Why Digital Giants Invest in OOH?

Why Digital Giants Invest in OOH?

Video streaming platforms are going big on outdoor advertising as people step out of home after close to two years of covid-induced lockdown.

“Media experts say most platforms are focusing on the top 10-12 cities for now but that there is great potential to penetrate further. Outdoor advertising spends for a major platform can touch up to  $2 billion core annually”.
Roku's Wallscape Advertising

Video streaming platforms are going big on outdoor advertising as people step out of home after close to two years of covid-induced lockdown.

Netflix, Amazon Prime Video, Disney+ Hotstar, ZEE5 and even regional players are looking at billboards, hoardings, metro stations and airports, to promote individual shows and movies or the platform itself.

Media experts say most platforms are focusing on the top 10-12 cities for now but that there is great potential to penetrate further. Outdoor advertising spends for a major platform can touch up to  $2 billion core annually.

Outdoor advertising is impactful and reaches a mass audience at the same time. Companies opt for the hoardings or cut-outs or billboards at primary locations across cities in areas with high footfall to ensure maximum impact and reach. This approach while being used in tier-one cities, is actually more impactful in tier-two and tier-three cities where traditional methods of advertising work for audiences who are more accustomed to the offline way of life.

Outdoor advertisements inform viewers about the app as well as offline packages which the platform offers in retails stores to facilitate those who aren’t well-versed with the online interface.

As an after-effect of the pandemic, people are more drawn to their screens than ever before, so the most effective form of advertising is definitely online. However, with people finally stepping out of their homes after two years and populating public places, outdoor advertising is also something we are looking at again, to ensure complete utilization of both the effects of the pandemic.

Hoardings and billboards are still associated with larger-than-life aspects of life, pointing out that content with a target audience residing in tier-two and three cities will definitely allocate a good share to OOH (out of home) ads from the media mix.

Netflix’s use of outdoor advertising for its international original Stranger Things is a good example of the strategy.

Netflix Billboard Advertising

While outdoor advertising was once considered to be very expensive or too unattainable for smaller companies, it is now more affordable than ever, owing to its availability across so many mediums and sizes.

With the ever-growing consumption of content on streaming platforms, they are taking the traditional route of billboards for advertising their content. Over the years, billboards or OOH (out-of-home) advertising has helped many stakeholders drive business with word-of-mouth. Since people also spend quite some time travelling by road in tier-one and tier-two cities, outdoor advertising provides consumption on the go. This year, digital brands majors are expected to spend $230 billion on out-of-home advertising alone — almost double the last year’s figure. Advertising revenue jumped 40.5 percent in Q1 2022 compared to the previous year, accounting for $1.8 billion. That marks the largest quarterly increase in the medium’s history.

Digital platforms category is emerging as one of the highest spenders for the OOH industry, along with erstwhile players like real estate, auto and mobile handsets. While they were aggressive about outdoor advertising even before the pandemic, they have now returned in full force as they are fighting for time and viewer eyeballs yet again.

For more information on OOH and DOOH advertising, and how we can help with your next campaign, contact us today at 210-610-5012 or email customerservice@bmoutdoor.com Create a website that's free with GoDaddy!

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