mobile location data enable advertisers to target consumers based on real-time behavior.

Examples of Data-Driven Targeting in DOOH

• Alcohol brands can display ads outside bars during evening hours.

• Sunscreen brands can activate ads when the UV index is high at parks and beaches.

• Retail stores can push promotions near their locations during peak shopping hours.

However, some OOH media operators still require brands to buy ad placements on a fixed schedule rather than offering flexible, programmatic options. But as advertisers demand DOOH advertising to mirror the precision of digital marketing, the industry is rapidly adapting.

3. AI-Powered Customized Creative

The rise of AI in digital OOH is making it easier for brands to deliver personalized, location-based advertising at scale. Previously, creating hyper-localized content for multiple neighborhoods or cities was time-consuming and costly. AI is now revolutionizing this process by automating creative production and optimizing ad placements.

AI in Action: Intersection’s LinkNYC Campaign

A recent AI-powered campaign with a major tech company used 4,000+ LinkNYC digital kiosks in New York City. The goal was to customize messaging for each neighborhood, making the ads more relevant to the local audience. Thanks to AI-driven automation, the campaign successfully delivered unique and targeted creative across multiple locations with ease.

The Benefits of AI in DOOH Advertising

• Scalability: AI can generate thousands of unique ad creatives.

• Personalization: Custom messages tailored to specific locations or demographics.

• Efficiency: Automates the creative process, saving time and resources.

The Future of DOOH: A Data-Driven, AI-Powered Landscape

The combination of digital screen networks, advanced targeting data, and AI-powered creative solutions is shaping the future of OOH advertising. Marketers now have the ability to reach the right audience, at the right time, with the right message, making DOOH an even more powerful marketing channel.

As DOOH advertising continues to evolve, brands that embrace these innovations will stay ahead of the competition and maximize their advertising impact in urban environments.