The Digital Out-of-Home (DOOH) sector has been growing steadily now for several years. In fact, in terms of revenue, there has been seven consecutive years of growth. And according to recent data from the Outdoor Media Association, DOOH saw a 15.8 percent growth in net media revenue over the past year, and PwC predicts that DOOH advertising revenues will overtake traditional spend by 2020.
AdSemble, the online marketplace for DOOH advertising, is making waves with its business model that allows potential clients to name their own price for DOOH campaigns. Digital Signage Connection recently caught up with AdSemble’s Founder and CEO Matthew Olivieri for a discussion that expanded on the DOOH landscape and how it’s informing the company’s approach:
Q: What is the main driver or drivers, in your opinion, for the increased adspend on DOOH versus traditional out-of-home media?
A: The next generation of media buyers, planners, marketing directors and managers are growing up with the medium. When these individuals eventually take control of these positions at ad agencies or companies, it will be a natural expectation to want to include DOOH in their media plan mix.
Q: Why, in your opinion, will it take until 2020 for DOOH to fully overtake traditional spend? What mainly accounts for such a delay if there is so much opportunity around DOOH?
A: You currently still have a very large consortium of “purists” who firmly believe in the Big Three approach as the way you most-effectively get out a mass communication. Added also is the fact that a few whale accounts such as McDonald’s, Apple, Verizon, Warner Bros. etc. make up a lot of the reporting data. And these firms are run by traditionalists. Ad agencies do not seek to rock the boat. So, until either someone comes along and helps unlock the ability for SMB’s to purchase DOOH inventory at scale or these Whales have a change in people running them (younger marketing directors or managers who grew up with DOOH), you will see a big bottleneck there. AdSemble hopes to bring the former to fruition.
Q: What is differentiating DOOH from other areas of digital signage innovation?
A: The application of DOOH is still very much growing and changing every day. Advertisers are still learning how to unlock all of its capabilities, which makes the space have tons of exciting potential.
Q: Can you please expand on the thought process that eventually resulted in AdSemble becoming the leading online marketplace where advertisers can name their own price for digital out of home campaigns?
A: I have always personally been a big fan of the Ebay/Priceline model. When we created AdSemble, I wanted to bring that same flavor of buyer purchasing power to the Digital Out-of-Home advertising industry. In the beginning, we knew our thinking was very cutting-edge for the space, but our big bet paid off, and advertisers quickly took to the concept.
Q: What is your ideal vision for both AdSemble, and the industry as a whole, five to 10 years down the road?
A: For both AdSemble and the industry as a whole, we would like to see a continued commitment from the Big Four (Clear Channel Outdoor, Outfront, JCDecaux, Lamar) to erect more digital billboards and make them fully solar-powered. On top of that, we are confident the surface has not yet been scratched regarding the programmatic buying of DOOH advertising space at scale. We believe our technology platform is positioned to be the first-ever company to fully bring this idea to the industry.