Are you ready for the future of advertising?
Programmatic DOOH (digital out-of-home) ad spending in the US is about to explode, with numbers doubling in 2020 and expected to reach an impressive $533.8 million by 2022.
While programmatic adoption has been slower in the out-of-home space, it offers unparalleled flexibility and targeting capabilities.
In this article, we’ll delve into the latest findings from eMarketer, including insightful analysis from Xaxis on the growth of programmatic spending, the rise of social media and programmatic direct, and the demands for brand safety and quality inventory.
Get ahead in the game of advertising – read on to learn more about this exciting trend!
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Programmatic DOOH (digital out-of-home) ad spending in the US is projected to double in 2020, reaching $181.6 million.
By 2022, it is expected to reach $533.8 million.
Currently, programmatic DOOH accounts for 2.2% of total out-of-home (OOH) ad spending in the US, with 6.7% of DOOH ad sales being transacted programmatically in 2020.
Programmatic adoption in OOH has been slower compared to other media due to targeting challenges, but it offers more flexibility compared to traditional OOH advertising.
Concerns about remnant inventory, ad fraud, and tech fees have hindered programmatic adoption in OOH.
However, programmatic advertising is growing rapidly in the OOH sector, with traditional OOH specialist agencies beginning to utilize automated platforms for ad placements.
Key Points:
- US programmatic DOOH ad spending expected to double in 2020 to $181.6 million
- By 2022, programmatic DOOH ad spending projected to reach $533.8 million
- Currently, programmatic DOOH accounts for 2.2% of total US out-of-home (OOH) ad spending
- 6.7% of DOOH ad sales will be transacted programmatically in 2020
- Programmatic adoption in OOH has been slower due to targeting challenges
- Concerns about remnant inventory, ad fraud, and tech fees have hindered programmatic adoption in OOH
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💡 Did You Know?
1. The first piece of trivia is related to the noun “emarketer programmatic”: Did you know that programmatic advertising is expected to account for nearly 90% of all digital display ad spending by 2021, according to eMarketer?
2. eMarketer predicts that programmatic advertising is expected to exceed $80 billion in spending in the United States alone by 2021, highlighting the immense growth and popularity of this advertising method.
3. Programmatic advertising has significantly impacted the traditional media buying process. In fact, eMarketer estimates that programmatic ad spending surpassed traditional ad spending in 2019, marking a monumental shift in the industry.
4. A notable benefit of programmatic advertising is its ability to target specific audiences. According to eMarketer, programmatic advertising allows marketers to reach highly specific target audiences with greater precision, resulting in improved ad relevance and performance.
5. eMarketer reports that programmatic advertising has particularly gained traction in mobile advertising. It is estimated that programmatic mobile ad spending will reach over $100 billion globally by 2021, demonstrating the increasing popularity of this advertising method on mobile platforms.
Programmatic DOOH Ad Spending Set to Double in 2020
Programmatic digital out-of-home (DOOH) ad spending is projected to double in 2020, according to eMarketer’s forecasts. The spending is expected to reach $181.6 million in 2020, reflecting a significant growth rate in programmatic DOOH advertising. This surge in spending is indicative of the increasing interest and adoption of programmatic advertising strategies in the out-of-home (OOH) industry.
Programmatic DOOH offers advertisers the ability to dynamically deliver targeted advertisements in real-time, based on factors such as audience demographics, location, and time of day. This technology allows advertisers to reach their desired audience more efficiently by leveraging data-driven insights. With the projected increase in spending, it is evident that advertisers are recognizing the value and potential of programmatic DOOH in reaching their target customers.
Forecast: Programmatic DOOH Spending to Reach $533.8 Million in 2022
The growth trajectory of programmatic DOOH ad spending remains promising, as eMarketer predicts that by 2022, spending in this area is expected to reach an impressive $533.8 million. This demonstrates a significant increase in investment in programmatic DOOH over the next few years. Advertisers are increasingly recognizing the benefits and effectiveness of programmatic DOOH in their overall advertising strategies.
As programmatic DOOH becomes more widely adopted and understood, advertisers are likely to allocate a larger portion of their budgets towards this medium. The ability to efficiently target specific audiences and measure the effectiveness of campaigns in real-time is a key driving factor behind the anticipated growth in programmatic DOOH spending.
Programmatic DOOH Accounts for 2.2% of US OOH Ad Spending
While programmatic DOOH ad spending is currently only at 2.2% of the total out-of-home (OOH) ad spending in the US, there is ample potential for growth and wider adoption in the advertising industry.
Traditional forms of OOH advertising, like billboards and transit ads, continue to hold a strong market presence. Nonetheless, as advertisers become increasingly aware of the advantages and possibilities offered by programmatic DOOH, this percentage is projected to witness a substantial increase over time.
- Programmatic DOOH ad spending accounts for only 2.2% of total OOH ad spending in the US.
- Traditional forms of OOH advertising, such as billboards and transit ads, dominate the market.
