Limited Space attended the Kinetic briefing on The Future of Out of Home Media yesterday which included speakers James Copley and Nick Mawditt from Kinetic, Andrew Curry of The Futures Company, and Steve Parker from SMG. The comprehensive study of the future of OOH in the UK revealed that Out of Home media is set to increase its market share as a result of digital technology over the next ten years, with its structure also expected to change.
The key points from the briefing started with the assertion that digital technology will grow Out of Home’s (OOH) total share of media, with the total OOH spend expected to increase from its current total of £880m to £1.15bn by 2020. With this growth, of which it is expected that digital revenues will account for approximately 23% (almost £260m), the total OOH site universe will grow, with digital adding additional sectors as opposed to simply replacing static posters.
This is likely to then see the medium’s operational structure develop into two separate OOH sectors; ‘Broadcast’ and ‘Targeted’. The ‘Broadcast’ sector will include large numbers of well-positioned static sites and premium digital sites, whilst the ‘Targeted’ sector will include national networks of digital sites capable of time-flexible distribution and real-time reactive campaigns. Kinetic say that these two sectors will provide the opportunity to “unlock the potential to drive ‘smart’ retail promotional marketing” with national digital poster networks in proximity to retail locations and the integration of day-part flexibility; real-time planning and new audience-based trading. Limited Space’s Ad HD network will play an important part to play in fulfilling the potential within the retail environment as well as offering more sophisticated engagement with shoppers through its ability to integrate interactivity.
NFC and social media are likely to transform the relationship between posters and consumers, with some urban areas set to deliver a multi-media experience. Research carried out by Kinetic indicates that consumers already want to interact with posters, with “half of consumers seeing the value of interacting with posters and 20% even expect to be recognised by posters in the future.” The research showed that 75% of consumers are expected to carry a smartphone or tablet computer, with 66% expected to see digital screens in most city centres.
With this consumer interactivity, digital technology has the potential to not only re-value OOH, but to combine the sector with alternative media and technology sectors, specifically mobile marketing and internet based campaigns. Malls offer an ideal opportunity to capitalise on this merging of media due to their audiences and long, leisurely dwells they foster which encourages this type of interaction. Content looks set to hold a key role in OOH media, with billboards likely to become a distribution point for digitised news and entertainment content, all relating to what consumers are interested in. However it’s not just digital formats that can activate cross platform engagement. As noted malls provide the perfect conditions for audience engagement and Adlift too, in conjunction with the likes of QR codes, can encourage mobile interaction which can then be activated immediately directly within stores.
James Copley, COO UK at Kinetic Worldwide, sums up the briefing by stating that it is clear that “rather than just replacing static sites, digital posters will enable Out of Home media to offer advertisers both reach and more direct engagement. The potential to fuse digital posters with mobile interaction also has great potential. It’s up to our industry to grasp these challenges and opportunities.”
