Digital Out-of-Home (DOOH) advertising presents a set of challenges that require marketers to rethink traditional digital marketing strategies. Unlike online advertising, where scaling inventory is as simple as adding more digital space, scaling a DOOH network is resource-intensive. New screens need to be purchased, software installed, and contracts negotiated—all within the physical limitations of retail environments where space is at a premium.
However, these limitations are offset by DOOH’s unique advantage: its one-to-many nature. A single well-placed screen can reach a large audience with just one ad playout, making each impression far more impactful than its online counterpart. This contrast between limited inventory and broad audience reach challenges traditional notions of an "impression" in advertising. While an online impression equals a single contact, in DOOH, one impression could mean multiple contacts, complicating metrics and expectations.
Given these nuances, the DOOH landscape is ripe for dynamic and automated pricing models that account for demand fluctuations and audience movement. Unlike online programmatic markets, where prices often race to the bottom, the cost-intensive nature of DOOH helps maintain value and curb price erosion.
Yet, while programmatic advertising offers significant advantages, it is not a one-size-fits-all solution for DOOH. Successful DOOH advertising strategies will require a blend of direct sales, dynamic pricing, and various booking options to maximize yield.
One of the most pressing challenges in this space is data accuracy and transparency. Although some publishers have begun using live sensor data, many still rely on outdated, anecdotal models that fail to inspire confidence among advertisers. The lack of clear standards for data—whether self-reported, verified, measured, or live—is a major obstacle to creating a reliable, automated marketplace for DOOH.
As the industry evolves, establishing robust data standards will be key to unlocking the full potential of DOOH advertising, allowing it to integrate more seamlessly into the broader digital marketing ecosystem.
