While a continuing shift towards digital inventory has transformed the out-of-home (OOH) advertising market over the past decade, there is also greater change and growth coming in the years ahead as programmatic buying really takes off.
The Canadian Out-of-Home Marketing and Measurement Bureau (COMMB) finds that more than three-quarters (78%) of shoppers notice OOH ads, while 70% of consumers take action after seeing OOH ads.
While we already know the medium works, programmatic is opening countless new opportunities for brands and their agencies who want the ability to buy high-impact, dynamic OOH creative quickly and efficiently, with the flexibility to optimize their buy in real-time.
So, tactically, it’s a hit. But it’s the strategic possibilities that make it a home run.
Programmatic digital out-of-home (DOOH) also presents an opportunity for brands to run true omnichannel campaigns, connecting with people all along the path to purchase through captivating OOH ads that make every other channel work harder, leading to greater conversion.
According to COMMB data, while OOH has the broadest reach of all media, combining it with other channels increases campaign reach by 23% on average.
“Because programmatic is integrated into the broader digital consumer journey, it supports a full-funnel strategy and, like other programmatic channels, drives reach and boosts online engagement, making it an essential component of modern marketing campaigns,” says Déadya Massa, director, programmatic craft, with the technology-driven performance marketing agency Kinesso.
Incorporating programmatic capabilities into OOH, she says, has “redefined” the medium. “[It] can now deliver dynamic creative content, target audiences with precision, and leverage data-driven insights and measurement,” she says.
Programmatic OOH has the extraordinary ability to straddle the line between both upper funnel and lower funnel marketing, combining the power of brand and awareness that has defined OOH since the first billboards went up nearly 200 years ago, with the dynamism of performance marketing.
The upside of programmatic DOOH is apparent in multiple forecasts: Global spending was $1.3 billion last year, and is expected to grow by a CAGR of 31.5% through 2030, driven by the increased digitization of OOH infrastructure, combined with the technological and data advancements that allow marketers to get more precise with their campaigns as well as turn insights into action for informed marketing decisions.
There are many reasons why programmatic DOOH is projected to grow, but let’s take a closer look at three innovative elements: dynamic creative, transacted with efficient buys informed by rich consumer data; demand-side platforms that take advantage of tech advancements in data, audience targeting, real-time bidding and the ability to serve, track and optimize ads across a network of suppliers, plus retail media networks, one of the fast growing channels in advertising.
Dynamic creative
DOOH has evolved to offer dynamic creative capabilities that bring relevant, targeted and effective messaging to audiences. It uses data to inform specific elements within an individual ad, automatically swapping out things like product images, taglines, ad copy, offers and more to create tailored experiences for specific audiences.
Ads can be customized based on data inputs, such as local weather, live sports scores, and proximity to a store, so that the content automatically changes to fit the place and meet the moment.
“The agility and flexibility [programmatic DOOH] offers are super advantageous, especially if you want to create reactive ‘of the moment’ ads like we did for our Molson “Give our C” work that honoured Auston Matthews being named [the Toronto Maple Leafs’] captain,” says Wasserman creative director Logan Broger. “That type of advertising just doesn’t happen without the ability to swap in timely, relevant creative.”
Advancements in data
A demand-side platform provides data-driven targeting, real-time bidding and the ability to serve, track and optimize ads across a network of suppliers. And data advancements include precise audience targeting, the ability to use first-party data, proximity targeting and weather triggers, plus the ability to measure across the entire funnel - from brand health to online conversions to sales lift or destination visits.
Enhancing the ad-buying process in this way is clearly good news for both buyers and suppliers.
“As omnichannel planning evolves and digital planning tools become more advanced, programmatic DOOH is uniquely positioned to not only enhance, but complete the customer journey through the full funnel,” says Tom Woyzbun, director of programmatic with Cineplex Media. “The ability to intelligently measure and optimize in real-time isn't just making campaigns more effective; it's transforming how brands connect with audiences in ways we're only beginning to explore.”
