Programmatic DOOH Companies: Revolutionizing Advertising in the Digital Age

In a world where traditional advertising channels no longer hold the same sway, programmatic DOOH companies have emerged as the new power players.

With attention rates skyrocketing and a projected spending of $7.18 billion in the US by 2022, the advertising landscape has shifted dramatically.

This precise targeting and clear ROI have opened a new gateway to consumers, causing budgets to surge and forecasting a staggering $50-$55 billion market by 2026.

However, amidst this exponential growth, hurdles remain in the realms of data processing, ad viewability measurement, and creative processing.

Join us as we dive into the exciting realm of programmatic DOOH advertising and explore the untapped potential it holds.

programmatic dooh companies

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1. Increased Attention To DOOH Advertising During The Pandemic

The COVID-19 pandemic had a profound impact on our lives, including the way we consume media. While traditional media channels faced challenges, one channel that thrived during this period was digital out-of-home (DOOH) advertising. Research indicates that people now pay 45% more attention to out-of-home advertising compared to pre-pandemic times. This increased engagement can be attributed to the fact that DOOH ads are visible in public spaces, where people are more likely to be attentive and actively seeking information and entertainment.

During the pandemic, people altered their routines and spent more time outdoors, finding solace and entertainment in public spaces. This change in behavior provided a unique opportunity for brands to capture consumers’ attention through DOOH ads. Additionally, the flexibility of DOOH allowed for the display of real-time information, such as safety protocols and updated business hours, which enhanced the value of this advertising medium during a time characterized by rapid change and uncertainty.

2. Projected DOOH Spending In The US for 2022

The growing popularity and effectiveness of DOOH advertising has led to a significant increase in spending in this sector. In the United States alone, DOOH spending is expected to reach a staggering $7.18 billion in 2022. This projection demonstrates the confidence that marketers and advertisers have in the power and impact of DOOH as an advertising medium.

The growth of DOOH spending can be attributed to several factors:

• Wide audience reach: Brands have recognized the potential of DOOH to reach a wide audience in a hyper-relevant way.
• Strategic placement: By strategically placing ads in high-traffic locations and optimizing them based on real-time data, brands can ensure that their messages reach the right people at the right time.
• Measurability: DOOH offers the advantage of being measurable, enabling advertisers to track the return on investment (ROI) of their campaigns more effectively.

“DOOH advertising has become a powerful medium for marketers and advertisers. With its wide audience reach, strategic placement, and measurability, it is no surprise that spending in this sector is on the rise.”

3. Predicted Growth of Programmatic DOOH Ad Inventory

One notable trend in the DOOH advertising landscape is the increasing proportion of ad inventory transacted programmatically. In 2022, the programmatic DOOH market is predicted to experience a growth of 14.8% in ad inventory. This trend signifies the growing demand for programmatic solutions in the DOOH industry.

Programmatic DOOH offers advertisers high-precision targeting and clear-cut ROI. By leveraging advanced algorithms and machine learning, programmatic platforms can analyze vast amounts of data to identify the most relevant audiences for specific campaigns. This level of precision allows brands to deliver tailored and personalized messages to the right target market, maximizing the effectiveness of their advertising efforts.

Furthermore, programmatic DOOH enables mid-campaign optimization. Advertisers can adjust the locations and media impact of their campaigns based on real-time data and insights. This flexibility ensures that campaigns are continuously optimized for the best results, delivering value and efficiency to advertisers.

4. Precision Targeting and ROI of Programmatic DOOH

Programmatic DOOH stands out for its ability to offer high-precision targeting and a clear return on investment (ROI) for advertisers. Through sophisticated algorithms and data analysis, programmatic platforms can identify and target specific audiences, delivering messages that are highly relevant to their interests and behaviors.

By leveraging data from various sources, including mobile devices and location-based services, programmatic DOOH can identify and target consumers with utmost precision. This level of targeting ensures that brands are reaching the right people, at the right place, and at the right time. As a result, advertisers can expect higher engagement rates and improved campaign performance.

Furthermore, programmatic DOOH offers valuable insights into the effectiveness of campaigns through robust reporting and analytics. Advertisers can track key performance indicators (KPIs) such as reach, frequency, and conversions, allowing them to measure the impact of their campaigns accurately. This transparency in performance measurement enables brands to optimize their strategies and allocate budgets more effectively, ultimately improving their ROI.

• High-precision targeting provides relevant messages to specific audiences
• Leveraging data from various sources for precise consumer targeting
• Higher engagement rates and improved campaign performance
• Robust reporting and analytics for measuring KPIs such as reach, frequency, and conversions
• Transparency in performance measurement enables optimization of strategies
• Improved ROI for advertisers through programmatic DOOH.

