Cynopsis Digital Out of Home 10/30/24: Industry leaders assess the future of DOOH

Cynopsis Digital Out of Home
Wednesday October 30, 2024

This will be your final Cynopsis DOOH newsletter. We’ve loved exploring the DOOH landscape, so this is not goodbye – moving forward, we’ll be including DOOH news in our daily edition.

Before we go, some thoughts about the future of the business.

Vistar Media CEO Michael Provenzano offered his take on the future of DOOH:
1. M&A Landscape: While the economic outlook may shift post-election, I expect private equity to drive more mergers and acquisitions due to reduced cost of capital. However, public IPOs will likely remain sparse. We may see smaller companies joining forces to attract larger strategic buyers as consolidation becomes a path to scale. Many adtech firms are financially strong, which should fuel strategic acquisitions to extend their reach and deepen client relationships. We’ve seen this trend accelerate throughout 2024, and I anticipate it will only grow in 2025
2. Growth Outlook for 2025: With a growing global footprint, DOOH continues to experience tremendous momentum. The US remains a hotbed for innovation, but we’re also seeing rapid growth in markets like APAC and Latin America, where urbanization and infrastructure investments are driving adoption. Globally, we can expect DOOH to capture a larger share of media budgets as advertisers recognize its unique ability to blend mass reach with precise targeting.
3. Retail Media in OOH: As retailers look to drive incremental revenue and engage shoppers in new ways, retail media is emerging as a powerful piece of the OOH puzzle. By using DOOH in and around retail locations, brands can capture consumers’ attention closer to the point of purchase, where it counts most. Retail media networks allow for more tailored, measurable campaigns that benefit both brands and retailers—it’s an exciting evolution that will shape how we think about DOOH placements and shopper engagement.

Barry Frey, President and CEO of the DPAA, said:
“Coming out of our annual Video Everywhere Summit — which we have been producing for ten years now — I am of course always inspired and optimistic about where Digital Out of Home advertising is going. As a growing part of today’s omnichannel mix, less siloed than ever, DOOH continues to grow and drive overall OOH investments by brands. What’s more, we are seeing new areas explode, from programmatic buying, to innovative formats utilizing 3D/interactive QR codes/AR/VR and more, integration of social with OOH, plus the ascendence of Retail Media. In fact with retail a $100+ Billion Dollar business and in-store advertising (where 84% of purchases are still made) only scratching the surface, we have dubbed November Retail Media Month in order to shine a spotlight on this growing and important area for brands.”

And at the recent DPAA Summit…

Ari Buchalter, CEO of Place Exchange had three predictions:
1. Programmatic OOH revenue doubles next year
2. AND the increase will be from non-traditional demand sources (and therefore incremental)
3. Much greater focus around transparency and less buyer and seller tolerance for opaque arbitraging.

Jonathan Gudai, CEO of Adomni forecasted three phenomena:
1. Sizable share shift to DOOH. How? Continued innovation in the measurement of business outcomes from major digital/mobile measurement companies that demonstrate DOOH’s impact in cross-channel campaigns and provide performance marketers with the justification for right-sizing up DOOH’s share of the media mix
2. New Generative AI tools within DSPs that make the planning and buying process of DOOH 5X easier and faster by optimizing the campaign creation process = more buys, and enable creative content for DOOH to be developed and tested and automatically updated based on the venue type itself (contextually optimized) and the actual audience engagement from business outcome measurement data (per prediction 1)

Andreas Soupliotis, Founder and General Manager of Hivestack, by Perion said:
Innovations in programmatic DOOH, or, as we call it digital placed based advertising, are fueling massive growth. In particular, our media is being purchased by omnichannel marketers, that use omnichannel technology to reach difficult to reach audiences with precision and scale.

The four major tailwinds pushing us all forward are:
1. The rise of programmatic to complement and add to direct sales
2. The appreciation that our screens are digital, and video capable
3. The entry of major demand side platforms such as TTD and Google, which is enabling a whole new category of buyers
4. The intentional reorganization of agency holdcos driven by omnichannel-first strategies
In addition, new advances in technology such as curation are enabling buyers to enjoy new flexibility, including insisting on a sustainable, transparent and clean supply chain. Reaching consumers on screens across multiple touchpoints with video everywhere, audience targeting and linking activation to outcomes has now become a standard part of a digital marketers’ playbook.

