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.
Table of Contents
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.
Key Insights and Trends
- 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.
- 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.
- 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.
- 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 VIOOH ‘State of the Nation 2024‘ full report, download it from https://www.viooh.com/sotn
