Today’s podcast guest is Russell Abdullah, Head of Strategy and Planning -Display Division at Samsung Electronics America says that Samsung got interested in digital out of home when it saw how out of home advertising boosted store visits.  Here are the highlights from Russell’s interview.

Podcast: Play in new window | Download (Duration: 26:50 — 37.0MB)

Review Samsung’s history with out of home.

Samsung is the #6 most recognized brand in the world…The way specifically Samsung got involved with the out of home space…was during the Galaxy S9 launch when they actually started to adopt that ad delivery protocol.  And what they had noticed from an ad and marketing perspective was that by implementing programmatic advertising digital out of home they saw an 8% life in consideration, a 6% lift in purchasing intent but most importantly a 15% lift in in-store visits…we saw a 15% lift in in-store visits by just putting a billboard or a kiosk signage in the right place serving the ad at the right time.  15% is a big deal for us….If you think about the new phones, the Galaxy S20, it’s been a bit of time since we took our first foray as a media buyer.  And so over the course of the last 3-4 years we’ve started to think about the value proposition that we can have to our end customers on the display side…out of home LED or indoor LFD or hybrids…and we wanted to start considering how can we increase the value proposition in a very crowded marketplace…

What trends are you seeing in the out of home industry?

The biggest trend we are starting to see is the digitization of billboards…what you’ve seen is…roughly a 38% increase from 6,400 to 8,800 between 2016 and 2019 while at the same time you saw a 7% decrease in the number of billboards.

What trends are you seeing in programmatic out of home?

We’re seeing the same trends in digital out of home that we’ve seen in some of the more traditional ad platforms that I grew up in.  If you look back about a decade ago, most of your desktop web display was…ad agency contacts the publisher, an ad is agreed upon and it’s set.  It’s a specific buy each time an ad campaign needs to run…Fast forward about 10 years and now programmatic serve 84% of every ad you see on your desktop.  Mobile followed…and now 60% of every mobile ad you see is served through programmatic.  Same with video, primarily youtube…all that’s done through programmatic…Now digital out of home is probably a little further behind…the out of home market is $1.2 billion…if you look at the potential for the digital out of home market you’re looking at a $42 billion industry…we’re only in early days here.

What is Samsung doing to help out of home companies take advantage of programmatic advertising? 

So we have arguably the largest commercial signage footprint, at least in the US…we have the opportunity for our expansive end customer base to start realizing this opportunity…

Samsung is partnering with Vistar Media.

We went through a fairly exhaustive…selection process and we arrived at a company called Vistar Media…I’m partnering with them to build a native solution within our content management system, our delivery system, magic info, to be able to open up all end users to the programmatic ecosystem.  We went live with the integration in March…Most recently we’ve started putting really earnest development on the Prismview part of the solution

If I buy a new Samsung Prismview digital sign does it have a pipe installed into Vistar?

Magic info and Vistar’s partnership is alive and working….I think what we have with the Prismview solution is the ability to reach a broader market…the opportunity to access the advertising dollars is now being realized by the…smallest player.

Impact of privacy measures on out of home. 

I think there’s less of an impact…Privacy is super important…What these privacy laws are really focused on is exposing our PII, our personally identified information…in out of home we don’t generally have that problem.  We’re not using PII to reach the broad base.  We’re using…assumed demographics…Let me give you an example.  If there’s a Taylor Swift concert happening at an arena I’m…likely to guess that there’s going to be men and women age 18-25 going to that concert.  That’s not PII…Digital out of home doesn’t fall into the scope of what desktop is doing…where it gets a little grey is if you using a camera…I believe what we’re going to see is counting tools than actual physical cameras that are looking at human beings.

To discover how you can generate value from your digital display download Samsung’s free guide to programmatic advertising.

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