Programmatic DOOH: The most important questions and answers (Part 1)
Programmatic advertising has long been an integral part of online marketing. But in the meantime, the technology is increasingly establishing itself in other media such as digital out of home. At the same time, for many people Programmatic DOOH is still a closed book. What exactly is programmatic advertising? How does automated targeting work? And how does the spot get onto the digital screen? In two episodes, IDOOH will answer the 10 most important questions about PDOOH.
All over the world, digitization is leading to the automation of work processes. This also affects the advertising market, for example in the booking and playout of ads. In Germany, more than 70 percent of display advertising revenues are now generated via programmatic advertising, i.e., automated systems. Display is thus the forerunner of a development that has long since also affected digital outdoor advertising. Here, too, the share of programmatic bookings is growing year by year.
What does programmatic actually mean?
Programmatic advertising is the automated targeting of advertising media. The entire process – from the request for free advertising space to booking and playout – takes place via interconnected technology platforms. The process thus starts with an advertiser (or his media agency), who defines certain characteristics for his campaign, such as target groups, budgets and media channels. Then, suitable advertising spaces are bought via a demand-side platform (DSP), and their availability is indicated via so-called supply-side platforms (SSP). In its most sophisticated form, programmatic advertising involves an automated bidding process for the advertising spaces, with auctions taking place in fractions of a second (real-time bidding). The highest bid wins, and the ad is delivered immediately. In the case of traditional channels such as linear TV or radio, programmatic advertising has so far been understood as the automated booking process.
What is Programmatic DOOH?
Programmatic DOOH, also known as (P)DOOH, is the application of programmatic advertising in the field of digital outdoor advertising. Digital screens in shopping malls, train stations, airports, along streets or in doctors’ offices can be automatically controlled and filled with ads and spots. Here, too, advertisers can select the place and time they want to be addressed according to various criteria, such as location, time of day, weather conditions, or demographic characteristics. As is generally the case with programmatic advertising, the technical prerequisite is the linking of SSP and DSP. Ads are usually delivered via ad servers or special DOOH platforms.
What is the share of programmatic booked advertising in DOOH?
Programmatic DOOH is a growth story. All the major DOOH networks from Ströer, WallDecaux and Goldbach can now be booked programmatically. Many smaller providers have followed suit and also opened up their screens for automated booking and playout. “Programmatic has grown dramatically in recent years,” explains IDOOH CEO Frank Goldberg. “In 2017 and 2018, we were still pretty close to zero in terms of the programmatic share of DOOH revenues. Meanwhile, individual providers are already cracking the 50 percent mark.”
In 2022, around 30 percent of DOOH revenues were generated via programmatic bookings, and this share is likely to be significantly higher already in the current year. For some time now, evaluations have shown that DOOH, with its growth figures, is the driver of the entire outdoor advertising market. If we take a closer look at the figures for the DOOH market, it becomes clear that programmatic advertising is responsible for a large part of the DOOH growth. This means that (P)DOOH is largely responsible for the growth of the entire OOH market.
How does advertising get onto the screen?
In the first step, the advertiser creates a campaign in the DSP. This involves defining all the relevant parameters such as runtime, budget, playout frequency, times, target group data, screen type, and possibly certain targeting criteria such as weather data. He also uploads his motifs or spots. Now the automated demand for suitable advertising spaces takes place.
If an SSP recognizes that it has an ad space that meets these requirements, it signals this to the DSP. The creative is then transmitted to the SSP. In the next step, the publisher views the ad. As soon as he has approved it, his content management system (CMS) calls the SSP to play out the campaign. The campaign is delivered and is visible on the screen. Differences still arise in the question of whether the deal runs according to the bidding process or whether the general conditions have been agreed in advance. Here, a distinction is made between guaranteed deals and fixed price deals (inventory guaranteed) and auction-based deals, in which the DSP still has to set a CPM on which bids can then be made.
Which SSPs can be used to book DOOH inventory programmatically?
There are several cross-publisher SSPs on the market, including Ayuda, Broadsign, Hivestack, Place Exchange, Magnite, One Tech Group’s SSP1, Vistar Media and Yieldlab. Ströer operates its own SSPs with the Ströer SSP and WallDecaux with VIOOH.
Source: IDOOH https://idooh.blog/programmatic-dooh-die-wichtigsten-fragen-und-antworten-teil-1/