July 28, 2023

Unlocking OOH Revenue Potential: How Technology Drives Efficiency, Growth, and Profits

When someone mentions the luxury watch brand, Omega, what comes to mind? Perhaps you recall seeing Daniel Craig, exuding sophistication in his Bond suit, gracing billboards with a casual yet captivating stare. Such is the power of advertising and the pivotal role Out-of-Home (OOH) media plays in subtly engraving messages into the subconscious mind.

The impact of OOH media is evident in the presence of enormous screens at bustling city centers, showcasing the latest Samsung mobile devices or enticing passersby with place-based screens advertising affordable flights to enchanting islands in South-East Asia. This dynamic medium, ever-evolving and embracing new technologies and trends, has a profound influence on consumers.

Skyquest reports that the market size for OOH media is projected to reach an impressive USD 61.95 billion by 2030, boasting a Compound Annual Growth Rate (CAGR) of 9.7% in the forecast period. With the integration of cutting-edge technologies and innovative media formats, this sector is poised for continued expansion. The escalating demand for personalized, place-based advertising, and omnichannel marketing is driving the industry’s growth trajectory.

This surge in the OOH media market bodes well for media owners, as the potential for increased revenue beckons enticingly. As stewards of media assets, their primary concern centers around one word: REVENUE! The anticipated growth offers OOH media owners an opportunity to carve a sizeable slice of this alluring pie.

Diverse Sales Channels for OOH Inventory Bookings and Purchases

Diversity abounds among the people who own these OOH assets. Countless media owners, each with their unique goals, share a common objective: to maximize their revenue potential. Promisingly, the industry’s recovery is marked by substantial growth, with industry experts creating new products to assist media owners in efficiently managing, tracking, and optimizing their inventory for enhanced profits.

Modern-day OOH media owners leverage their inventory in various ways. On-ground sales teams form the backbone of most OOH businesses, directly liaising with media buyers. These buyers range from established brands and agencies with pre-existing relationships to new clients who discover the company through online platforms or referrals. Additionally, media owners now have the advantage of online marketplaces and e-commerce-like platforms, opening new avenues for selling inventory. Furthermore, many media owners rely on supply-side platforms (SSP) connected to multiple demand-side platforms (DSP) to expand their sales channels. However, efficiently monitoring the performance of inventory and assessing which sales channels generate consistent revenue flow has become a daunting task.

Revolutionizing Revenue Management for OOH Businesses

This is where a revenue management system (RMS) steps in, traditionally used in the hotel and tourism industry to analyze historical rates and inventory levels to predict demand and recommend rates. A competent RMS automates the entire process and presents data to maximize revenue and profits. Today, RMSs find applications in the OOH realm, simplifying the arduous task of identifying the most revenue-generating sales channels for OOH businesses.

Handling multiple sales channels presents a unique challenge for OOH media owners. Unlike digital publishers who operate in virtual space, media owners with physical OOH assets face the critical task of efficiently allocating inventory, considering fixed costs such as electricity, internet fees, maintenance, and more. The ability to make informed, data-driven decisions that optimize revenue is paramount for running a successful OOH business.

Here are some benefits of using a revenue management system:

Benefits of Revenue Management System

Last year, at the World Out-of-Home Organization’s (WOO) Toronto Congress, LMX unveiled a revenue management suite designed specifically for OOH media owners. This end-to-end system consolidates every facet of the OOH selling process onto a single online platform, encompassing inventory management, bookings, programmatic sales, and audience measurement. As a comprehensive solution, it assists media owners with optimizing inventory availability, managing bookings and sales workflows, inventory and package administration, and invoice generation. It empowers media owners with a clear picture of their investments’ performance, facilitating informed decision-making and ensuring smooth operations.

Embracing the Right Tools for Elevating OOH Business

In the competitive landscape of OOH media, having the right tools and products at one’s disposal can elevate business prospects. LMX’s revenue management suite empowers OOH media owners with invaluable insights to propel their OOH revenue to new heights.

Unlock the full potential of your OOH business with LMX’s cutting-edge revenue management suite. Experience the difference for yourself by talking to us today!

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