IAB Australia's State of the Nation report finds three in four agencies expect to lift programmatic out-of-home spend, but only if it proves itself. Use of market mix modelling to judge outdoor jumped from 32% to 51% in a year.
The Take: IAB Australia's new report says three in four agencies expect to spend more on programmatic digital out-of-home over the next year, and the interesting part is what they now want in return. The channel has moved from a novelty to a line item that has to prove itself. Digital billboards you can buy like display ads are growing up, and the buyers are bringing a spreadsheet.
The signal: IAB Australia's State of the Nation report surveyed 163 advertising decision-makers and found three in four expect their programmatic out-of-home investment to rise over the coming year, according to B&T. IAB Australia chief executive Gai Le Roy said the conversation has shifted from "explain it to me" to "prove it to me", as AdNews reported.
The mechanics: The measurement shift is the real story. Agencies using market mix modelling to judge outdoor performance jumped from around a third to about half in a single year, per IAB Australia. Sit with that. A channel long sold on reach is now being marked against sales.
Share of agencies using market mix modelling to judge outdoor ad performance, up from 32% a year earlier
The context: Programmatic outdoor is rarely bought alone. Agencies most often plan it alongside digital video, at 86%, then social media and connected TV, both at 83%, with retail, fast-moving consumer goods and government the biggest spending categories over the past year. That is the tell. Outdoor is being folded into the same buy and the same measurement as the screens people carry, not treated as a separate poster budget.
For Australian operators: If you buy programmatic outdoor, buy it like performance media rather than a brand billboard. Set the measurement method before the campaign, whether that is market mix modelling, geo-lift or store-visit data. Ask for the same reporting cadence you demand from your paid social. Outdoor you cannot measure against a business outcome is a brand cost, so book it honestly as one instead of dressing it up as performance. The agencies keeping this budget are the ones that walked in with a measurement plan rather than a showreel, and you should expect the same discipline of yourself.