DOOH in the Cookieless Future
Published: March 25, 2022
In January 2022, Google announced its plan to terminate Federated Learning of Cohorts (FLoC), substituting it with Topics API, a new Privacy Sandbox initiative to improve web privacy for users. Another installment to end third-party cookies in its Chrome browser, which currently retains 62.78% of the global browser market, by 2023.
Apple is making similar moves to exterminate the technology marketers employ to track users’ online activities and target them with specific ads. These new privacy restrictions will alter the way online marketers have targeted users for decades. With the online marketing landscape relying heavily on third-party data, many advertisers are scrambling to find practical digital marketing alternatives. The solution: digital out-of-home (DOOH) advertising.
DOOH provides marketers with a non-intrusive, brand-safe advertising medium to engage with on-the-go audiences while harnessing powerful programmatic capabilities like flexibility, speed, adaptability, and transparency. Here are some of the benefits of digital out-of-home advertising as the cookie crumbles:
DOOH is a one-to-many advertising channel
DOOH interlaces the best of out-of-home advertising with state-of-the-art technology. With online advertising, one ad will most likely reach one person. However, with DOOH, more than one person is likely to be viewing a screen at any given moment, meaning that one play of an ad counts as several impressions. Therefore, ad personalization depicts the common demographics of a larger group within a specific location and doesn’t need to lean on third-party cookies.
DOOH is privacy-compliant
DOOH is a unique channel that uses anonymized location data to get larger-than-life ads in front of the desired audience, with reach and impact that surpasses online ads. The OAAA ensures that mobile advertising ID and location data must be collected and stored to safeguard consumer privacy. All companies must provide and use DOOH exposure data to comply with privacy regulations that correspond to their jurisdictions.
DOOH relies on first-party data
Advancements in out-of-home technology and data have permitted brands to utilize first-party data to pinpoint specific audiences at the right time on the most relevant screens. DOOH depends heavily on first-party data to create real-time contextual ads, such as anonymized mobile intelligence, location, camera sensors, and IoT data to gather information. The development of smart tech creates more efficient advertising campaigns without the requirement to retrieve personal data.
According to Alfi’s forecast, the digital-out-of-home market will be worth more than $50 billion by 2026. More so, 95% of senior ad executives expect the industry to grow within the next two years, following advancements in technology and the bans of third-party cookies. With an increase in technology, brands can now effectively ensure their DOOH campaign is being viewed by the right people while simultaneously collecting and measuring insightful audience data with ultimate flexibility that is entirely risk-free.