The number of online 5G devices doubled between 2021 and 2022, reaching nearly 162 million active 5G devices in the US alone, according to CTIA data. And based on data from Omdia and 5G Americas, 5G wireless connections will reach 5.9 billion devices globally by the end of 2027.
The growth of 5G is already revolutionizing consumer experiences on mobile devices, but the impact won’t stop there. Driven by the march toward 5G ubiquity, enhanced connectivity is going to unlock the next revolution in digital out-of-home (DOOH) advertising – and soon.
Although DOOH is well established, it’s been historically cumbersome, requiring video card updates and other manual interventions. That’s changing fast, and greater connectivity will accelerate this transformation and enhance DOOH’s overall role in shopper marketing.
Let’s dig deeper into where advertisers should expect to see enhanced DOOH opportunities in the coming years, and why.
1. Up-leveled experiences
To date, many DOOH executions have lacked a lot of the rich, real-time capabilities that the very nature of digital media promises. Rather, they’ve manifested as tech-enhanced executions of static traditional media – brighter versions of billboards, in a sense.
Going forward, however, connectivity will enable far richer consumer experiences. With 5G, DOOH screens will deliver high-quality and immersive content, such as games, videos and AR and VR experiences. These enhancements will not only improve the consumer experience but also increase engagement for DOOH ads.
2. Dynamic capabilities
With 5G, DOOH screens aren’t just interactive but also interactive in real time. This means consumers can engage with digital screens and receive personalized content or promotions based on their location, behavior or preferences.
This opens up a number of new possibilities for enhancing the in-store shopping experience and engaging consumers in captive environments such as advertising in rideshare vehicles.
3. Addressable data-informed opportunities
The speed enabled by greater connectivity will allow advertisers to customize experiences based on known data for a given establishment or location. Many stores or hotels, for example, have strong first-party data regarding their customers and their visitation patterns. This data, along with privacy-safe audience data from first- and third-party partners, can eliminate any concerns around employing user location data on personal devices.
By moving addressability off mobile devices and onto screens at a given venue, data-driven DOOH experiences can still feel personal without any of the personally identifiable data.
4. More screens in more places
The dramatically decreased price of screens over the last 10 years means there will be a rise in smaller, incremental screens across strategic locations. The future isn’t about creating more populous locations for DOOH, like Times Square, but rather more intimate screen-based experiences where they make sense.
This effectively gives marketers something they have been needing in today’s saturated digital consumer journey: more touch points in environments where those touch points are welcome.
Keep in mind: As of today, foot traffic exceeds web and app traffic for digital giants like Walmart, Target and Kroger. Now that screens have become so affordable, retailers have the opportunity to create in-store retail media networks that enable endemic brands to gain exposure at one of the most critical moments of the purchase funnel.
5. Alleviation of pain points
Beyond mere ad delivery, the strategic placement of screens will enable businesses and DOOH advertisers to solve real pain points for consumers in real time. Think about a brand like Disney. Long lines and wait times in the company’s theme parks have been a major customer complaint since the day Disneyland opened its doors in 1955. These days, the company is using interactive screen technology within its queues to address this pain point. So, too, can other brands – and in an affordable fashion.
This approach also gives venues an opportunity to intersperse their own messaging and promotions with advertiser experiences, creating value on multiple fronts.
The enhanced connectivity delivered by 5G is going to drive massive growth and enhancement within the DOOH space, on par with the growth and value we’ve seen in the fast-expanding digital retail media space. Now, not tomorrow, is the time for retailers and advertisers to be charting their futures according to this new North Star.
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