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Archive for April, 2012

If I allow myself to stand back from the daily business of closing clients, keeping applications current and humming 24/7 and scaling the business, I can see the DOOH market in an entirely different light.

Much of our market has been influenced by the whims of advertising agencies seeing or discovering DOOH as either an exciting new opportunity to engage mobile consumers in and around places, or as an extension of their other media – TV, OOH or Digital. Many campaigns run for a matter of weeks, and in my experience, most (national) campaigns run on around 1,000 venues, regardless of if you can offer 10,000, 100,000 or even 1,000,000 screens. At the end of the campaign, the sales process starts over. Ideally we have repeat customers that are more efficient/economic to close, but a majority are new accounts, reflecting the fact that the industry is still at an experimental stage (clients like to “first” or “different” but as someone one said, “you can only be a virgin once”).

But that’s not the whole story – there are other segments of our industry that are not ad-driven and are therefore potentially at least, able to be more strategic and longer serving/surviving. These businesses are predominantly marketing oriented and therefore our products and services are capable of becoming mission critical tools for businesses.

A business with millions of fans on Facebook wants to see those fans move from their web or mobile screens towards the POS screen. Connecting Facebook, DOOH, email etc is not a one month campaign but hopefully 1-3 year strategy.

As Techcrunch reported here, Starbucks’ mobile app has generated $110 million in card cash transfers, a tiny drop in the ocean for them (even their gift card transactions are worth $2.4 billion!). But it’s a meaningful drop – and as a strategy, it’s here for the long haul, not a four week run. Certainly any DOOH business would be delighted to be part of that opportunity.

So be honest, is your DOOH business model tactical or strategic? Are you enabling advertising or marketing?