Article

What Mobile World Congress 2016 means for DOOH in 2016 and beyond

The tidal wave of change spurred by mobile promises to be transformational for everyone involved in the out-of-home ecosystem, particularly digital OOH. Here are some key themes our industry needs to address following this year's MWC

March 15, 2016

By Nick Halas, Head of Futures, Posterscope

The annual Mobile World Congress is one of the biggest consumer technology showcases in the world. As mobile increasingly drives societal behavior, it's changing the way individuals interact with brands. MWC 2016 focus areas included wearables, home security and smart cities, along with proof of the evolution of almost any connected device you can think of — including the Connected Cow (a genuine agricultural innovation), as well as some that are equally innovative, if somewhat creepy, like the Sony Ear.

This tidal wave of change promises to be transformational for everyone involved in the out-of-home ecosystem, particularly digital OOH. Here are some key themes our industry needs to address following this year's MWC:

1. Alliances are powerful

The tech giants and major consumer brands clearly understand that the need to come together and collaborate is more important than ever in creating positive change. This was apparent throughout MWC, e.g. Lenovo and Google's Project Tango - a next generation operating system and product set; Volvo and Ericsson's connected vehicle; and Tag Heuer and Intel's new smart watch. "Luxury brand plus tech giant" is an equation we'll see more of, certainly.

In OOH, we're already starting to reap the benefits of a more collaborative approach. Intersection's LinkNYC is a great demonstration of how OOH has redefined its principles by building in public utility, via free Wi-Fi for the entire New York City population. By looking outside its core, the OOH industry can deliver solutions that increasingly become part of consumer utility, engagement and connectivity, without losing the opportunity to engage with target audiences.

2. Connectivity, connectivity, connectivity

MWC provides indications as to if and when certain trends are going to take off. It's the continued evolution of IoT that suggest OOH advertisers will be better able to interact and engage with people by using beacons, image recognition or device pairing. We expect to see this extend into CRM and payments, (witness Visa's expansion of its Visa Ready Program), as well as into the automobile sector as both connected cells – the car and the poster site – will be able to communicate with each other.

We'll see greater collaboration with digital/mobile campaigns, both as an extension network and as a platform for the delivery of dynamic personalized messaging, all of which will build on OOH's ability to deliver fame and attention for brands. "Mobile" refers less to the handset, and instead to whichever device, or "thing" within the Internet of Things, that the consumer has with them.

3. Audience insight

New levels of connectivity across an expanding number of connected devices are set to act as a springboard for deeper levels of consumer insight. This has implications in OOH for both the targeting of campaigns and increasing the impact of messaging through contextual message being delivered at the right time and right place.

We're already seeing improved processes through partnerships providing an incredible new layer of understanding of microlocation data, which informs greater insights about the OOH consumer. This insight will not just fuel traditional OOH, but will help in evaluating the experiential event space as well.

The increased application and adoption of small-cell technology through population movement and audience segmentation data will provide significantly more robust research and evaluation systems into events. Additionally, CRM connectivity with mobile devices will enable OOH advertisers to begin to track and evaluate campaigns, and traffic attribution post-event.

4. VR and events: a match made in technology heaven

Virtual reality is not new. However, the move toward mass market adoption changes the game, and the renewed focus on VR built to a fever pitch at this year's MWC, driven in no small part by the hardware announcements from major global technology superbrands.

Several new products were updated and launched early on, including HTC's Vive and LG's new VR headset. Additionally, Samsung's Gear 360 camera will capture VR videos, (although LG's device boasts an incredible 70 hours of video recording, which will take some beating); but perhaps most significantly, Samsung announced its Gear VR headsets will be provided free with all pre-orders of the S7 and S7 Edge handsets. Facebook announced the creation of a VR team, dedicated to creating new ways for people to have social experiences in VR.

The mainstream drive means greater ability for technology to create immersive experiences for consumers, but we need to keep quality at the core.

5. Infrastructure imbalance 

It's easy to read the road ahead as incredibly positive, but there is word of warning. Despite optimism at events like MWC is, there's an undercurrent of uncertainty. Technology is always a gamble, and several major tech giants have gone through tough times recently as investment wasn't made at the right time.

In the coming years the OOH industry will face the same parallels. The increasing sophistication of existing technology and the birth of new platforms, along with increasing digital infrastructure and more connectivity will require major-level investment. We're already seeing this investment from several of the bigger media owners — but as MWC's evolution demonstrates, keeping pace with technological change can be a tough order to fill.

The world is on the cusp of some very exciting new technologies, which will have a tremendous transformative impact on the OOH industry — as seen at this year's Congress. We need to be ready for change, and if we get it right the future for OOH looks very bright indeed. 

Posterscope is a global out-of-home communications agency and location expert. It says it knows more about what people think, feel and do out of home, and translates this understanding into compelling, creative and quantifiable out-of-home solutions through its investment in data, technology and people, which make a meaningful difference to clients' businesses.

Cover image courtesy of GSMA/Mobile World Congress.