2025: DOOH set for a data-driven, dynamic year

The AI revolution is set to take the Digital Out of Home (DOOH) advertising by storm in 2025. It will usher in the era of smarter ad campaigns that leverage data to deliver tailored content to audiences based on location, time and data-driven behavioural insights. As per industry observers, AI is expected to boost creative innovation and avenues for measurability, strengthening advertisers' confidence in OOH as a medium.

This shift has been underscored by GroupM’s prediction that DOOH will account for 42% of the total OOH revenue globally in 2025, highlighting the growing impact of technology in driving the next wave of OOH advertising.

The growing appetite for is also evident in the rise of faux OOH ads. Created using computer-generated imagery (CGI), many of these ads went viral on social media in 2024, showcasing the medium's creative potential. Some of the most prominent examples include: A peacock landing in Mumbai’s Bandra to promote JioCinema’s latest offerings, a Koffee With Karan cup of coffee being offloaded by a hot air balloon near the Gateway of India and SkyBags unzipping the ICC Men’s World Cup Trophy from their extra-large suitcase.

Like these digital simulations, the real-world OOH landscape is now primed for eye-catching innovations like never before — powered by AI. Industry experts believe generative AI will be crucial in helping marketers create original, spontaneous, imaginative material for OOH ads in 2025.

According to Jayesh Yagnik, Chief Executive Officer, MOMS Outdoor Media Solutions, “AI technologies will provide extremely relevant and captivating content by using contextual data to create personalised messages, graphics and even films in real-time”

“Traditionally, hoardings have been static, with limited tracking capabilities. With advancements in AI and digital technologies, the hoarding industry is becoming more dynamic and data-driven,” explains G. Vinoth Kumar, Sales & Operations Head of the Chennai-based Adinn Advertising Services Ltd.

Kumar adds that AI will make OOH advertising smarter, more targeted and more interactive in 2025. “As AI technology continues to evolve, it will likely become an integral part of the outdoor advertising landscape, providing advertisers with more control and insight into their campaigns and enabling a more personalised experience for consumers,” he says.

From creation to distribution, OOH ads are in for an AI upgrade. AI will power the entire lifecycle of OOH campaigns, from data-driven creative designs to real-time personalised targeting for efficient delivery of the messaging. With advanced predictive analytics, brands can fine-tune the messaging for maximum impact, ensuring that the content resonates with the right audience at the right time.

Yagnik adds, “Ads on a digital billboard can now be shown according to current events, audience mood and weather. Advertisers can collect and examine information on customer behaviour, impressions, and even emotional reactions by using AI techniques. As a result, attribution models become more precise, and marketers can improve the return on investment of their campaigns.”

Powered by AI, OOH campaigns will take the omnichannel route forward, say industry experts. “AI is increasingly being used to integrate OOH advertising with other marketing platforms like social media, mobile apps, and digital platforms, creating a seamless omnichannel experience. AI can connect OOH ads with online campaigns to track the overall performance across different touch points,” says Kumar.

An example of what this integration could look like is an ad on a billboard leading to a QR code or a mobile app interaction, driving online traffic or app downloads.

The board will encourage users to download the brand’s app via the QR code. AI will be integrated into the OOH campaign in a way that the brand would be able to track how many people scanned the code, then downloaded the app, and made the purchase. Since the measurability will extend to each action, the data collected will be extremely insightful for tweaks and improvements.

“AI will enable smooth cross-channel campaigns as OOH advertising and digital platforms become more interconnected. AI will give marketers the ability to design dynamic, consistent experiences for social media, mobile apps and digital screens, enabling real-time optimisation across all touchpoints,” adds Yagnik.

AI is also expanding the scope of immersive OOH experiences, especially in the retail space. By combining AI with audio technology, brands can create dynamic, context-aware, highly relevant soundscapes. AI can tailor audio content based on factors like store traffic, time of day, and even customer behaviour, ensuring that the messaging is both relevant and impactful. Result? Personalised audio messages and ambient sounds that reflect the store’s mood, or location-based promotions delivered through strategically placed speakers. This level of tailored, immersive audio interaction can elevate the retail experience, creating a deeper connection between brands and consumers.

“AI has significantly transformed audio OOH advertising in 2024 by enabling more personalised, efficient, and impactful campaigns. AI algorithms analyse audience demographics, behavioural data, and location patterns to tailor audio advertisements to specific listener groups and optimize campaigns in real time,” says Harvinderjit Singh Bhatia, Co-founder & CEO, Radiowalla — a customized in-store radio service, audio content and digital signage solutions provider.

He further explains, “Sentiment analysis tools analyse audience feedback to refine messaging strategies. AI-driven programmatic platforms now allow advertisers to purchase and deploy audio ads across DOOH networks more efficiently.”

Bhatia predicts that as technology evolves, 2025 will likely see even more sophisticated AI tools that prioritise personalization, interactivity, and cross-channel engagement, all while balancing creativity with ethical practices. “The trends of hyper-personalization, conversational ads, generative content, and sustainability will define the next generation of advertising strategies, offering unparalleled opportunities for brands to connect with their audiences,” he concluded.