One of the best outcomes of technological innovations in the advertising industry is the conception of programmatic digital out of home advertising. This revolutionary type of advertising allows businesses to significantly increase their reach.
Combining the centuries-old technique of out of home advertising and the technologically driven media-buying method of programmatic advertising, programmatic digital out of home (DOOH) advertising amplifies the impact of any ad.
But to fully understand programmatic DOOH advertising and how you can leverage it for your business, you first need to understand two things: programmatic and DOOH advertising.
What is Programmatic Advertising?
Programmatic advertising is a method of media buying that uses automated technology and algorithm. You can create high-concept, brilliant ads all you want, but your ad campaign will not reach its full potential if it’s not in the right place and targeted at the right people.
Unlike traditional media buying methods, programmatic advertising doesn’t rely on proposals and quotes. Instead, it involves analysing various user signals using algorithmic tools before buying ads sold in advertising spaces.
Through this method, advertisers can ensure that the right person sees your ads in the right place at the right time.
What is Digital Out of Home Advertising?
Digital out of home advertising was a natural result of technological innovation. Before it became digital, out of home advertising has already existed for centuries. Ads have been plastered on walls, posted on billboards, and painted on the sides of buildings. These out of home ads have reached a wide audience.
As the use of digital media grew over the past decade, though, advertisers have learned to combine the proven success of OOH ads with the extraordinary capabilities of digital channels. As a result, Programmatic DOOH advertising was born.
If, before, your audience saw static ads on billboards, today, those billboards have turned into giant screens that allow you to show more creative ads to capture your audience effectively.
Programmatic DOOH: Cutting Through the Advertising Noise
Digital or online marketing has been growing by leaps and bounds in recent years. As consumers spend more time on their phones and the internet, businesses are meeting them where they are: online.
In 2020, the global digital advertising and marketing market reached $350 billion. This is projected to more than double by 2026 at $786 billion. One of the many benefits of digital marketing includes its ability to easily target the right audience.
On the other hand, the placement of ads in outdoor areas before programmatic DOOH is usually decided based on the traffic that area gets. This is why major highways and shopping centres were crowded with them.
While these kinds of OOH ads are still present today, they may not be as effective. With too many ads without proper planning when it comes to placement, many people who see them may not be the target audience.
In addition, when overwhelmed with too many ads, consumers tend to go blind about them. With too much advertising noise that’s irrelevant to their interests, ads are rendered invisible.
Finally, advertisers and the businesses who buy ad spaces on these billboards did not have metrics they could use to track the success of the campaign.
Programmatic DOOH advertising provides a solution to these problems. It cuts through the barrage of noise and uses data-driven technology to carry ads with relevant messaging to the people who need to see them.
A 2020 Nielsen study shows how effective DOOH ads are. According to the report, 57% of consumers who notice a digital billboard immediately visit the advertised business. Among those who visited, 93% made a successful transaction.
Similar trends were seen in other forms of DOOH, with 65% of consumers visiting a business after seeing digital street furniture and 48% doing the same after seeing a subway ad.
Programmatic DOOH and Audience Targeting
Data-driven audience targeting is the main feature that sets programmatic DOOH among other forms of traditional outdoor advertising.
Historically, digital marketers have analysed and used first-party data to capture their audience across the internet. But making these connections is a challenge in traditional OOH media.
But with advancements in data and advertising technologies, advertisers can access first-party consumer data to target audiences in the real world, the same way digital marketers reach their target audience online.
So how exactly does this technology work?
The technical architecture of programmatic DOOH has two elements: connected hardware with cameras and sensors and software backend for data capture and analysis.
These programmatic DOOH systems are connected to a supply-side platform (SSP), which shows available inventory to a demand-side platform (DSP). Through the DSP, advertisers can place real-time bids on digital ad spaces.
In addition, programmatic DOOH systems also have the following capabilities for more accurate data targeting:
- Temperature gauges
- Motion sensors
With these sensors, advertisers can create contextual ads that bridge the gap between digital and physical ad spaces.
For example, when the temperature drops, you can place your coffee shop’s digital ad about staying warm with a freshly brewed cup in front of consumers walking down your shop’s streets.
Apart from these cutting-edge targeting technologies, programmatic DOOH systems can also predict or measure the performance of your DOOH ads. Some programmatic DOOH systems can analyse how popular ad platforms are and give you an estimate of ad impressions through:
- Number of smartphones in the area
- Number of infrared sensors
- The use of pressure sensors
You may use these numbers as a baseline for measuring the effectiveness of the DOOH ads you bought.
But the wonders of programmatic DOOH advertising don’t end there. Sensor-based DOOH systems can process location data to retarget customers. This can increase ad recall when consumers who’ve seen your ads in one place see them again in another.
Interactivity is another perk of using programmatic DOOH advertising. With plenty of screens used for these ads having computing and data processing capabilities, you can integrate third-party data into your ad campaigns to make them interactive and personalised.
Want consumers to check out your range of sunglasses for summer? You can place an ad on a DOOH screen with a camera, encouraging people to stand in front of it and see how your glasses look on them. It’s like an Instagram filter but on a bigger advertising screen.
With these features, programmatic DOOH drives measurable outcomes and reaches the right audiences.
Utilise Programmatic Advertising with Us
PurpleClick is a programmatic advertising agency that helps clients optimise online and offline paid advertising. Let our programmatic technology experts elevate your ad campaigns.
Get in touch with our team today.