Understanding DOOH Advertising: An Introduction to Key Metrics and Analytics
DOOH advertising has taken the marketing landscape by storm, offering a captivating blend of digital technology and physical presence. Keep on reading to discover the fundamental metrics you need to know to test and optimize your DOOH advertising campaigns.
In today's advertising environment, where digital ads dominate screens of all sizes, DOOH advertising carves out a unique space. It combines the best of both worlds: the visual impact of traditional outdoor advertising and the flexibility and targeting capabilities of digital advertising.
DOOH advertising ads are displayed on large digital screens located in high-traffic areas such as shopping malls, airports, bus stops, and city centers. This format allows brands to reach a captive audience with engaging content that stands out in the urban landscape, enhancing brand awareness and boosting results.
Unlike traditional static billboards, DOOH advertising ads can be highly interactive, incorporating elements like live updates, weather triggers, and social media integrations. This interactivity not only enhances the viewer experience but also enables brands to gather valuable data and insights for future campaigns.
So, if you're ready to unlock the potential of this revolutionary advertising format, continue reading as we delve into the essential metrics and analytics that will empower you to test and optimize your DOOH advertising campaigns.
Impressions play a crucial role in understanding the reach and impact of DOOH advertising campaigns. They refer to the number of times an advertisement is viewed by individuals within a specific target audience. It represents the potential audience size reached by the ad, providing insights into its visibility and exposure.
Measuring impressions in DOOH advertising involves a combination of technological tools and data analysis. One common method is using audience measurement systems that rely on sensors or cameras to detect viewers in the vicinity of the digital screen.
Understanding impressions is essential because it helps advertisers assess the overall visibility and potential reach of their DOOH advertising ads. It provides a baseline for evaluating the campaign's effectiveness in terms of audience engagement. By comparing impressions across different locations, time slots, or creative variations, advertisers can identify which strategies yield the highest visibility and adjust their campaigns accordingly.
Keeping a close eye on impressions can help advertisers make data-driven decisions, ensuring that their DOOH advertising campaigns achieve maximum impact and deliver the desired results.
CPM (Cost Per Mille)
CPM, or Cost Per Mille, is a commonly used metric in programmatic advertising that represents the cost advertisers pay for every one thousand impressions of their ad. It is arguably one of the most used pricing models, as it allows advertisers to assess the efficiency and cost-effectiveness of their DOOH advertising campaigns.
This metric plays a pivotal role in the planning, implementation and optimization of a DOOH advertising. By comparing CPM values across different locations, time slots, or creative variations, advertisers, agencies and brands can identify the most cost-efficient combinations. This enables them to allocate their budget strategically, focusing on the placements that generate the highest impressions at the lowest cost.
Using CPM as the pricing metric in DOOH advertising offers several benefits. Firstly, it provides a standardized measurement that allows advertisers to compare costs across their whole media strategy, as it’s also the go-to price model for display, video or mobile. This transparency helps advertisers make informed decisions when choosing where to invest their budget.
Additionally, CPM allows for better control and predictability of advertising costs. Advertisers can estimate their expenses based on the anticipated number of impressions, allowing for more accurate budget planning. It also helps in campaign scalability, as advertisers can project costs when expanding or adjusting the campaign based on CPM values.
Apart from CPM, there’s another way of pricing within the DOOH advertising ecosystem: Spots. It refers to the individual advertisement displayed on a specific location, during a specific time slot. By purchasing DOOH inventory based on spots, advertisers gain greater control over when, where, and how frequent their ads will appear.
The spot metric provides valuable insights into the frequency and timing of ad appearances within a given day, week, or campaign duration. Advertisers can strategically schedule spots to optimize reach and engagement, like increasing the frequency of ad appearances during rush hour on a highway, or during the weekend in a shopping mall.
Buying inventory based on spots can be advantageous for DOOH advertising campaigns with specific time-sensitive messaging or promotions. By securing spots during crucial periods, advertisers can deliver their message precisely when it matters most. This approach is particularly effective for limited-time offers, event promotions, or product launches.
DOOH advertising has proven to be a flexible yet complex technology. While metrics such as Impressions, CPM, and Spots are vital, they merely scratch the surface of the vast potential DOOH offers.
When combined with third-party vendors or data-driven technologies, DOOH advertising can open up to a world of broader insights. Reach and Frequency, Brand Recall, Return of Investment are just a few of the whole array of analytics that can measure the success of a well done DOOH advertising campaign.
At Beeyond, we take pride in guiding brands and agencies through their DOOH transformation. If you're ready to explore the boundless opportunities of DOOH, we're here to assist you every step of the way. Contact us today to begin your journey and start reaching beyond!