March 16, 2015

OOH and the Internet of ThingsBy Stephen Freitas OAAA

The Internet of Things (IoT) refers to an evolving eco-system of everyday products that sync with each other. Lightbulbs and gar-den sprinklers can work in concert.

The magic is currently controlled by a growing number of apps that connect dumb objects to the web to automate processes or manage them remotely. Individual devices work within custom-built protocols to deliver unrelated services. But by building all of these devices across a shared and standard-ized framework, open-source controls will enable machine-to-machine (M2M) interaction. Once these devices can bypass human control, they will commu-nicate autonomously using a shared lan-guage. This will allow your car to notify your home upon approach to adjust the thermostat, turn on the lights, and warm the oven.

Simplifying the routines of life is the promise of the IoT. But thats just the be-ginning. A connected planet will not only change the way people live their lives, it will change the way they understand brands.

With more than 65 percent of the US population carrying smartphones, mobile technology has become the easy way for people to interact with the world around them. Mobile devices also impact the way brands engage with consumers who are on the go, impa-tient, and get bored easily if content isnt relevant or entertaining.

An extension of smartphones are wear-ables. The early versions of these items may have been considered an eyesore,

but they now resemble statement pieces of status. Current devices generally serve a single function, while wirelessly and automatically sync-ing with mobile devices and computers. Functions include a pedometer or a heart rate monitor, but these items will evolve into multifunctional devices that can receive and transmit information complementing other technologies. Ultimately, the information gleaned from the wearable devices could provide behavioral details to inform advertis-ing messaging.

This constant connection is changing peoples habits, and out of home (OOH) advertising is uniquely poised to become a cornerstone of this new way of life. As a ubiquitous conduit that surrounds and immerses people away from home, OOH is viewed by many as the backbone of the Smart Cities movement.

Municipalities are beginning to see more dimensions to the traditionally linear role of the medium with new amenities and revenue streams. New York City recently announced plans to convert outdated payphones into a municipal Wi-Fi network funded by OOH advertis-ing. The network would be the fastest and largest free municipal Wi-Fi network in the world, and the project will be fully funded by OOH ads. New York will undoubtedly become a model for future urban Wi-Fi expansion across the nation and abroad. When the intelligent and intuitive nature of a connected web is linked to the physical world, it will allow people to positively impact cities and make them better places to live.

This connectivity has also created more

data, generating zettabytes of informa-tion each day. When paired with the precise latitudes and longitudes of OOH inventory, whether digital or traditional, this data can be used to augment OOH planning, allowing advertisers to tap into real-time and hugely scaled data sourc-es and react instantly to the smallest changes in consumer behavior to deliver increased value for every campaign.More than any other innovation on the technological horizon, driverless cars may open up the greatest opportunities for the OOH industry. The quantity of data these vehicles will collect is likely to have a considerable impact on an adver-tisers ability to target consumers.

Google is leading the way when it comes to fully road-ready cars. The company has already addressed common safety concerns, having tested its prototypes on over 1,000,000 miles of public roads without any accidents. Even more as-tounding is that the vehicles are already certified as road legal in five states.

This shift will have a huge impact on

Outdoor Advertising Association of America 1850 M Street, NW, Suite 1040 Washington, DC 20036 (202) 833-5566

(Continued on page 2)

F e b r u a r y 7 , 2 0 1 1 P a g e 2March 16, 2015 Page 2

Traffic Report

Internet of Things (cont.)

Using billboards, law enforcement and the Indiana attorney general launched an anti-human trafficking campaign on March 11. Messages will appear in English and Spanish on 35 digital billiards statewide through April 6. Shown here in Indianapolis (from left) are Brett Beshore, Clear Channel Outdoor; US Rep. Susan Brooks (R-IN); and Chris Iverson, Lamar Advertising Company.

OOH advertising. Drivers will no longer need to keep their eyes fixed on the road. Their attention could easily be pulled towards smart devices, tuning out the world outside the car. To minimize this outcome, the OOH industry will need to find new ways to capture the atten-tion of passing commuters. OOH ads will need to be relevant, highly engaging or entertaining, and useful.

We are on the cusp of remarkable in-novations that may have even dazzled Jules Verne. Technology and life evolves whether we like it or not. For an industry to remain relevant, it must evolve. Here are some ways the OOH industry contin-ues to change to keep pace with trends.

Actions are faster. Todays world moves at an ever quickening pace. Every indus-try must find ways to increase the speed at which it conducts business. At a time when people search online for what they want the moment they want it, every business must be equally as responsive. The OOH industry continues to invest in digital technology so that it can react quickly to meet advertiser needs. The OOH business is developing systems to transmit data in real-time and harness big data to extract insights about con-sumers and their behavior.

Processes are simpler. Fast is only part of the equation for success. People also expect technology to make life simpler. The OOH industry is achieving this by establishing ways to make the medium easier to plan, buy, and measure. Dy-namic trading platforms and automated content delivery protocols are a few ways OOH will simplify business processes.

Activations are consistent. The linkage of mobile media with OOH advertising must be strategic and not employed as a stunt. OOH and mobile are an ideal media mix, and any OOH campaign can include a mobile component to provide additional consumer engagement. That doesnt mean using technology for technologys sake. Mobile engagements should link directly to the broader brand and campaign goals.

Screens are agnostic. Consumers crave immediacy when seeking information, but the screen through which content is delivered isnt as important. The same content can be shared through a televi-sion or computer screen in the home, a mobile device, a digital billboard, or a place-based video screen in almost identical form.

The neutralization of screens means traditional media silos will continue to blur and agencies will approach the placement of digital content and advertising holistically. The OOH industry understands this shift and is adjusting business principles to compete in the agnostic screen ecosystem.

It was the great American industrialist Andrew Carnegie who said, Do your duty and a little more and the future will take care of itself. Everyone in the OOH business has a duty to consider the distant horizon, adapt along the journey, and embrace the opportunities that are presented. The rest will take care of itself.

OAAA would like to thank the following individuals for their insightful contribu-tions to this article: Ian Dallimore, Lamar Advertising Company; Dave Etherington, Titan; Josh Kruter, Clear Channel Out-door; Andy Sriubas, OUTFRONT Media.

Outdoor Advertising Association of America 1850 M Street, NW, Suite 1040 Washington, DC 20036 (202) 833-5566