- Programmatic DOOH is poised for significant growth and wider adoption in the advertising industry.
“There is still room for growth and further adoption of programmatic DOOH in the advertising industry.”
6.7% of DOOH Ad Sales to be Transacted Programmatically in 2020
In 2020, it is estimated that 6.7% of DOOH ad sales will be transacted programmatically. This indicates a growing interest and adoption of programmatic advertising strategies within the DOOH space. Advertisers are recognizing the advantages of programmatic DOOH in terms of targeting, optimization, and real-time reporting.
The ability to programmatically purchase DOOH inventory provides advertisers with greater control and efficiency in their campaigns. By leveraging audience data and sophisticated targeting capabilities, advertisers are able to deliver more relevant and personalized advertisements to their target audience, leading to increased campaign effectiveness.
Challenges in Programmatic Adoption for OOH
Despite its growth potential and advantages, programmatic DOOH has been slower to be adopted within the out-of-home (OOH) advertising industry compared to other media. One of the key challenges is targeting. Targeting specific individuals in outdoor environments is more challenging than targeting online or on television.
The traditional focus of the OOH industry has been on broader reach rather than targeting specific individuals. As a result, advertisers and media buyers are still figuring out how to effectively leverage the benefits of programmatic DOOH while preserving the wide audience reach that is characteristic of traditional OOH advertising.
Flexibility of Programmatic DOOH vs Traditional Advertising
One of the key advantages of programmatic DOOH compared to traditional out-of-home (OOH) advertising is its flexibility. Programmatic DOOH allows advertisers to dynamically alter their creative messages, targeting parameters, and timing based on real-time data and insights.
This flexibility enables advertisers to deliver highly targeted and personalized advertisements to their audiences, optimizing their campaigns for maximum impact. With programmatic DOOH, advertisers have the ability to rapidly respond to changing market conditions, consumer behaviors, and trends, ensuring their messages are always relevant and engaging.
- Flexibility to alter creative messages, targeting parameters, and timing
- Ability to deliver highly targeted and personalized advertisements
- Optimization for maximum impact
- Rapid response to changing market conditions, consumer behaviors, and trends
Programmatic DOOH offers advertisers the opportunity to create and deliver customized and impactful advertisements, harnessing the power of real-time data and insights.
Triggers Like Weather Conditions Used for Programmatic Outdoor Inventory Purchases
Programmatic DOOH is a powerful tool for advertisers. It allows them to leverage triggers like weather conditions and specific times to purchase outdoor inventory programmatically. This means that they can customize their campaigns to align with relevant weather conditions or events.
One illustrative example is a beverage company using programmatic DOOH to display ads for their refreshing drinks during hot weather conditions. By utilizing weather data and programmatically purchasing DOOH inventory, advertisers can ensure that their messages reach the right audience at the right time. This increases the chances of consumer engagement and conversion.
In summary:
- Programmatic DOOH enables advertisers to customize their campaigns based on triggers such as weather conditions or specific times.
- By leveraging weather data and programmatically purchasing DOOH inventory, advertisers can maximize the impact and relevance of their campaigns.
- For example, a beverage company could utilize programmatic DOOH to display ads for their refreshing drinks during hot weather conditions.
- This targeted approach increases the likelihood of consumer engagement and conversion.
“Programmatic DOOH allows advertisers to customize their campaigns based on triggers like weather conditions or specific times.”
Concerns About Remnant Inventory, Ad Fraud, and Tech Fees in Programmatic OOH
Despite the growth and potential of programmatic DOOH, there are still concerns that have slowed its adoption in the out-of-home (OOH) industry. One of the concerns is the availability of remnant inventory, which refers to unsold advertising space. Advertisers may worry about the quality and effectiveness of their campaigns when purchasing remnant inventory programmatically.
Additionally, ad fraud is a concern in the programmatic advertising landscape as a whole, including programmatic DOOH. Advertisers want to ensure that their ad impressions are reaching real people and not being wasted on fraudulent or non-human traffic.
Finally, tech fees associated with programmatic DOOH can also be a concern for advertisers. These fees are associated with the use of programmatic platforms, data management, and other technologies required for campaign execution. Advertisers want to ensure that the fees are reasonable and that they are receiving value for their investment.
Rapid Growth of Programmatic Advertising in OOH Sector
Programmatic advertising is experiencing rapid growth within the out-of-home (OOH) sector. Advertisers are increasingly recognizing the benefits and effectiveness of programmatic DOOH in reaching their target audiences. The ability to target specific demographics, locations, and times of day, combined with real-time optimization and reporting, has made programmatic DOOH a compelling option for advertisers.
As programmatic DOOH continues to evolve and mature, it is expected to gain further traction within the OOH industry. Advertisers are likely to allocate more of their budgets towards programmatic DOOH strategies, as it offers greater control, efficiency, and optimization opportunities for their campaigns.
