Advertising has seen remarkable transformations over the past decade, with digital advancements reshaping traditional methods significantly. One of the most notable changes in the UK has been the rise of programmatic digital out-of-home (DOOH) advertising. From bus stops and billboards to train stations and shopping malls, digital screens have proliferated across urban landscapes, enabling dynamic and data-driven advertising strategies. This trend is gaining substantial traction, with insights from VIOOH’s report indicating that the adoption rate of programmatic DOOH is projected to increase significantly in the coming months.
Expanding Budgets and Shifting Preferences
Increased Investment and Adoption
Programmatic DOOH is carving out a significant niche within the advertising industry, primarily driven by new budget allocations from marketers. According to VIOOH, the proportion of advertisers in the UK utilizing programmatic DOOH is expected to surge from 29% to 36% over the next 18 months. This growth underscores the UK’s leading position in the global landscape for this cutting-edge approach. Markedly, 82% of UK marketers are reallocating funds from other digital channels to envelop DOOH campaigns. This aligns closely with the global average of 83%, signaling a shared global enthusiasm for this evolving medium.
The drive towards programmatic-only DOOH campaigns is another trend worth noting, with a remarkable year-over-year increase of 18 percentage points. Currently, such campaigns constitute 47% of the overall programmatic DOOH campaigns. Additionally, a balance between programmatic and direct buys at 38% and direct-only buys at 45% reflects the market’s tilting preference towards automated, data-driven methodologies. This trend highlights the flexibility and efficiency offered by programmatic strategies, making them an attractive option for advertisers aiming to optimize their reach and engagement.
Evolving Role of OOH Specialist Media Agencies
In the intricate landscape of advertising, the role of out-of-home (OOH) specialist media agencies remains pivotal. These agencies have adapted to the programmatic evolution, becoming crucial partners for planning and executing DOOH campaigns. A striking 78% of marketers rely on these specialized agencies, marking a 27 percentage point increase from the previous year. Their expertise in navigating the complexities of DOOH ensures that campaigns are not only well-placed but also strategically impactful. This trend highlights the indispensable role of specialists in maximizing the benefits of programmatic DOOH for brands.
The adoption of demand-side platforms (DSP) managed services has also witnessed significant growth, with 43% of marketers now leveraging these platforms—a substantial 30 percentage point increase year-over-year. DSPs offer advanced tools for precisely targeting audiences and optimizing ad placements in real-time. This growth in demand emphasizes the importance of leveraging technology to achieve superior results in DOOH campaigns. As marketers continue to integrate sophisticated data analytics into their strategies, the role of DSPs in the advertising ecosystem is set to expand further.
The Strategic Edge of Programmatic DOOH
Superior Viewability and Audience Engagement
Marketers in the UK are placing a high premium on the quality of viewability that programmatic DOOH provides. Digital screens in prime locations, such as bustling city centers and major transit hubs, offer unparalleled exposure to diverse audiences. This advantage is highly valued by 61% of UK marketers, compared to 58% globally. The strategic placement of digital screens ensures that advertisements reach a broad and varied audience, enhancing the effectiveness of campaigns. This high-quality viewability is crucial for building brand awareness and driving consumer engagement in a competitive market.
Furthermore, programmatic DOOH is frequently paired with social media campaigns to amplify brand messages and drive performance. Approximately 83% of marketers use DOOH alongside social media for both brand and performance campaigns. This dual application highlights the versatile nature of programmatic DOOH, which can effectively support long-term brand building and short-term performance marketing objectives. By integrating DOOH with other digital channels, marketers can create cohesive, multi-channel campaigns that resonate with target audiences across various touchpoints.
Assessing Campaign Effectiveness
Evaluating the effectiveness of programmatic DOOH campaigns is a nuanced process that hinges on performance-based metrics. For UK marketers, top metrics include sales uplift, the impact on website traffic, and increased performance when integrated with other digital channels. Sales uplift is a critical indicator, cited by 53% of marketers, as it directly correlates to the campaign’s ability to drive revenue growth. Meanwhile, 44% of marketers assess the impact on website traffic, using it as a barometer for consumer interest and engagement. Additionally, 42% of marketers value the enhanced performance that results from integrating DOOH with other digital channels, underscoring the importance of a holistic advertising approach.
Jean-Christophe Conti, the chief executive of VIOOH, emphasizes that the burgeoning recognition of programmatic DOOH’s benefits and its future potential stem from an audience-centric approach and performance-driven strategies. He believes that the ongoing evolution of the advertising landscape will further cement programmatic DOOH’s position as a cornerstone in the UK’s media sphere.
Conclusion
Advertising has undergone significant changes over the last ten years, largely due to digital technology transforming traditional practices. In the UK, one notable shift has been the growing popularity of programmatic digital out-of-home (DOOH) advertising. Digital screens are now a common sight in various public locations such as bus stops, billboards, train stations, and shopping malls. These screens offer advertisers the ability to implement dynamic, data-driven strategies. The effectiveness of this approach is evident as it continues to gain momentum. According to a report by VIOOH, the adoption rate of programmatic DOOH is expected to rise significantly in the upcoming months. This digital shift is not just a trend but a new era in advertising, allowing for more precise targeting and real-time content adjustments. As programmatic DOOH continues to evolve, it promises to revolutionize the advertising landscape further, making it more efficient and impactful for both marketers and consumers alike.
