Last Updated on September 26, 2024
The ad spending for virtual platforms has soared in China because of the unique challenges brought about by the pandemic. As the global crisis concluded, the rapid development of digital technology understandably created significant changes in the local advertising market.
Today, more businesses are pouring their ad spend allocations into digital outdoor media.
These digital screens are seen as a unified canvas for storytelling, giving brands the power to deliver consistent and immersive messaging to their target audience beyond the four corners of desktop and mobile devices.
The question is, will the continued growth of digital OOH advertising in China change how local audiences consume ad campaigns? How will this shift help advertisers reach more Chinese consumers? Let’s find out.
What is Digital Out-of-Home (OOH) Advertising in China?
Digital Out-of-Home (DOOH) advertising in China is a type of advertisement that utilizes digital screens. These digital ads are displayed in public spaces to deliver dynamic and interactive content to their intended audiences.
It’s a cost-effective ad format with real-time and seamless integration for physical and virtual advertising channels. Audiences can spot these advertisements in different locations, such as malls, subways, train stations, digital billboards, and cinemas.
Through digital outdoor ads, media owners can show highly targeted and personalized promotional content based on specific location, time, and demographics.
The data accuracy of DOOH screens not only allows companies to synchronize their physical and virtual promotions but also generates a sense of familiarity among consumers that often leads to immediate purchasing decisions.
Here are key industry statistics that’ll help foreign advertisers understand the influence of today’s digital out-of-home advertising in China:
- The DOOH market is predicted to reach a value of $4.37 billion in 2024.
- China’s digital OOH market has an annual growth rate of 7.69%
- The country accounts for over half of the global DOOH market in 2024
- Digital and outdoor advertising are often fused through QR campaigns
- China’s DOOH market has a network of over 1 million digital screens
- These screens are scattered throughout 92,900 locations in China
Programmatic DOOH Advertising
Modern virtual screens in highly urbanized regions often support Programmatic DOOH transactions. This system allows advertisers to adjust campaigns dynamically based on factors like audience demographics, location, time, and even environmental conditions (e.g., weather).
These digital out-of-home advertisements operate through real-time bidding and audience targeting. This means that brands can bid on ad placements based on real-time data, enabling them to deliver the right message at the most relevant moment to initiate a potential conversion.
According to recent research from VIOOH, the key motivators for the rapid adoption of programmatic DOOH in China include its precision in targeting desired audiences (53%), brand safety assurances (50%), and its seamless integration into broader media strategies (47%)
The format’s ability to provide excellent measurement and attribution capabilities (42%) has also become a strong pull for brands seeking tangible ROI.
Hivestack x Midland Realty’s Programmatic DOOH ad campaign (Source: Exchange Wire)
One good example of programmatic DOOH advertising is the partnership between Hivestack and Midland Realty in Hong Kong. This collaboration marks the first time in the North Asian region that such a digital ad deployment has been integrated into real estate offices.
What sets this campaign apart is the strategic placement of digital ad screens in commercial and affluent residential areas. This undoubtedly provided advertisers with access to highly specific audiences.
Since these screens are positioned in prime locations at real estate offices, they offer brands a unique opportunity to capture the attention of potential buyers or renters while they’re engaged in property-related transactions.
Interactive and Immersive Experiences in DOOH
Like other industries, the digital out-of-home advertising market in China is embracing cutting-edge technology trends like augmented reality, virtual reality, and artificial intelligence.
These immersive technologies are reshaping consumer engagement by enabling brands to offer personalized experiences that resonate with China’s digitally savvy population.
Nescafe’s interactive campaign at People’s Square Station in Shanghai is one of the first brands to integrate immersive technology into DOOH screens. To promote its cold-brew coffee, the brand used a gesture-based program that allowed commuters to play a game where they controlled a coffee bottle on a large screen using body movements.
Nescafe’s interactive DOOH game at Shanghai Metro Station (Source: JCDecaux)
Participants were tasked with “catching” virtual coffee drops to fill the bottle within a 30-second time frame. After completing the game, consumers received a QR code that could be redeemed for a free bottle of cold brew from a nearby vending machine.
This campaign clearly showed how gesture-based interactions, motion sensors, and QR images can seamlessly link an interactive digital experience with real-world consumer engagement. The QR code system provided a direct pathway from engagement to conversion, initiating immediate product trials.
PayMe’s OOH Advertising Campaign in Causeway Bay (Source: Marketing Interactive)
Using augmented reality technologies, HSBC’s e-wallet PayMe has also gone big with its digital out-of-home ad spending for this year’s Chinese New Year. The brand integrated interactive billboards and QR technologies into its outdoor ads to bring its mascot, PayMeow, to life.
Consumers who scanned the codes on Causeway Bay could interact with the character through their smartphones, while those who updated the PayMe app could scan codes across the city for reward vouchers.