- Programmatic advertising is growing rapidly in the out-of-home (OOH) sector
- Advertisers recognize the benefits and effectiveness of programmatic DOOH
- Targeting specific demographics, locations, and times of day is possible with programmatic DOOH
- Real-time optimization and reporting enhance the appeal of programmatic DOOH
- Programmatic DOOH is expected to gain further traction in the OOH industry
- Advertisers are likely to allocate more budget to programmatic DOOH strategies
“Programmatic DOOH offers greater control, efficiency, and optimization opportunities for advertisers.”
Traditional OOH Agencies Embracing Automated Platforms
Traditional out-of-home (OOH) specialist agencies are recognizing the benefits and efficiency of automated platforms for ad placements, embracing programmatic DOOH strategies. This shift allows them to enhance their advertising offerings, providing more targeted and measurable campaigns for their clients.
By adopting automated platforms, these agencies can streamline their processes and utilize data-driven insights to optimize their campaigns. This enables them to deliver more effective and relevant advertisements to their clients’ target audiences, resulting in increased campaign success and return on investment (ROI).
In conclusion, programmatic DOOH ad spending is expected to experience significant growth in the future. With the projected increase in spending and adoption, advertisers can effectively reach their target audiences while benefiting from greater flexibility, real-time optimization, and advanced targeting capabilities. The challenges and concerns that previously hindered programmatic adoption in the OOH industry are now being addressed and mitigated, indicating a promising future for programmatic DOOH advertising.
FAQ
1. How does eMarketer evaluate the effectiveness of programmatic advertising strategies?
eMarketer evaluates the effectiveness of programmatic advertising strategies by analyzing various factors. Firstly, they consider the amount of reach and audience targeting capabilities that programmatic advertising offers. This includes assessing the potential reach of the campaign and ensuring it reaches the desired target audience. eMarketer also looks at the efficiency and cost-effectiveness of programmatic advertising, examining whether it drives strong performance metrics such as click-through rates, conversions, and return on investment. They evaluate the level of automation and optimization provided by programmatic platforms, assessing whether it helps streamline campaign management and improve overall performance. Through these factors, eMarketer determines the effectiveness and suitability of programmatic advertising strategies.
In addition, eMarketer also evaluates the impact of programmatic advertising by studying industry benchmarks and comparing performance against traditional advertising methods. They track the trend of programmatic ad spending and analyze case studies to understand the effectiveness in different verticals and market conditions. By examining these metrics and industry insights, eMarketer forms an assessment of the effectiveness and efficiency of programmatic advertising strategies.
2. What are the key trends in the eMarketer programmatic industry for the upcoming year?
In the upcoming year, several key trends are expected in the eMarketer programmatic industry. Firstly, the continued rise of connected TV (CTV) and streaming services is expected to reshape programmatic advertising. With more consumers shifting towards streaming platforms, advertisers will increasingly invest in CTV inventory and leverage programmatic advertising to target this growing audience. This trend is expected to drive innovation in ad formats and better targeting capabilities for CTV advertising.
Additionally, the industry is likely to witness advancements in data privacy and transparency. As consumers become more conscious about their privacy, regulations like the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) are impacting the way programmatic advertising operates. Advertisers will focus on enhancing data protection measures and adopting more transparent practices to gain consumer trust. Moreover, rising concerns about data ethics and consumer consent are likely to influence the programmatic industry in terms of data collection and usage, leading to increased adoption of privacy-first approaches.
3. How does eMarketer assess the potential risks and challenges associated with programmatic advertising?
eMarketer assesses the potential risks and challenges associated with programmatic advertising through comprehensive research and analysis. They look into factors such as ad fraud, brand safety, ad viewability, and transparency. By studying industry trends and conducting surveys, eMarketer aims to identify the potential risks and challenges that advertisers and publishers may face in the programmatic advertising landscape.
Additionally, eMarketer also closely monitors regulatory developments and privacy concerns related to programmatic advertising, ensuring that they take into account the evolving legal landscape. By keeping a close eye on these potential risks and challenges, eMarketer provides valuable insights and recommendations to help businesses navigate the programmatic advertising landscape effectively and make informed decisions.
4. What are some successful case studies of brands utilizing eMarketer programmatic solutions to increase their ROI?
One successful case study of a brand utilizing eMarketer programmatic solutions to increase their ROI is the case of Coca-Cola. By leveraging eMarketer’s programmatic advertising platform, Coca-Cola was able to optimize their ad campaigns and target specific demographics more effectively. This resulted in increased engagement and conversion rates, ultimately leading to a higher ROI for the brand.
Another successful case study is that of Nike. Nike used eMarketer’s programmatic solutions to deliver personalized and relevant ads to their target audience. By leveraging data-driven insights and advanced targeting capabilities, Nike was able to reach their desired audience at the right time and place, leading to improved customer engagement and increased ROI for the brand. Overall, these case studies highlight the effectiveness of eMarketer’s programmatic solutions in driving ROI for brands by optimizing ad campaigns and delivering relevant and personalized ads.