The Current State of DOOH: Its Evolution and Outlook Beyond the Pandemic (Part 1)

If you've ever been involved in advertising, you've likely heard the term "OOH (Out Of Home: outdoor advertising)." But what about "DOOH = Digital OOH"? OOH has a long history as an advertising format, and many may consider it traditional in that sense. However, the proliferation of digital signage has greatly expanded OOH's potential.

For this article, we interviewed Mr. Wataru Kawaguchi, Mr. Shota Geno, and Mr. Haruki Kobayashi from LIVE BOARD, Inc., a company specializing in digital OOH. We heard real-world insights about how OOH has evolved by going "digital" and the types of inquiries companies bring to them. We hope this serves as a useful resource for all advertising professionals, and indeed for marketing professionals, to understand the current state of digital OOH.

OOH Going Digital Has Expanded What's Possible

Q. First, could you explain what kind of company LIVE BOARD is?

Gen'en: We handle advertising products known as digital OOH. Digital OOH stands for Digital Out Of Home, referring to advertising media that utilizes digital signage installed in transit advertising, outdoor advertising, commercial facilities, and similar locations.

We own approximately 80 digital OOH units and act as their sales agent. We also collaborate with digital OOH units operated by other companies, enabling us to handle a total of around 16,000 screens. This positions us as a "digital OOH platform provider."

Q. While it's now commonplace to see various digital signage displays throughout cities, what kind of impact did the evolution of OOH into "Digital OOH" have back when it first occurred?

Kobayashi: The shift from analog to digital brought significant changes in many areas. "Increased flexibility" is one example.Previously, OOH advertising was, to put it bluntly, like "sticking a big piece of paper on a signboard." This inevitably led to tight deadlines for submitting materials. Switching to digital assets allowed for extended deadlines. This not only reduced the burden on clients but also opened up possibilities for data integration. Through data linkage, it became possible to synchronize with campaigns – changing messages between today and tomorrow, or switching assets based on sunny or rainy weather.

Furthermore, new advertising formats capable of unprecedented impact have recently emerged, such as " 3D ads " and "giant ads." Many people have likely heard about the advertisement featuring a "giant calico cat" that appeared in Shinjuku.

Meanwhile, changes are also occurring from the consumer's perspective.While 3D ads like the one mentioned earlier are clearly perceived as "a new form of expression never seen before," changes are also happening in ways we might not consciously notice. For example, cases where ad materials change based on temperature. Because the ads displayed then align with how people feel at that moment, they don't feel unpleasant to see and naturally register. You might find yourself thinking, "Now that you mention it, that might be true," regarding the sense that "the discomfort felt when seeing outdoor ads is decreasing."

Gen'ōen: In the analog era, if an event was scheduled for late July, for instance, a large advertisement announcing that event would be prominently displayed. It was common for that same ad to remain posted there well into August. With digital, this rarely happens, so that sense of incongruity has definitely decreased.

I believe the "real-time nature" unique to digital truly has a positive effect. Even on the same digital OOH location, the message might say "Have a good day" in the morning and change to "Welcome home, good work today" when you return in the evening. This alone brings a very positive effect to society, doesn't it?

Plus, it's simply "less prone to getting dirty," which alone makes a good impression. After all, seeing old or dirty ads displayed indefinitely isn't pleasant, and it could potentially damage the image of the product or service.

The appeal of DOOH lies in balancing "targeting" and "planning" with "public appeal."

Q. I find the very concept of blending analog and digital—where traditional OOH formats undergo "digitalization"—extremely intriguing.

Kobayashi: If I had to name unique features of digital OOH, it would be "accurate targeting" and "the ability to change messages in real time." While it can do these things, it also communicates to the world in a very simple way – "displayed large and prominently outdoors." That duality, retaining that "traditional OOH feel," is perhaps part of its appeal.The consistent strength of OOH lies not just in "gaining awareness," but in its power to create a "current, prevailing atmosphere" by being displayed in public spaces where it catches the eyes of many. The very feeling of having an ad right in the middle of where people pass by is incredibly effective. This is the unique power and charm of OOH.

Kawaguchi: We call this OOH appeal "Managed & Serendipity." In other words, the content is managed by data to be optimal for the target audience, yet for the consumers receiving it, it becomes a "new encounter" experienced by chance while out and about in the city. Creating that is what we can do, isn't it?

Simultaneously, the "place of encounter" itself gains meaning. Seeing something "right in the heart of Shibuya" conveys more than just "I saw an ad." It also suggests "this must be trendy" or "it's popular with the crowd that frequents Shibuya." The significance extends beyond "what was seen" to include "where it was seen" and "when it was seen." This is the inherent value OOH has always held, and I believe this appeal has only intensified with the advent of digital OOH.

OOH, an advertising format cherished by people for a long time, has evolved into digital OOH through technological innovation. The ability to deliver information in real time means it's not just about "reaching many people," but also about "connecting with the viewer's feelings."

In the upcoming second part, we'll explore examples of digital OOH usage, focusing on aspects like "data utilization," while also delving into LIVE BOARD's vision for the future of advertising.

• The Current State of DOOH: Its Evolution and Outlook Beyond the Pandemic (Part 2)