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In 2021, the world spent around 516 billion dollars annually on advertising.
In 2020, outdoor advertising investment spending in Mexico was 5.5 percent.
It is estimated that by 2024, outdoor advertising spending in the world will exceed 4.6 billion.
Technology continues to be the best tool for industries to stand out with unique, creative and innovative projects. Currently, in a context where most practices are mediated by digital, outdoor advertising is also adapting to the social and technological transformations that have occurred in recent years, such as the implementation of Artificial Intelligence (AI).
In this sense, there are many agencies that have incorporated new formats and innovations that allow it to remain the third channel with the highest investment in Mexico.
According to the recent Study of Advertisers Media & Marketing Strategy, prepared by IAB Mexicothis year outdoor advertising investment will increase by ten percent compared to last year, where growth was 39 percent.
Also, 45 percent of the companies that participated in the IAB report assured that they will invest more in that channel during 2023.
AI and outdoor advertising
As new formats and concepts have emerged in marketing, comes the increasingly strong implementation of Digital Out of Home (DOOH), which according to specialists continues to gain ground among advertisers.
We can mention that the term DOOH is the reproduction of multimedia content on digital screens located in outdoor locations, such as billboards located on the streets, means of transportation, shopping malls, buildings, and other locations.
In this sense, unlike traditional outdoor advertising, the main benefit of DOOH lies in its dynamism that leads to the possibility of reproducing different advertising messages in the same medium, according to the objectives of the advertisers, and in a timely manner. .
Given that, it is estimated that more than 80 percent of all data collected and stored on the Internet is based on location, so this for the advertising industry, AI can optimize ads by suggesting the most effective location to achieve the maximum participation.
For all this, as is the case with digital advertising in other media, such as Display and Connected TV (CTV), a format where brands can identify their audience in order to reach it with a unique and personalized proposal. Today, thanks to AI-powered programmatic advertising, brands can also intelligently choose where and how to advertise on DOOH.
“In a world where everything changes rapidly and dizzyingly, advertising must adapt and keep up with those changes. Today artificial intelligence has not only transformed advertising in online channels, it is also innovating outdoor advertising, allowing brands to be in the usual places, but with innovative, dynamic and high-impact ads”, said Iván Santos-Muñoz , Country Manager of Groovinads Mexico.
He also added that currently the Programmatic Digital Out of Home is a fundamental piece in the media mix of any brand. Together with advertising on other channels, such as Display and Connected TV, it allows brands to develop a successful full-funnel strategy, in accordance with their objectives.
And he gives as an example, as with Programmatic Digital Out of Home, a random cosmetics brand that has just opened a branch in a shopping center can advertise on a busy street near the shopping mall where it is located and, at the same time, increase the advertising frequency on weekends or weekdays during peak hours, when there is more traffic of cars and pedestrians.
Another striking example was how a global brand like McDonald’s used weather and weather data to execute messages that remind consumers “how long is breakfast until”, or to promote ice cream when it was a sunny day.
In short, artificial intelligence makes it possible to build a bridge between outdoor advertising and the digital and technological future, uniting the best of two worlds to achieve renewed experiences in keeping with the times.
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