Here are excerpts from a speech by DPAA chair François M. de Gaspé Beaubien at last week’s DPAA Video everywhere summit.  He refers to Solomon Partners investment banker Mark Boidman’s view of the industry and then comments on future trends.  Billboard Insider thanks the folks at DPAA for sharing this.

From Mark Boidman, Solomon Partners

Growth in 2025 will come from

(1) advertisers, agencies and retailers using data to show that DOOH drives results.   His firm is witnessing big investments in location and foot traffic data. And focus on tracking conversions.

(2) Retail pushing hard into DOOH and though small in terms of revenues today….he predicts that just US retail media alone will garner over $1B from instore ads by 2028.

(3) programmatic – we believe that in 2025 we will surpass $1B of US DOOH spending via programmatic

Overall message:

Traditional OOH is flat, growth all coming from DOOH which makes OOH overall still nicely green vs red. All other traditional media channels facing huge pressure and shrinking red.

Linear broadcasters suddenly lining up to buy assets where tech and DOOH will help them offset shrinking linear TV businesses.

Buyer universe for DOOH assets has changed: You have linear TV, CTV, massive retailers all realizing that to aggregate a mass audience the days and old playbook of using TV are over. It’s all about DOOH now if you want to reach people with video ads.

François M. de Gaspé Beaubien View

1.Video agnostic

• 95% of how Zoom is purchased in the UK is from video budgets. This is going to eventually happen in the US, but will take time. So, for next 12 months: a lot more programmatic buys and the ocean of “Video” is going to start flowing to our industry in a more meaningful way.

2.Sizable new capital coming into DOOH

• In the next year we shall witness large amounts of capital being deployed within our industry, globally. Leading private equity firms have already entered the traditional OOH space….and will now make bold investments in DOOH in the next 12 months.
• Permit me to underscore Tal Jacobson, CEO of Perion, who flew in from Tel Aviv just to attend this conference. Perion, with their strong omni channel presence and tremendous creative capabilities, are now a strong leader in our industry.   A perfect example of the influx of tremendous talent and capital coming to our shores.

3.Consolidation

• With linear TV on the wane, DOOH provides an optimized means of reaching targeted mass. Aggregated reach in sheer numbers (as TV used to do) but with the added benefit of providing all the targeting that advertisers and agencies seek; best of both worlds.
• Private equity and others are going to acquire networks and join them together to provide efficiency for advertisers while driving even more profitable growth to the bottom line.

4.Artificial intelligence

• Has begun but will gain speed in the next 12 months.
• David Schmaier is the president and Chief Product Officer at Salesforce and a business school classmate of mine. He shared two weeks ago at our reunion the following story:
• Lee Se-dol is the globalGO champion. Deepmind, division of Google, matched up against Mr. Se-Dol
• 3 games to 1 in first round. Then AI vs AI.   Playing against God. Retired. If repetitive = AI can do it much better….it augments you.
• Imagine education. On boarding new employees.  Training sales force: all tailored to the individual.
• You job will not be replaced by AI, there will be those embrace AI….and those who do not….at best will be marginalized.
• But the opportunity is MASSIVE.

Conclusion

• We are going to witness continued sizable growth…and for some, as in programmatic, doubling of revenues.
• DOOH will not be just the driver of OOH but shall be embraced by overall video budgets, where we belong. It shall be progressive but notable next year.
• DOOH is a solution to the decline in linear TV
• Measurement will enable CTV to connect to DOOH, though we are not CTV, we shall play a supporting cast member role (very profitably as well, for all parties).
• Consolidation will begin in the next 12 months and will hit an apogee in 2026.
• AI is going to irrevocably change our industry for the better (we shall have to consider basic universal income because of the impact on society).

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