PepsiCo’s approach to digital out-of-home advertising (DOOH) is rooted in regional connections, timeliness, and a deep understanding of its distinct brand audiences.
“It's really easy to think about DOOH as just being billboards,” Megan Richardson, associate manager of global media innovation at PepsiCo, said at Programmatic I/O last week. “But there are so many other elements, and so many ways for [advertisers] to be a part of the consumer journey from start to finish, whether that's just initial awareness-driving to actually being there when they're making that purchase.”
Although DOOH isn’t well-known for its personalization capabilities, PepsiCo has discovered ways to reach their consumers without it feeling invasive. The company has avoided “the creep factor,” Lucy Markowitz, said senior vice president of US demand at Vistar Media. “There's so much data that's being used in programmatic as well as the advertising space at large, that you don't ever want the consumers to feel like they've been personally targeted. It’s more about creating relationships between brand and consumer… and creating a memory that will be with them while they’re shopping.”
PepsiCo’s DOOH focus comes at an opportune time. DOOH ad spending is expected to recover from its pandemic decline, according to our forecast, growing double digits annually through the end of our forecast period in 2027.
Here are three ways PepsiCo got DOOH right, striking the right balance between high-impact and relevance.
Flavor profiles: “We can actually tailor the creative itself to be relevant to the group that we're targeting or the region,” Richardson said.
The right time: Digital screens enable PepsiCo to adapt its ad creative based on the time of day.
Context matters: PepsiCo’s consumer DNA (CDNA) dataset, which consolidates first-party and third-party data, as well as sales, demographics, and interest data, is at the heart of its marketing strategy, allowing the company to envision—and speak to—its target consumer.
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