Imagine walking down a crowded city street, glancing up at a gigantic billboard that seems to know exactly what you’re craving for dinner tonight.
Welcome to the world of programmatic out-of-home advertising, where precision targeting and personalized experiences collide.
According to recent data, the average cost per thousand impressions for these ads is $7.17, making it an increasingly attractive option for marketers.
Join us as we delve deeper into the top categories, fastest-growing trends, and the rise of video-enabled screens in the programmatic OOH landscape.
Get ready to be captivated by the intersection of technology and advertising prowess.
ooh cpm
The average CPM for out-of-home (OOH) programmatic ads in the first half of 2023 was $7.17, according to Place Exchange.
Programmatic advertising in OOH allows for automated buying and selling of ad space in real-time, utilizing algorithms and data to target specific audiences.
This trend indicates that advertisers are willing to invest in outdoor advertising such as billboards and screens.
The top programmatic OOH advertising categories remain consistent, with Food/Drink, Personal Finance, and Health/Fitness accounting for nearly half of the spend.
The number of programmatic OOH screens increased significantly, and video comprised a third of programmatic OOH spend on video-enabled screens.
Overall, programmatic OOH offers precise audience targeting, increased engagement, and a more personalized advertising experience.
The full report can be downloaded from the provided link.
Key Points:
- Average CPM for OOH programmatic ads in H1 2023 was $7.17, per Place Exchange
- Programmatic advertising in OOH enables automated buying and selling of ad space in real-time
- Advertisers are showing interest in investing in outdoor advertising like billboards and screens
- Top programmatic OOH categories are Food/Drink, Personal Finance, and Health/Fitness
- Programmatic OOH screens increased significantly, with video comprising a third of spend on video-enabled screens
- Programmatic OOH provides precise audience targeting, increased engagement, and personalized advertising experience
Check this out:
đź’ˇ Did You Know?
1. Ooh CPM stands for “Online Out of Home Cost per Thousand” and refers to the cost advertisers pay for every thousand impressions of their online out of home (OOH) ad campaigns.
2. Ooh CPM advertising is often utilized in interactive kiosks or digital billboards, allowing advertisers to reach a wider audience in highly trafficked areas.
3. The concept of Ooh CPM originated from the traditional CPM model used in advertising, which stands for Cost per Thousand and refers to the cost advertisers pay for every thousand impressions of their ads.
4. Advertisers can optimize their Ooh CPM campaigns by targeting specific demographics or locations, ensuring that their message reaches the intended audience effectively.
5. The adoption of Ooh CPM has expanded alongside advancements in technology, such as the rise of smartphones and digital displays, enabling advertisers to engage with consumers in more dynamic and personalized ways.
Average CPM for Programmatic OOH Ads in the First Half of 2023
According to Place Exchange, the average cost per thousand impressions (CPM) for out-of-home (OOH) programmatic ads in the first half of 2023 was $7.17. This figure provides valuable insights into the state of programmatic OOH advertising, shedding light on the investment and trends within this industry.
Programmatic advertising involves the automated buying and selling of ad space in real-time, utilizing algorithms and data to determine ad placements that will best reach the target audience. The reported CPM trend indicates that advertisers are recognizing the value and potential of outdoor advertising platforms such as billboards and screens.
Understanding Programmatic Advertising in OOH
Programmatic advertising in the out-of-home (OOH) space offers a modernized approach to reaching audiences effectively. By employing automated technologies and advanced data analysis, it ensures that ads are shown to the right people, in the right place, and at the right time. The programmatic process takes into consideration valuable demographic and behavioral information to deliver highly targeted and relevant messages.
Advertisers can access programmatic OOH ad inventory through various platforms and marketplaces. The process involves bidding and purchasing impressions on a real-time basis. This allows for greater flexibility and precision in targeting specific audiences, maximizing the return on investment for advertisers.
- Programmatic advertising in the OOH space offers a modernized approach to reaching audiences effectively.
- Ads are shown to the right people, in the right place, and at the right time.
- The programmatic process utilizes automated technologies and advanced data analysis.
- Valuable demographic and behavioral information is considered to deliver highly targeted and relevant messages.
- Advertisers can access programmatic OOH ad inventory through various platforms and marketplaces.
- The process involves bidding and purchasing impressions on a real-time basis.
- This allows for greater flexibility and precision in targeting specific audiences.
- It maximizes the return on investment for advertisers.
“Programmatic advertising in the out-of-home space offers a modernized approach to reaching audiences effectively.”
Advantages of Programmatic Advertising in OOH
Programmatic advertising offers significant advantages to the OOH industry.
One key advantage is the ability to precisely target desired audiences. Algorithms and data analysis are utilized to identify the most relevant locations for placing ads, ensuring that the message reaches the right people.