5. Combining Hardware and Software for Dynamic DOOH Ads

DOOH advertising combines the power of hardware and software technologies to display dynamic advertisements in public spaces. This integration allows for the creation of engaging and immersive experiences for consumers and provides advertisers with unique opportunities to capture their attention.

DOOH systems typically consist of connected hardware, including digital screens, cameras, and sensors, and a software backend that controls and manages the dynamic display of ads. This combination enables advertisers to deliver captivating and interactive content, such as videos, animations, and real-time information.

Additionally, DOOH devices can be connected to a supply-side platform (SSP), which enables real-time bidding for ad placements. This integration with programmatic technology allows for efficient and automated ad buying, optimizing the reach and impact of campaigns. With programmatic DOOH, advertisers have the flexibility to purchase and run ads at selected locations and times, ensuring maximum exposure and relevance.

6. Contextual and Personalized DOOH Advertising

One of the key advantages of DOOH advertising is its ability to deliver highly contextual and personalized content based on real-world conditions. By leveraging data and automation, DOOH ads can adapt to the surroundings and provide tailored messages to the audience.

Contextual DOOH advertising takes into account factors such as weather conditions, time of day, and audience demographics to deliver relevant content. For example, a coffee brand may choose to display ads promoting warm beverages during colder months or when rain is forecasted. This level of contextualization enhances the relevance of the ad, capturing the attention and interest of the audience.

Furthermore, DOOH allows for personalized advertising based on audience segmentation and individual preferences. By integrating with data sources and leveraging programmatic technology, advertisers can deliver customized content to specific consumer segments, ensuring that each individual sees relevant and engaging messages. This personalization increases the effectiveness of ads and strengthens the connection between brands and consumers.

• Highly contextual and personalized content
• Relevant ads based on weather, time, and audience
• Personalized advertising based on segmentation and preferences
• Deliver customized content to specific consumer segments
• Increased ad effectiveness and connection between brands and consumers

“One of the key advantages of DOOH advertising is its ability to deliver highly contextual and personalized content based on real-world conditions.”

7. DOOH as an Alternative for Hyper-Relevant Marketing

In an era where consumers are bombarded with advertisements from various channels, brands are seeking alternative ways to reach their target audiences in a hyper-relevant and impactful manner. Digital Out-of-Home (DOOH) has emerged as a powerful tool in this endeavor.

DOOH offers brands the opportunity to connect with consumers in the physical world, where they are more likely to be engaged and receptive to messages. By strategically placing ads in high-traffic locations, brands can capture the attention of their target audience and make a lasting impression.

Moreover, the versatility of DOOH allows for innovative and interactive experiences that drive engagement and brand recall. Through the integration of technologies such as motion detection systems, advertisers can create immersive brand experiences that leave a lasting impression on consumers. This alternative approach to marketing enables brands to stand out in a crowded advertising landscape and build stronger connections with their target audience.

8. Consumer Attention and Effectiveness of DOOH Ads

The effectiveness of DOOH advertising can be attributed to the high level of consumer attention it commands. Research indicates that 50% of consumers notice DOOH ads either “all the time” or “most of the time,” highlighting the power of this medium to capture attention in public spaces.

Not only do consumers pay attention to DOOH advertising, but they also act upon it. Studies have shown that 57% of consumers immediately visit the advertised business after seeing a DOOH ad, and a staggering 93% of those visitors make a purchase. This level of effectiveness speaks to the influence and impact of DOOH in driving consumer behavior.

The combination of high visibility, engaging content, and real-time relevance contributes to the effectiveness of DOOH ads. By capturing the attention of consumers in public spaces and delivering messages that resonate with their needs and interests, brands can drive immediate action and conversions.

9. Programmatic DOOH’s Value and Benefits

Programmatic DOOH (Digital-Out-of-Home) offers significant value and benefits to advertisers, making it an attractive choice for marketing campaigns. Here are some of the key advantages:

• Trigger-based buying campaigns: Programmatic DOOH allows advertisers to run campaigns based on real-time data. Advertisers can activate their ads based on specific events or conditions such as weather changes or local events. This approach ensures that ads are displayed at the most opportune moments, increasing their relevance and impact.

• Targeting capabilities: Programmatic DOOH offers innovative ways to target consumers. Advertisers can identify and reach specific audiences based on factors like location, demographics, and behavior. This level of precision targeting ensures that ads are delivered to the right people, optimizing campaign effectiveness.

• Higher brand recall and awareness: By delivering dynamic and engaging content in public spaces, programmatic DOOH enables brands to leave a lasting impression on consumers. This results in increased brand recognition and recall, leading to improved brand performance and customer loyalty.