Debrani Ghosh, vice-president, performance solutions, at Kinesso agrees. “It is a very exciting time for programmatic, and the industry as a whole.
“Data has become a cornerstone in ensuring we effectively reach the right audience. It’s not just about targeting; it’s about how data and messaging can work in tandem to create a more personalized connection with consumers.
“As technology continues to evolve, it will enable even more precise optimization and near real-time adjustments to messaging, driven by predictive insights into audience behaviour.”
Retail media networks
As retailers look to drive incremental revenue and engage shoppers in new ways, retail media is emerging as a powerful piece of the OOH puzzle. In fact, it’s one of the fastest growing channels in advertising over the past few years, with eMarketer predicting that ad spending on this channel in Canada will grow 26% in 2024 to more than C$3 billion. That’s nearly double what it was three years ago. And while that level of growth will slow a bit over the next few years, total spending is expected to reach nearly C$5.1 billion in 2027.
With deep databases of consumer shopping behaviours and data to work with, retailers have been building out their own networks of screens in and around their stores.
By using DOOH in and around retail locations, brands can capture consumers’ attention closer to the point of purchase, where it counts most.
Retail media networks allow for more tailored, measurable campaigns that benefit both brands and retailers—it’s an exciting evolution that will shape how we think about DOOH placements and shopper engagement.
"Retail media is reshaping DOOH by connecting brands with consumers closer to the point of purchase. With tailored, measurable campaigns in and around retail locations, it’s a powerful way for advertisers to drive engagement and incremental revenue while enhancing the shopper experience,” explains Scott Mitchell, managing director, Canada of Vistar Media. "It’s an exciting time for DOOH, and retail media networks are poised to play a pivotal role in shaping its future.”
While programmatic DOOH has been around for over a decade, advancements in technology, data and proven results for marketers means adoption and application is only set to advance even further and faster.
It wasn’t hard to find industry experts who are excited about the future of programmatic DOOH:
Jordan Hamer, executive creative director, One Twenty Three West
“Out-of-home is one of my favourite channels to work in because it has an inherent sense of ‘realness.’ Seeing work out in the physical world adds so much more than just seeing something online. And programmatic kind of supercharges that, bringing the ability to be responsive and contextually relevant normally only found online to the physical world. I think it makes ideas much more novel and interesting when they jump out of the internet in a way that makes you wonder how they did that so fast.”
Logan Broger, creative director, Wasserman
“As the speed of culture continues to move faster and faster, what I get excited by is the possibility of micro-campaigns or being able to swap out creative at a moment’s notice to keep your message fresh and relevant within the structure of an existing campaign.”
Déadya Massa, director, programmatic craft, Kinesso
“It’s exciting to see how the technological advancements of programmatic are helping OOH become an integral part of omnichannel strategies. As dynamic capabilities and audience targeting evolve, along with AI-driven measurement and the unique ability to reach audiences at physical touchpoints, DOOH is poised to become a programmatic powerhouse, indispensable to full-funnel marketing strategies.”
Michelle Erskine, vice-president, Astral Out-of-Home
“DOOH and programmatic have overcome one of the barriers that OOH historically faced. Years ago, if you were considering an OOH campaign as a component of your strategy, you were advised to plan months in advance. That’s no longer the case. This flexibility further lends itself to being able to change up the creative to address particular demographics, locations, times of day or events, quite easily. We can coordinate with mobile, social and digital easily. We’ve really just scratched the surface of possibility at this point. The next few years are going to be very exciting as we really explore the potential here.”
Tom Woyzbun, director of programmatic, Cineplex Media
“What's most exciting is seeing DOOH evolve from an awareness channel into a key player in sophisticated omnichannel strategies. Looking ahead, programmatic DOOH will play a major role in bridging physical and digital consumer experiences in increasingly sophisticated ways.”
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