5 ways CPG marketers can reach consumers on their path to purchase with DOOH

Consumer packaged goods (CPG) marketers have a tough job — addressing changes in consumer behavior, climbing inflation rates and an ever-growing number of competitors vying for shopper attention are just a few of their common challenges

In addition, the traditional buyer’s journey (see an ad, buy a product) is long gone. The modern CPG shopper’s journey has transformed into a complex, multi-channel process in which consumers have more control, options and opportunities to interact with brands than ever before.

With the odds seemingly stacked against them, CPG marketers need to find innovative ways to reach consumers at multiple touchpoints with attention-grabbing messages that inspire action.

That’s where digital out-of-home (DOOH) comes in.

DOOH advertising leverages digital displays and screens placed in public spaces to deliver targeted messages to audiences throughout their daily lives.

DOOH advertising provides an unparalleled opportunity for CPG marketers to reach consumers throughout the path to purchase and at the point of sale. This article will cover five ways CPG marketers can leverage this powerful channel to reach their audiences with high-impact creative when it matters most.

1. Stand out from the crowd

Anyone who’s used the internet lately is probably no stranger to the massive amount of online ads shoppers are bombarded with on a daily basis. Most digital marketing experts estimate consumers see somewhere around 4,000 to 10,000 ads every day. While the exact number of ads is somewhat up for debate, one thing is clear — the modern consumer’s brain is oversaturated with brand messages, and as a result, shoppers have become quite adept at blocking out brand messages.

DOOH advertising allows CPG marketers to break through the noise of digital ads to reach consumers offline as they move throughout their day in a way that is unskippable, unblockable and most importantly, unforgettable. A 2023 study by Soloman Partners found that DOOH produces the highest levels of consumer recall compared to other media channels.

Moreover, because DOOH is a stationary mass medium located in real-world environments, consumers are more in control of the ads they see (consumers must physically move close to a DOOH ad to see it). This means consumers feel less “followed” by DOOH ads — making them feel less intrusive and more likable compared to other advertising formats. In fact, consumers tend to find DOOH ads the most acceptable of any other ad format with research showing 88% of consumers saying they like the ads shown on OOH screens.

2. Reach any audience, on any screen

From large format highway billboards and Times Square spectaculars to place-based screens in gyms, malls and grocery stores, DOOH screens are everywhere. Furthermore, the addition of programmatic technology allows advertisers to automatically purchase DOOH inventory and display their ads on any screen that fits their needs without having to make thousands of individual ad buys. For CPG marketers, this provides a tremendous opportunity to surround consumers with relevant messaging at crucial moments along the shopping journey.

For example, let’s consider a beauty brand looking to launch a new line of skin care products by leveraging DOOH to reach consumers throughout their day.

While consumers commute and run errands, the brand can reach them via billboards, bus shelters and urban panels.

• Once at the office, consumers are engaged by DOOH screens as they go about their business day in building elevators and lobbies.
  
• After work and at the gym, consumers are reminded by gym TV screens to take care of their skin while they take care of their bodies.
  
• Following the gym, a beauty enthusiast might head to the mall where they again receive messaging about skin care while shopping is top of mind.

This list could go on, but the point is, there are countless opportunities for CPG marketers to reach consumers throughout their daily activities with powerful messaging that keeps their brand top of mind.

3. Keep the messaging flexible

While static out-of-home (OOH) ads are usually geared toward one general audience, the flexibility of DOOH allows marketers to run different versions of their messaging based on location, time, demographics, behaviors, weather and other factors. Yet the key to maximizing these capabilities lies in the speed at which DOOH ads can be changed. Programmatic technology allows advertisers to upload creative assets electronically and launch, optimize or pause campaigns in near real time — making it easy to respond to shifts in consumer behavior, new trends, market fluctuations, etc.

In a previous campaign, Nature’s Way, one of the most recognized and trusted dietary supplement brands, heavily leaned into the flexibility DOOH offers in promoting its line of Sambucus immune system support products. The brand leveraged real-time data from The Weather Company to activate tailored creative messaging only when conditions showed a higher prevalence of seasonal cold and flu symptoms. This allowed Nature’s Way to target consumers at “immune risk” moments with highly relevant messaging to influence their purchasing decisions.

4. Align omnichannel efforts

Today’s consumers have more opportunities than ever to interact with brands — from online touchpoints like websites and social platforms to offline interactions like live events, in-store displays and yes, OOH screens.

With the flood of new points of contact available today, the odds of a consumer making a purchase after one interaction are becoming increasingly rare. Some experts claim it takes an average of eight touchpoints to convert a shopper into a customer; and while exact estimates vary depending on the specific product, audience, price, etc., it’s more clear than ever that CPG marketers need to have a solid omnichannel strategy that tells a cohesive brand story.

Luckily, CPG brands can now easily integrate DOOH into their larger omnichannel strategies (like mobile or CTV) to create unified messages across both online and offline touchpoints through:

Consistent targeting: The key to integrating DOOH into an omnichannel campaign is recognizing that this channel doesn’t exist in a silo. Instead, it involves tapping into data-driven audience targeting and seamlessly extending existing online audience targeting strategies to OOH. Through behavioral and household data, as well as first and third-party data sources, CPG marketers can deliver a consistent message to the same audience across all interactions.

Retargeting: Advanced programmatic DOOH platforms allow advertisers to identify the device IDs exposed to a DOOH campaign and retarget consumers across other channels, including mobile, display, CTV, social, streaming audio and more through existing demand-side platforms. By retargeting audiences that have already seen their ads, CPG marketers can build compelling stories that span the entire customer journey and dramatically boost the effectiveness of other advertising channels. Research by OAAA has shown that after being exposed to a brand’s OOH ads, consumers are:

• 41% more likely to search for the brand
• 33% more likely to visit the brand’s website
• 20% more likely to make a purchase.

Standardized measurement: DOOH platforms can report on verified impressions — allowing advertisers to use the same measurement strategies across their omni-channel marketing mix.

5. Measure, understand and optimize

A key component of any successful advertising campaign is the ability to accurately understand who saw your ads and what actions they took as a result.

DOOH offers a robust variety of measurement solutions specifically designed to help brands to measure the return on investment of OOH advertising campaigns across a variety of KPIs.

For CPG marketers, sales lift studies measure the impact of DOOH media on consumer purchase behavior by linking exposure to offline sales. These studies allow CPG marketers to better understand the impact of their DOOH campaign on real-world actions and make more informed decisions about future initiatives.

In a recent campaign, Pepsi wanted to drive sales of its new Nitro product line at specific retail locations across the United States. To achieve this goal, Pepsi collaborated with Vistar Media to build a programmatic DOOH campaign targeting consumers within a 3-mile radius of the designated store locations.

Using IRI’s Ansa measurement solution, Pepsi was able to compare Nitro product sales among test stores and control stores using daily store-level point-of-sale data from the selected retailers.

The study showed a statistically significant lift in Pepsi Nitro sales at test stores as well as an uptick in halo product sales when compared against the control stores — indicating the increase in sales was a direct result of the DOOH ads shown near the test locations.

CPG and DOOH: The perfect package

As the CPG landscape evolves, marketers need to be smarter than ever when it comes to reaching consumers at every stage during the path to purchase. DOOH advertising provides CPG marketers with the unique opportunity to engage with on-the-go shoppers when traditional channels fall short.

By incorporating DOOH into their campaigns, CPG marketers can stand out from a cluttered advertising landscape and reach active shoppers at multiple touchpoints with unified messaging to create a more powerful buyer’s journey and influence purchase decisions.