Another advantage is the ability to provide consumers with a more personalized and relevant advertising experience. By leveraging data and algorithms, programmatic OOH advertising delivers tailored messages to consumers, making the ads more interesting and useful to them.
This personalized approach enhances the overall advertising experience, leading to higher levels of brand engagement and customer satisfaction.
- Some benefits of programmatic advertising in the OOH industry include:
- Precise targeting of desired audiences
- Delivering ads at the optimal moment when the audience is most receptive
- Providing consumers with a more personalized and relevant advertising experience
Programmatic advertising in the OOH industry brings advantages such as precise audience targeting and a more personalized advertising experience.
Advertisers Investing in Outdoor Advertising
The reported average CPM for programmatic OOH ads in the first half of 2023 highlights a strong advertiser willingness to invest in outdoor advertising platforms. This investment is motivated by the recognition of the extensive reach and impact of out-of-home advertising.
- Billboards and screens are still favored formats for programmatic OOH advertising.
- Billboards remain the largest asset category in terms of spend.
- Advertisers find value in combining these traditional outdoor advertising formats with their digital marketing strategies.
“Programmatic OOH ads in 2023 reflect advertisers’ recognition of the reach and impact offered by outdoor advertising.”
Precise Audience Targeting through Programmatic Advertising
One of the primary advantages of programmatic advertising in the out-of-home (OOH) space is the ability to precisely target the desired audience. By utilizing algorithms and data analysis, advertisers can identify the most effective locations and times to reach their target audience.
Programmatic OOH advertising allows advertisers to consider various factors such as demographics, behavior, and interests when determining ad placements. This level of audience targeting ensures that the ads are displayed to the right people, maximizing the potential for engagement and conversion.
Improvements:
- Added bold formatting to emphasize key terms.
- Clarified that programmatic advertising specifically refers to out-of-home (OOH) advertising.
- Highlighted the use of algorithms and data analysis in targeting the desired audience.
- Mentioned the consideration of factors such as demographics, behavior, and interests in determining ad placements.
- Emphasized the aim of maximizing engagement and conversion.
Personalized and Relevant Advertising Experience for Consumers
Programmatic OOH advertising offers a personalized and relevant advertising experience for consumers. It achieves this by leveraging data and algorithms to tailor messaging to individual preferences and interests. This approach significantly enhances the consumer experience, ensuring that the encountered ads become more useful and engaging.
Moreover, programmatic OOH advertising also avoids bombarding consumers with irrelevant content. By delivering relevant and targeted messages, it promotes a more positive perception of the brand and increases the likelihood of future engagement.
Top Programmatic OOH Advertising Categories
The top three programmatic OOH advertising categories that accounted for almost half of the spend are Food/Drink, Personal Finance, and Health/Fitness. These categories reflect the ongoing significance of industries that cater to basic human needs and interests.
Food/Drink advertising appeals to consumers’ desires for sustenance and indulgence, while Personal Finance advertising caters to their financial aspirations and concerns. Health/Fitness advertising taps into the growing consciousness around well-being and self-care.
Fastest-Growing Programmatic OOH Advertising Categories
The first half of 2023 witnessed significant growth in several programmatic OOH advertising categories. Notably, Arts/Entertainment, Law/Gov’t/Politics, Travel, Food/Drink, and Style/Fashion emerged as the fastest-growing sectors during this period.
Arts/Entertainment advertising taps into consumers’ cravings for cultural experiences and entertainment, capitalizing on their desire to engage with creative content. Law/Gov’t/Politics advertising highlights the significance of public discourse and civic involvement, providing a platform for organizations and campaigns to reach their target audience.
Travel advertising caters to the innate human inclination to explore new places and cultures, satisfying the wanderlust of individuals and promoting various destinations and travel experiences. On the other hand, Food/Drink and Style/Fashion advertising constantly adapt to meet the ever-changing tastes and preferences of consumers.
These diverse and dynamic programmatic OOH advertising categories exemplify the evolving landscape and the growing influence of this industry.
Billboards Remain Largest Asset Category in Programmatic OOH
Billboards remain the dominant asset category in programmatic OOH advertising, indicating their effectiveness in capturing attention and making a lasting impression.
- Billboards are strategically placed in high-traffic areas, ensuring exposure to a diverse audience.
- Their visual impact and size make it difficult for passersby to ignore them.
- Billboards are an ideal choice for advertisers looking to create brand awareness and leave a lasting impression.
“Billboards offer a unique advertising opportunity, strategically positioned in high-traffic areas to attract a large and diverse audience. Their visual impact and size make them hard to ignore, making billboards a reliable choice for advertisers seeking to create brand awareness and leave a lasting impression.”
Growth in Programmatic OOH Screens
The number of programmatic OOH screens increased by 37% in the first half of 2023. This growth indicates the growing popularity and adoption of programmatic OOH advertising.
