In the rapidly evolving world of advertising, programmatic digital out of home (DOOH) has emerged as a game-changer. This primer aims to provide a comprehensive understanding of programmatic DOOH and its role within the broader landscape of digital advertising, its significance, and how it’s shaping the future of media. Whether you’re a brand marketer, media executive, or just curious about this innovative space, this guide will cover everything you need to know.
What is Programmatic Digital Out of Home (DOOH)?
Programmatic DOOH refers to the automated buying, selling, and delivery of out of home (OOH) advertising through digital platforms. Unlike traditional OOH, which involves static billboards and posters, DOOH utilizes digital screens and digital billboards that can display dynamic content and be updated in real-time. Ad inventory in programmatic DOOH refers to the digital screens' space available for advertising that can be bought and sold automatically through ad exchanges and demand-side platforms (DSPs), allowing for highly targeted and personalized ad experiences based on various data parameters such as location, weather, and audience behavior.
Why Programmatic DOOH Matters
Brooke Armagenis highlighted that “out of home advertising is now the fastest growing media in the world, even overtaking social media.” This growth is driven by two main factors:
- Digitization and Consolidation: More OOH inventory is transitioning from static to digital formats. This shift allows for more dynamic and engaging content through programmatic advertising.
- Programmatic Capabilities: The integration of programmatic technology enables more efficient planning and buying, opening up OOH to a broader range of buyers. This includes the automated buying and selling of ad space on digital billboards and other signage, making the process more accessible and competitive.
Benefits of Programmatic DOOH
1. Increased Efficiency in Programmatic Ad Buying
Programmatic DOOH streamlines the entire advertising process. From planning to execution, it reduces the time and resources needed, making it easier for brands to launch targeted, contextual, and dynamic campaigns.
Programmatic buyers play a crucial role in increasing efficiency by automating ad purchasing processes within real-time bidding, allowing for greater flexibility and scale.
2. Enhanced Targeting
The use of data and technology in programmatic DOOH allows for precise targeting. Brands can deliver their messages to specific audiences based on location, time of day, and even weather conditions. This level of targeting was previously unattainable with traditional OOH. By leveraging data-driven behavioral targeting, geo-temporal data, and contextual triggers such as weather and events, brands can activate DOOH ad inventory to reach specific audiences at specific locations in real-time.
3. Real-Time Updates
One of the standout features of DOOH is the ability to update content in real-time. This means that advertisers can respond to current events, market trends, and consumer behavior instantly, keeping their campaigns relevant and engaging. Programmatic DOOH campaigns can also be updated in real-time, allowing for dynamic adjustments based on user engagement and effectiveness metrics.
Integration with Digital Billboards and Other Media
In an OOH Insider podcast episode on the topic, Brooke Armagenis emphasized that “programmatic DOOH is not just about additional budgets; it allows for seamless integration with other digital mediums.” This cross-pollination of content between OOH and other digital platforms enhances the overall media strategy and ensures a unified brand message across multiple touchpoints. Integrating mobile ads with DOOH campaigns can retarget consumers who have seen DOOH ads with additional ads on their mobile devices, creating a seamless and omnichannel advertising experience for the audience. Programmatic DOOH (pDOOH) shares similarities with online advertising, such as automated buying and selling processes, targeted approach, and tracking and optimizing capabilities.
The Future of Programmatic DOOH
1. Evolution of Content Networks
The planning and buying process is just the beginning. The future holds exciting possibilities for content network structures and the integration of OOH with other digital mediums. This will facilitate the creation of more niche, contextual content that resonates with specific audiences.
2. Personalized Advertising
As programmatic technology advances, the potential for personalized advertising in OOH grows. Imagine being able to serve personalized ads based on the demographic data of passersby, much like how online ads are targeted. This could revolutionize how brands interact with consumers in public spaces.
Overcoming Challenges in Programmatic DOOH Campaigns
Despite its numerous benefits, programmatic DOOH faces challenges, particularly around measurement and integration. Measurement in OOH has always been complex, and comparing it directly with online metrics can be misleading. One specific challenge is measuring ad impressions in programmatic DOOH, as it requires accurate tracking of the number of times an ad has been displayed to users.
Brooke also noted that “true ROI for out of home is not always a straight line between money spent to money gained.” It’s important to adopt a holistic view of OOH’s impact, considering factors like brand awareness and overall media synergy. However, the effectiveness of a DOOH ad in overcoming these challenges is notable, especially in influencing purchasing decisions at the point of purchase and through personalized ad experiences based on data triggers.
Unified Education for Better Understanding
Unified education is arguably more important than unified impression counting. By educating marketers and publishers on the capabilities and best practices of programmatic DOOH, the industry can ensure more effective and impactful campaigns. Educating marketers about DOOH advertising is crucial as it helps them understand its efficiency, precision, and growth potential compared to traditional DOOH advertising.
Conclusion
Programmatic digital out of home is revolutionizing the advertising landscape. Its ability to deliver dynamic, targeted, and real-time content makes it an invaluable tool for modern marketers. The shift to digital signage opens up possibilities such as hyper-personalized ads, larger audience reach, and harnessing the power of programmatic technology for reaching customers with messages. As the industry continues to evolve, embracing programmatic DOOH will be essential for brands looking to stay ahead of the curve.
Programmatic DOOH ads offer benefits over traditional DOOH advertising by automating the buying, selling, and delivery of ads on digital billboards and other signage. This technology allows for targeting specific audiences at different locations and times, adapting campaigns to real-world circumstances in real-time. By understanding the benefits, future possibilities, and current challenges, marketers can leverage programmatic DOOH to create more effective and engaging campaigns. As Tim Rowe aptly summarized, “The actual opportunity is to lean all the way in what makes you different to find problems that you, your product, or service can solve.”
