Digital out-of-home (DOOH) advertising consistently accounts for a growing share of total out-of-home ad spending. And, although it’s been a difficult year for out-of-home (OOH) advertising in general, with total spending dropping some 45% year-over-year in Q2, recent data [download page] from Verizon Media shows that, in the next 18 months, 6 in 10 (59% of) US advertising decision-makers involved in outdoor media spend expect to increase their DOOH spending.
The increase in spending will come somewhat slowly, with only 39% saying they will increase their spend on DOOH in the next 6 months, and 55% saying they will do so in the next year. However, the survey found broad confidence that, due to device fatigue and a shift to spending more time in essential business, on road trips and in distanced outdoor venues, DOOH is the right place to invest their advertising dollars.
That’s not to say that advertisers are finding DOOH buying to be without its challenges. More than half of these decision-makers say that they find buying DOOH very (8%) or somewhat (45%) difficult.
When asked to share their challenges in buying DOOH, half (50%) report that one such challenge is the high cost of advertising through this channel. Some 44% say that they find it difficult to find the right partner to work with, while others are finding management and optimization difficult (36%). To a lesser extent, respondents are encountering challenges such as unproven ROI or value of investment (31%), inadequate reporting or analytics capabilities (31%), a lack of budget for DOOH (26%) and DOOH not reaching their target audience (24%).
Even with these challenges, advertisers do recognize the benefits. Surprisingly – and perhaps reflecting their roles in outdoor media, the report indicates that the vast majority of respondents feel that DOOH has stronger reach and KPIs than social media or digital display (94%). Furthermore, they are in general agreement that DOOH has improved their brand metrics (92%) and can deliver both upper and lower funnel metrics (91%).
The full report can be found here.
About the Data: Findings are based on a survey of about 250 US decision-makers in outdoor media spend.