Display Technology
Companies must measure OOH effectiveness while protecting consumer data
Companies spending large chunks of their marketing budgets on OOH also require data, but they need to approach gathering it mindfully to avoid compromising their customers' security or privacy.
October 19, 2021
Getting up close and personal has its uses, particularly when it comes to digital marketing success. One of the main benefits of gathering analytics from advertising is that the data gathered enables marketers to target and personalize future campaigns based on past results. Most marketers understand how data is collected from social media ads, email marketing, and TV commercials, but they aren't always as clear about OOH analytics.
Companies spending large chunks of their marketing budgets on OOH also require data, but they need to approach gathering it mindfully to avoid compromising their customers' security or privacy.
The evolution of OOH measurement
Until recently, OOH advertising was measured mainly by data highlighting the number of people who passed an ad unit every day and estimating how many of those were part of the target audience for the product or service. This metric could tell marketers the number of people exposed to the ad, but not how many people actually saw the ad.
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To address this gap, the non-profit Traffic Audit Bureau (now Geopath) began using drivers who wore eye-tracking goggles to discover the percentage of passersby actually viewing specific ads. This number became a helpful resource called the variable adjustment index. The VAI is still used to calculate OOH reach and the number of impressions, and most OOH advertisers consider this a reliable metric. However, a lot of changes are now taking place in this arena, with the OOH Advertising Association of America having recently announced a move to impressions-based measurements.
OOH measurement methods
These days, there are a variety of approaches to understanding the effectiveness of OOH media, including:
- Impressions, which tell advertisers how many times individuals viewed an ad, based on the quantity of passing traffic as well as reach and frequency calculation.
- Calculating the ad's visibility based on the distance from which it can be viewed and the speed of the passing traffic. This helps to establish how likely people are to actually notice the ad, based on their opportunity to view it.
- Demographic and psychographic data derived from census figures, which helps marketers understand the audience their content reaches.
- Consumer purchase-based data collected at the point-of-sale, which can be used to measure OOH campaign outcomes as well as inform audience targeting.
- Consumer movement data derived from mobile device location data providers. This data helps to anonymously identify consumers exposed to OOH ads, as well as measure the amount of offline conversions (e.g. store visits) that occur following an ad exposure.
- Direct response tactics, such as following "digital trails" like the number of people who use promotional or discount codes included in the ad, the use of campaign-specific hashtags across social media platforms, SMS response, QR codes or customer URLs listed, and other online information presented in OOH advertisements.
- Geo-experiments or match-market testing, which compare results in markets exposed to an OOH campaign to those in "control" markets that were unexposed
- Observational analysis methods, such as causal lift analysis, that use statistical methods to calculate the causal effect of OOH campaigns on specific outcomes including sales, app installs, web conversions, or in-store visits.
- Conducting surveys to gauge the effects of OOH advertising on brand metrics, like aided and unaided awareness, message association, favorability, and more.
Data is a key component of almost all these measurement tactics, so it's critical for marketers to remain mindful of how this data is collected and how it's put to use.
The problem of privacy
Data privacy is big news these days, and even the most unconnected consumer is familiar with the issue. Mobile privacy has been particularly prominent recently, with customers growing increasingly concerned about how their data is gathered, stored, and used. The new Apple privacy changes and GDPR have helped focus attention on these areas.
The OOH advertising industry is also aware of the privacy and security issues and its responsibility to protect data and set high standards around consumer privacy. The OAAA has set up a task force and has expressed full support for creating new standards around data privacy.
Advertisers' responsibilities
OOH advertising companies have a huge responsibility to protect the data they obtain, from both a privacy and a security standpoint. This includes working with data suppliers that respect consumer privacy and provide appropriate notice and control for the collection of consumer data.
This also includes creating policies outlining the ways they work with –– and secure –– data. Every company or individual who handles consumer data needs to have procedures governing:
• The handling of database keys.
• Encryption of data.
• Access management.
• Regular security and code audits.
• Sanitization of all queries, forms, params, etc.
Marketers need to evaluate each vendor they use and commit to only working with companies that have standard safety measures that prevent DDoS attacks and account breaches.
Companies must also address the human element, such as the risk of employees accidentally exposing sensitive or proprietary data. They can do this by:
- Promoting password best practices, such as 2-factor authentication and single sign-on.
- Requiring regular password updates using robust password management technology.
- Frequent testing for weaknesses in their information systems.
- Training employees to detect phishing and other malicious attacks.
- Reducing vulnerabilities through limited data access.
- Ensuring the use of cloud services and data storage that complies with SOC 2 or ISO 27001.
Advertisers who partner with vendors to measure OOH data should also ensure the company has procedures for protecting the data it receives. And all companies need a detailed incident response plan to use in case of an attack, in which their employees are all well-versed.
OOH agencies and marketplaces weren't always viewed as holders of sensitive consumer data, but the industry has evolved and advanced. Thanks to new industry innovations, OOH advertising can deliver rich, accurate consumer data to marketers that improve the ROI of their campaigns. These companies have a responsibility to create appropriate policies, be transparent about how data is gathered, and protect the data and privacy of the consumer.
Vic Ramon is co-founder and VP of engineering at AdQuick, an OOH advertising platform founded in 2016 and based in Los Angeles.
