In the pulsating heart of New York City, a revolution is underway. OUTFRONT Media Inc. OUT is shaking up the advertising landscape with its latest move towards out-of-home (OOH) advertising. The company has set its sights on the soaring skyscrapers and bustling subways, unveiling plans to expand its programmatic transit advertisements in the midst of the Metropolitan Transportation Authority (MTA) system.
An Epic Expansion
All gears are turning as this expansion project aims to clothe nearly all subway stations owned by the MTA in a shimmering robe of digital ads. The sprawling metropolis of New York City, with its five boroughs and key Long Island and Metro-North Railroad Systems, is about to be blanketed by a wave of programmatically enabled transit ads — a first of its kind in America.
A New Era of Advertising
Fresh off the heels of a triumphant pilot launch in 2023, which saw over 900 Digital and Video Urban Panels (DUPs/VUPs) outside MTA subway gates dazzle commuters, OUTFRONT is now reaching further. With this expansion, the stage is set for advertisers to captivate millions of commuters with a myriad of active Liveboards positioned strategically inside subway stations.
These Liveboards, decked out in multiple formats, will serve as the perfect vessel to deliver targeted messaging based on the nuances of time, day, and location. The addition of more Liveboards will elevate the total number of programmatically enabled signs to a staggering 3,800 — extending across 436 stations in all five boroughs, not to mention 30 Long Island stations and 18 Metro-North Railroad stations.
The Power of Programmatic
Neil Shapiro, the vice president of Programmatic at OUTFRONT Media, spoke passionately about the profound impact of transit advertising. He emphasized the unique ability of these ads to weave into the daily tapestry of commuters’ lives, delivering contextual messaging as they navigate the concrete jungle. In a world where digital connections are sought after amidst vanishing cookies and a labyrinthine media landscape, programmatic transit advertising emerges as a beacon of innovation.
Bringing onboard the virtues of Digital Out-of-Home (DOOH) advertising — brand safety, flexibility, rapid deployment, precise targeting, and robust performance measurement — the programmatic approach now provides advertisers with a comprehensive view of campaign effectiveness, all within a single platform.
A Bright Future
OOH advertising has been a phoenix rising, steadily expanding its dominion and bolstering its market share vis-a-vis other media forms. Harnessing technological advancements and the cost-effective nature of OOH advertising, the industry has seen a meteoric rise in recent years.
As we gaze towards the horizon, the dawn of a new era beckons. Technological investments are poised to propel OOH advertising to greater heights, and OUTFRONT Media stands ready. The company’s expansion plans and innovative technology platform signal an unwavering commitment to unlocking growth avenues for marketers.
In a tumultuous market environment, OUTFRONT Media’s shares have been a beacon of stability, boasting a commendable 12.2% gain over the past three months, contrasting with the industry’s 4.9% downturn.
Other Stars in the Sky
Joining OUTFRONT on this stellar journey are other luminaries in the Real Estate Investment Trust (REIT) sector. Stocks like SL Green Realty SLG and Lamar Advertising LAMR, both tagged with a Zacks Rank #2 (Buy), are shining bright. These stars in the firmament signify a world of opportunity for investors seeking to explore the realm of REITs.
Exciting prospects await as the Zacks Consensus Estimate projects a 19% year-over-year growth for SL Green Realty’s 2024 funds from operations (FFO) per share, with a similarly optimistic 3.6% increase foreseen for Lamar Advertising’s 2024 FFO per share.
In the vast cosmos of earnings metrics, funds from operations (FFO) stands as a guiding light — illuminating the path forward for REITs as they navigate the celestial seas of investment.
