2022 is the Year of pDOOH

By Julia Cramer for Billboard Insider

Published: February 25, 2022

As we begin to wrap up Q1 2022, it appears out-of-home (OOH) advertising is surpassing experts’ predictions! According to the Standard Media Index, OOH ad spending rose more than 133% in January 2022 YoY. And there are no signs of slowing down for this industry, considering the movement towards a cookieless future, the advancements in programmatic, and the pandemic recovery.

Online advertising is becoming less effective, with 68% of US adults tuning out digital online ads and 70% reporting increased awareness in their surroundings since post-lockdown, according to an OAAA and Harris Poll report. Similarly, researchers found that TV ads have had a much smaller impact on sales than previous studies had estimated. Even during significant advertising events, TV adverts can diminish the effect of the ad messaging while being short and costly. For example, The Big Game on February 13 ran over 60 ads spending on average $6.5 million for a 30-second TV spot. For a similar budget, DOOH can deliver 4x the impressions and extend the life of a campaign, allowing brands to connect with their target audiences effectively.

Not to mention, OOH has been undertaking a programmatic transformation in the last few years, with audience targeting, geotargeting, facial recognition, AI, dynamic content, and more. On-the-nose media owners and buyers are excited for the future of programmatic.

The buying and purchasing process of ad space has become fully automated, reducing human errors and hidden costs and improving transparency. According to a DPAA survey, most media planners said they were more likely to recommend DOOH to their clients if it could be purchased programmatically. DOOH real-time bidding (RTB) allows advertisers to buy DOOH screens based on visibility and real-time auctions and helps them locate the right audience at the right time with real-time granular targeting. At the same time, media owners achieve optimal monetization of their ad spaces without the added costs.

According to Alfi’s new research, 96% of senior advertising executives consider data from DOOH ads to fuel greater ad campaign creativity and enable brands to engage with an even more specified audience. DOOH’s anonymized mobile location data allows advertisers to serve personalized ads to relevant audiences.

Leading industry experts predict the global digital advertising market will reach $1.08 billion by 2027. So, it’s no surprise that leading media owners have upgraded their programmatic media placement capabilities. Lamar, Clear Channel, and Outfront have already made significant investments to transition out-of-home screens from static to digital. The digital-out-of-home market is expected to grow exponentially in the coming years due to its engaging, interactive, and measurable qualities.

Read the full story on Billboard Insider

Written By: Julia Cramer

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  • Post published:February 25, 2022
  • Post category:IN THE NEWS