The Billboard Insider Podcast
00:14:07 · Dave Westburg, Jonathan Gudai
[00:14:07] S0: Sure. [00:14:07] S1: So in The US alone, over $50,000,000,000 a year are spent on just display ads. [00:14:16] S0: So you're saying you're saying that's a 15 times greater market than out of home, 15 or 20 times greater market. [00:14:23] S1: That's right. [00:14:24] S0: So a little fraction of that comes into out of home, and the market doubles. [00:14:28] S1: But think about this, Dave. When marketers are going in and buying their display banner ads Mhmm. The average click through rate of a banner ad across, like, the entire universe of banner ads, if you look at what eMarketer says and all that Mhmm. Is around 0.3%. So one out of every 300 people Mhmm. Who see a a display banner ad will click on it. Mhmm. And so the way that I look at that is display ads are billboards. Right? Yes. If 299 out of 300 people are not clicking on it, then marketers are okay with a with a with a medium that's pretty much an awareness and billboard type model. It just happens to be on your five inch iPhone. Right? Five inch screen. [00:15:11] S0: Yes. Yes. [00:15:12] S1: And so for us, it says, okay. How does out of home... Digital out of home tap into that $5,060,000,000,000 dollars? [00:15:19] S0: Mhmm.
00:15:19 · Dave Westburg, Jonathan Gudai
[00:15:19] S0: Mhmm. [00:15:19] S1: And for us, it has to look and be bought and eventually be measured as closely to the way that that channel is being done. And if it could and if it could be done that way, then the lines blur between our traditional medium and this digital slash next generation medium. And it all becomes just... You you want audience? You want geos? Well, we can extend what you're doing in the small screen to the big screen, and it's got the... And and and the beauty of it, and this is where I I think we we we... You know, very few people understand this, and we have a we have a big effort in the next couple years to to solve this, is that by combining your your digital billboards with your display ads Mhmm. Or your Facebook social media ads or your Google search ads, then those will will perform better Yes. Because of the digital out of home screens. [00:16:15] S0: It amplifies and it it works in connection with other kinds of advertising. Yep. [00:16:19] S1: Exactly. Mhmm. Exactly. And so and so that's the name of the game. I mean, at the end of the day, what it all boils down to is results. Can a marketer sell more movie tickets or sell more skincare products or whatever? And and and I don't know that that most of these digital buyers understand that this channel amplifies what they're doing. Mhmm. So that's what I wanna really work on personally. I wanna see us as an industry and and and our company get that word out about case studies and testimonials and how it is a performance enhancer. [00:16:51] S0: Yes.
00:16:51 · Dave Westburg, Jonathan Gudai
[00:16:51] S0: Yes. [00:16:51] S1: And then the and then the second part of it is, well, how do I do it? Mhmm. Right? Like, if it still takes weeks to plan and buy, then these digital buyers who are used to minutes or days are just not gonna do it. Right? Mhmm. And so that's where we come into play where we built our demand side platform where you go online, you build your campaign, literally can do it in minutes Mhmm. Or go to your omnichannel DSP. Go to a mobi. Go to data global. Soon, you'll able go to The Trade Desk because one of the larger ones. [00:17:22] S0: Yes. [00:17:22] S1: And we gotta bring digital home to the the buying community. Mhmm. And I think that's what not just grows it by, you know, from two and a half to five. I think that $10,000,000,000 in The US in the next five years is not outside the realm of feasibility. [00:17:39] S0: Wow. Wow. That's a... Yeah. [00:17:41] S1: Yeah. Yeah. I mean... And it's not unprecedented either, Dave. Like Mhmm. If you look at if you look at how quickly Amazon went from zero to... I think last quarter, they did $4,000,000,000, you know, in in in q two. So let's call them 15,000,000,000. From zero to 15,000,000,000 per year in, like, three or four years. [00:18:02] S0: Wow. [00:18:02] S1: Let's look at connected TV and how the money is flowing out of linear television and into streaming apps, and that is the fastest growing programmatic channel, and that's gonna be upwards of $10,000,000,000 in the next year or two. Look at TikTok. [00:18:16] S0: Wow. Right? Yep. Yep.
00:18:16 · Dave Westburg, Jonathan Gudai
[00:18:16] S0: Wow. Right? Yep. Yep. [00:18:17] S1: It... It's just all all these things are happening, and that's what's amazing. That... That's what the technology can do to dramatically change the way ads are bought and sold. We just have to let it happen. [00:18:29] S0: So Nirvana is a four x greater market. What could interfere with that projection?
00:18:29 · Dave Westburg, Jonathan Gudai
[00:18:29] S0: So Nirvana is a four x greater market. What could interfere with that projection? [00:18:35] S1: So in in many ways, I think that we are masters of our own destiny as an industry. The decisions that we've made over the last few years and the decisions we're gonna make over the next couple of years are gonna determine how fast we grow. Mhmm. And what I mean by that is that it really starts with the supply. You know? They do a billboard. Just billboards in general have been bought a different way Mhmm. For as long as they've been sold. Right? And and it's worked. Right? I mean, there's been solid growth, and there's been more and more, you know, digitization, and and companies are happy. It's only been over the last few years that, you know, the savvy media owners have said, okay. We know we have this this thing that works on on the one side with our direct sales teams and traditional selling, but we need to open it up, and we need to have the... Both of these models coexist. Mhmm. And so, really, it's been over the last year or two that the supply has finally hit a critical mass where there's been enough impressions in the Adomni platform, in Vistar, and other other companies where you can get a big brand excited who's buying digital. Mhmm. And so we need it from an... What can interfere? We need to keep doing that. Like, we've we've made great headway, but there's still lots of independent independent Billboard guys who are still not selling programmatically or haven't chosen the CMS that would make that possible. [00:19:52] S0: Yep.
00:19:52 · Dave Westburg, Jonathan Gudai
[00:19:52] S0: Yep. [00:19:52] S1: And so in order for us to grow our medium four x or two x in the next few years, we need buyers to be able to fulfill their campaign sizes. And whether it's the largest media buyer in in in the world or it's the local guy, it it has to work. Right? You have to be able to to get these ads on the screens and have someone say, wow. That actually... Like, I tried it. Mhmm. And I spent all my budget, and it worked. And so there's there's definitely still work to be done to get the supply side on onboard there. You know, the measurement piece, I'd say, is probably the the biggest and the one that's the most of a moving target. Digital buyers are used to a report that says, you know, I I spent $500 on Facebook. I had this CPM, and I have this many clicks and this many purchases or whatever their conversion metric was. [00:20:37] S0: Yes. [00:20:38] S1: With with us not being a direct response medium, we need to to really solve the perception for the buyers that when you add the... Out of the billboards into your mix, you're gonna see that Facebook click through rate go up. And so if you do, like, an AB test, you'll see that that the b will perform better. [00:20:57] S0: Yes.