The global advertising market is worth $600 billion and growing at a healthy rate of 5% per year. Yet the main players – print, radio and TV – are all having to adapt to the demand for digital, on mobile and online, and brand new mediums, such as car advertising.
Despite this backdrop outdoor advertising continues to stand apart, with a growing market share over the past decade. Why?
Changing business models
Technology is enabling totally new business models to thrive – in advertising and beyond. The sharing economy is creating new categories of inventory; programming is changing distribution; and high-power analytics dashboards are putting planning data at marketers’ fingertips.
The shift to online has defined advertising over the past 15 years. Print media has moved online. Radio is increasingly consumed through channels like Spotify. Traditional TV is being cannibalized by Netflix and Youtube. Outdoor is now at the forefront of these shifts in the advertising market.
Where is the innovation happening?
Innovation in Outdoor is happening globally. Businesses integrate the use of data and technology with traditional out-of-home mediums. Most recently, in Japan data storage company Cloudian and advertising company Dentsu have developed smart billboard technology. This technology electronically identifies car models and targets ads to drivers on the move.
Closer to home, Car Quids has combined data and tech to allow brands to advertise on fleets of cars across the UK. Whilst advertising on domestic cars is an innovation in itself, the ability to combine tech and data gives this type of vehicle advertising the edge over traditional bus and taxi advertising.
In 2 years it’s grown from an idea to over 22,000 advertising sites, making it one of the largest outdoor media owners in the UK. We’ve done this through a sharing economy model: connecting relevant brands with drivers who want to monetize their daily commutes, shopping trips and regular driving habits.
Technology has allowed us to leverage the sharing economy, like Air BnB and Uber, to create outdoor advertising inventory in areas where it has been previously limited. Data being more readily available means we can be transparent and work with with brands to quantify the ROI on their campaign. What makes us uniquely equipped to serve our clients’ needs is our easy-to-use dashboard, which allows brands themselves to access their campaign data. In this way, our car advertising can respond to data-hungry marketers with the metrics other Outdoor companies can’t give them.
Who’s using it?
“The way Car Quids is utilizing cars as an advertising format allows us to be a lot more creative with our marketing. We’ve tried lots of new marketing channels, and Car Quids looks like they have a winner, the cars look great and it’s only a matter of time before more brands start including this in their media mix”
Andrew Gallagher, Director Marketing Papa Johns
It’s no coincidence that many of the brands using this new category of Outdoor media are startups. Makers Academy, eMoov, Housekeep, Rock Pamper Scissors and easyCar Club, have all used car advertising to achieve cut through, in what is otherwise an incredibly competitive outdoor market. Companies like Car Quids are carving out the future of outdoor advertising, with more established brands like Papa Johns and Travelex trialling this new medium, in a sign of the demand for fresh, creative channels to reach consumers with.
The future of outdoor and car advertising
Outdoor advertising is changing. New business models, the shift to digital, and an increasing appetite for change will continue to shape the direction of the industry. So what of the future of outdoor advertising? Companies are increasingly trying to nail platforms which allow Outdoor inventory to be traded in the same way as online — but, as it stands, only time will tell if this is a realistic ambition.