• Provenzano says programmatic OOH is $80 million going to $150 million in 2019.

    Vistar Media’s CEO Michael Provenzano appeared on the Dec 4 Ad Exchanger Talks podcast to talk about programmatic out of home.  Vistar’s been on a tear with revenues in excess of $20 million and 65% year over year growth.  Here are the highlights.

    On the digital sign market

    You’ve got a channel of advertising that’s $7.5 billion in US revenues.  $5 billion of it is paper – static out of home…The assumption is that most things will go to digital because if provides more income for the media owner…a lot of them are looking to increase the yield on their assets.  Sometimes they can’t install more inventory.  You can’t just go install another billboard…there’s complex municipality problems…That’s why you see a huge increase in the amount of screens which go indoors…elevators, malls, gas stations, airports – huge partners of ours.

    Vistar CEO and Co-Founder Michael Provenzano

    Is supply expanding too fast?

    There’s probably a few billion impressions unsold on a given month.  In terms of national scale it’s pretty large.  I always tell people our business is not supply constrained.  It’s demand constrained…media owners are installing a lot more screens.  It’s a basic economics problem.  You’re increasing supply at a rate which is faster than you’re increasing demand.  One of the problems that Vistar works on is trying to explain to brands and marketers and agencies why out of home is so valuable…It’s a medium that I run into every day living in New York.  It’s pretty valuable, why is it growing 2% year over year?

    On privacy.

    We don’t do one to one targeting because that could get pretty invasive…There’s a fine line.  You can get more targeted.  Getting personal is a different thing…Personal is dynamic creative.  Talking to an individual.  Messaging.  Sets of products which fall into intimate lifestyle decisions.  Those are the kinds of things I’d draw the line on versus buy coffee here versus there or buy an F-150 versus a GMC.

    On the size of the programmatic out of home market.

    We think the programmatic out of home landscape is about $80 million this year.  We consider ourselves over 80% of that.  And going into next year we’re seeing it about a $150 million space.  It’s growing quite nicely year over year

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