OUTFRONT Media (OUT) Expands Programmatic Transit Ads in NYC
In sync with its efforts to focus on out-of-home (OOH) advertising business, OUTFRONT Media Inc. OUT has announced the expansion of programmatic transit advertising in New York City's Metropolitan Transportation Authority (MTA) system. It would cover nearly all subway stations owned by the MTA across New York City’s five boroughs and key areas of Long Island and Metro-North Railroad Systems.
This expansion will create America's largest programmatically available full-motion transit network.
OUTFRONT executed a successful pilot launch of programmatic advertising in 2023. The launch was initially done on over 900 Digital and Video Urban Panels (DUPs/VUPs) outside MTA subway entrances and exits. With the current expansion, the advertisers will now have the ability to reach millions of commuters with thousands of active Liveboards inside subway stations.
These programmatic Liveboards, which vary in format, can be used to target audiences with brand messaging based on time, day and location. The additional Liveboards will bring the total of programmatically enabled signs to 3,800 across 436 stations in all five boroughs, as well as 30 Long Island stations and 18 Metro-North Railroad stations.
Neil Shapiro, vice president of Programmatic at OUTFRONT Media, commented, "Transit advertising's ability to impact consumers along their daily journeys and multiple times throughout the day brings phenomenal, contextual reach at a time when brands are seeking innovative ways to make digital connections in the face of cookies going away, a fragmented media world, and other challenges. Add DOOH's natural brand safety, flexibility, speed to market, audience targeting and measurement, and now, the ability that programmatic provides to see comprehensive campaign reporting in one platform, and you've got one of the most powerful tools on the market."
The programmatic DUPs/VUPs and Liveboards are strategically located in high-dwell environments to capture consumer attention and create brand engagement. Advertisers may obtain comprehensive information on impression delivery, spending and ad play time via OUTFRONT's post-campaign reports.
OOH advertising has been growing at a rapid pace and continues to increase its market share in comparison with other forms of media. Given the technological advancements and low-cost nature of OOH advertising, it has been gaining traction in recent years.
In the upcoming years, higher technology investments are expected to provide further support to OOH advertising. Therefore, the company is expanding its footprint and providing a unique technology platform to marketers in order to tap growth opportunities.
Over the past three months, shares of this Zacks Rank #2 (Buy) company have gained 12.2% against the industry's decline of 4.9%.
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Other Stocks to Consider
Some other top-ranked stocks from the broader REIT sector are SL Green Realty SLG and Lamar Advertising LAMR, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for SLG’s 2024 funds from operations (FFO) per share is pegged at $5.88, suggesting year-over-year growth of 19%.
The Zacks Consensus Estimate for LAMR’s 2024 FFO per share stands at $7.74, indicating an increase of 3.6% from the year-ago quarter.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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