Have consumers noticed the increase in digital advertising around them? Are they aware of how targeted that advertising is becoming?

A new Report from IAB Australia, Attitudes to Programmatic DOOH, shows advertisers are voting with their dollars and have embraced programmatic digital out-of-home (pDOOH). While the overall out-of-home market remains depressed, there has been a 10 per cent rise in agencies trading pDOOH in 2020.

Programmatic DOOH enables digital media buyers to identify audiences they want to reach in relevant ad environments and optimise advertising to specific factors. For example, media buyers can program campaigns to occur at certain times and during given weather conditions. The obvious example is selling raincoats; an agency would pre-buy screens in a place heavily trafficked by commuters and condition this on precipitation.

Research Badly Needed

Gai Le Roy, CEO of IAB Australia

This is IAB Australia’s inaugural report on the sector, in which they surveyed 183 media buyers and advertisers in the Australian market in May 2021. Of the 183, 139 of the respondents had already used pDOOH. Gai Le Roy, CEO of IAB Australia, said: “This important new piece of industry research provides very clear guidance from media buyers and advertisers on areas where they would like further education and support from the industry to help with their investment, measurement and assessment of programmatic DOOH activity.

The agencies named flexible buying options, operational efficiency, and enhanced data targeting options as the essential drivers for their interest in pDOOH and self-reported cross channel planning potential as critical. This bodes well for the OOH industry seeking to tap into revenue opportunities from cross digital campaigns as the country exits from the COVID malaise.

Looking Forward

The Report predicts that the pDOOH sector will see greater creative experimentation in FY22 and beyond as advertisers start to expand their creative suite beyond static executions, with a range of agencies intending to use other formats for the first time (HTML 40%, video 37% and dynamic creative 36%).

Agencies are still working out where pDOOH fits internally in their planning and buying, with just 37% using the same team to place and buy OOH and pDOOH and almost half of pDOOH decision marketers planning and buying independently of other media.

In the coming year, 75 per cent of agencies using pDOOH intend to use creative video formats. This switch from static indicates the industry is coming to grips with the possibilities of pDOOH; currently, respondents ranked their understanding of the format at only seven out of ten.

Agencies recognised a need to standardise measurements and metrics to assess the effectiveness of the medium properly.

Ben Allman, Chair of the IAB Australia DOOH Working Group and APAC Sales Director at Broadsign summarised the Report, saying: “This is the first piece of research to come from the IAB Australia’s DOOH Working Group. There has been plenty of chatter regarding the willingness of brands and agencies to embrace the programmatic buying of DOOH and the findings of the report confirm this.”

“The report enables us to pinpoint exactly where industry effort is required to maximise investment in the space. Overwhelmingly, brands and agencies are telling us that there is still a lack of understanding when it comes to pDOOH. The Working Group is committed to improving education and we have a number of exciting resources and initiatives which will launch later this year.”

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