The Potential for AI in Digital Out of Home
First, let’s consider the promise of automated, responsive advertising. Research shows that personalized advertising, which is tweaked based on data gathered about an individual, can significantly raise the chance of conversion. Ninety-one percent of consumers say they’re more likely to purchase from a brand that offers personalized advertising relevant to their individual needs, according to data from Accenture.
The type of AI we’re talking about is not exactly personalization—it is responsive and automated based on real-time data related to world events, not necessarily personal data. It’s aimed at the group, not the individual. But the effect is the same. When something is more relevant to someone because of circumstance, they are more likely to buy it.
So, for instance, if you pass a fast food billboard at lunchtime, you’re more likely to stop at the restaurant being advertised because you’re hungry. Conversely, you probably wouldn’t stop after dinner. Timing is everything in advertising, after all. Serving up ads that scratch an itch is the key to making a sale, and timing can make all the difference.
Thus, it holds that responsive advertising that reacts to what’s happening in the world in real time could unlock another level of effectiveness and return on investment. Digital billboards have already dabbled in responsive advertising related to weather; boards can swap out messaging based on temperature or whether it’s raining. Using AI to monitor what’s going on in the news for adaptive messaging is the natural next step — but is it an ethical one?
