The Billboard Insider Podcast
00:09:24 · Jonathan Gudai, Dave Westburg
[00:09:24] S1: And so it it is it is eight second ads. And what's unique also is that they're they're video supported where that's compliant. Mhmm. And the the neat thing about what we've done is through our partnerships with the billboard operators and owners, we are able to tell that story on the tops of the Ubers and on the digital billboards as, a screen sequencing. [00:09:47] S0: Wow. Wow. So so are you saying that the the the ad on top of the Uber car may be... May complement or enhance an ad that's showing on the local digital billboard? [00:09:58] S1: That's exactly right. Wow. And so it comes in in two flavors. [00:10:01] S0: Yeah. [00:10:02] S1: There's some brands who just... They wanna own the market. They want, you know Yes. They want everyone in Atlanta to know about this new product or service. Mhmm. And so they'll be doing a campaign where the billboards have, you know, one of the eight ad plays or two of the ad plays, whatever, showing the ad as, like, a static image. Right? Most billboards are not video. It's static image. [00:10:21] S0: Yes.
00:10:21 · Dave Westburg, Jonathan Gudai
[00:10:21] S0: Yes. [00:10:21] S1: And then a similar ad with video is playing on the Ubers. So when you're in the in the passenger seat or you're a pedestrian walking down the street and you look up and there's that 14 by 48 with an ad, and he looked at his side and there's an Uber at the ad, It's penetrating that that mind share that everyone is is trying to get. Right? The the holy grail that one's attention. Mhmm. But then there's another cool thing that we're doing that because we know where the vehicles are, we have their latitude and longitude at every time because it's talking to our technology platform. We can also have brands say, but you know what? I really only wanna heavy up on those ads being shown on the billboards when there's cars in proximity. Mhmm. And so if they don't have a budget to blank an entire town and and have every billboard or lots of billboards always playing it like a traditional buy, then we can do some triggering of the ads to just start programmatically serving when we know that that car is within the, you know, the proximity to the billboard that doesn't have that ad.
00:11:19 · Dave Westburg, Jonathan Gudai
[00:11:19] S0: Let's take a break here for a word from our sponsor. This podcast is brought to you by Samsung LED displays. Selling digital out of home ad space used to be a nightmare, but now there's an easy way to make the most of your digital display, programmatic advertising. This new technology empowers you to earn income on your investment with ease. You control who can advertise, what, when, and for how long. An online marketplace takes care of the rest. Get the free guide from the experts at Samsung to find out how to earn fast, reliable ROI on your digital displays, visit billboardinsider.com backslash Samsung. Jonathan, last year, you claimed that programmatic could potentially double the digital out of home ad spend. Is that still possible? [00:12:04] S1: I I think that we can more than double what we're seeing now and with some of the the last eighteen months progress that that we and others, you know, in our industry are are making. Mhmm. So, yes, short answer is I absolutely think that's possible. I think that's possible within the next two to four years and even with a COVID, you know, adjusted environment. Mhmm. And so the short answer, absolutely yes. [00:12:30] S0: How does that happen?
00:12:32 · Jonathan Gudai
[00:12:32] S1: Yeah. So there's a few different ways. And I I first think it's important for us to recognize that... Let's just talk US right now. Mhmm. Let's say that we're somewhere between two and a half and three billion dollars across all of digital. Now I know that billboards are the focus of this podcast, but Mhmm. And the biggest component of that. But we do think about it in terms of where are we starting and where do we need to go. Mhmm. And so if we even use such more conservative numbers, say, it's 2,500,000,000. Mhmm. So what do we even do to go from 2.5 to five? Mhmm. And there's a a lot of different ways to to look at that question. But for us, it's thinking about how do we bring new buyers into the marketplace Mhmm. So that it's not just incumbent upon us to have the existing out of home specialists and brands alone carry that load, but really tap into some some other really large channels. And for us, there's a few... What we've seen to... We think that's almost obvious ways to do that. The first is just these... The the the programmatic online digital media buyers. Mhmm. So those are... The... Those are the companies that are buying mobile ads. Now they're buying connected TV ads, display video ads by going into a a platform and then, you know, building their campaign, uploading their creative, and having it flow straight to the screens, and then they get built. Mhmm. If you look at that market, and let's just even peel it back and say, let's only focus on display ads. So display ads are those banners that you have on your website, Dave, and you can find all across the Internet. You go to cnn.com with banner ads.
00:14:07 · Dave Westburg, Jonathan Gudai
[00:14:07] S0: Sure. [00:14:07] S1: So in The US alone, over $50,000,000,000 a year are spent on just display ads. [00:14:16] S0: So you're saying you're saying that's a 15 times greater market than out of home, 15 or 20 times greater market. [00:14:23] S1: That's right. [00:14:24] S0: So a little fraction of that comes into out of home, and the market doubles. [00:14:28] S1: But think about this, Dave. When marketers are going in and buying their display banner ads Mhmm. The average click through rate of a banner ad across, like, the entire universe of banner ads, if you look at what eMarketer says and all that Mhmm. Is around 0.3%. So one out of every 300 people Mhmm. Who see a a display banner ad will click on it. Mhmm. And so the way that I look at that is display ads are billboards. Right? Yes. If 299 out of 300 people are not clicking on it, then marketers are okay with a with a with a medium that's pretty much an awareness and billboard type model. It just happens to be on your five inch iPhone. Right? Five inch screen. [00:15:11] S0: Yes. Yes. [00:15:12] S1: And so for us, it says, okay. How does out of home... Digital out of home tap into that $5,060,000,000,000 dollars? [00:15:19] S0: Mhmm.
00:15:19 · Dave Westburg, Jonathan Gudai
[00:15:19] S0: Mhmm. [00:15:19] S1: And for us, it has to look and be bought and eventually be measured as closely to the way that that channel is being done. And if it could and if it could be done that way, then the lines blur between our traditional medium and this digital slash next generation medium. And it all becomes just... You you want audience? You want geos? Well, we can extend what you're doing in the small screen to the big screen, and it's got the... And and and the beauty of it, and this is where I I think we we we... You know, very few people understand this, and we have a we have a big effort in the next couple years to to solve this, is that by combining your your digital billboards with your display ads Mhmm. Or your Facebook social media ads or your Google search ads, then those will will perform better Yes. Because of the digital out of home screens. [00:16:15] S0: It amplifies and it it works in connection with other kinds of advertising. Yep. [00:16:19] S1: Exactly. Mhmm. Exactly. And so and so that's the name of the game. I mean, at the end of the day, what it all boils down to is results. Can a marketer sell more movie tickets or sell more skincare products or whatever? And and and I don't know that that most of these digital buyers understand that this channel amplifies what they're doing. Mhmm. So that's what I wanna really work on personally. I wanna see us as an industry and and and our company get that word out about case studies and testimonials and how it is a performance enhancer. [00:16:51] S0: Yes.