Demystifying Programmatic Digital Out-of-Home (pDOOH)

MTM, a research and strategy consultancy, partnered with a global digital out-of-home (DOOH) supply-side platform to conduct a survey of 1,200 advertisers and agencies across the United States, United Kingdom, Australia, Germany, France, and Spain. Their research revealed an interesting trend: about 32% of global advertisers have already incorporated programmatic digital out-of-home (pDOOH) into their campaigns, and an additional 40% are planning to increase their investment in this innovative advertising medium.

This data highlights a significant shift in the out-of-home advertising industry, indicating a growing adoption of pDOOH and a noteworthy allocation of advertising budgets toward this dynamic vertical.

Understanding pDOOH

pDOOH represents a transformative approach to buying, selling, and delivering out-of-home (OOH) advertising on digital billboards and signage. Powered by machine learning and data analytics, pDOOH automates various aspects of the advertising process, including planning, buying, targeting, selling, delivering, and measuring ads across digital screens outside the home.

At its core, pDOOH utilizes demand-side platforms (DSPs) to programmatically purchase, sell, and deliver ad inventory in real-time. This data-driven approach focuses on precisely targeting audiences and impressions, thereby revolutionizing campaign measurement through real-time analytics, full-funnel attribution, and outcomes derived from first-party data.

The ad-serving process in pDOOH involves dynamically sending digital assets to inventory before campaign activation, facilitating real-time ad delivery based on automated decision-making processes. This automation not only enhances efficiency and pricing transparency but also simplifies inventory management, making pDOOH a valuable tool for advertisers and media owners alike.

Key Components of a pDOOH Campaign

1. Buying Process: pDOOH leverages DSPs to programmatically buy, sell, and deliver ad inventory in real-time, offering advertisers ease of activation and efficiency across multiple agencies through a single platform.

2. Targeting: Unlike traditional OOH approaches that focus solely on screens or locations, pDOOH employs a data-driven strategy to target audiences and impressions effectively. By utilizing geolocation data and consumer behaviour insights, advertisers can create highly targeted campaigns tailored to specific audience segments.

3. Measurement: pDOOH introduces advanced measurement capabilities, providing real-time insights into campaign performance. From in-flight campaign pacing to full-funnel attribution, advertisers gain valuable metrics to assess effectiveness and optimize future campaigns.

4. Ad Serving: Digital assets in pDOOH are dynamically sent to inventory before campaign activation, enabling a flexible and efficient ad delivery process. Ad serving is based on buying impressions individually, enhancing campaign management efficiency and ease of use.

5. Efficiency and Ease of Use: pDOOH streamlines the advertising process by eliminating the need for direct communication, offline agreements, or manual scheduling. Transactions are conducted through online marketplaces, demand-side platforms, supply-side platforms (SSP) or Ad Exchanges, centralizing agreements and enhancing operational efficiency.

6. Inventory Management: With pDOOH, OOH media owners no longer need to manually manage campaigns. Parameters are pre-set within SSP and DSP platforms, automating inventory management processes and optimizing inventory utilization.

Preparing Inventory for pDOOH Campaigns

To ensure they are pDOOH-friendly, OOH media owners can implement the following strategies:

1. Embrace Automation: Adopt automated ad buying and selling processes to streamline operations and improve efficiency.

2. Enhance Audience Targeting: Explore audience targeting features offered by pDOOH companies to attract advertisers seeking precise targeting options.

3. Utilize Data-Driven Campaigns: Incorporate data triggers and external data sources to deliver more relevant and impactful ad campaigns.

4. Offer Transparency and Control: Provide real-time reporting and access to campaign performance metrics to build trust with advertisers.

5. Stay Informed and Collaborate: Keep abreast of industry trends and collaborate with technology partners to simplify the transition to pDOOH.

Benefits for OOH Media Owners

Embracing pDOOH offers several advantages for media owners:

1. Efficiency and Automation: Streamline operations, automate sales processes, and create alternative sales channels to improve efficiency and productivity.

2. Control and Transparency: Provide advertisers with greater control and transparency, fostering trust and driving revenue growth.

3. Access to Data and Targeting Capabilities: Leverage data-driven targeting to offer precise audience targeting, attracting advertisers and increasing revenue.

4. Competitive Advantage: Differentiate from competitors by offering programmatic capabilities, attracting tech-savvy advertisers, and staying competitive in the market.

The Role of Location Media Xchange (LMX)

Location Media Xchange (LMX), a media technology (MediaTech) company under the Moving Walls Group, plays a vital role in enabling OOH media owners to embrace pDOOH. LMX provides a comprehensive suite of solutions, allowing media owners to efficiently manage multiple sales channels, optimize inventory utilization, and make data-driven decisions to enhance revenue.

LMX’s platform offers seamless integration with native and third-party applications, streamlining operations and providing a centralized platform for managing various sales channels. By partnering with LMX, OOH media owners can adapt to the evolving landscape of pDOOH advertising and unlock new opportunities for growth.

In conclusion, being pDOOH-friendly empowers OOH media owners to optimize their business processes, attract more advertisers, and drive revenue growth in the ever-evolving advertising ecosystem. Through automation, data-driven targeting, and enhanced transparency, pDOOH represents the future of out-of-home advertising, offering unparalleled opportunities for audience engagement and campaign optimization.

Interested in learning more about how Programmatic DOOH can transform your advertising strategy? Talk to us today to discover how Location Media Xchange (LMX) can support your journey towards embracing pDOOH.