VIOOH Blog

Unveiling the promising future of programmatic digital out of home in Brazil

Written by Gavin Wilson | Dec 4, 2024 9:00:00 AM

When I spoke at the IAB Brazil Adtech & Branding 2024 summit recently, I was pleased to see a market already in the midst of a digital transformation, where programmatic digital out of home (prDOOH) is fast becoming a game-changing tool, offering brands innovative ways to engage audiences in public spaces.

This year, Brazil was the guest market in VIOOH’s annual State of the Nation research, which surveyed 1200 advertising and agency executives in 6 countries globally. The Brazilian prDOOH landscape is showing remarkable promise, with adoption rates closely approaching global averages. Currently, prDOOH is incorporated in 25% of campaigns in Brazil, just shy of the global average of 27%. This impressive early adoption sets the stage for significant growth, with prDOOH expected to feature in 32% of media plans over the next 18 months.

The impact of prDOOH is already substantial, with 51% of respondents typically buying DOOH campaigns in a fully programmatic fashion, while nearly half (47%) are adopting a hybrid model utilising both direct and programmatic buys. This shift underscores the growing recognition of programmatic's ability to offer unparalleled flexibility, scalability and real-time agility.

Brazilian marketers are enthusiastically embracing this opportunity, with 43% reallocating budgets from other digital channels, 29% shifting spend from traditional media and 17% creating entirely new prDOOH-focused budgets. This willingness to invest speaks volumes about the value and possibilities of prDOOH in the market.

While challenges exist, they present opportunities for growth and innovation. One key area for development is education about prDOOH capabilities and technology. With 39% of Brazilian respondents citing a knowledge gap as a challenge, there's a clear opportunity for industry leaders to step up and provide comprehensive education and training. As understanding grows, so too will the confidence to leverage prDOOH's full potential.

The role of prDOOH in broader advertising campaigns is another area ripe for exploration, with 43% of respondents expressing a desire for a better understanding about this. As more success stories emerge demonstrating the measurable impact of prDOOH campaigns in driving both brand awareness and conversions, its position in advertisers' strategies will solidify.

Expanding DOOH inventory beyond major metropolitan areas is another exciting frontier. As digital infrastructure expands across the country, new audiences will be unlocked, creating more diverse advertising opportunities within prDOOH, and likely addressing the concerns of 34% of respondents who identified limited inventory as a challenge.

Data accuracy and availability, a concern for 39% of respondents, is an area where significant advancements can be made. The industry is poised to work towards better standardisation and transparency in data collection and usage. Partnerships with third-party data providers and mobile location services could dramatically improve the accuracy of audience insights, allowing for more effective targeting.

The integration of prDOOH with other channels presents perhaps the most exciting opportunity for innovation. While 34% of respondents cited this as a challenge, it paves the way for the development of tools that facilitate omnichannel planning and measurement which will enable advertisers to create more cohesive, cross-channel campaigns that resonate with audiences across multiple touchpoints.

Measurement and attribution, while challenging (cited by 42% of respondents), are areas where technological advancements are making significant strides. The increasing sophistication of mobile location data and cross-device tracking is gradually improving attribution capabilities. As these tools become more widely adopted in Brazil, advertisers will be able to demonstrate the tangible impact of prDOOH on both online and offline actions more effectively.

The enthusiasm of marketers, rapid adoption rates, and the willingness to invest point toward a positive future for prDOOH in Brazil. As education improves, infrastructure expands, and measurement capabilities advance, we can expect to see prDOOH become an integral part of advertising strategies across the country. Programmatic advertising enhances efficiency in creative changes, allowing for more dynamic exploration of different ad formats. It gives agencies and advertisers greater control over their strategies, fostering growth and enabling extensive testing.

Brazil, globally recognised for its creativity and award-winning advertising, is at the forefront of a digital transformation. This shift calls for DOOH to adopt a more data-driven, innovative approach, including A/B testing and other performance-focused strategies. The market has shown remarkable early adoption and is poised for accelerated growth. While challenges exist, they present opportunities for innovation, collaboration, and growth.

As Brazil continues to embrace digital thinking across industries, programmatic technology becomes a key tool for buying DOOH media, driving growth, optimising ad performance, and staying ahead in a competitive market. With industry collaboration, prDOOH is set to become a powerful force in Brazil's advertising landscape.

Gavin Wilson is Global Chief Customer and Revenue Officer at VIOOH. For more information visit: viooh.com