HOW DIGITAL AND AI TECH ARE TRANSFORMING OUTDOOR ADVERTISING
In an age where digital screens dominate our daily lives, out-of-home advertising (OOH) is experiencing a major revival with U.S. ad spend projected to reach $16B by 2030 in the United States. Once considered a traditional, static medium, OOH is now a dynamic and tech-driven channel that merges the physical and digital worlds. Thanks to the rise of digital out-of-home advertising (DOOH) and advancements in programmatic OOH technology, brands can now deliver targeted, data-driven campaigns that are high-impact, measurable, and built for performance. From interactive billboards to real-time creative optimization, DOOH is transforming outdoor media into a smart, performance-focused part of modern media strategies.
Breathing New Life into Outdoor Advertising
The landscape of out-of-home (OOH) advertising has evolved significantly, transitioning from traditional static billboards to dynamic digital formats. In the United States, total OOH ad spending is projected to exceed $9.5 billion in 2025. Globally, the digital out-of-home (DOOH) advertising market is anticipated to grow from $26.57 billion in 2025 to $53.90 billion by 2030, reflecting an annual growth rate of 15.2%.
We have moved beyond simple posters and static billboards – digital OOH now has a significant portion of the advertising landscape. In the US, DOOH is projected to account for over 31% of the total OOH ad spending. Globally, the DOOH market is expected to grow from $26B in 2025 to a whopping $54B by 2030, at a growth rate of 15.2%. This growth is driven by brands leveraging real-time updates, engaging animations, and personalized messaging to enhance consumer engagement. From interactive touchscreens in high-traffic areas to AI-powered billboards that change based on weather or traffic conditions, DOOH is creating a fresh and immersive ad experience, with 73% of consumers viewing DOOH favorably, compared to TV, social media, and online ads. These high-value audiences are also 76% more likely to take action after seeing an OOH or DOOH ad.
Key Advantages of DOOH Include:
Dynamic Content:
Advertisers can deliver time-sensitive or event-driven messages, ensuring greater relevance.
Increased Engagement:
QR codes and motion-sensing tech turn passive viewers into active participants.
Real-Time Optimization: Programmatic DOOH allows for flexible, automated ad placements based on real-time data like foot traffic and audience demographics to maximize results.
OOH Meets Performance Marketing
One of the most exciting developments in OOH’s revival is its integration with performance marketing strategies and tactics – bringing OOH into the performance age. What was once seen primarily as a top-of-funnel, awareness-driving medium is now proving itself as a measurable, results-oriented part of the marketing mix. Brands no longer have to choose between broad reach and precise targeting – OOH now offers both. Through data-driven insights, brands can track consumer actions post-exposure, linking outdoor ad impressions to online behaviors such as website visits, app downloads, or store foot traffic.
This is made possible by anonymized mobile location data, which allows advertisers to understand when someone has been exposed to an OOH placement and whether that person later took a specific action -like entering a retail location or engaging online. By comparing exposed and control groups, marketers can quantify lift in visits, conversions, or brand engagement—making OOH results not just observable, but attributable.
This measurable approach ensures that OOH is no longer just about brand awareness – it’s a performance-driven channel with tangible ROI.
The Power of Synergistic Performance Video
OOH is increasingly recognized as a powerful complement to performance video, including linear TV, OTT, digital video, and DOOH. A 2024 study revealed that integrating OOH advertising with other touchpoints, such as digital ads, resulted in a 17% increase in ROI compared to campaigns that did not include OOH/DOOH. This synergy enhances the consumer journey, ensuring that messages resonate across multiple platforms for a more impactful and cohesive campaign. Imagine a viewer seeing a teaser ad on a digital billboard, followed by a more detailed version on their favorite streaming platform, and then receiving a location-based push notification—this is the new era of cross-channel storytelling.
By Combining OOH With Performance Video, Brands Can:
Reinforce messaging across multiple screens for a cohesive brand experience. A Nielsen study reported brand recall increased by 19% when OOH/DOOH advertising was combined with video ads in digital environments.
Leverage data to retarget engaged audiences who have been exposed to OOH ads. The OAAA reported that 40-50% of consumers exposed to OOH/DOOH ads can be retargeted via other digital channels.
Maximize impact by syncing DOOH with programmatic video buys for integrated storytelling. Brands that combine DOOH with video buys report higher ROI, demonstrating the effectiveness of an integrated approach.
The Future of OOH is Now
The evolution of OOH goes beyond new technology – it’s about reimagining how brands engage with consumers in the real world and making smarter decisions driven by data. With advancements in digital technology, interactivity, and programmatic efficiency, OOH is reclaiming its place at the forefront of media strategies. By integrating mobile data, GPS, and AI, brands can now track audience behavior, foot traffic, and engagement with greater accuracy. A Nielsen study revealed that OOH ads generate $5.97 in direct sales for every dollar spent, highlighting the significant impact of this medium. When combined with performance video, OOH becomes an even more powerful asset in a marketer’s arsenal.
As advertisers strive to stand out in a cluttered media landscape, the resurgence of OOH proves that real-world media doesn’t just connect – it converts. Making OOH a powerful performance tool in today’s marketing playbook.
