The advertising industry is undergoing exponential change. Historically, out-of-home advertising used to be the main mechanism companies could attract potential customers, such as with signs and billboards. You can even go as far as to say that out-of-home advertising started in the Stone age with cave drawings, providing information on where to go for food and telling stories. However, in the 21st century, the advertising industry has been flipped on its head. This has been mainly due to digital technology. Today, companies are able to advertise directly to specific demographics through personal devices. We are constantly targeted on the internet, whether we are on social media, YouTube, etc, typically with customized content. Companies know who we are and what we are interested in. This allows them to effectively target potential customers that are more likely to purchase their product. And this is all thanks to readily available consumer data. Our personal data is constantly being collected and companies are buying it because of its value.
The greatest advantage of digital advertising is the ability to track impressions and conversions, something that was virtually impossible for out-of-home advertising for years. However, this is changing. Companies are taking advantage of databases of consumer information to determine who is seeing their out-of-home advertisements and if they turn into consumers. This is essentially similar to the tracking advantage of digital advertising agencies. I think it’s incredibly interesting that the technology that steered companies away from out-of-home advertising and towards digital might be what brings back excitement and life into a relatively old form of advertising.
Author: Ece Kremers