Daniel Siegmund, Founder and Managing Director of the One Tech Group, takes exclusively for invidis a look at technological advances currently shaping the DooH and retail media market.
One year after our last review of developments in the DooH and retail media industry, one thing can be said: the momentum in the industry area remains unbroken. Developments, particularly in technology and data integration, are leading the industry to be optimistic for 2024. Time to review some of the most important developments that will continue to impact what’s to come:
DooH growth and the evolution of programmatic
DooH continues its impressive growth trajectory, not only in terms of inventory expansion, but also in ad spending, as the latest Nielsen figures support. A driving force behind this success is the increased use of programmatic DooH, enabling media buyers more precise and targeted advertising. The seamless integration into programmatic omnichannel campaigns ensures efficient and effective use of resources and at the same time creates even more relevance for the high-reach medium.
Real-time analytics and DCO
The importance of situational communication – also known as Dynamic Creative Optimization (DCO) – will continue to increase. Available data such as location, time or weather enable the industry to create dynamic content which can be adapted in a targeted manner or changed depending on the situation.
Basically, it is always about reaching a potential target group in the best possible way and, in particular, maximizing the relevance of the content for the viewer and consumer. In the future, real-time analytics solutions will also open up completely new possibilities, using sensor technologies to generate real-time information about the audience anonymously in front of a screen. From this, extremely relevant targeting segments can be defined, on the basis of which the campaign is controlled. Within SSP1, for example, such targeting segments can also be made available for programmatic bookings.
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Retail Media in the spotlight
Retail Media was still more a vision than reality in 2022 but gained momentum in 2023, especially at retailers like Rewe and Obi. The focus is, among other things, on the retailers’ unique database, which will continue to gain in importance in 2024 – both online and in-store. At the same time, many of the retailers achieve enormous reach within the stores, which means that the screens are (will be) highly relevant not only for endemic customers, but also for non-endemic advertising customers.
In this respect, it can be assumed that additional in-store networks will be installed in stores in the coming years. The combination of high reach and granular data in particular creates new communication opportunities for advertisers, with a precise focus on target group needs.
Technology as the key to success
In order to be well prepared for the future, using the right tech stack is crucial. This should reflect the different approaches and use cases as best as possible without creating too much complexity. Both DooH and retail publishers are increasingly relying on a technological infrastructure that ensures flexibility and efficiency while at the same time giving advertisers easy and targeted access to inventory, for example via programmatic value creation. The control and optimization of different campaign models, from direct bookings to programmatic, should be part of a platform solution in order to monetize screens in the best possible way.
Outlook for 2024
Despite global political and economic challenges, the industry can look forward to 2024 with confidence. The expected strong growth will be supported by the progressive integration of technology, data and creative approaches. The path forward will be paved by innovation and adaptability, and the industry remains an exciting and dynamic environment for advertisers and technology providers alike.