Demand for digital Out-of-Home (DOOH) advertising is growing at a phenomenal pace in the US. In 2011 the DOOH market generated $2.05bn in ad revenue, a large slice of which came from ad agency spending. Once the numbers are in for 2012 we expect to see double-digit growth upwards of 12%  along with strong indications for further significant growth in 2013/14 and beyond. Despite the continued economic uncertainty curbing ad spend in many sectors, DOOH network operators it seem are riding a profitable wave right now.

It’s a picture backed by technology company, PaperG. Their recent survey of 512 ad sales executives at a slew of US media companies revealed that an emphatic 94% of their clients are keen to experiment with mobile advertising. This can only be good news for DOOH network operators who use their retail and place-based digital screens to promote customer engagement through mobile interaction.

But as demand for ad space in the DOOH sector increases, then so are the number of upstart DOOH network operators with ad space to sell on their digital screens. As the field becomes more competitive so some networks will be more successful than others in attracting ad agency spend.

If you’re a new DOOH screen network, or if you’ve tried and failed to get ad agency business, all is not lost. As a fallback solution, or maybe even as a primary alternative revenue-producing solution, DOOH networks now have another card to play in the form of location-sensitive ad networks whose content is focused on localized mobile engagement.

Location-sensitive ad networks

Let’s say you are a DOOH network operator and have a place-based screen network spanning a chain of 50 restaurants in the western US.  Choosing a location-sensitive ad network provider gives you instant access to digitized local ad content that is highly relevant to the restaurant audience in all 50 locations.

For example, your screen at the San Diego restaurant could show ads for San Diego taxi firms so restaurant diners can book a ride home. Your screen at your LA restaurant could show similar, but display only taxi firms serving that part of LA. Your screens can show ads for other products and services too that are highly relevant to restaurant diners, like ads for dry cleaners so they don’t have to worry about those wine spills, and ads for local theater venues and hotels for after they’ve finished their meal.

If you choose an ad network provider like Locbit who pair ad messages with QR codes you’ll have an instant call to action mechanism in place too for higher ad response rates. This means restaurant diners can scan codes discreetly from their own tables with their smartphones, and be sent to the advertiser’s landing page where they can find out more or book a service.

Basically, it wraps the whole process up as a friendly engagement experience that is so easy for consumers to slip into that it becomes second nature.

Of course, location-sensitive ad networks are not just suited to screens in restaurants. Any screen network can benefit, whether retail or place-based, and whether large or small.

For screen owners systems like this are making a lot of financial sense. Advertiser pay the network per interaction, and so DOOH networks are taking a slice of this at the customer interaction stage. It’s quick, it’s simple and highly effective.

Given the potential for DOOH advertising demand to continue its meteoric rise, getting on-board now with location-sensitive ad network providers could prove an easy and profitable alternative to pursuing those ad agencies for their business.