Since the 1830s, billboards have been used as an out-of-home advertising platform, and their business model hasn’t changed much. But over the last ten years, there has been a dramatic shift in the technology pertaining to out-of-home (OOH) advertising as well as the way media owners and advertisers communicate. With the advent of programmatic DOOH, programmatic adtech options—which were previously limited to online advertising—are now expanding into the offline market.
Let’s take a closer look.
What is programmatic DOOH?
The ongoing expansion of out-of-home advertising is a reflection of marketers’ growing inclination toward DOOH. In fact, DOOH accounted for one-third of all OOH ad spending in 2023, and by the end of 2024, it is expected to have increased by an additional 10%.
What exactly is DOOH media, then?
Programmatic DOOH is more of a means of purchasing advertising than it is a form of it.
Digital out of home, or DOOH, is a term used to describe the growing digitization of out-of-home (OOH) advertising.
Buying processes when it comes to ad space on these billboards used to be long and tedious with the involvement of many middlemen. There are few indicators for businesses to track their campaign’s success. This has also been a problem.
This has proven to be a challenge for many in a marketing environment that is becoming increasingly data-driven.
These problems are resolved via programmatic DOOH.
The automated purchase, sale, and delivery of DOOH advertising on digital billboards and other signage is known as programmatic DOOH (pDOOH). Ad space is automatically purchased and delivered when buyers specify their requirements for buying media on a pDOOH platform. This includes how, when, and where they want their ads to appear.
Also Read: The Power of Composable MarTech: How to Build a Tech Stack That Adapts and Evolves
How Does Programmatic DOOH Advertising Work?
Like regular programmatic advertising, programmatic DOOH operates similarly. Think of it as a huge auction house. Advertisers compete for ad positions on various displays, not customers bidding on art. Automated systems perform this exchange on digital screens worldwide thousands of times every second. Programmatic DOOH advertising is based on three fundamental components:
1. Demand-side platform (DSP)
A computer-based platform that automates media purchasing across several supply sources is known as a demand-side platform (DSP).
DSPs integrate:
- real-time bidding
- data-driven targeting rules
- broad inventory access (i.e., digital screens)
- ad serving, tracking, and optimization capabilities.
Based on the audited impression numbers—the number of people who visit that screen over a specific time period—a DSP allocates an impression value to that spot when an ad call is received, and then delivers it along with the ad call to the bidder. As an advertiser, this enables you to purchase ad space using impression-based budgeting, exactly like you would on the internet.
2. Supply-side platform (SSP)
A computer-based platform called a supply-side platform (SSP) automates the sale of media across various demand sources. SSPs give media owners a mechanism to monitor and report on campaign metrics and delivery while also allowing them to sell their inventory through an exchange.
3. Ad exchange
Between DSPs and SSPs, an ad exchange serves as a middleman. Exchanges help marketers and media owners purchase and sell ad spaces and guarantee the seamless delivery of creative assets.
Benefits of Programmatic DOOH ads
The ability to adjust is essential in the modern advertising landscape. Programmatic OOH makes your advertising campaigns more flexible than before and has a multifaceted impact on your marketing plans.
Buying and Selling
Brands and advertisers looking to buy ad spaces in traditional OOH have to negotiate with the media owner or the ad space provider.
The traditional approach involves a lot of footwork in addition to negotiating. This comprises:
- Identifying the ideal location
- Interactions between media owners, agencies, and brands
- Organizing the actual campaign
Using programmatic OOH essentially skips these procedures. DOOH programmatic ad buying gets rid of the need for discussion by being automated according to your selected criteria, such as:
- Budget
- Target audience
- Media type
This enables you to concentrate on increasing the impact and appeal of your OOH advertisement.
Flexibility
Brands frequently have to buy ad places long in advance when using traditional OOH. After that, ads run for the campaign’s duration. There is no chance to adjust them for effectiveness or to respond to external factors.
However, programmatic OOH makes digital ad optimization much easier.
Due to the pricing of programmatic advertisements, brands can scale up, pause, or discontinue a programmatic DOOH campaign after it has already begun. This ability to adapt is crucial for reacting to any influencing elements in real time and enables brands to increase the flexibility of their budgets.
Use of Data
You may use data to make sure the most relevant audience sees your ads. However, what about situations in which there isn’t a crowd present?
You would just have to be content with your digital advertising playing continuously at an empty crossroads if you were using traditional OOH. On the other side, programmatic OOH boosts your efforts. It lets you run ads only when more people are likely to see them. To put it simply, it offers precise targeting capabilities.
Types of Media
Programmatic OOH also has the benefit of not requiring brands to completely revamp their current campaigns in order to employ it.
This could involve digital advertising made for:
- Billboards
- Kiosks
- Signs
- Street furniture
- Transit
Most creative media for non-programmatic digital OOH, like digital billboards, can be converted to programmatic OOH ads with minimal changes. Also, you can improve your ad campaigns. Use the same data that targets an audience and automates ad placement.
Audience Impact
Think of an unforgettable ad that stuck with you—maybe for its stunning visuals or a relatable story. Chances are, it resonated with you personally, striking a deep chord.
Creating this level of connection is every marketer’s goal, but reaching a broad audience often leads to generic messaging. When compared to other advertising formats, DOOH is the most favored and motivating media, according to a recent Harris Poll study. Notably, 76% of viewers of recent DOOH ads said they had taken action as a result of the advertisement, demonstrating how well it influences consumer behavior.
Programmatic OOH is a game-changer. It enables tailored, relevant content that connects with diverse audiences. It lets creatives craft deeply engaging campaigns. This makes a more personal, memorable impact. Displaying memorable, relevant ads can improve user experience, build relationships with your target audience, and increase brand awareness.
Concluding Thoughts
Reaching customers with captivating advertisements at every touchpoint during their daily routines is more important than ever in the age of information overload. Reaching your audiences where and when they are actively spending time is possible with programmatic DOOH ads. Embracing this innovation today ensures staying ahead in the competitive world of advertising tomorrow.