The Rise of Out-of-Home Advertising for Startups
In today’s digital age, where online advertising dominates the marketing landscape, it may seem counterintuitive for startups to turn to traditional methods like billboards and subway ads. However, according to Alex Ewing, CEO of OneScreen.ai, these out-of-home (OOH) advertising strategies are making a comeback and proving to be highly effective for startups.
OneScreen.ai, based in Boston, acts as a software-enabled middleman between startups and OOH advertising slots. The company helps startups find the right placement for their ads based on their target audience and demographic data. It also utilizes anonymized location data to track the success of campaigns.
The resurgence of OOH advertising can be attributed to several factors. Firstly, there is a growing disillusionment with digital marketing due to privacy regulations, the ability to block digital ads, and diminishing return on investment (ROI). Ewing explains that many companies, regardless of their size or funding status, have realized that they can no longer afford to invest heavily in digital advertising.
Instead, startups are turning to OOH advertising as a way to build brand recognition. Even if the majority of people who see the ad are not likely to become customers, the exposure increases brand awareness and credibility. This is particularly relevant for B2B companies, who may not see immediate sales from OOH ads but understand the long-term value of brand building.
For example, B2B HR startup Papaya Global purchased a $7 million Super Bowl ad not as a lead generation play, but as a brand awareness strategy. Hila Perl, the director of strategic communications at Papaya Global, emphasizes that OOH advertising is a marathon rather than a sprint.
While it may be challenging to track the ROI of OOH ads compared to digital ads, OneScreen.ai helps companies reach their target audience by strategically placing ads near their customers’ headquarters or commuting routes. By using anonymized cell phone tracking data, OneScreen.ai can measure the impact of the ad through metrics like website traffic from people who passed the ad versus those who didn’t.
The power of OOH advertising lies in the fact that it brings a company and brand into the real world. Seeing a company’s ad on a billboard or wrapped around a city bus can have a lasting impact on potential customers. It softens the “beachhead” for inbound leads and can even drive direct leads.
As the popularity of OOH advertising continues to rise, startups like Ramp and Karat are leveraging this medium to stand out in a crowded digital landscape. With OOH advertising spend in the US expected to reach $9.3 billion this year and projected to reach nearly $12 billion by 2029, it’s clear that this classic form of advertising is here to stay.
