Most of the headlines in the media industry revolve around connected TV, search and programmatic purchasing of digital inventory. Media channels that operate closer to the edge of mainstream marketing budgets – digital out-of-home, experiential and cinema advertising – receive far less attention.
Regardless of whether that's fair, it's a reality that these so-called alternative media outlets are still struggling to secure larger budgets, especially during times of economic uncertainty – which the marketing industry is still struggling through, hoping in 2024 to reach more fruitful marketplaces.
Nevertheless, marketers are calling for at least abandoning alternatives for several reasons. On the one hand, the connected TV market remains somewhat confused, with convoluted measurement issues, new entrants on the ad-supported side still finding their feet, and a lack of clarity around the inventory being accessed through programmatic means. On the other hand, the large platforms such as Meta and Google are under different microscopes for data protection violations and a lack of transparency in the purchasing process.
“We are being asked more and more for ideas that are not off the shelf,” said Jeff Matisoff, partner at the digital shop Jellyfish, which is part of the Brandtech Group. “Part of it is fear of where linear technology is going, and part of it is just a fatigue of the default options – not even just fear of what could be, but just fear of what could be, but simply from marketers looking for new things that are not available to them via Google, Facebook, X or others.”
Digital OOH
Digital OOH appears to be most attractive as an alternative to traditional digital options or CTV. This is due in part to the fact that more and more OOH digital inventory can be accessed through programmatic means – meaning better audience data comparable to other programmatic inventory.
“We are seeing a lot of interest in Programmatic Out of Home – both customer interest and our ability to transact, measure and show performance have increased tremendously,” Matisoff said. “It has big screens and a huge impact in the places people go, especially post-COVID as people get out more and more.”
GroupM forecast digital OOH to grow 18% in 2023 to $12.37 billion – with further growth of nearly 15% in 2024 to nearly $14.2 billion.
“We expect DOOH to see gains alongside CTV as advertisers look for data-driven channels that continue to meet brand reach goals that are increasingly difficult to achieve on linear television,” Kate Scott-Dawkins, president of business intelligence at GroupM, said in the Report.
With new, innovative DOOH destinations like The Sphere in Las Vegas, worlds of experience and OOH are increasingly crossing over. MSG, the owner of Sphere, has seen an increase in in-person engagement thanks to concerts and other events (including the scheduled screening of Darren Aronofsky's film “Postcard from Earth” during CES in January). Sphere has also seen a massive increase in social engagement. Given owner MSG's investment, the venue is also experiencing a significant financial loss, but top advertisers such as Coca-Cola, Heineken, Marvel and Xbox are said to be lining up to advertise there.
Cinema advertising
In cinema advertising, the segment is trying to return to pre-pandemic sales levels. And a strong box office year (thanks largely to Barbie and Taylor Swift) has given the segment a boost. GroupM's Scott-Dawkins said the cinema advertising segment will see another year of double-digit revenue growth in 2023 – nearly 15% to $2.2 billion, before growth slows to single-digit percentages.
“We do not expect the channel to exceed 2019 levels ($3.0 billion) within the next five years,” Scott-Dawkins wrote in her forecast.
Jellyfish's Matisoff is even more dismissive of cinema advertising, citing his own anecdotal experience that most people sneak into theaters right at the start of the film – thus missing most of the advertising before its running time.
“I’m a big film fan – I go to the cinema almost every week,” he said. “And as a media buyer, I pay attention to who is in the theater when these ads run. There is almost no one. Cinema is a market that urgently needs to be transformed.”
Not so fast, argued the two main proponents of cinema advertising, both of whom dismissed buyers' doubts that butts are in the seats when the commercials are playing. Manu Singh, director of cinema advertising at National Cinemedia, SVP of insights/analytics and sales data strategy, noted that when television is not held to the same standards (as in the case), where does the evidence remain that viewers actually care about advertising Watching it at home just because the TV is there), it shouldn't be in the cinema either.
“Give me the validated TV viewership data and we can compete with it,” Singh said. “Otherwise, when we look at it from third parties and pull the data on a weekly basis, then the story we see doesn’t match a person’s unique experience.”
Singh added that according to surveys conducted by NCM on validated cinema attendance, more than 90% of the audience sits in their seats 10 minutes before the public screening. “Most of the advertising is there,” she said.
Christine Martino, chief revenue officer at Screenvision, said the company offers tiered pricing that increases as the published airtime approaches. The top item Screenvision sells, for example, is a 60-second spot that runs right after the final trailer and right before the film begins, but prices vary beforehand.
“We know exactly what percentage” of the audience is in their seats in advance, Martino said. “This way we prorate our impressions so that you never buy 100% of this film's likely audience. You buy the percentage of the audience that we know will be in their seats when your spot runs. The price is accordingly.”
Ultimately, the state of the economy will determine how and where customers spend money on alternative media, Matisoff said. “On good days, when all budgets are high and performance is great, [clients say] 'Yes, please, let's look at these things,'” he said. “When we find ourselves in more difficult times, which we are certainly in right now, they fall behind a little more.”
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