June 6, 2024

Unlocking Revenue Potential with Programmatic Digital Out-of-Home Advertising for Retail Media Owners

In today’s fast-changing world of digital advertising, harnessing programmatic digital out-of-home (pDOOH) advertising is essential for media owners aiming to boost occupancy and revenue. The out-of-home (OOH) advertising sector is undergoing significant growth and change, with global revenue projected to hit US$40.5bn billion by the end of 2024. Digital Out of Home (DOOH) is set to see a hefty 17% increase, driven by advancements in pDOOH and higher investment in data-driven strategies.

As the industry embraces creativity, data-driven outcomes, and attention-grabbing strategies, integrating DOOH with retail media networks is becoming more crucial. This integration enhances the consumer path to purchase and provides brands with fresh opportunities to effectively engage their target audience. By adopting these innovative approaches, retail media owners can maximize inventory occupancy and increase revenue, positioning themselves to thrive in the dynamic world of digital advertising.

What is Retail Media?

Retail media refers to advertising and promotional activities within the retail environment, both online and offline. It involves using a retailer’s ecosystem to engage customers at various points in their shopping journey. This advertising includes in-store promotions, ads on retailer websites, and targeted advertisements using retailer customer data. Retail media has evolved significantly, transitioning from traditional in-store strategies to a more dynamic, online-centric approach, aligning with the digitization of retail spaces and changing consumer behaviours.

Understanding pDOOH and its Benefits for Retail Media Owners

pDOOH utilizes advanced technologies like machine learning and real-time data analytics to automate the planning, buying, targeting, selling, delivery, and measurement of ads across digital screens. Unlike traditional out-of-home advertising, pDOOH offers dynamic, contextually relevant content that can be tailored based on various factors such as audience demographics, location, and time of day.

pDOOH offers significant benefits for retail media owners looking to monetize their digital signage and enhance their advertising offerings. Here’s how pDOOH can benefit retail media owners:

  1. Maximized Occupancy: pDOOH’s automated ad placement and dynamic content scheduling enable retail media owners to fill unused inventory more effectively. This ensures that digital screens consistently display advertisements, thereby increasing overall ad exposure. By using extensive demographic data to automate the targeting process, ads reach the most relevant audiences, optimizing the use of digital signage.
  1. Increased Revenue: Optimizing inventory utilization and delivering targeted ads allows media owners to command higher cost-per-thousand impressions (CPMs) and generate more revenue. Automated processes reduce manual efforts and operational costs, enabling retail media owners to focus on strategic growth. This streamlined approach not only boosts efficiency but also enhances profitability by maximizing the value of each advertising slot.
  1. Enhanced Efficiency: pDOOH simplifies the ad sales process, reducing manual efforts and operational costs for retail media owners. Robust revenue management systems centralize inventory tracking, provide real-time data, and enhance decision-making. This increased efficiency translates into more effective management of advertising inventory and improved operational workflows.
  1. Automated Buying and Selling Process: pDOOH automates the planning, buying, targeting, selling, delivery, and measurement of ads across digital screens. This simplifies the process for both advertisers and retail media owners, allowing advertisers to easily find inventory and view availability and audience parameters on a single platform. This disruption of the traditional manual process makes it easier and faster to execute advertising campaigns.

By embracing pDOOH, retail media owners can unlock new revenue streams, enhance their advertising capabilities, and provide advertisers with more targeted and effective campaigns, ultimately driving growth and success in the evolving retail media landscape.

Enhancing Retail Media with pDOOH

Implementing pDOOH strategies can significantly enhance retail media campaigns by offering targeted, flexible, and measurable advertising opportunities. Here’s how retailers can leverage pDOOH to optimize their retail media efforts:

  1. Adopting a Comprehensive Revenue Management System: Utilize a robust revenue management system to gain a holistic view of inventory and effectively manage pricing and allocations. This ensures that inventory is used efficiently and profitably.
  1. Audience Targeting and Segmentation: pDOOH enables retailers to target specific audience segments based on demographics, behaviors, location data, and contextual triggers like time of day or weather. This allows for highly targeted and relevant messaging that resonates with consumers at the right place and time.
  1. Leveraging Real-Time Data: Embrace real-time analytics to optimize ad placements. This ensures ads are delivered to the right audience at the right time, enhancing the relevance and effectiveness of the campaigns.
  1. Flexibility and Real-Time Optimization: pDOOH offers the ability to pause, start, and optimize campaigns in real-time, adapting to changing market conditions and consumer behaviour. Retailers can quickly adjust messaging, targeting, and budgets based on performance data to maximize campaign impact.
  1. Optimizing Inventory Utilization: Use data-driven insights to identify high-occupancy periods and strategically allocate inventory. This maximizes revenue by ensuring that digital screens are consistently displaying advertisements.
  1. Omnichannel Integration: By integrating pDOOH into their broader omnichannel retail media strategies, retailers can create a seamless brand experience for consumers across online and offline touchpoints. This approach allows retailers to leverage the strengths of each channel, such as using pDOOH for awareness and in-store activation, while driving consumers to online platforms for further engagement and conversion.

As the retail media landscape continues to evolve, pDOOH will play an increasingly important role in helping retailers stay competitive and deliver effective, measurable advertising solutions.

Transform Your Retail Media Strategy with LMX

Incorporating pDOOH strategies within retail media offers a transformative approach for media owners to maximize occupancy and increase revenue. By embracing advanced technologies, real-time data analytics, and automated processes, media owners can deliver targeted, dynamic, and contextually relevant content, optimizing their advertising inventory and engaging audiences more effectively.

At Location Media Xchange (LMX), we specialize in helping media owners leverage pDOOH to unlock new revenue streams and enhance advertising capabilities. Our comprehensive services include robust revenue management systems, real-time data analytics, and audience-targeting solutions designed to optimize your retail media efforts.

Chat with us today to discover how you can maximize your retail media occupancy and drive significant revenue growth with us.

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