What Display Daily thinks: The strong performance of DOOH is a positive sign for the digital signage industry. DOOH is increasingly seen as a valuable complement to digital channels such as search and social media, and JCDecaux’s results suggest that this trend is continuing.
While we may not particularly embrace the idea of our mortal existence being incessantly tracked and bombarded with advertisements across every screen and display, it appears that advertisers are determined to take their messaging in that direction. Inevitably, we might soon encounter personalized banner ads lurking not only while browsing the web (which can be rather creepy) but also making their way into our homes and appearing on our TVs and other connected devices. In essence, advertising is poised to infiltrate every aspect of our digital existence which is good news if you are in the business of counting how many square meters of displays you can sell.
JCDecaux Reports Strong First Half of 2023
JCDecaux reports strong first half financial results. Revenue grew by 7.5% to €1,585 million ($1.75 billion), and organic revenue growth was 7.8%. Digital out of home (DOOH) was the star performer, growing by 17.1% in the first half of 2023. This was driven by the selective roll-out of digital screens in prime locations, as well as the development of JCDecaux’s data capabilities. Programmatic advertising revenues through the VIOOH SSP (supply-side platform) grew by 63.3% in the first half of 2023 to reach €36.9 million ($40.1 million).
The DOOH division’s contribution to the company’s overall revenue reached 32.7% in 1H23, showing a growth from 30.0% in 1H22. The programmatic advertising segment recorded revenues equivalent to 7.1% of the company’s digital revenue for the first half of the year. The increase in programmatic advertising revenue was driven by innovative dynamic data-driven campaigns and the acquisition of new advertisers. JCDecaux’s strategic alliance with Displayce, announced in July 2022, also contributed to the continued expansion of the DOOH programmatic ecosystem.
JCDecaux’s growth strategy remained focused on securing organic contract wins, exemplified by the acquisition of the largest OOH/DOOH media franchise in Norway. Additionally, the company pursued bolt-on acquisitions to further bolster its market position, such as the acquisition of Clear Channel’s activities in Italy and Spain during Q2’23. These measures played a crucial role in driving the company’s overall growth and success in the DOOH and advertising sectors.
Transport activities also continued to recover in the first half of 2023, with organic revenue growth of 6.4%. This was driven by the gradual recovery in China, as well as the continued growth of JCDecaux’s public transportation business in other countries.
