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Is Digital Out-of-Home Advertising Worth the Cost?

Article posted on October 24, 2024

Why Real Estate Developers Can’t Afford to Ignore DOOH Advertising

As a commercial real estate developer or property manager, you understand the importance of making a lasting impression on your tenants and their retail customers. Visual communication has always been an integral piece of the package, but as digital technology takes the industry by storm, digital out-of-home (DOOH) campaigns are particularly effective. Although the initial investment in digital displays and infrastructure may seem out of reach for small or local developers, investing in out-of-home offers huge potential returns.

In this blog post, we’ll delve into the reasons why DOOH advertising offers a compelling Return on Investment (ROI), making it a worthwhile consideration for real estate professionals as they plan their 2025 budgets.

The Potential Income DOOH Can Generate

Digital screens are an incredible source of revenue; it’s no wonder more and more developers are installing them on their properties. Depending on location, market demand, pricing strategies, and operational costs, some centers generate hundreds of thousands of dollars for their centers annually. Although revenues vary, the potential income makes DOOH a strong contender for your 2024 marketing budget.

DOOH Coca-Cola Advertisement at Simon Mall

Simon Property Group

“As we head into [2024], we’re encouraged by the continued growth we’re seeing across the out-of-home industry and the strength of particular platforms like digital OOH, which allow marketers to be nimble, innovative, and adaptive,” said Anna Bager, President & CEO, OAAA. ”Many marketers have been asked to do more with less this year and the fact that they continue to shift more spend to out of home proves the innate value in this one-to-many medium.”

By integrating digital signage into your property, you’re able to offer another form of advertising that aligns with your tenant’s need to generate brand awareness and reach its target audiences. In return, you’re able to monetize the digital assets.

DOOH Ads: Upfront Cost vs Untapped Potential

The initial investment of DOOH displays is the primary factor that gives some property managers pause. It’s a valid concern — the displays and infrastructure can be costly. These costs depend on the number of digital endpoints, size of the display, square footage, location where it’s being installed, and pixel pitch.

However, when you factor in the potential income the DOOH ads can pull in month-over-month, the investment becomes far more manageable. In most cases, you can expect to recoup your initial investment in approximately 17 months or less. Advertisement earnings after the initial vestment period are then 100% clear revenue.

Increased Tenant Satisfaction

DOOH displays aren’t just an investment in revenue, they’re also an investment in your tenants’ satisfaction. High-quality displays with engaging content can create a more welcoming and visually impressive property that tenants will be proud to call their own. This satisfaction can lead to increased tenant retention rates, which are essential to your bottom line.

Aventura Mall

Office, retail, and industrial properties are weighing up their options when it comes to lease renewals. It is important to retain and enhance property values and also retain ideal tenants. Building and investing in DOOH media can add value to your property and entice tenants with more digital ad options.

Future-Proof Your Property With Digital-Out-of-Home Hardware

Investors need to not only maintain their properties but they must keep them future-minded with the approach of creating multiple avenues towards generating income while staying current and engaging. Gable has a rich legacy in blending the timeless artistry of traditional signs with the dynamic possibilities of video displays and integrated AV systems.

Remote System Monitoring

Artificial intelligence and cellular and satellite data services are developing at a rapid pace. This new technology is making digital networks smarter and more connected. Having real-world digital display networks in place now will help you utilize this new technology as it develops. By investing in DOOH displays, you’re future-proofing your property for years to come.

Conclusion

The ROI of DOOH displays is way too great to ignore. The initial cost of integrating digital technology can be a substantial upfront cost, yet the potential income from advertising revenue makes up for it in the long run. Additionally, DOOH displays help increase tenant satisfaction, enhance the customer experience, future-proof your property, and can lead to increased tenant retention rates.

Our pro forma reports can help you understand the investment potential of DOOH displays and make informed decisions about implementing them on your property. Request your pro forma today by contacting us.

About the Author

David Chapman is a Solutions Consultant with Gable. For over 14 years, he has been helping clients get the most out of their visual communications investments. He prides himself on delivering a successful project and his reputation as the “go-to guy” in the industry.