AI Improves Digital OOH Media Buying

Programmatic digital out-of-home media is getting more precise and more measurable thanks to advances in AI-powered ad placements.

We know artificial intelligence (AI) has become a standard tool in the process of buying digital media channels like search marketing, data modeling, and programmatic advertising, but its growing influence in out-of-home (OOH) media deserves greater attention.

Outdoor advertising is so much more than billboards -- the space is undergoing a profound transformation, with Digital Out-of-Home (DOOH) media projected to represent 42% of total OOH revenue globally by 2025. This evolution is largely driven by AI innovations that enhance targeting capabilities, measurement precision, and creative possibilities.

Photo Credit: Marcus Herzberg

Benefits of AI-powered digital OOH media buying

The integration of AI into digital OOH advertising has created significant advantages for marketers seeking impact beyond crowded digital channels.

1. Real-time responsive adjustments

According to the OAAA's 2023 OOH Tech Showcase report, AI-powered solutions are helping advertisers deploy more relevant content by analyzing real-time data feeds and adjusting creative elements accordingly. AI algorithms can analyze environmental factors such as weather, traffic patterns, and time of day to dynamically switch out creative assets, transforming what was once a static medium into a hyperresponsive digital channel.

2. Efficient audience targeting

AI-powered bidding platforms use up-to-date information on consumer behavior, location, and environmental conditions to deliver hyper-relevant ads, ensuring the right message reaches the right audience without wasting ad spend.

3. Improved measurement

Advances in measurement have addressed one of OOH media's historical challenges. According to a 2022 study by the Digital Place Based Advertising Association (DPAA), 64% of surveyed media planners and brands cite improved measurement capabilities as a key factor in increasing their DOOH investments. What gets measured gets managed, as they say.

4. Omnichannel media plan integration

With programmatic buying platforms, AI technology easily connects digital OOH media activations with other advertising channels, making it a key component of a unified media strategy.

Programmatic DOOH campaign examples

• We recently used DOOH to take over Times Square in NYC with portraits of smash TV hit The Chosen, shot by famed photographer Annie Leibovitz! The client saw financial contributions spike instantly.

  
  

  

• We also knocked out a Times Square DOOH activation for Premier Boxing Champions (PBC), leading to expanded awareness and pay-per-view clicks.

  
  

  

  Photo Credit: NPRP Media

• Meanwhile, major brands like Spanx are getting astute with their OOH activations, like appearing next to the Oscars red carpet in Los Angeles to remind everyone they were the real most popular designer.

Photo Credit: Milkmoney

Current Limitations and Future Challenges

Despite impressive advances, AI-powered digital OOH still faces certain limitations.

Privacy considerations represent a significant challenge as more sophisticated audience measurement techniques emerge. A 2023 report by the Interactive Advertising Bureau (IAB) highlights that while 72% of advertisers want more detailed audience data from DOOH networks, only 47% believe current privacy frameworks adequately address consumer protection concerns. AI-driven OOH will require careful navigation of data ethics and consumer trust.

Technical infrastructure presents another hurdle. According to Insider Intelligence's Digital Out-of-Home Advertising 2022 report, while programmatic DOOH spending is growing, implementation costs for advanced AI systems and the uneven distribution of digital inventory limit campaign reach in certain geographic areas.

Measurement standardization continues to evolve but still lacks the universal acceptance found in online channels. The Media Rating Council (MRC) has documented the challenges of creating consistent impression methodology across diverse DOOH environments in their 2022 Digital Place-Based Audience Measurement Standards report. Brands and their media teams will need to determine case by case which marketing metrics and KPIs truly drive the business outcomes they want to see.

As the technology continues to mature, these challenges will likely diminish. Investment in infrastructure, development of privacy-compliant measurement approaches, and industry standardization efforts will all enhance the effectiveness and accountability of digital OOH media buying.

OOH is no longer just about broad scale; it’s about precision, personalization, and performance. AI is taking it there faster than ever.

Break out of that small screen, and get ready to make a big impact your audience won't forget. 

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