In addition to billboards, other formats such as place-based screens/TVs, display panels, and kiosks also contribute significantly to the total programmatic OOH spend. This diversification of formats provides advertisers with a wide array of options to reach their target audience effectively.
Programmatic OOH advertising is evolving, and as more screens and formats become available, the possibilities for creative and effective campaigns continue to expand.
In conclusion, the reported average CPM for programmatic OOH ads in the first half of 2023 provides valuable insights into the state of programmatic OOH advertising and the investment being made within this industry. Programmatic advertising in the out-of-home space offers advantages such as precise audience targeting and a personalized advertising experience for consumers. Advertisers are recognizing the value of outdoor advertising and continue to invest in billboards as the largest asset category. The growth in programmatic OOH screens indicates the increasing popularity of this advertising format. Overall, programmatic OOH advertising is providing new opportunities for advertisers to reach their target audience effectively and deliver engaging and relevant messages.
- Programmatic OOH screens increased by 37% in the first half of 2023
- Place-based screens/TVs, display panels, and kiosks contribute significantly to the total programmatic OOH spend
- Programmatic OOH advertising offers precise audience targeting and a personalized advertising experience for consumers.
FAQ
1. What is the average cost per thousand (CPM) for OOH advertising in major metropolitan areas?
The average cost per thousand (CPM) for out-of-home (OOH) advertising in major metropolitan areas can vary greatly depending on several factors such as location, duration, size, and format. However, on average, the cost can range from $5 to $20 per thousand impressions. Factors such as high traffic areas, prime locations, and premium formats like digital billboards tend to command higher CPM rates, while less populated areas and traditional billboard formats may have lower CPM rates. It’s essential to consult with an advertising agency or media buyer to get more accurate and specific pricing for a particular metropolitan area and campaign objectives.
2. How does the CPM for OOH advertising compare to other mediums, such as online display or television?
The CPM (Cost Per Thousand Impressions) for Out-of-Home (OOH) advertising tends to be lower compared to other mediums like online display or television. OOH CPM is often more cost-effective due to the wide reach and extended exposure it provides. This medium allows advertisers to reach a large audience while keeping costs down. Online display and television advertising, on the other hand, can have higher CPMs as they offer more targeted and personalized content to specific audiences.
Additionally, OOH advertising offers a unique advantage in terms of visibility and engagement. Unlike online display ads that can be easily ignored or blocked, and television ads that can be skipped or fast-forwarded, OOH ads are placed in public spaces where they have a captive audience. This uninterrupted exposure can contribute to higher brand recall and message retention among viewers. Overall, OOH advertising tends to offer a cost-effective and impactful solution compared to online display and television advertising.
3. What factors influence the CPM for OOH advertising, such as location, size of the advertisement, and time of year?
Several factors influence the CPM (Cost Per Thousand Impressions) for Out-of-Home advertising (OOH). Firstly, location plays a crucial role in determining the CPM. High-traffic areas or prime locations in densely populated urban centers tend to command higher prices due to increased visibility and potential reach. On the other hand, rural areas or less-populated regions may have lower CPMs as the audience size is smaller.
Secondly, the size of the advertisement affects the CPM. Larger displays generally cost more as they offer a higher impact and greater visibility to the audience. A billboard with a larger surface area, for example, can attract more attention and reach a larger audience, thus increasing the CPM.
Lastly, the time of year can influence the CPM. In certain seasons or during specific events, demand for OOH advertising may spike, resulting in higher prices. For instance, advertising during holiday seasons or major sporting events may require a larger investment due to increased competition.
In summary, factors such as location, size of the advertisement, and time of year all contribute to the fluctuations in CPM for OOH advertising.
4. How can advertisers effectively measure the ROI of OOH campaigns based on the CPM and other performance metrics?
Advertisers can effectively measure the ROI of OOH (Out-of-Home) campaigns by considering the CPM (Cost Per Thousand Impressions) and other performance metrics. Firstly, they can calculate the CPM by dividing the total cost of the campaign by the number of impressions generated. This allows them to understand how much they are spending to reach a thousand potential customers. Additionally, advertisers can track reach and frequency metrics to assess the campaign’s effectiveness. These metrics measure how many unique individuals were exposed to the ad and how often they were exposed, respectively. By comparing the CPM and reach and frequency metrics across different OOH campaigns, advertisers can determine which ones offer the best return on investment.
Moreover, advertisers can leverage technology to enhance their ROI measurement of OOH campaigns. By integrating location data and audience measurement tools, they can gain insights into the demographic profile of the audience that was exposed to the ad. This information helps in evaluating whether the campaign effectively reached the desired target market. Additionally, advertisers can conduct surveys or gather data from other sources to assess changes in brand awareness or purchase intent before and after the campaign. By combining these multiple performance metrics, advertisers can get a comprehensive understanding of the ROI of their OOH campaigns and make data-driven decisions for future ad planning and investments.