Sean McCaffrey, CEO of GSTV predicted:
In the next 12 months, DOOH begins its progression from OOH being the primary import of that term to digital. Consumers increasingly move fluidly through digital and physical worlds to listen, watch, buy, share and learn. Just as a ‘digital’ mindset around audience has led to advances in television, radio, shopper and other forms of traditional marketing so too will DOOH finally prioritize the ‘DIGITAL’ part of that term. The next year is the start of the next evolution of DOOH from its screen heritage into an audience-led channel alongside CTV, Retail Media and more, giving marketers and agencies a powerful new channel to leverage in a digital media age.

Mark Boidman, Peter J Solomon said growth in 2025 will come from:
1. Advertisers, agencies and retailers using data to show that DOOH drives results
2. Retail pushing hard into DOOH and though small in terms of revenues today, US retail media alone will garner over $1B from instore ads by 2028
3. Programmatic – we believe that in 2025 we will surpass $1B of US DOOH spending via programmatic
Traditional OOH is flat – growth all coming from DOOH, which makes OOH overall still nicely green vs red. All other traditional media channels are facing huge pressure and shrinking red. Linear broadcasters suddenly lining up to buy assets where tech and DOOH will help them offset shrinking linear TV businesses. The buyer universe for DOOH assets has changed: You have linear TV, CTV, massive retailers all realizing that to aggregate a mass audience the days and old playbook of using TV are over. It’s all about DOOH now if you want to reach people with video ads.

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IN THE NEWS

A subsidiary of JCDecaux SE has terminated its agreement to acquire Clear Channel Outdoor’s business in Spain over regulatory issues with the Spanish National Markets and Competition Commission. Clear Channel Outdoor will continue operating its business in Spain. “We at Clear Channel respect the regulatory process and have fully complied with requests from the CNMC, acting in good faith to enable JCDecaux to receive approval and complete the transaction,” said Scott Wells, CEO of Clear Channel Outdoor. “Over the course of the seventeen-month period since the agreement was announced, our business in Spain has performed well despite the distractions inherent in a sales process. With this development, we will continue to operate our assets in Spain and serve our customers. We will not change our focus on delivering our strategic plan, including the Europe-North and Latin American sales processes, and we remain committed to our ultimate goals of organically growing cash flow and reducing leverage on our balance sheet.”

OOH billboards/digital screens featuring Poland Spring and Arrowhead will be at major high traffic areas throughout New York and Los Angeles, representing BlueTriton Brands World Series engagement. In addition to BlueTriton Brands being the official water of MLB, Poland Spring is the official water of the New York Yankees.

Screenverse announced a partnership with GPO Vallas to integrate SOMO, the digital taxi top network in New York City, into its portfolio of DOOH inventory. The partnership gives Screenverse exclusive access to 65% of the NYC taxi top market. SOMO’s digital displays are featured on yellow taxicabs managed by the Metropolitan Taxicab Board of Trade and Creative Mobile Media. “SOMO’s cutting-edge taxi top network represents the next evolution of mobile, data-driven advertising,” said David Weinfeld, CEO of Screenverse.

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Screenverse also announced that its premium inventory is now available on Broadsign’s SSP. “Broadsign has long been a leader in digital signage and DOOH technology, making this integration a natural step for us,” said David Weinfeld, Co-Founder and CEO at Screenverse. “To fully optimize programmatic monetization opportunities, it’s essential that we extend our partners’ inventory to all key DOOH marketplaces.”

As part of a partnership with NBA star Jalen Brunson, BodyArmor Sports Drink is featuring the Knicks player through OOH campaigns across midtown Manhattan, amplifying the message of effort and dedication. “Jalen is stepping in to help elevate our brand to the next phase as BodyArmor continues to evolve, especially with our New York roots,” said Tom Gargiulo, BodyArmor CMO.

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