The Future of OOH Advertising: How Programmatic is Levelling the Playing Field

The Global Narrative: Growth in Perspective

Trends in the out-of-home (OOH) market are painting an interesting picture of resilience and growth on a global scale, even amidst economic shifts. The Out of Home Advertising Association of America (OAAA) reports a 6.8% surge in OOH advertising revenue in the first quarter of 2024, reaching a historic high of $1.94 billion. New advertisers for digital out-of-home (DOOH) campaigns increased by 31% year-over-year, with a whopping 77% surge in campaign billings, indicating the influential role of programmatic. However, to truly grasp the sustainability and origins of this growth, a deeper examination of these figures is necessary.

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The APAC Landscape: A Closer Look

Shifting our focus to the APAC region, the story becomes even more gripping. The APAC OOH market exhibits a rich tapestry of diversity, showcasing varying levels of digital adoption. While countries like Singapore, Australia, and Japan lead in DOOH adoption, others are swiftly catching up. According to a report by Grand View Research, the APAC OOH market is projected to experience a compound annual growth rate (CAGR) of over 11% from 2023 to 2028, fuelled by urbanization, technological advancements, and a rising middle class. In this lively market, programmatic technology offers precision targeting and real-time campaign management, essential for advertisers looking to engage diverse audiences across different markets.

Amidst the rising adoption of programmatic DOOH, it's noteworthy that this growth often involves reallocating existing ad budgets rather than an influx of new spending. In markets like India and Indonesia, where traditional OOH still holds sway, the shift towards programmatic is more about enhancing efficiency and targeting capabilities than a significant increase in overall ad spend. This trend prompts crucial questions about whether programmatic is genuinely attracting new advertisers and driving incremental revenue.

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The Role of Programmatic: Opening Doors and New Opportunities

Picture this: programmatic advertising, especially through open auctions, is revolutionizing the out-of-home (OOH) advertising scene. It's giving small media owners unprecedented access to digital budgets, transforming the game entirely. This newfound access empowers smaller players to up their game and connect with advertisers they might never have reached before, all thanks to the wonders of technology. By breaking down barriers to entry, open auctions create a more diverse and competitive market, fostering innovation and delivering top-notch value for advertisers.

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Strategic Responses from Larger Players

Now, for the big media owners, the rise of programmatic advertising and the shifting market dynamics present a whole new ball game. To stay ahead and make the most of these changes, these heavyweights should think about creating their own platforms and sales teams. By building their own programmatic solutions, they can maintain greater control over their inventory, strengthen direct relationships with advertisers, and optimize revenue streams. This strategic approach not only mitigates the "tax" effect of third-party programmatic platforms but also positions larger players to excel in an increasingly digital advertising environment.

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The Reality Check: Assessing Programmatic's Impact

While the impressive growth figures for digital out-of-home (DOOH) advertising are exciting, it's vital to realize that the true power of programmatic advertising lies in its ability to boost efficiency and provide precise targeting, rather than just injecting money into the market. The transaction fees linked with programmatic advertising, sometimes seen as a "tax" on the industry, must deliver significant value to justify their costs. This value should not only improve targeting accuracy and automation but also attract new advertisers and drive overall market growth. By focusing on these areas, programmatic advertising can play a pivotal role in expanding the market and ensuring long-term growth.

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Forging A Balanced Path Forward

The potential of programmatic advertising in the out-of-home (OOH) industry, particularly in a dynamic market like APAC, calls for a balanced strategy. Embracing programmatic capabilities while ensuring that traditional OOH channels receive their due attention is crucial. At Moving Walls, we envision leveraging technology that enhances, rather than replaces, traditional advertising methods. Our aspiration is to establish a resilient, efficient, and impactful OOH ecosystem that delivers unparalleled value to brands, advertisers, and consumers. While programmatic digital out-of-home (DOOH) advertising undoubtedly holds great promise, its triumphant voyage will hinge on its ability to innovate, entice new advertisers, and propel the overall growth of the OOH sector.

To truly thrive in this evolving landscape, establishments need a partner who understands both the complexities of the APAC market and the transformative power of programmatic technology. We strive to provide customized solutions that aim to bridge the gap between traditional and digital out-of-home advertising. By harnessing our deep expertise and innovative platforms, we provide brands with enriched solutions they need to effectively engage their target audiences and achieve measurable results. As the OOH industry continues to evolve, Moving Walls is committed to being the go-to partner for driving sustainable growth and pioneering a new era of impactful advertising.

Logan Sivanasen

Global Head of Marketing

Moving Walls Group