By, Lynda Liu, Marketing Director, Place Exchange
Data from the latest Place Exchange Programmatic Trends Report, released in July, demonstrates continued strong growth in the programmatic OOH channel in H1 2022 compared to H2 2021. The report provides a snapshot of the spending patterns within the Place Exchange platform, analyzing delivery across billions of impressions. Among the findings highlighted are that a wide range of advertiser categories are increasing their spend on programmatic OOH, with the Health and Fitness, Style and Fashion, Automotive, Food and Drink, and Tech and Computing categories leading the growth. While billboards continue to represent a large portion of spend, other OOH formats have grown share significantly. Also notable was that video ads make up an increasing portion of spend (with a 60% increase from H2 2021 to H1 2022), and that programmatic OOH continues to transact predominantly via non-guaranteed deals, which offer buyers high levels of flexibility.
The Place Exchange report shows that programmatic OOH spending has been robust in the face of uncertain macroeconomic factors such as interest rates, inflation, or a potential recession. This momentum suggests that the trends noted by eMarketer’s most recent industry data from August 2021 – which showed US programmatic OOH ad spend doubling from 2020 to 2021 and projected to increase an additional 56% in 2022 – shows no signs of slowing down. Historically, programmatic spending has experienced growth during previous recessions — including the Great Recession in 2008 and the COVID recession in 2020. eMarketer estimates that in 2022, more than 90% of all digital display ad dollars will be transacted programmatically.
What accounts for the surging interest in programmatic OOH? Ari Buchalter, CEO, Place Exchange, offered up his insights: “First, the OOH channel is increasingly enjoying structural advantages vs. other channels — including greater reach, higher levels of consumer attention and trust, lower CPMs, and immunity from issues such as bot fraud, negative content adjacency, and ad skipping or ad blocking. In addition, when combined with the capabilities of programmatic, advertisers benefit from efficient automation and workflow simplification, much greater flexibility in campaign planning and delivery, and enhanced targeting and measurement capabilities that put Digital OOH on par with other programmatic channels.”
Moving beyond the findings from the H1 2022 report, Ari also shared his thoughts on what to expect this holiday season: “As we near the all-important Q4 season, we expect to see the strong growth of programmatic OOH continue. In particular, we expect omnichannel DSPs to lean in heavily and scale their efforts around programmatic OOH in response to growing demand from both traditional and new buyers of OOH. We are also seeing an array of exciting new products and capabilities around targeting, measurement, and dynamic creative that will enhance the power of programmatic OOH even further. As the market opportunity continues to grow, we believe the many benefits of executing OOH buys programmatically will appeal to advertisers in any economic condition.”
For a copy of the Place Exchange H1 2022 Programmatic Trends report, click here.
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