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Advantages and Disadvantages of Outdoor Digital Advertising

By Harry Tan Subscribe to RSS | December 29th 2011 | Views:
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Life is constantly changing. We discover and learn new things which help improve our lives. Cultures develop as people grow old and hopefully wiser. But what happens to the things that we had ever since the beginning? Do they too change or do they stay stuck in the past? Outdoor advertising is as old as advertising itself. And now it is witnessing how people are changing the way they consume and the different developments in our technologies. This particular change may pose both as a threat and as an opportunity for innovation. Fortunately, out of home advertising has embraced these changes and has adapted to them quite well. Outdoor digital media tools are now being used to create modern platforms that will be able to engage and interact with the audience effectively. And this merging of Digital Media and outdoor advertising has given birth to outdoor digital advertising which is turning the old and traditional form of advertising into a new media with a surprisingly great potential for growth and further development as Nido Quebein once said: “Change brings opportunity.” But what exactly drives the success of outdoor digital advertising?

It’s higher return on investment (ROI). Initial results from installed digital media by Out of Home Media Owners showed a 6 – 10x increase in revenues. This is because LCD and LED digital displays allow for higher quality, faster time to market, and better customer targeting. And they also promise to significantly cut the costs of advertising despite using digital tools. For a higher initial capital investment, outdoor digital media tools will be able to cut industry operating expenses by allowing outdoor advertising agencies to update displays at the click of a button.

Aside from higher ROI and lower costs, there are still the benefits that traditional out of home advertising brings such as a wide range of audience, repetitive advertising, ability to reach markets that other forms of advertising will not be able to reach, and of course the ability to make use of a wide variety of platforms. The high amount of commuters daily contributes to the success of an outdoor advertisement and with repetitive advertising, the ad recall of the consumers will increase.

But there is one thing that remains as a challenge for the industry of outdoor digital advertising, especially for Digital Billboards, and that is the regulation of banning billboards altogether. Billboards have been the subject of controversy – digital or not. It poses as a huge threat to the safety of the community. Its flashy effects and provocative images serve as a distraction for drivers which may cause some crashes and deaths. And during hurricanes, billboards turn into dangerous killer debris. Aside from this, out of home advertising is highly correlated and sensitive with the economic downturns. One solution for this is for advertisers and advertising agencies to turn to other mediums of outdoor advertising such as Taxi Advertising, bus advertising, and Train Advertising which is safer but still cheap and effective.

Harry Tan - About Author:
SMRT Media is one of the leading Advertising Companies based in Singapore that offers Effective Advertising Campaigns such as Taxi Advertising.

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