Tuesday, October 8, 2024

Global Programmatic DOOH Market: Key Trends & Insights from 2024 VIOOH Report

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The latest VIOOH ‘State of the Nation 2024’ report reveals strong growth and investment in the programmatic digital out-of-home (pDOOH) advertising sector across key global markets. With a comprehensive survey of 1,200 advertisers and agencies spanning six countries — the US, UK, Australia, Germany, France, and Brazil — the report provides insights into the current landscape, future potential, and trends shaping the pDOOH industry.

Global pDOOH Market Overview

The report highlights a significant increase in pDOOH demand, with its inclusion in media plans expected to grow from 27% to 35% over the next 18 months, alongside an average investment increase of 28%. This growth is driven by the adoption of programmatic buying methods for better control, flexibility, and data-driven targeting. The report also notes a shift in pDOOH management, with dedicated programmatic teams taking a more prominent role, integrating pDOOH more closely with overall digital strategies.

  1. Adoption of Programmatic Buys:
    • Nearly half of DOOH campaigns in 2024 were purchased partly or fully programmatically, showing a strong shift from traditional media buying to digital-first strategies.
    • Pure programmatic buys saw a 19-percentage point increase year-over-year, outpacing other buying methods.
    • Flexibility, real-time adjustments, and data-driven insights are primary drivers of pDOOH’s popularity among marketers.
  2. Dynamic Creative Optimization (DCO):
    • DCO is gaining traction, with 95% of surveyed marketers recognizing its potential. Currently, only 9% actively use DCO, but adoption is expected to rise rapidly.
    • DCO enables real-time creative modifications based on weather, location, and audience data, enhancing engagement and relevance.
  3. Budget Reallocation:
    • In core markets, 37% of marketers are shifting budgets from other digital channels, while 32% are reallocating from traditional channels to support pDOOH growth.
    • Nearly a third of marketers in the US and Australia are creating entirely new budgets for pDOOH, highlighting its growing strategic importance.
  4. Challenges to Broader Adoption:
    • Despite optimism, lack of standardized KPIs and measurement methodologies remain top barriers.
    • There is a need for more robust training and granular audience data to help advertisers demonstrate pDOOH’s value effectively.

Regional Market Breakdown

United States: Leading pDOOH Adoption

  • Strong Growth and Adoption:
    The US market leads in pDOOH adoption, with 29% of campaigns incorporating programmatic strategies in the past 18 months. This figure is expected to rise to 37% over the next 18 months, outpacing all other surveyed markets.
  • Use of Demand-Side Platforms (DSPs):
    The use of DSPs for activation has grown by 16 percentage points, with 34% of US marketers now using DSPs for some or all campaigns. However, DSP usage still trails behind OOH specialist agencies, suggesting potential for growth in self-service models.
  • Performance-Based Metrics:
    US marketers prioritize tangible results, with 60% citing sales increase and 49% citing website traffic as key success indicators. As a result, pDOOH is gaining recognition as a top choice for performance-led campaigns, even surpassing social media.
  • Investment Outlook:
    US marketers plan to increase their pDOOH investment by 29% in the next 18 months, supported by dedicated new budgets and rising DSP adoption.

United Kingdom: Focus on Sustainability and Audience-Centric Approaches

  • Strong Adoption:
    The UK’s pDOOH adoption is projected to grow from 29% to 36% in the next 18 months. Programmatic-only buys have increased by 18 percentage points, reaching 47%.
  • Audience-Centric Strategy:
    UK advertisers emphasize audience targeting, with 91% preferring solutions that prioritize reaching the right audience, compared to 83% globally.
  • Sustainability Prioritization:
    Sustainability is a key factor, with 59% of UK advertisers ranking it among their top five considerations. High-quality viewability and eco-efficiency further strengthen pDOOH’s appeal.
  • Role of DSPs and Budget Shifts:
    DSP adoption rose by 30 percentage points to 43%, while 24% of UK marketers are planning to add new budgets for pDOOH.

Australia: Rising Demand and Strong Growth

  • Increased Adoption and DSP Usage:
    Australia’s DOOH market saw a significant 25 percentage point increase in DSP adoption, with 44% of campaigns now using DSPs for pDOOH activation.
  • DCO Expansion:
    Australian marketers are rapidly adopting DCO, with 95% considering or implementing it. However, barriers such as limited budget and training are hindering broader adoption.
  • Focus on Flexibility and Sustainability:
    pDOOH is valued for its precision in targeting specific areas, and sustainability remains a top priority, cited by 65% of marketers.
  • Future Outlook:
    Investments are set to increase by 28% over the next 18 months, supported by the addition of new budgets and a strong focus on dynamic capabilities.

Germany: Emphasis on Brand Building and Sustainability

  • Steady Growth and DSP Adoption:
    German marketers are steadily embracing pDOOH, with usage projected to rise from 25% to 33% in the next 18 months. DSP usage has grown significantly to 46%.
  • Brand-Led Campaigns:
    pDOOH is widely used for both performance (90%) and brand-led (86%) campaigns, reflecting its versatility in the German market.
  • Sustainability and Innovation:
    More than half of German marketers cite sustainability as a key benefit, and 94% consider pDOOH to be the most innovative advertising solution.

France: Optimistic Growth and Focus on Flexibility

  • Projected Growth:
    French marketers project a 29% increase in pDOOH investments over the next 18 months, driven by strong adoption rates and agency-led initiatives.
  • Focus on Flexibility:
    Programmatic-only purchases rose by 23 percentage points to 51%, with hybrid approaches also gaining ground.
  • Attention-Based Metrics:
    Attention-based metrics, such as dwell time, are gaining traction, with 41% of marketers using them to gauge campaign impact.

Brazil: Early Adoption and Growing Potential

  • Strong Growth and Investment Shifts:
    pDOOH adoption is expected to grow from 27% to 32% over the next 18 months. Nearly half of Brazilian DOOH campaigns are now purchased programmatically.
  • Shift from Digital and Traditional Channels:
    Marketers are actively reallocating budgets from other digital (43%) and traditional (29%) channels, while 17% are establishing new budgets for pDOOH.
  • Performance and Brand Outcomes:
    pDOOH is recognized for both performance (94%) and brand-building (81%) capabilities, making it a key channel for diverse objectives.

For a detailed look at the VIOOHState of the Nation 2024‘ full report, download it from https://www.viooh.com/sotn

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