This campaign effectively blended digital entertainment and incentives, which drives a significant app usage rate and in-store purchases for the brand.
Data-Driven and Audience Targeting
For a country known for its digital ecosystems and extensive data pools, it’s not surprising that China’s DOOH markets are heavily influenced by data-driven advertising and advanced audience targeting technologies.
Key urban areas and densely populated cities provide OOH advertisers invaluable insights into local consumer behavior and demographics.
The most valuable audience segments in the DOOH advertising ecosystem include urban residents, luxury shoppers, sporting fans, commuters, IT professionals, and business and leisure travelers who pass through high-traffic zones like transportation hubs, business districts, and retail centers.
Tencent, Baidu, and Alibaba (BAT) provide access to comprehensive data on user behavior, location, and purchasing habits. Because of this, leading DOOH media owners and DSP platforms tend to form partnerships with these tech giants to access their data pool and deliver highly targeted campaigns for their clientele.
Opportunities in the Chinese Digital OOH Advertising Landscape
● Popular Advertising Seasons in China
Digital OOH advertisers in China must take note of the upcoming festivals and public holidays observed in the country. These seasons are often the peak of consumerism in the domestic market, which means your target audience is more likely to make a purchase or engage with the brand.
With over 1 million screens scattered in 92,900 urbanized regions, peak seasons like festivals and holidays bring approximately 91.9 billion impressions to DOOH ads.
Important cultural events or e-commerce festivals, such as the Lunar New Year, Singles Day 11/11, 618 Shopping Festival, and Golden Week, are a few seasons when heightened foot traffic in urban areas and shopping districts makes DOOH campaigns highly effective.
Coca-Cola’s Lunar New Year DOOH campaign (Source: WizArno on Youtube)
● Cross-Channel Integration with E-commerce & Social Media Apps
The difference between digital OOH ad campaigns and traditional outdoor ads is the latter’s lack of integration into social media and online shopping channels.
In fact, outdoor ad exposure was not initially considered an omnichannel strategy. However, with the rise of mobile usage and online shopping, DOOH ads in China have become increasingly interactive.
Digital integration made brands bolder and more creative with their ads. This trend resulted in more viewers engaging with QR codes, social media profiles, or e-commerce links displayed on digital billboards and screens.
A well-executed DOOH campaign in China typically follows a user journey that blends the physical and digital experiences. Here’s its complete consumer cycle:
- Exposure: The user sees the ad in a high-traffic area like a mall or subway station.
- Engagement: The ad features a call-to-action (CTA), such as a QR image or URL, prompting the user to interact.
- Conversion: The user scans the QR code or visits the website, leading them to a tailored landing page.
- Retention: The user may make a purchase, join loyalty programs, or follow the brand on social media for continued engagement.
McDonald’s Big V Car Hologram Campaign
McDonald’s June 2024 campaign for “Thin-Skinned Crispy V Wings” in China managed to capture how DOOH advertisements can bridge the gap between digital and outdoor promotions.
The brand deployed a giant chicken wing truck with hologram tech to travel through major cities. It offered coupon codes to consumers passing by, which could be redeemed through the McDonald’s app or WeChat mini-program.
This physical activation was followed by a digital campaign, where customers could also engage with the brand through interactive puzzles on social media for a chance to win free products.
It shows how DOOH advertising in China can increase physical engagement and drive consumers to online platforms, creating a unified journey from exposure to purchase.
● Location-based Advertising Opportunities
Location-based advertising in China’s Digital Out-of-Home (DOOH) landscape offers significant opportunities, especially in high-traffic areas like shopping malls, office buildings, transport systems, and tourist destinations.
In Tier 1 cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, these advertising screens are strategically placed in key areas with high foot traffic. These locations ensure advertisers can reach large and diverse audiences throughout the day.
A 130-inch electronic screen at Ciqikou Station (Source: Sina.CN)
Top media owners like Focus Media, Asiaray, Hua Tie Media Group, and Tulip Media manage a broad network of screens across these cities. Popular locations include Jing’an Temple in Shanghai and China World Trade Center in Beijing.
They are also positioned in highly specific areas like elevators, subways, office buildings, and airports, allowing advertisers to run highly targeted campaigns based on location and time of day.
Your Trusted Digital Advertising Partner in the Chinese Market
In the near future, more and more digital advertising screens will be built in China’s urbanized regions. As this growth happens, the DOOH trend will continue to be an important avenue for reaching Chinese consumers.
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At Sekkei Digital Group, we understand how vital digital integration is to China’s out-of-home advertising market. With our team’s extensive industry experience and expertise, we can guide your brand in establishing a strong presence in the Chinese digital ecosystem.
Whether you intend to launch QR code campaigns or incorporate the brand’s mini-program into your DOOH ads, we have the digital solutions you need. Send us a message, and let’s start planning your digital marketing strategy in China.
