In today’s fast-evolving advertising landscape, marketers are increasingly relying on data-driven strategies to reach their target audience. One of the most fascinating developments over the last few years has been the rise of Programmatic Digital Out-of-Home (prDOOH) advertising.
You’ve probably already seen this form of advertising without even realizing it—those dynamic, digital billboards you spot on your commute or while shopping are all part of this trend.
However, what’s truly exciting is that prDOOH is entering its next phase: Programmatic DOOH 2.0. This evolution is poised to revolutionize how brands connect with consumers and redefine the role of out-of-home (OOH) advertising altogether.
So, what does the future of prDOOH hold? Let’s dive in and explore where things are headed and why this could be the next big leap for marketers and advertisers.
What Is Programmatic Digital Out-of-Home (prDOOH)?
Before jumping into the future, let’s quickly break down what prDOOH is. Simply put, prDOOH is the programmatic buying of digital out-of-home advertising inventory. It takes the traditional concept of billboards, posters, and other outdoor advertisements and upgrades it with digital technology and data, making it far more targeted and flexible.
Unlike conventional OOH advertising, which requires lengthy lead times and manual negotiations, prDOOH allows advertisers to purchase and display ads in real time, using data to ensure the ads are shown to the right audience at the right time. Thanks to advancements in digital technology, advertisers can now use algorithms to automate and optimize ad buying, much like they do for online display ads.
Now that we’ve covered the basics, let’s examine what prDOOH 2.0 means for advertisers and the industry.
Why prDOOH Is Gaining Momentum
In the early days, programmatic advertising was mostly limited to digital formats like display and video ads. Fast forward to today and we see that 90% of all digital ad transactions are now programmatic, including the rapidly growing sector of prDOOH. The benefits are clear: better targeting, enhanced flexibility, and the ability to optimize campaigns on the fly.
This evolution didn’t happen overnight. According to VIOOH’s CEO JC Conti, markets like the USA have been slower to adopt prDOOH, but regions like Germany are already experiencing higher adoption rates. By 2024, PwC forecasts that prDOOH will surpass traditional out-of-home (OOH) advertising in Germany, and globally, we’re seeing increasing traction.
One of the key factors driving this shift is the growing recognition of prDOOH’s ability to offer more precise, data-driven targeting. Advertisers are willing to pay higher CPMs (cost per thousand impressions) for prDOOH—often 30% higher than traditional DOOH—because it allows them to reach audiences more effectively. Add to that the flexibility of making real-time adjustments and integrating DOOH with other media channels, and it’s easy to see why prDOOH is becoming a favorite for modern marketers.
Key Factors Shaping prDOOH 2.0
Data: The Catalyst for Growth
The rise of prDOOH is intrinsically tied to data. In a world where third-party cookies are becoming obsolete, advertisers are relying more heavily on first-party data to reach their target audience. This is especially crucial in the context of OOH, where traditional methods of audience targeting are being augmented with advanced data.
One of the exciting things about prDOOH is its ability to tap into data sources like geolocation and behavioral insights, allowing advertisers to display contextually relevant ads. For instance, a sportswear brand could use weather data to promote rain gear when the forecast predicts showers, or a coffee brand might display its latest offer in the morning when commuters are headed to work.
This data-driven approach is key to prDOOH’s success. According to a report by Nielsen, integrating advanced data into OOH campaigns can lead to a 42% increase in return on investment (ROI), proving that personalization in advertising isn’t just a buzzword—it’s a powerful tool.
Dynamic Creative Optimization (DCO)
Another hallmark of prDOOH 2.0 is the growing use of dynamic creative optimization (DCO). DCO enables advertisers to serve up ads that change in real time based on audience behavior or external factors like weather, time of day, or even nearby traffic conditions.
Imagine walking by a digital screen in a busy shopping district, and the ad you see changes based on your proximity to the nearest store location. Or a car ad you pass on the highway might dynamically shift to showcase a feature that is more relevant to your driving conditions. 70% of consumers are more likely to remember contextually relevant ads, according to a 2020 study by Integral Ad Science (IAS).
In the future, DCO will be a game-changer, making ads not only more memorable but also more effective by delivering hypertargeted messaging at the right time and place.
Sustainability as a Driving Force
In the world of prDOOH, sustainability is no longer an afterthought. Today’s consumers are more environmentally conscious than ever before, and they expect the same from the brands they engage with. According to a 2022 study by Sharethrough, 80% of consumers prefer brands that actively work to reduce their carbon footprint. Brands are increasingly expected to prove their commitment to sustainability, both in their products and their advertising.
In response, prDOOH has become an important part of the green advertising movement. Digital out-of-home advertising, by nature, has a smaller carbon footprint than traditional static billboards because it eliminates the need for printing, transportation, and manual installation. But the industry is taking things a step further by partnering with Cedara to measure and reduce the carbon emissions of digital ads.
The Rise of 3D Creative
If there’s one trend that’s set to take prDOOH to the next level, it’s the use of 3D creative. You’ve likely seen 3D ads on social media, where they grab attention and generate buzz. Now, thanks to advancements in display technology, 3D ads are making their way into the OOH space.
Brands are already experimenting with eye-popping 3D visuals in key locations. Not only does this kind of creative content capture attention, but it also resonates with audiences on a deeper level—especially among Gen Z, who are drawn to innovative, immersive experiences.
According to Forbes, 3D ads can boost conversion rates by 40% compared to traditional ads, making them a valuable tool for advertisers looking to push boundaries.
Retail Media Integration
One of the most exciting developments in prDOOH is the increasing integration of retail media. With retailers collecting vast amounts of first-party data through loyalty programs and digital touchpoints, this data can be used to deliver highly targeted ads at crucial moments in the buying journey.
Imagine you’re walking into a grocery store, and as you approach the snack aisle, you see an ad promoting a special discount on your favorite chips, a product you frequently buy based on your loyalty program data. This kind of integration between retail media and prDOOH is a powerful way to drive conversions and boost brand loyalty.
The Impact of Cookie Deprecation on prDOOH
As we move into a cookie-less future, advertisers are scrambling to find new ways to gather and leverage data for audience targeting. This shift presents a massive opportunity for prDOOH, which has never relied on third-party cookies to begin with. Instead, OOH uses geolocation data and other innovative techniques to reach audiences.
According to a McKinsey report, 41% of US consumers are uncomfortable with advertisers tracking their online behavior using cookies. This has led to a growing demand for privacy-first advertising solutions. In this new landscape, prDOOH stands out as an attractive option because it relies on first-party and contextual data, making it a reliable and effective solution for brands that need to adjust to the cookie deprecation world.
The Future Is Bright for prDOOH
So, what can we expect from prDOOH moving forward? The possibilities are endless, but a few things are clear: data will continue to be the driving force behind prDOOH’s growth, sustainability will be a major focus, and technological innovations like 3D creative and DCO will make prDOOH ads more impactful and engaging than ever before.
Ultimately, prDOOH 2.0 represents a huge leap forward in advertising. As programmatic advertising continues to evolve, we can expect to see more integration with omnichannel campaigns, more data-driven insights, and more ways to create personalized, meaningful ad experiences that resonate with today’s consumer. Brands that embrace these changes and harness the power of prDOOH will be well-positioned to stay ahead of the competition and thrive in the digital age.
The future of programmatic digital out-of-home is exciting, dynamic, and full of opportunity. Are you ready to embrace it?
