AI Transforms Outdoor Advertising with Personalized, Data-Driven Strategies

How AI is Changing Outdoor Advertising

Artificial intelligence (AI) is set to transform outdoor advertising by making it more personalized and measurable. Ahn Sang-hyun, CEO of Ad, points out that while online ads have long benefited from data-driven customization, outdoor ads have lagged behind. AI technology now enables outdoor advertising to offer tailored content based on real-time audience data.

Ahn, with a background in AI-driven data analysis from KAIST, identified the untapped potential in outdoor advertising. Unlike sectors like autonomous driving, this market has yet to fully integrate AI, presenting a unique business opportunity. His company, Ad, launched in 2018, focuses on applying AI to this space.

Introducing AdEye: Measuring Outdoor Ad Effectiveness

Ad developed AdEye, an AI-powered system that tracks and analyzes how people interact with outdoor advertisements. It gathers data on demographics like age and gender, measures how long viewers engage with ads, and detects actual gaze time. This level of insight was previously unavailable outside online platforms.

Before AdEye, outdoor ad effectiveness was mostly estimated by detecting mobile phone signals of passersby, which only provided rough foot traffic numbers. Since its launch in 2021, AdEye has been implemented in over 2,300 locations across the country, helping advertisers optimize their campaigns with concrete data.

Thanks to this innovation, Ad reported sales of 1 billion won last year and targets 8 billion won this year. The company has attracted 6.7 billion won in investments, signaling strong confidence in its growth potential.

Expanding AI Applications Beyond Advertising

Ad is also applying AI to sports broadcasting. For example, in horseback riding competitions, AI analyzes horse speed and jumping ability to predict if obstacles will be cleared, providing viewers with enhanced real-time insights. This shows AI’s potential to improve audience experience in live events.

Global Expansion and Future Plans

Ad has begun international operations, establishing a subsidiary in Vietnam in 2023. The company sees Vietnam as a rapidly digitizing market and is already serving local restaurants and hospitals with AdEye. Expansion into Japan followed, where the outdoor advertising market is significantly larger than Korea’s.

Looking ahead, Ad plans to enter the U.S. market and other regions. CEO Ahn envisions evolving from providing an effectiveness measurement tool to operating the entire outdoor advertising platform. This would enable dynamic, location- and time-specific ads that respond to individual preferences, similar to how online ads adapt to user behavior.

What Marketers Should Take Away

• AI can provide measurable insights into outdoor ad performance, allowing for data-driven strategy adjustments.
• Personalized outdoor advertising will become feasible as AI tools analyze viewer demographics and engagement in real-time.
• Expanding to new markets shows the scalability of AI-powered outdoor advertising solutions.
• Marketers should prepare for the convergence of online-level targeting capabilities with offline advertising formats.

For marketing professionals interested in how AI tools can enhance advertising strategies, exploring AI courses and certifications can be valuable. Resources such as AI Certification for Marketing Specialists offer practical guidance on leveraging AI in marketing campaigns.