Revolutionizing retail media: the rise of prDOOH in the US
By Lindsay Shelton, Strategic Partnerships Director US at VIOOH
The intersection of retail media and programmatic digital out-of-home (prDOOH) is converging to create unprecedented opportunities for brands and agencies alike. New retail media strategies are being propelled by prDOOH screens found both inside and outside the store, priming consumers across the purchase journey and offering a raft of brand-safe, data-led benefits to enhance advertising campaigns.
Retail media meets prDOOH
Retail media, a cornerstone of in-store advertising, is experiencing rapid growth. With a market size expected to surpass $100 billion by 2027, it remains a critical touchpoint in the consumer journey, especially considering that 85% of purchases still occur in physical stores. A recent study even found that 82% of purchase decisions are made while in-store, underscoring the continued relevance of retail environments.
Simultaneously, the prDOOH market is burgeoning in the US, fueled by the demand for location-based, contextually relevant advertising. prDOOH, which combines the reach of traditional out-of-home (OOH) advertising with the precision of digital targeting, is poised to reshape retail marketing strategies. By integrating these two powerful mediums, brands can enhance consumer engagement across multiple touchpoints, both inside and outside the store.
The power of in-store media
Differentiating between in-store media and media in shopping districts is crucial to understanding the consumer journey. Companies like JCDecaux North America have strategically placed screens in iconic shopping districts and malls in major US cities including New York. This approach creates a seamless path to purchase, capturing consumer attention at various stages – from the initial brand impression to the final in-store decision.
The synergy between retail media and prDOOH is evident. Retail and consumer packaged goods (CPG) sectors are particularly well-suited for prDOOH campaigns. Our latest State of the Nation 2023 report highlights that 76% of US advertisers consider prDOOH important for performance-led campaigns, while 78% value it for brand-based initiatives. This demonstrates how prDOOH can drive both brand awareness and measurable performance metrics.
The priming effect
One of the most compelling aspects of prDOOH is its ability to influence consumer behavior and purchasing decisions through the priming effect. Unlike other digital channels that rely heavily on third-party cookie-based targeting, prDOOH leverages contextual relevance and location-based triggers.
This not only enhances the consumer experience but also ensures that ads are seen by the right people at the right time. The State of the Nation 2023 US report found that 67% of US advertisers believe prDOOH effectively targets the right audience and 64% of respondents believed it can increase sales and performance.
The future of retail media and prDOOH lies in the ability to work together seamlessly. As we move away from third-party cookie-based targeting, the importance of priming and influencing consumer behavior beyond the point of purchase cannot be overstated. The success of prDOOH should be measured not just by immediate sales uplift but also by its long-term impact on brand perception and consumer loyalty.
The rise of prDOOH
The increasing use of prDOOH media is boosted by several factors. It’s brand-safe and found in trusted environments, it’s not reliant on third-party cookie data, it delivers contextual relevance and high engagement rates.
Our State of the Nation report showed that 83% of respondents view prDOOH as innovative. Its automated approach allows brands and media owners to connect and adapt more quickly and efficiently. It amplifies campaigns by offering dynamic creative optimization (DCO) and innovative formats such as sequential messaging and 3D displays. This not only captures consumer attention but also enhances the overall impact of multi-channel campaigns.
Advertisers have moved beyond only measuring impressions. Now, everyone wants to know how exposed vs customers not exposed behave at the store level, tap into loyalty program insights first-party data and understand offline-to-online uplift. Measurement remains a critical aspect of prDOOH’s effectiveness. Advertisers can also use prDOOH throughout the funnel and deliver context and flexibility with data specific events and real-time triggers.
The convergence of retail media and prDOOH represents a transformative opportunity for brands and agencies. By leveraging the strengths of both sectors, advertisers can create compelling, contextually relevant campaigns that encourage consumer engagement and deliver measurable results. prDOOH will continue to energize innovative marketing strategies, especially when combined with a mix of media opportunities.
Lindsay Shelton is Strategic Partnerships Director US at VIOOH. For more information visit: viooh.com
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As large-format OOH took a long while to return to pre-pandemic traffic levels and impressions, I wonder how retail media’s foot traffic has truly bounced back. The parking spaces/lines at grocery stores for pickup are always jammed. My wife and I rarely go into a grocery store.
Great points Bob. Malls and shopping centers on the other hand are not ‘jammed’. Like billboards the success or value of the sign depends on where they are placed.