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

For a long time, OOH (Out-of-Home) advertising has been a beloved form of advertising. Did you know that technological innovation has evolved it into "DOOH = Digital OOH," utilizing digital signage and similar technologies?This time, we interviewed Mr. Wataru Kawaguchi, Mr. Shota Geno, and Mr. Haruki Kobayashi from LIVE BOARD, Inc., a company specializing in digital OOH. In Part 1, we introduced the strengths of digital OOH, such as "real-time information targeting."

In this concluding second part, we explore practical applications of digital OOH through case studies, focusing on aspects like "data utilization." We also delve into LIVE BOARD's vision for the future of advertising.

Data utilization significantly expands the scope of OOH planning and creative possibilities

Q. To revisit the question: How has the digitization of OOH enabled new ways to utilize data, and what capabilities has it unlocked?

Kobayashi: I believe it can be summarized into three main points.

First, it has greatly addressed a longstanding weakness of OOH: the difficulty in accurately grasping "who," "what," and "how much" people are seeing.

Previously, we could only estimate ad effectiveness by surveying traffic volume to gauge the number of people passing by an ad and their approximate profiles, or by extrapolating from questionnaires. Now, we can visualize this in real time. We utilize carrier data from NTT DOCOMO, Inc. to visualize reach based on location information and other factors.

The second point is the ability to verify planning effectiveness. This ties into the first point, as we can now see whether people who encountered an ad actually visited the store. This allows us to verify not only the value of "where the medium is located and who sees it," but also "what actions people took after encountering the medium."

Third is the advancement of delivery methods. For example, messages can be triggered in conjunction with news events—like a sports team winning a championship—or linked to weather conditions, such as being sent when temperatures rise.For beverage companies, this enables exposure "only during these high-temperature hours" or "only during peak sales times." While this offers significant benefits for operators, it's also positive for consumers. We're seeing a situation emerge where people see "what they need, when they need it."

Q. It's clear that digitalization has driven a dramatic evolution in OOH. What do you consider to be the most easily understandable cutting-edge examples?

Gen'en: As mentioned in the first part, the most visually clear example in advertising creative is probably 3D expression. This is a global trend, and the giant cat in Shinjuku became quite a talking point. Since 3D is spreading globally, the key point now is "how to make it even more interesting while utilizing 3D."

On the other hand, what interests us more than visible trends is what lies "behind" them.The shift to digital OOH has made effectiveness measurable. Consequently, we sense growing client interest in how to combine mass advertising with digital OOH, and what the optimal budget ratio with TV advertising should be. In other words, this measurable effectiveness necessitates a fundamental rethinking of planning itself. As we integrate all initiatives into comprehensive planning, it's becoming increasingly crucial to clearly define the role and appropriate scale of digital OOH within that mix.

Overcoming COVID-19 Challenges with Data Power, Aiming for "Triple Screen"

Q. OOH has been significantly impacted by the pandemic, hasn't it? There was even a period when it seemed pointless to use OOH because people stopped going out. But the situation has gradually changed since then. What is your outlook for the future?

Kawaguchi: As you pointed out, OOH was significantly impacted by the COVID-19 pandemic. From our observations, OOH ad spending has decreased by roughly 30%. While we are seeing a recovery, it hasn't returned to pre-pandemic levels all at once. However, looking at specific areas, there are some positive movements. For example, taxi ads (ads placed inside taxis) actually grew during the pandemic.Also, impactful campaigns like large-scale station billboards are recovering quickly. The same goes for 3D advertising. There's high expectation for OOH as a way to generate buzz, so I believe recovery will gradually come from these areas.

Furthermore, new media formats are emerging continuously. Examples include deploying creative content in the air using drones, or installing digital signage on golf carts and in restrooms. This enables previously unattainable forms of expression and creates new contact points with customers. I believe the potential of digital OOH is expanding rapidly.

Within this landscape, we at LIVE BOARD aim to expand our network. Simultaneously, we must evolve beyond merely offering "advertising across various formats." We must become a partner capable of proposing integrated communication strategies that leverage the triple screen approach: "TV" × "Digital" × "OOH."

Q. There are many players specializing in digital OOH. What do you see as LIVE BOARD's strengths?

Gen Kawaguchi: Our strength lies in our ability to leverage NTT DOCOMO, Inc.'s carrier data. Focusing on this point, no other player possesses a larger volume of data than we do, which in itself is a significant advantage.We can measure visibility, deliver highly accurate reach, plan for the target audience, and execute delivery—all in an integrated manner. This end-to-end capability is unique to us. Furthermore, since we also own our own advertising inventory, we can experiment and expand our offerings in this area depending on the situation.

On the other hand, what we must consider is how to stand on equal footing with players outside the OOH space. With corporate advertising and campaign budgets limited, we must convince them to deliberately choose digital OOH. Our challenge is demonstrating value that holds its own against major media companies and platform providers.

Kawaguchi: Along similar lines, we want to position our high precision as a key selling point – specifically, our ability to plan campaigns that encompass reach and frequency (ad exposure frequency) when compared to other players. We want to clearly communicate that we don't just focus on simple metrics like foot traffic.

Q. Recentefforts in the"metaverse" are expanding. In other words, "virtual spaces" are rapidly growing. How do you envision the future of OOH within this context?

Gen'en: Certainly, the "metaverse" is also a space, and as its user base grows, advertising slots will inevitably appear there. We'll need to adapt eventually. However, I believe the approach will differ significantly depending on whether we're looking 2-3 years ahead or 10 years ahead.

In the near term, I see the metaverse more as a "testing ground" – a place to develop new media formats within cities or experiment with unprecedented forms of expression. We can test whether these approaches work, then roll out the successful ones in the real world.Rather than focusing on expanding within the metaverse itself, we should utilize the metaverse to enhance real-world expansion. Eventually, the metaverse will become widely adopted, and expansion within it will naturally grow. That's how I envision it.

Digital OOH has brought about a truly revolutionary change. It's not just that display surfaces became screens or displays; the shift to data delivery dramatically improved the immediacy, flexibility, and precision of ad placement. This not only addresses the weaknesses of traditional OOH but also enhances the unique strengths that only OOH can offer. The potential of digital OOH will likely continue to expand significantly.

Furthermore, the proliferation of technology and the metaverse will expand our "living spaces" beyond traditional boundaries, blurring the lines between online and offline. Wherever people live and move, OOH will be present. New media development will continue to advance rapidly. This is another area well worth keeping an eye on.