Here are five out of home stories Billboard Insider thinks you should follow in 2020.
Privacy
The California Consumer Privacy Act goes into effect January 1, 2020. The act requires companies to get consent from California consumers when they track or sell information on them. A couple dozen more states have privacy initiatives. Congress is considering the issue. Insider is watching to see what impact, if any, this will have on out of home ad targeting. Insider expects more legislation allowing consumers to refuse to be tracked or to refuse to let their data be sold. Will this impact the ability of out of home ads to target consumers? Time will tell.
Recession
We’ve been 10 years without a recession. That’s the longest the US economy has gone this century. Insider will be watching to see if trade wars or an external shock push the economy into recession.
Automated sales platforms come of age.
We are in the first or second inning on automated out of home selling say Outfront, Lamar and Clear Channel Outdoor execs. Adomni, Adquick, Blip Fliphound, Place Exchange and Vistar are pushing for business. Insider has been told that Google’s entry is when, not if. How much new revenue and market share will these platforms generate for out of home? Will out of home sales platforms consolidate?
Out of home taxes
Politicians in Cincinnati and Baltimore imposed steep taxes on our of home advertising to try to plug budget deficits. The out of home companies won a legal challenge in Cincinnati and lost a legal challenge in Baltimore. Both cases are on appeal. This is worth watching because politicians are monkey see, monkey do with taxes. Insider has been hearing from several operators that local assessors are aggressively raising valuations for property taxes.
More Municipal Partnerships with Out of Home Companies
Taxes are contentious but a win-win-win solution results when a municipality leases space on city land to out of home companies. Cities get budget revenue, local business get a place to advertise, and the out of home companies can grow their business. Catalyst Experiential wants to build a dog park in Bucks County Pennsylvania and an emergency services building in Mt Laurel, New Jersey in exchange for the right to put up digital signs. WOW media pays the city of Inglewood $250,000 per digital face plus 55% of revenues for the right to put digital billboards in the city right of way. Expect more of this in 2020.
What do you think are the stories to watch in 2020. Email billboardinsider@gmail.com or let us know using the the form below.
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