The DOOH Opportunity: How Perion is Helping Brands Bridge Offline and Online Investments with DOOH

During our Q2 2024 earnings call, we reported 41% year-over-year growth in our Programmatic Digital-Out-of-Home (DOOH) business for the second quarter.

DOOH advertising transforms ordinary public spaces into dynamic experiences, engaging audiences with eye-catching, personalized content in real-time. It harnesses cutting-edge technologies to target, deliver and measure unforgettable, immersive ads that connect brands with people on-the-go.

The global DOOH advertising market is expected to grow by 7.77% annually from 2024 to 2029, reaching a market volume of $25.12 billion by 2029, according to Statista. The category rapidly expands due to the convergence of technology and out-of-home media. Advances in display technology, increased connectivity, and data-driven targeting capabilities enable highly engaging and personalized ad experiences. Additionally, the ability to measure and optimize campaigns in real-time, coupled with the growing shift towards digital formats and programmatic buying, is driving advertisers to invest in DOOH to reach audiences on the move.

We have seen this growth firsthand through our full-stack DOOH programmatic solution, inclusive of:

• Precision Targeting with Global Reach: Utilize the power of DOOH to dynamically and accurately target audiences globally. Purchase ad impressions in real-time across our extensive network of DOOH media owners worldwide, activating screens from a vast source of global DOOH inventory.

• Engagement Along the Consumer Journey: Our programmatic stack enables real-time engagement throughout the consumer journey. Leverage extensive audience and location data to create custom segments and activate screens strategically positioned along these journeys. This approach enhances accuracy in reaching consumers and drives significant business outcomes. It also enables advertisers to measure the brand impact and performance of a campaign such as in-store visitation, foot traffic, and offline sales.

• Data-Driven Activation: Our platform’s real-time buying capabilities allow for dynamic ad placement, adapting to audience behaviors and environmental changes, maximizing the relevance and impact of ads on a global scale. Activate DOOH ads using unique tools such as proximity geofences, geotemporal heatmaps and a wide array of data triggers to enable contextual targeting.We also support advanced audience targeting with pre-defined, custom (based on first-party and third-party data), and cross-screen retargeting options, ensuring ads are highly relevant and effectively reach intended audiences.

Today, pDOOH revenue accounts for 18% of our total advertising solutions revenue, doubling from 9% last year.

“Our 41% growth in pDOOH underscores the effectiveness of our innovative approach to out-of-home advertising,” says Tal Jacobson, our CEO. “With our advanced, data-driven solutions, Perion is not just keeping pace with the market; we’re setting the standard for how digital strategies can seamlessly integrate with physical spaces to capture audience attention and drive real-world results.”

To better meet the DOOH opportunity, we completed our acquisition of Hivestack Inc., a global innovative full-stack programmatic DOOH company, in December 2023. Since its inception in 2017, Hivestack has been at the forefront of programmatic DOOH advertising and technology. This acquisition positions us as a leader in this emerging market, and we believe we are poised to capitalize on its anticipated growth.

An example of Perion’s programmatic DOOH capabilities, powered by Hivestack, includes one of the world’s most popular beer brands driving demand through strategic geographic placement and cutting-edge Dynamic Creative Optimization (DCO) using live-scoring data from professional hockey. Another example is a globally-renowned QSR chain leveraging proximity geofencing and dayparting via programmatic DOOH to drive incremental sales.

At Perion, we are strategically positioned to address a fundamental problem in the digital advertising industry, valued at approximately $700 billion. Brand advertisers face a complex challenge in today’s omnichannel universe: the task of identifying, connecting, delivering, and measuring compelling messages across multiple screens—including DOOH—and platforms at the optimal moments to maximize ROI for their advertising budgets.

To learn more about how to integrate DOOH into your media plans.

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