Programmatic pipes and a fresh wave of consolidation have transformed out-of-home into a magnet for strategic buyers. Dealmakers and industry leaders explain why the smart money is heading outdoors…

Out-of-home advertising has long been the industry's most visible medium, yet one of its least data-rich. That is changing fast. Digitisation has handed OOH the pricing, targeting and measurement tools that online channels have enjoyed for years, taken the medium well beyond just a brand awareness play.

So what makes OOH so attractive to strategic buyers and investors right now, and where are the opportunities? ExchangeWire asked dealmakers, advisers and industry leaders for their take…

What does the industry think?

"It's no longer just about screens..."

OOH is one of the most investable ad tech categories right now because it's no longer just about screens. T-Mobile's $600m acquisition of Vistar Media brought real telco location and audience data into the category, levelling OOH up into an addressable, measurable channel.

Layer in Broadsign's roll-up of Place Exchange, and you've got both the data sophistication and the consolidation logic that keep strategic buyers circling. That combination is why OOH remains one to watch.

Abeed Janmohamed, Director, Volando

"Innovation in measurement, engagement and creativity..."

Zero-click and AI search are turning consumers away from traditional publishers on desktop and mobile web, pushing marketers toward CTV, DOOH and in-app mobile. While the US is years ahead of Europe in CTV, the reverse is true in DOOH, where innovation in measurement, engagement and creativity has made the channel more effective.

European urban-centric mass transit versus U.S. automobile-centric commuting has long helped drive that success. America’s big, dumb networks are poised to catch up as ownership turns over. Look for U.S.-to-Europe M&A as buyers import those innovations. And maybe, with these oil prices, more Americans taking trains and buses too.

Nick MacShane, founder and senior managing director, Progress Partners

"OOH is the one major ad medium you can’t block, skip or scroll past"

The digitalisation of OOH has been a game changer, finally giving the medium the pricing, targeting and measurement capabilities that other adtech channels have had for years, making it a genuinely viable option for brands that have, until now, been gorging on data-driven online ad campaigns. Add in the fact that OOH is the one major ad medium you can’t block, skip or scroll past and it’s clear why the sector is growing at 15%pa.

However, OOH still only represents 5.1% of global ad spend so there’s significant headroom, which is why the investment community is taking notice of an opportunity that spans across many asset classes: from media owners (such as Clear Channel; i-Media), to specialist agencies servicing brands directly (such as Talon), to pureplay technology and software businesses.

Catherine Crawley-Boevey, Partner, Highstead Partners

"A channel with unique properties..."

Winterberry research in February this year found that Digital Out of Home Advertising is a critical priority for marketers looking to invest expand beyond retail media into connected commerce, with 65% citing digital bill boards and 63% digital instore and POS as best supporting their connected commerce investments.

Additionally, 62% of brand marketers said that the full integration of planning and buying of digital out of home into the programmatic workflow would allow them to capitalise on the unique properties of the channel.

Charles Ping, Managing Director - EMEA, Winterberry Group

"Data and location intelligence are transforming how we understand audiences."

OOH has that rare combination of attention, scale and significant technological headroom.

It already delivers powerful real-world reach and high-impact environments and our ability to make that proposition smarter is accelerating fast. Data and location intelligence are transforming how we understand audiences; automation is driving greater speed and efficiency; and advances in measurement are proving impact across the funnel.

In an increasingly fragmented media landscape, real-world mass reach is becoming even more valuable. That enduring demand from brands, combined with the opportunity for technology to make OOH smarter, more efficient and more measurable, is what makes the category so investable. And there’s still plenty more growth to come.

Susie McAvoy, Managing Director, Mx Location