The shift of media budgets from Out Of Home (OOH) to Digital Out Of Home (DOOH) has been remarkable in recent years. In 2023, the share of DOOH at 54% was larger than traditional OOH for the first time (Outreach, 2023). This is due to lower investment costs in digital technology, allowing for the application of digital surfaces on a larger scale. With the growth of digital surfaces, the real-time possibilities to direct your message increase. Especially Programmatic DOOH offers advertisers the ability to quickly, fully addressable, and hyperlocal (or nationwide) reach the target audience. As the global DOOH market is expected to exceed 58 billion dollars by 2031 (Jangra, Upadhaya & Kumar, 2022), this article discusses (programmatic) DOOH and why it is an indispensable part of your media mix in 2024.
What is Programmatic DOOH?
To fully understand what Programmatic DOOH is, we first distinguish between OOH and DOOH. We are all familiar with traditional outdoor advertising such as static billboards and poster walls; this is what we call Out Of Home (OOH). Digital Out Of Home (DOOH) refers to digital advertising displayed on outdoor screens, such as digital billboards, displays at bus stations, or in shopping centers. Simply put, DOOH is traditional OOH but on digital screens. DOOH also offers the possibility for moving images and video.
Media buying via programmatic buying
DOOH is purchased via 'programmatic' buying, an automated media buying form also used for the automated purchase of display and video ads. DOOH can be purchased through its own Demand Side Platform (DSP), as we do via Vistar Media (formerly Sage +Archer). But programmatic DSPs like Google Display & Video have already integrated DOOH into their platform. The advantage of 'programmatic buying' is that you can target more specifically and have more control over your budget and its optimization. During a campaign, information can be directly adjusted to changing conditions, such as weather or traffic congestion. This data enables targeted advertising for specific audiences, locations, and times.
“Day parting” and contextual targeting
DOOH allows brands to deliver a relevant message to the target audience at any time, unlike the old-fashioned method of a fixed week in the year. Programmatic DOOH offers additional targeting options such as “day parting,” where messages are shown at specific times during the day, for example, during rush hour. Besides day parting, contextual targeting offers ads based on time, weather, events, and audience characteristics. This is ideal for the ‘cookieless era,’ as it delivers relevant ads without collecting personal data, thus complying with stricter privacy regulations.
Advantages of DOOH over traditional OOH
Traditional OOH remains an effective way to present your brand to a large audience. However, the rise of DOOH has drastically changed the way consumers are reached. DOOH has the advantage of using dynamic content and applying specific targeting options. Additionally, the large initial investments in printing costs are eliminated with DOOH. The screens that are digitized and thus available for programmatic are usually also in prime locations. If you're not yet convinced, below are the advantages of DOOH over traditional OOH:
1. Targeted targeting:
- Audience targeting: Thanks to advances in AI and machine learning, DOOH platforms can analyze pedestrian traffic to determine demographic information such as age and gender, enabling highly targeted campaigns.
- Time targeting: Ads can appear at specific times or during events, increasing the relevance of the message.
- Hyper-targeting: Unlike traditional OOH advertising, DOOH allows advertisers to tailor messages based on location data. So your message can be fully personalized.
2. Real-time analysis and insights:
- Live dashboards: Real-time analyses allow you to track engagement metrics immediately, enabling you to adjust your campaign directly.
- Consumer behavior analysis: Advanced tools provide insight into how consumers interact with your ads.
3. Flexibility and scalability:
- Scalable campaigns: A single campaign can be effortlessly expanded to multiple locations or audiences with just a few clicks.
- Multimedia options: Unlike traditional billboards, DOOH offers the freedom to use video, interactive elements, and even augmented reality.
- Cross media: Think of hyper-local mobile ads (just Google it...)
4. Cost-effectiveness:
- Reduced production costs: DOOH does not require physical materials like paper or paint, reducing costs and waste.
- Programmatic buying: Automated purchase options make bidding for ad space more efficient and often reduce overall costs.
- Optimized spending: Thanks to the precision of targeting and analyses, your marketing budget is optimally utilized, with less wasted ad spend.
5. Higher engagement and interactivity:
- Interactive elements: Touchscreens, QR codes, and augmented reality create a two-way dialogue with consumers, increasing engagement.
- Visual impact: The scale and vibrancy of digital screens make your ad more striking and memorable, especially when enriched with moving graphics or interactive elements.
Programmatic DOOH as part of your media mix
DOOH not only offers advantages over traditional OOH but also bridges the gap between the offline and online world of advertising. It seamlessly fits into omnichannel marketing strategies, where consumers are approached with a consistent message through multiple channels. By combining DOOH with other media channels, you give an extra boost to your campaign, increase brand value, and ensure both online and offline visibility.
Future perspectives for Programmatic DOOH
The growing acceptance and integration of Programmatic DOOH into existing digital platforms promise a bright future for advertisers. With predictions that the global DOOH market will exceed 58 billion dollars by 2031 (Jangra, Upadhaya & Kumar, 2022), the demand for advanced, measurable advertising solutions continues to rise.
Convinced?
Programmatic DOOH offers advertisers many opportunities to communicate their brand powerfully and effectively with the public, whether it's large brands or smaller companies with a limited budget for traditional OOH. Do not hesitate to embrace this innovative approach to outdoor advertising and elevate your marketing efforts to a higher level. Contact us for more information!
