Phil Clemas: How an independent challenger brand is reimagining digital out-of-home
Out-of-home media has changed significantly in the past decade, with digital OOH becoming the most dominant offering, and programmatic emerging as the next key driver of change for the channel. As LUMO celebrates six years in business, co-founder and CEO Phil Clemas (pictured left with co-founder Kent Harrison) reflects on these changes, and how an independent challenger brand is reimagining digital out-of-home.
Back in 2016 when LUMO was created, ad spend in NZ had hit $2.6b per annum and digital OOH represented 31% of all OOH revenue.
At the time, TV was working hard to find a digital model to replace its declining linear TV product offering, and print media was continuing to lose ground. Yet OOH was seeing growing investment in digital infrastructure around the globe, and it was easy to see that this technology was only going to see increased demand locally.
The fertile ground was established, demand for DOOH was growing, and buyer attitudes were changing. The opportunity was there for Kent Harrison and I to take a leap of faith and establish the only local independent pure-play DOOH brand, LUMO, based upon two key principles – greater media transparency and truthful audience accountability.
Critical to any start-up, we needed to differentiate our new media brand. We knew prime sites, nationwide coverage and screen display quality were key, but what was really going to set us apart from other media providers was our plan to offer tech-based innovation and creativity – in a sector that has been slow to change.
Over the first few years we were able to deliver industry-firsts – real time audience metrics, drone footage, independent display verification and live stream viewing of its network – all of which had not previously been available to clients. This commitment to transparency pushed further the development of our camera-based audience measurement platform LENS, which now offers hourly audience data that has become fundamental in LUMO’s ability to trade programmatically.
Programmatic DOOH was being talked about as early as 2018, and LUMO seized the opportunity early on, signing new partnership agreements with Supply Side Platforms (SSPs) Hivestack, Vistar Media and Broadsign back in 2019.
LUMO has since emerged as a world leader in the pDOOH space, having developed its own independent Digital Ecosystem in 2022, with the purpose-built CMS built by dooh.ly, being the central nervous system of our fully integrated operation. This will allow us to leverage the many efficiencies and advantages automation and ‘digital thinking’ has to offer traditional OOH and new digital buyers. With over 20% of LUMO’s revenue already derived from pDOOH in Q4 2022 (which compares very favourably against the industry average), we are expecting bigger things from this burgeoning revenue channel over the next few years.
But it was when we combined these tech innovations with creative thinking that things really started to lift. Real-time tech capabilities opened new creative opportunities, with brands like Z Energy using LENS to count and display the number of EV vehicles driving by; or Garage Project who used DOOH technology to display when it was the perfect temperature to grab a beer. These technologies allow creatives to take campaigns to the next level, ensuring true engagement for their clients.
Despite the past few years being challenging for everyone, this period offered LUMO the time to focus on bringing new initiatives to market sooner, including the expansion of LENS to include Quividi’s presence time capability, the launch of our in-house digital design and production hub, LUMO Labs, the design and development of our own CRM platform, and the new partnership with Melbourne-based dooh.ly.
The impact that the pandemic had on OOH also gave LUMO the opportunity to support the small business community, with campaigns like ‘Up & Running’, ‘Have One for Hospo’ and the ‘Chooice’ offering.
Who could have anticipated the twists and turns of the last few years that have actually resulted in the acceleration of tech-led innovations in the out-of-home industry. Now with over 70% of all OOH ad spend in New Zealand on digital assets and the rapid rise of pDOOH, the future seems assured for those in the industry who are fast enough to adapt, and with a buyer-centric attitude.
As we look forward to 2023, I’m filled with excitement for the future of digital OOH. We recently relaunched the Pixel Awards which saw a record number of entries from across the industry, and as we near Christmas, LUMO will launch its 50th and 51st screens.
All thanks to the growing number of clients who trust us with their campaigns and who are on the journey with us.