Now that programmatic has made its grand debut into digital out-of-home, the industry is asking itself exactly what approach it should take. With nine out of ten agencies buying media programmatically, there is no doubt that this is a great opportunity for media owners to access new revenues and gain a bigger portion of total ad spend. But how should network operators get started with programmatic?
The first step is to make inventory available to media buyers through a supply-side platform (SSP). However, not all SSPs are created equal and many are not a good fit for the particular nuances of the DOOH industry.
Before jumping into a partnership with an SSP for digital out-of-home (DOOH), there are four important things to consider.
1. The SSP Understands the Intricacies of Digital Out-Of-Home
Though there are numerous similarities between DOOH and online digital media, a one-size-fits-all approach to programmatic will not bode well for the DOOH industry.
Traditionally, programmatic campaigns are priced on a one-to-one impression basis. One ad is served to one viewer. On the other hand, with the one-to-many capabilities of DOOH, one ad can be viewed by thousands at a given time.
When integrating with an SSP, it is important to ensure that DOOH inventory can represent the true reach of each screen. Without this fundamental feature, media owners are forced to sell their inventory at a one-to-one basis, which greatly undervalues the medium. Just imagine if an ad displayed in Times Square was priced for one view…
Therefore, it is important to choose an SSP that understands DOOH’s intricacies and has the tools to integrate inventory into their platform. On another — and almost more important — note, network operators should make sure the selected SSP is willing and able to communicate the benefits of DOOH to media buyers.
As a matter of fact, only 39% of media buyers know what DOOH can be purchased programmatically. The SSPs that are working to change that statistic are the ones DOOH should be working with.
2. The SSP Can Handle Digital Out-Of-Home Audience Measurement
Online audiences are typically tracked through a browser cookie. When an ad is displayed in someone’s browser, an impression is tracked. Yet given the broad reach of DOOH, views cannot be tracked on an individual basis. Instead, audience measurements are tracked based on totals and averages
Seeing as media buyers are not always familiar with these forms of audience data, the DOOH industry must bring together first and third party data to bridge the gap. Media owners can analyze the screen location and use audience measurement tools to determine each screen’s audience at a given time.
Detailed audience data is critical to match each media buyer’s targeting requirement and to ensure a successful programmatic campaign. When getting started with an SSP, it is important to ensure audience measurements are displayed in a way that both media owners and buyers can understand.
With more data available, a stronger ROI will likely be seen, as media buyers will be able to target their audience. With better results comes higher demand, ultimately driving higher CPMs for the entire industry.
3. The SSP is a Good Fit with Current Digital Out-Of-Home Workflows
When integrating with an SSP for DOOH, networks must consider whether the current workflows can be seamlessly integrated.
Online, browsers handle all playback yet in DOOH, playback is often more complex. Player capabilities like audio support need to be considered. Each campaign also needs to conform to local digital signage regulations. Therefore each ad must continue to go through the current content approval process.
Without taking these issues into account, programmatic buying may interfere with the network’s sales process. Yet with a properly aligned system, scheduling conflicts are avoided and direct and programmatic deals can work seamlessly to maximize DOOH revenue.
4. The SSP Addresses the Race to the Bottom of Real-Time Bidding
When real-time bidding (RTB) was first introduced to media buying, there was worry that a race to the bottom for CPMs would be triggered. Initially, floor pricing was set up to mediate the situation but what truly improved CPMs was the scarcity of premium inventory. Though there are thousands upon thousands of ad slots available, only a small percentage can deliver the results media buyers are looking for. When the DOOH industry first began to dabble with the idea of programmatic, many were concerned that RBT would negatively impact the value of their inventory.
Fortunately, with the quality associated with DOOH, this issue can be addressed. Given the complexity and high costs associated with the installation of large displays, they are generally only deployed in high-impact and/or high-traffic areas.
In addition, large format ads provide excellent results. One study showed that 63% of people say OOH catches their attention, while another showed an 8 percent increase in recall for DOOH compared to other digital and traditional formats.
To benefit from programmatic, network operators should work with an SSP that understands the impact and value of DOOH. As such, there will be no need to worry about low CPMs.
Ready to get started with programmatic?
As with any new trend, it will take a few early adopters to test the waters. Yet given its benefits and revenue generating potential, programmatic will be commonplace in the DOOH industry in the foreseeable future.
To see how your network can get ready to reach new programmatic revenues, contact us for more information and a personalized demo of our programmatic solution, BroadSign Serv SSP.