Cynopsis Digital Out of Home 08/21/24: Political spend pushing DOOH to new heights; Oregon billboards hacked

Cynopsis Digital Out of Home
Wednesday August 21, 2024

Out of home advertising revenue increased 3.4% in the second quarter of 2024 compared to the previous year, to $2.78 billion, based on figures released by the Out of Home Advertising Association of America. Digital OOH, which accounted for 34% of quarterly sales, increased 7.5% from a year ago. The Transit category generated the greatest growth versus 2Q23, increasing by 13.7%. Seven of the top 10 product industries increased in quarterly volume led by Automotive Dealers and Services (+17.8%), Retail (+14.8%), Local Services & Amusements (+10.1%), Insurance and Real Estate (+8.1%), Public Transportation, Hotels & Resorts (+4.4%), Schools, Camps, & Seminars (+2.1%), and Restaurants (+1.3%). On the political front, US House and Senate OOH campaign spending in the first half of 2024 has quadrupled from 2020 and is up 70% from 2022. “Our position as a highly relevant consumer medium is reflected across the board, but particularly in the political arena,” said Anna Bager, President and CEO, OAAA. “Political ad spend in OOH is at the highest levels ever because of our ability to deliver location-based targeting, and OOH’s resonance with younger and multicultural audiences.”

The impact DOOH has had on the presidential election is striking. “The growth of DOOH from 2020 to now has created an entirely new landscape for political advertisers this election cycle,” Lindsay Kramer, OUTFRONT Client Strategy and Solutions, tells Cynopsis. “As DOOH has expanded across the country, many of the friction points that have historically made OOH challenging for this category have been resolved – political advertisers are able to activate in key locations with timely and relevant copy, can be live in hours and run for just a few days where needed, are not beholden to production times and committing to a single message, and can buy through the programmatic channels they are already familiar with for other digital media. Additionally, the creative flexibility of DOOH allows advertisers to continually update their messaging to meet the speed of the news cycle and address various issues nationally or in select locations.” Kramer and Lani Ferro, OUTFRONT Media Government Affairs, outlined five trends that show how OOH is helping to create the moments that matter for candidates, issue groups and more.
· More advertisers are activating with timely and relevant pDOOH.
The explosion of programmatic digital out of home since 2020 created a new entry point for political advertisers. With its ease of activation and buying flexibility, we are seeing more advertisers overall as well as first-time OOH buyers, many of whom are strategically buying for shorter periods around events, rallies and in advance of key races and registration deadlines.
· DOOH’s creative flexibility lets advertisers keep pace with the news cycle.
The ability to change creative over the duration of a DOOH buy has been critical to breaking down a barrier to entry that has historically prevented many political advertisers from considering out of home. In today’s cycle, we are seeing savvy advertisers who not only understand the value of their placements and the locations they are in, but also the importance of capturing audiences by creating conversational moments with OOH. For example, we have one issue-based advertiser that has run over 80 pieces of creative copy in recent months across a handful of markets. Each time the new news breaks, this advertiser has new copy ready to connect its message to the most recent conversations in today’s news cycle.
· Political advertisers are discovering the power of social out of home
We often talk about how brands are using out of home as social content, sharing their messaging well beyond the billboard via their social channels. Political buyers are quickly picking up on the trend and taking it one step further. Some are using the OOH as content by posting photos of the OOH and either simply sharing their messaging and/or making a call for donations. We are even seeing smaller grassroots groups crowdfunding political billboards to get their messages to the public. If elections are won based on what people see and believe, out of home is a physical means of activation that seamlessly translates into the social and digital media ecosystems.
· Slower presidential spending has given local races and issue groups time to shine.
Despite a barely there presidential primary season with slow spending on both sides – even before the change in the Democratic nominee – the 2024 political OOH cycle was already pacing way ahead of 2020. We are seeing more advertisers entering OOH via new channels (i.e. programmatic), issue groups sharing messaging in support of their chosen candidates and more local and down-ballot races who showed up earlier during their primary races rather than waiting until the general election as in years past.
· While the buy cycle remains short, OOH is being considered earlier.
As with many media channels, political advertisers buy quickly as plans are constantly evolving due to changes in polls, news events and markets/states of focus. In previous cycles, out of home was to an extent a place to spend “leftover” dollars; in this cycle, strategic decision makers at big campaigns and agencies are inquiring about out of home availability earlier. While many campaigns still go live within days of contracting, OOH is clearly a more intentional part of the media strategy than it has been in previous years.

Taking a longer view, OOH is a $10.9 billion business and will reach $12 billion by 2028, according to the annual PwC Global Entertainment & Media report. The digital side of OOH will account for $4.7 billion of total OOH advertising this year, notes the report, and reach $5.9 billion by 2028. DOOH is expected to make up 48.9% of all OOH advertising by 2028.

