Programmatic Out-of-Home (OOH) advertising has experienced significant growth and transformation over the past year, with certain categories emerging as dominant players and new trends shaping the industry. Place Exchange, a OOH ad tech company, released its 2023 report with key statistics and trends that have defined the landscape from H2 2022 to H1 2023.
Steady Leaders in Spending:
Throughout the examined period, the top three programmatic OOH advertising categories retained their position and accounted for nearly half of total spending. These categories were Food/Drink, Personal Finance, and Health/Fitness. Their consistent presence highlights their enduring appeal to advertisers, with consumers' interests and engagement in these areas driving continuous investment.
On the other hand, the remaining half of programmatic OOH spending was distributed across a diverse mix of categories, reflecting the versatility of this advertising medium and its potential to cater to various industries.
The Fastest-Growing Categories:
The growth of programmatic OOH was not limited to the established categories. Several segments saw exponential growth during this period, including Arts/Entertainment, Law/Gov't/Politics, Travel, Food/Drink, and Style/Fashion. This development signifies the widening reach of programmatic OOH into new domains, reaching audiences beyond traditional niches.
Billboards Reign Supreme:
Billboards continued to dominate the programmatic OOH asset category, emerging as the single largest format by spending. Despite the increasing number of programmatic OOH screens, other formats such as place-based screens/TVs, display panels, and kiosks also played a significant role in shaping the industry's landscape.
Consistent Average CPM:
The average Cost Per Thousand (CPM) for programmatic OOH inventory remained stable at $7.17 in both H2 2022 and H1 2023. This steadiness in pricing indicates a healthy and predictable marketplace for advertisers and provides stability when planning programmatic OOH campaigns.
The Power of Video:
Video continued to be a significant aspect of programmatic OOH spending, accounting for one-third of total spending on video-enabled screens. This highlights the captivating nature of video content and its potential to engage audiences effectively.
Creativity and Format Distribution:
Programmatic OOH supports various creative formats, but spending was concentrated in specific formats during the period under review:
70% of programmatic Video OOH ads were 15 seconds in length, although other durations (shorter and longer) were gaining traction.
80% of programmatic OOH video spend was attributed to the top four sizes (WxH): 640x360, 1920x1080, 1080x1920, and 360x640.
Horizontal video formats constituted the majority of programmatic OOH video spend, but vertical video formats are anticipated to grow in popularity.
Similarly, 80% of programmatic OOH display spend on static display creatives was attributed to the top three ad sizes (WxH): 1400x400, 1080x1920, and 1920x1080.
Private Marketplace Dominance:
Private Marketplace deals remained the preferred choice for programmatic OOH buyers. The allure of high campaign flexibility, price transparency, and media quality offered by Private Marketplaces is undoubtedly driving this trend, ensuring that advertisers can tailor their strategies to meet specific objectives.
With video content proving to be a powerful tool, and creative formats continuously evolving, programmatic OOH is undoubtedly a dynamic and promising landscape for advertisers. The industry's embrace of Private Marketplace deals further solidifies its commitment to flexibility and transparency, catering to the needs of both advertisers and consumers alike. Blueprint is excited for the development of RTB and open auction in the OOH format 🚀
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