Revenue forecast for 2017 +2% with digital set to hit 40% of all OOH spend
Nearly every OOH media owner invested into digital in 2016, and that trend is set to continue in the coming year. Some of the major OOH media owners claim over 50% of their revenue in 2016 came through their digital assets. This investment from the OOH media owners is fast changing the landscape of OOH and arguably the UK’s most iconic digital screen – Piccadilly Lights – is even getting a face lift in 2017. The site is being transformed into one of the world’s largest screens, which will rejuvenate this historic landmark.
The speed of digital development is apparent when you look at 6 sheets and small format screens in the Capital. This year we will see Clear Channel and Primesight both compete with JCDecaux’s stronghold on the small format digital market in London, with both companies rolling out digital small formats screens. Primesight have struck a deal with BT and Alphabet-backed Intersection to bring Link-NYC kiosks to the UK, offering free calls, ultra-fast free Wi-Fi and state-of-the-art digital ad screen. The units just won’t be panels for advertisers to shout to the masses on, they will add value to the users and provide a huge data capture opportunity. This is the start of the Smart City concept.
Digital out-of-home (DOOH) is at the forefront of the growth the UK OOH market and with this continued investment from Media Owners, combined with the flexibility and unique benefits that DOOH can offer, we forecast 40% of all OOH spend to be digital by the end of 2017.
The next step will be how we buy the space on these screens, and ensure we utilise the wealth of data which is becoming readily available from numerous sources – Mobile data, retailer data, and even the data the units themselves capture – with number plate recognition and facial recognition becoming standard on these new build screens. There are various tests happening over the course of the year, exploring various different trading mechanics and also how we can automate the buying process and the creative delivery, making dynamic ads standard! Whilst the advertising industry hasn’t yet quite cracked how to utilise Beacons, the infrastructure is still preparing for them, with the beacons still being installed on these sites.