The automated booking and playout of advertising is also increasingly possible in Digital Out of Home. However, Programmatic DOOH, which differs in some respects from automation in display, is still causing some confusion in the market. IDOOH therefore answers the 10 most important questions about PDOOH in two episodes. Now the Institute for Digital Out of Home Media has published the second part of the most important questions and answers. Experts from the industry have given their assessments. Bernd Rabsahl, CEO of It Works Group, also gives his views on PDOOH with insights and trends.
Which Programmatic Deals are available with DOOH?
Basically: Programmatic DOOH maps all common deal types known from online marketing.
Guaranteed and Preferred Deals are most similar to classic direct booking. With Programmatic Guaranteed, a fixed number of impressions or a specific time period for the DOOH campaign is defined in advance. “This is similar to traditional direct sales, but offers the advantage of automation and data optimization,” explains Tobias Hefele, CEO of Weischer.JvB. Preferred Deals, on the other hand, give advertisers access to preferred inventory. Preferred slots or inventories can be reserved before they are offered to other buyers.
In addition, Open and Private Auctions are also conducted. In an Open Auction, DOOH inventories are traded as if in a marketplace. Advertisers bid on available impressions and the highest bidder is awarded the ad playout. The whole process takes place in real time. In a private auction, the free advertising spaces are also auctioned off. In this case, however, marketers sell their DOOH inventories only to a predefined group of customers (private marketplace).
Can an advertiser bid on DOOH residual space?
The issue of residual space marketing is not common in DOOH, says Bernd Rabsahl, CEO of It Works Group. “Essentially because inventory is not as interchangeable as in display marketing. Accordingly, demand is not particularly strong.” It’s still possible, as Daniel Siegmund, Founder and Managing Director of One Tech Group explains. “As a rule, such an approach can be implemented via open auctions, but this is not yet supported by all SSPs.”
What this means is that advertisers and agencies can bid on free inventory at short notice to win the bid. Thus, if there are no other bidders, certain inventory can be purchased at the so-called “floor price” CPM. This is the minimum price set by the marketer below which the marketer will not sell its inventory. This price is usually based on standard campaign CPMs – a difference from residual space marketing in display, which aims to achieve the highest possible 100 percent utilization.
What targeting options are available for (P)DOOH?
A wide range of first-party data as well as third-party data can be used for targeting. Essentially, these can be divided into four categories
- Geographic targeting, for example, by POI or POS, postal code areas or locations. Advertisers can target their campaigns at national, regional or local level. This means that campaigns can even be broken down to individual screens.
- Temporal targeting, for example, is based on the frequency of passers-by in front of the respective touchpoints, on store opening times or trade fairs and events. Campaigns are therefore played out at specific times.
- Contextual targeting: campaigns are only played out on specific occasions that have a connection to the environment. This could be current news, trade fairs or sporting events. But the weather can also play a role in this approach.
- Target group-based targeting: Behavioral factors such as location movements or purchasing behavior, but also demographic information such as age, gender, income and interests are taken into account and the advertising messages are played out accordingly.
What are the possibilities for adjusting creative in real time?
The technical term for this is Dynamic Creative Optimization (DCO), a topic that is currently gaining momentum due to its diverse possibilities and creative potential. Numerous DSPs are in the process of integrating DCO on their platforms. SSPs are also working to support it.
With DCO, the campaign motif is constantly reassembled almost in real time. It’s based on various building-block elements that have been previously developed, then individually matched to create a new image each time. “DCO is based on real-time data collected during the campaign, as well as external data sources such as demographic information, behavioral and location data,” explains Hefele. “This data is used to immediately deliver relevant content, customized to the target audience.” What’s important here is prior approval by all parties involved. “From the publisher’s point of view in particular, it must be ensured that only previously approved content is played out and that only previously defined components of the creative can be exchanged,” says Daniel Siegmund.
For its PiCK UP! cookie bar, for example, Bahlsen was one of the first companies to implement an elaborate DCO campaign. For the new hazelnut flavor, around 3,000 different motifs were played out in the fall of 2020: They responded to the target group, the location, and the environment. Daily news was also integrated into the DOOH motifs.
How will (P)DOOH develop further?
Bernd Rabsahl from It Works expects two trends. On the one hand, it will increasingly be possible to book classic outdoor advertising spaces automatically; Ströer, for example, already offers its customers direct access to classic spaces. It Works has developed the Locatrics platform for this purpose. Rabsahl also expects the established providers to push ahead with their DOOH expansion into B and C locations, thus also opening up new touchpoints such as e-charging stations. All in all, this will give the entire genre a strong push.
Holger Walsch, branch manager at Planus Media, also expects new players, new touchpoints and new booking options. The strong interest in retail media will provide an additional boost. “All the larger LEH chains in Germany are equipping their stores with screens and are thus pushing the issue further.”
More generally, an increasing share of the budget pie will go to Programmatic DOOH, says Daniel Siegmund. Sooner or later, all DOOH screens would be programmatically accessible. Then the demand for DCO will also increase and the Open Auction deal type will be in greater demand. Tobias Hefele sees it this way: “The market is only in a development phase. The possibilities of agencies and advertisers are far from being exhausted.”