New research from VIOOH, a global digital out-of-home (DOOH) supply-side platform, indicates a notable shift in the US advertising landscape, with 37% of marketers reallocating budgets from other digital channels to programmatic DOOH (pDOOH). The study, conducted in partnership with research and strategy agency MTM, focused on those who have purchased pDOOH in the past 12 months or are open to digital buying. The findings project that investment in pDOOH will grow by 29% over the next 18 months, highlighting its increasing significance in marketing strategies.
Key Insights
- Increasing pDOOH Investment:
- US marketers are expected to increase pDOOH spending by 29% in the next 18 months, outpacing the global average of 28%.
- 37% of US marketers are reallocating budgets from other digital channels to pDOOH, a 3 percentage point increase year-over-year.
- This rise indicates that marketers view pDOOH as an effective and efficient advertising channel, potentially offering a higher return on investment (ROI) than other digital options. pDOOH’s ability to reach consumers in a contextually relevant manner contributes to its growing appeal.
The Rise of Programmatic DOOH Adoption
- Currently, pDOOH is included in 29% of US marketing campaigns, a figure anticipated to reach 37% in the next 18 months.
- The US leads in pDOOH adoption, with rates surpassing the global average of 35%.
- The increasing adoption rate suggests that pDOOH is becoming a preferred method for advertisers in the US. Its combination of dynamic targeting and large-scale impact aligns well with marketers’ evolving needs for more flexible and effective advertising solutions.
The Shift Towards Hybrid Campaigns
- The study shows a growing preference for hybrid campaigns that combine direct and programmatic buys, with 41% of marketers adopting this approach—a 9 percentage point increase from the previous year.
- This growth indicates a strategic move by marketers to leverage the benefits of both direct and programmatic advertising. A hybrid approach allows for broader reach while maintaining precise targeting, reflecting a more sophisticated approach to media buying.
Emphasis on Performance Metrics in pDOOH
- US marketers focus on measurable outcomes for pDOOH campaigns, emphasizing sales growth (60%) and website traffic impact (49%).
- Key factors influencing investment in pDOOH include value for money (73%), brand effectiveness (71%), and ROI (68%).
- This emphasis on measurable outcomes demonstrates the demand for accountability and transparency in advertising. pDOOH’s ability to provide real-time data and track performance against key metrics makes it an attractive option for justifying advertising spend.
The Role of pDOOH in Building Trust and Emotional Connection
- Marketers value pDOOH for its ability to build consumer trust (64%) and trigger positive emotional responses (61%), slightly above the global average.
- This indicates that marketers view pDOOH as not just a performance channel but also a valuable tool for brand building. Its capability to create impactful messages that resonate with consumers helps in establishing brand trust.
Innovative Perceptions of pDOOH
- 93% of survey participants view pDOOH as offering innovative advertising opportunities, exceeding social media (91%) and traditional DOOH (82%).
- The high regard for pDOOH’s innovation potential indicates its role as a key platform for creative and dynamic advertising. Its ability to deliver contextually relevant content and adapt campaigns in real-time gives it a competitive edge.
Dynamic Creative Optimization (DCO) in pDOOH Strategies
- A significant 94% of US marketers are considering or actively using Dynamic Creative Optimization (DCO) in their pDOOH campaigns.
- DCO adoption in the US stands at 16%, higher than the global average, with benefits such as optimized ad spend (44%), creative flexibility (43%), and enhanced relevance (41%).
- The interest in DCO reflects a trend toward more personalized and adaptable advertising, enhancing the relevance and impact of campaigns.
The study indicates a trend toward increased investment in pDOOH among US marketers, driven by its potential to deliver measurable results and innovative advertising solutions. For a comprehensive understanding of these trends, access the full report on VIOOH’s website.
