News

NEC & DOmedia partner for end-to-end DOOH solution

April 6, 2011

NEC Display Solutions and DOmedia announced today the formation of a strategic partnership that creates an end-to-end solution for the challenges inherent to the buying and selling of digital out-of-home advertising.

According to the announcement, DOmedia Powered by VUKUNET allows for the efficient planning, buying, management and measurement of large DOOH advertising campaigns across many different DOOH networks.

This new ability to scale and measure effectiveness of DOOH advertising during the life of a campaign addresses two of the last remaining obstacles to the widespread adoption of DOOH advertising, NEC said.

"The DOOH industry has a need for technology to solve a lot of problems with inefficiencies and standardization, and we are taking a step in the right direction," DOmedia CEO Rich Langdale said in the announcement. "The open, end-to-end approach we are building with NEC will ultimately benefit both the media buyers and sellers. Everybody wins."

According to PQ Media, the digital out-of-home ad medium is one of the fastest growing media in North America, with 18.1 percent compounded annual growth projected for the next four years. Advertising agencies have indicated a willingness to invest more money in DOOH, but first require the industry's adoption of standards in the areas of creative, ad serving, audience measurement and performance reporting.

DOmedia Powered by VUKUNET allows for the integration of advertising agency and DOOH network activities from campaign planning through execution, according to the announcement.

The solution incorporates DOmedia's Web-based, front-end media search, planning and buying tools with NEC's back-end VUKUNET technology, which provides comprehensive ad inventory management, ad campaign placement, tracking, measurement and reporting capabilities to display to media buyers. The combined solution is aimed at resolving issues with technology fragmentation by creating a standards-based solution that will benefit the entire DOOH market.

"The partnership with DOmedia will be the industry standard that will generate incredible growth in the DOOH industry," NEC Display Solutions President and COO Pierre Richer said in the announcement. "While the market matures, an open end-to-end solution will create value for both buyers and sellers by lowering operating expenses, increasing transparency and creating innovation like we've seen in the online and mobile advertising industries."

The investment from companies like NEC and DOmedia is a testament to the future opportunities for the digital place-based industry, Digital Place-based Advertising Association President Sue Danaher said in the announcement.

"Companies like DOmedia and NEC coming together help to propel the overall industry and bring innovative products to market for buyers and sellers to choose from," she said.

Among the benefits to media agencies and advertisers include an easier way to purchase and track DOOH media and a lower operational cost attributed to the buying process. DOOH network operators will benefit from technology integration through inventory management, ad delivery, collaboration with agencies, and increased revenue potential. VUKUNET's approach allows the technology to work across many software platforms currently being used by network operators.

"One end-to-end solution from planning to execution for digital out of home advertising campaigns will enable advertising agencies to buy the medium on a larger scale more efficiently," said John Muszynski, chief investment officer, Starcom Mediavest Group. "This kind of technology innovation ultimately helps agencies effectively service clients and puts them at a competitive advantage in the marketplace."