How technology is reshaping the way out-of-home engages consumers

Antony Ceravolo, chief executive and founder of ECNlive, takes a look at how the world’s oldest advertising medium is having its roots shaken by innovative new technologies – and tells us how it’s taken his business to whole new levels.

Out-of-home advertising is being radically transformed by the arrival of new technology – Internet connectivity, real-time content, cloud based distribution software, cutting edge display and digital office communication are all helping to reshape how the world’s oldest media has traditionally engaged with audiences into a new hybrid medium.

There is a simple reason for this. Digital posters enable advertisers to reach audiences in a much more engaging way than static billboard posters because content and advertising has the capability to be up-dated in real-time.

And the signs are that advertisers recognise the benefits digital-out-of-home (DOOH) can deliver. Latest figures from the Outdoor Media Centre revealed that digital revenues for Q1 2013 were £43.1 million, up 21% year on year and accounting for a fifth of total outdoor revenues.

So what are the key elements that are helping to transform the DOOH industry and drive the creation of a new hybrid medium?

In my view there are two factors:

First, despite the digitisation of out-of-home, it remains a constant and fixed media presence in consumers’ lives in a world where media is changing at a bewildering speed. Yes, digital screens may be replacing billboards but consumers still expect to see it, understand its role – and there’s a wealth of research that shows they enjoy seeing it. Meanwhile, from an advertiser’s point of view it is a medium that cannot be shut down or turned off.

Secondly, with consumers now used to consuming media on the move, advertisers are increasingly recognising that the most effective way of making an impact is to target consumers with engaging content that is relevant to when and where they see it.

Out-of-home has always been able to deliver to consumers on the move. New technology means that they can now be more accurately targeted with content and advertising that can be updated in real-time, making it much more pertinent and compelling.

So what does the rise of ‘hybrid media’ mean for the future of traditional advertising media?

In my view it’s a case of adapt to survive. As the trend towards delivering relevant, engaging real-time content continues, the relevancy and performance of traditional advertising media will become marginalised and I think some of it will fall away or have to re-invent itself.

I have a vested interest in this happening; my expertise is in using new technology to disrupt existing traditional media. I was a founder of LOVEFiLM which used the internet to change consumer behaviour, contributing to the demise of Blockbuster and HMV.

In my current role as CEO and founder of corporate digital screen network ECNlive, we have disrupted the traditional out-of-home sector by creating an entirely new medium. Our network of digital screens combines state-of-the-art digital display with internet connectivity to engage business people where they work with real-time content and advertising that is both tailored to their interests and relevant to their current location.

So, for example, a content deal we signed recently with the Financial Times means that the London offices of companies such as Google and IBM now receive FT updates via ECNlive on the technology and media sectors as well as general news.

Meanwhile, buildings occupied by companies from a mixture of sectors will see a blend of tailored content from the broadsheet newspaper. Following our launch in Paris this month, which saw the ECNlive network installed in 25 major buildings in the Parisian business hubs of La Defense and QCA, we are now rolling out this model to the rest of Europe.

Looking ahead, the future of digital-out-of-home advertising will be driven by interactivity. Instead of being a passive message-delivery system, digital signage applications are likely to engage consumers on a more personal level by enabling them to interact using their mobile phones via Bluetooth and text messaging. The opportunity to transmit live messaging provides a dynamic new dimension to out-of-home as well as offering advertisers the flexibility to engage with consumers in real-time.

The temptation for advertisers could be to treat DOOH screens as an extension of traditional posters’ pure broadcast power, but this risks ignoring the potential that DOOH offers to engage with consumers in a much more tailored way.

In my view the increasing digitisation of the sector will lead to a growing percentage of advertising budgets directed to the DOOH ‘hybrid medium’. After all, when the choice for advertisers is between a medium that allows them to deliver live information and content tailored to accentuate a brand message, to a more clearly defined audience – with metrics including location, context and visual engagement – or a traditional untargeted channel, it’s a bit of a no-brainer.