You’ll get no argument from Vistar Media about the momentum of DOOH – the company announced growth in the first half of 2024 that includes a 77% year-over-year jump in campaign billings. “As agencies and brands lean in, campaigns across programmatic OOH are becoming more targeted, creative & eye-catching, and most importantly, are driving real results at both a brand and performance level,” said Lucy Markowitz, SVP, GM US Marketplace at Vistar Media. “Automation has now become table-stakes and clients are truly running more impactful campaigns that encourage future investment in the channel, fostering a whole new group of advocates across the media and advertising landscape.”

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Grocery TV has expanded its in-store retail media network into pharmacies, rolling out its digital pharmacy solution with a number of the retailers in its network including ShopRite Pharmacy. “For both retailers and brand advertisers, pharmacy represents a valuable touchpoint with customers, especially for healthcare, pharma, and fitness-focused products or services,” said Don Oelke, COO and co-founder at Grocery TV. “Many of the supermarkets in our network have pharmacies, so it was a natural next step to provide a tailored, in-store retail media experience for that part of the store.” Grocery TV’s content strategy for pharmacy includes their new health and wellness focused video channels, retailer messaging, and contextually relevant brand advertising.

The distribution of programmatic OOH spend by IAB advertiser category remained consistent from the second half of 2023 to the first half of 2024, according to the Place Exchange OOH Trends report. Health/Fitness, Personal Finance, Food/Drink, and Home/Garden remained the top four categories, collectively accounting for over 40% of spend in the first half of 2024. Other key takeaways include:
· Billboards remained the single largest asset category by spend, at 41%.
· Outdoor (including billboards and street furniture) remained the largest venue category, with 60% of spend, followed by Retail at 13%, Transit at 9%, and Entertainment at 8%.
· Overall, the number of programmatic OOH screens increased by 17%, driven mainly by deployments at entertainment, retail, transit, and health locations.
· The average CPM across all programmatic OOH inventory was $7.16 in H1 2024, in line with the $7.24 average in H2 2023.
· Video continued to represent a material portion of programmatic OOH spending, comprising 43% of spend on video-enabled screens.
Programmatic OOH continues to transact predominantly via Private Marketplace (PMP) deals, representing 93% of H2 2023 spend, given the high levels of campaign flexibility, price transparency, and media quality offered to buyers.

Freeosk announced an integration with Place Exchange enabling marketers to activate messaging on Freeosk’s discovery kiosks. Initial in-store inventory will be available at ShopRite through the same demand-side platforms advertisers already use. “The demand for in-store retail media activation is surging as marketers push for incremental growth opportunities,” said Ari Buchalter, CEO of Place Exchange. “Brands want highly motivating, immersive experiences to make lasting impressions that promote trial and build CLV (customer lifetime value).”

Kevani is partnering with supply side platform VIOOH to enable advertisers to leverage VIOOH’s programmatic platform and Kevani’s inventory to create programmatic DOOH campaigns in Los Angeles. The partnership will kick off with StackAdapt, a programmatic advertising platform that specializes in delivering multi-channel campaigns. “At VIOOH, we are committed to growing our programmatic DOOH offering across the US and working with Kevani is an excellent step forward, especially for advertisers looking to invest on the West Coast,” said CEO Jean-Christophe Conti.

Several lottery billboards in Oregon designed to show the Powerball Jackpot were hacked, taken over by furry animation between August 12 and August 14. “This was a global issue for the vendor Daktronics, which operates the LED screens,” Oregon Lottery spokesperson Melanie Mesaros told KOIN 6 News. Daktronics was contacted about the issue and all of the billboards were restored on the night of August 14. Stated Daktronics, “We were made aware of a limited number of locations where unknown content had been displayed. This issue applies only to specific hardware devices that were accessible publicly on the Internet (not properly protected by firewalls or within a VPN network). The issue is not widespread. We addressed impacted customer accounts and continue to actively monitor those locations.”

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Cedara, the Carbon Intelligence Platform, launched an OOH measurement tool, the first to measure traditional and digital OOH using the recently released standards by the (recently folded) Global Alliance for Responsible Media, and Ad Net Zero. The new OOH measurement product further extends Cedara’s support to additional media channels, enabling end-to-end tracking and reduction of emissions generated from marketing investments in compliance with industry standards.

GOING GLOBAL

oOh!media has added 12 shopping centers across Australia to its retail media portfolio and acquired Blue Tongue Outdoor, for 23 more retail centers in Adelaide. “Our investment in adding these retail centers reflects our commitment to providing agencies and advertisers with a powerful, scalable platform to influence consumer decisions at the point of purchase,” said Robbie Dery, Chief Commercial Operating officer. “Fully digitizing our retail network and leveraging advanced digital capabilities and data partnerships strengthens our ability to secure key concession partnerships and drive exceptional results for our clients.”

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