Digital out of home

Does Route do DOOH?

We’re often asked, does Route measure digital out of home (DOOH). Pleasingly the response is both simple, and fun to say… “We do do DOOH”.

DOOH is a relatively small but growing component of the inventory that Route measures. The most recent Route release R23 (from Q2 2017) included a total of 5,551 digital ad frames (+19% increase since the same period last year). As with any element on Route, it can be reported on at eight daypart levels across the week. Developmental work is underway to extend the granularity to which data are analysed meaning that reporting at 15 minute intervals per day by the end of 2018 is the goal.

What does Route know about DOOH?

One of the core benefits of DOOH is flexibility both in terms of targetting and timing. It also enables more ads to appear on a fixed number of frames. However, with greater choice comes a reduced share of voice. This Confucius-esque statement simply means that as there are more ads battling it out to be shown in a fixed amount of time, the likelihood of any specific ad being seen is reduced. In short, more digital ads do not lead to a linear increase in audience.

Below we see the effect of adding more ads into the mix. Our campaign includes 500 digital frames over a two-week period across GB. By reducing the share of voice (SOV) per frame from 100% (1 ad showing all the time on each frame) down to six ads shown equally (17% SOV), we see impacts per ad drop from c.123.9m to 43.7m.

How does DOOH do at delivering audiences?

Although the previous chart indicates that a reduced SOV means specific ads generates fewer impacts per ad, we do see that the screens actually increase the total audience available to advertisers (and with this ad revenue for media owners). Take the example above where six ads are shown. Each will generate 43.7m impacts over a two-week period. As there are six of them being screened we have a total audience of 261.96m impacts (43.7m * 6 ads) whereas one ad being broadcast all the time will reach 123.9m.

 Analysis of Route data shows that as a general rule…

  1. DOOH increases total audiences to OOH
  2. DOOH delivers a quick build of impacts
  3. As digital frames tend to be tightly clustered in a small geographic space, cover takes time to build.
  4. As a counter to this, over time, DOOH effectively builds frequency as those same people from within the geographic area see the ads on multiple occasions.
  5. With greater frequency and increased flexibility come new creative opportunities to show more executions

What does DOOH do on a specific campaign basis?

Below we see the cover build of a 500-frame digital campaign in GB through time. Here we have selected five random samples of 500 digital frames from across GB and averaged the output. We have assumed that all frames have 3 ads per site and that each gets an equal 33% share of the loop in calculating our audiences. All campaigns have been run as June as the base month.

Table 1 (below) outlines the full campaign analysis through time.

The first thing to note is the ability to measure a campaign at more granular levels than the traditional two-week industry standard.

Further to this, a 500-frame digital campaign can be expected to deliver:

  1. Reach of 1.4million people in any given day (2.7% cover)
  2. Reach of 2million over a weekend
  3. Around 34 million impacts in a week
  4. Continuous build in frequency, particularly beyond an 8-week campaign duration
  5. 52% GB cover in 12 weeks

How else does Route do DOOH?

Digital is changing the OOH industry. We see greater demand for quick tactical campaigns and with this comes increased desire to report at more granular levels. In anticipation of this, Route is evolving its methods and will have spot level audiences in place by the end of 2018. Until then, Route can and does measure digital campaigns at daypart level and is able to identify different audiences by days of the week.

So, what do we know about different digital campaign measures through the day? Below we show the results of a 500-frame DOOH campaign across all environments in Greater London targeting ABC1 adults working full time.

What we can see is that a two-week campaign broadcasting during the daytime (10am – 4pm) offers the largest audience and that the evening daypart reaches more than the morning. Of course, this pattern would be subject to significant changes should the campaign focus on specific environments, such as underground or rail where commuting patterns will have a more pronounced effect on the audience.

It’s also possible to demonstrate the day of the week where campaigns will reach the highest ABC1 working full time audience (it’s Wednesday).

So why all the fuss about DOOH?

Digital out of home (DOOH) is not new. Digital revenues in UK outdoor advertising have been recorded since 2003. However, it’s rapidly becoming the main attraction. It’s delivering larger total audiences for advertisers and crucially for media owners, digital screens are helping to grow revenues.

Digital out of home revenues have consistently increased year on year and accounted for £423.2m in 2016, an increase of 26% from 2015. Growth is forecast to continue, with the WARC / Advertising Association expecting DOOH to increase by 17% this year. Digital now represents 42% of the entire market. (Source: PwC / Outsmart: OOH market study figures).

Why is DOOH is growing?

DOOH offers a win: win situation for both Media Owners and Advertisers alike.

From the perspective of advertisers, digital inventory offers:

  1. Greater flexibility in what can be shown meaning greater creative potential and seamless cross-media integration
  2. Greater targeting in when the ad is shown
  3. Reduced lead times to get ads to market

From a media owner point of view, digital ads enable:

  1. Ability to better meet the needs of advertisers (above)
  2. Ability to sell more ads without building new infrastructure and frames
  3. Ability to create a premium offer
  4. Ability to offer more advertising spaces in limited locations
  5. Creative opportunities to encourage greater frequency / executions

In summary

Route enables advertisers to evaluate their digital out of home campaigns in the same level of detail they would with any other “classic” poster campaign. It’s possible to report on the geography of the frames, also to analyse the audiences that are being targeted and at different campaign durations (down to individual daypart level). While set to further improve the granularity with which it can currently report, we remain comfortable in asserting that even now Route does, in fact, do DOOH.

Hop on over to our insights section here to see an interactive version of the charts featured in this article.

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