• Broader audience reach at a lower cost: Unlike traditional media channels, DOOH has the potential to reach millions of people in high-traffic areas, maximizing the exposure and impact of campaigns. Furthermore, the efficiency and automation provided by programmatic technology allow for cost-effective ad buying, optimizing budget allocation.

These advantages make programmatic DOOH a valuable tool for advertisers looking to enhance the effectiveness of their campaigns.

10. Challenges and Opportunities in Programmatic DOOH Marketplaces

While the programmatic DOOH market has witnessed significant growth and adoption, it also presents challenges that need to be addressed. Some of the challenges include data processing, ad viewability measurement, and low-latency ad creative processing. These hurdles can impact the overall effectiveness and efficiency of programmatic DOOH campaigns.

Data processing plays a crucial role in programmatic DOOH, as it ensures the accuracy and timeliness of targeting decisions. The increasing volume and variety of data require robust processing capabilities to extract meaningful insights and deliver relevant ads. Overcoming this challenge requires investments in advanced data infrastructure and analytics tools.

Ad viewability measurement is another challenge in programmatic DOOH. The ability to accurately measure whether an ad was actually viewed by the audience is crucial for advertisers to assess campaign effectiveness. Developing standardized metrics and industry-wide guidelines for viewability measurement will be essential in addressing this challenge.

Lastly, low-latency ad creative processing is crucial for delivering dynamic and real-time content in programmatic DOOH. Ensuring that ads are displayed seamlessly and in sync with real-world conditions requires efficient and agile creative processing. Developing technologies and workflows that streamline the creative production process will be instrumental in addressing this challenge.

Despite these challenges, the programmatic DOOH marketplaces present significant opportunities for companies. The projected increase in DOOH advertising budgets globally, with 76% of marketers planning to increase spending in 2022, demonstrates the growing interest and potential in this field. As companies invest in resolving the challenges around data processing, ad viewability measurement, and low-latency ad creative processing, they will be well-positioned for growth in the programmatic DOOH industry.

In conclusion, programmatic DOOH has revolutionized advertising in the digital age. With its ability to deliver highly targeted and personalized content, DOOH has become a valuable channel for marketers to reach their target audiences in a hyper-relevant way. The projected increase in DOOH spending, the growth of programmatic DOOH ad inventory, and the positive consumer response to DOOH ads all point to a promising future for this dynamic medium. By addressing the challenges and leveraging the opportunities, programmatic DOOH companies can unlock the full potential of this advertising revolution.

FAQ

What are the programmatic platforms for DOOH?

In the realm of programmatic DOOH advertising, two essential platforms come into play: the demand-side platform (DSP) and the supply-side platform (SSP). The DSP plays a crucial role in connecting advertisers and media buyers to available DOOH inventory, enabling them to efficiently manage and optimize their campaigns. On the other hand, the SSP serves as a gateway for media owners and publishers to make their DOOH inventory accessible to advertisers, ensuring effective monetization. Together, these platforms form the foundation for programmatic DOOH, empowering the seamless exchange of ads and inventory in a dynamic and automated manner.

What is an example of DOOH marketing?

An example of DOOH marketing is the use of digital screens in airports to display targeted advertisements. These screens are strategically placed in high-traffic areas where travelers can easily view them. By utilizing dynamic content and real-time data, advertisers can deliver relevant messages to specific audiences. For instance, a screen located near the arrival gate may display ads for local hotels or transportation services, while screens near departure areas could promote duty-free shops or travel insurance options. This form of DOOH marketing allows for precise targeting, ensuring that advertisements reach the right audience at the right time.

What brands bring programmatic in house?

In recent years, there has been a significant shift towards in-house programmatic advertising by various notable brands across industries. Companies like Marriott, Colgate-Palmolive, Procter & Gamble, and Coca-Cola have recognized the potential benefits of managing their programmatic advertising internally. By bringing programmatic in-house, these brands gain more control over their ad campaigns, allowing them to fine-tune targeting, optimize costs, and ensure brand safety.

Another set of brands that have adopted in-house programmatic advertising includes Bayer, EA Games, Wayfair, and American Express. By managing their programmatic efforts internally, these companies can personalize and tailor their advertising strategies according to their specific needs and target audience. This approach enables them to build stronger relationships with their customers, increase brand loyalty, and drive more effective and efficient advertising campaigns. With the success seen by these brands, others like Unilever, Anheuser-Busch, Netflix, Target, Deutsche Telekom, and Ally Financial have also followed suit, bringing programmatic advertising in-house to unlock greater control and reap the benefits of this increasingly popular approach.

What is the difference between DOOH and programmatic DOOH?

DOOH (Digital Out of Home) and programmatic DOOH differ in their approach to buying and selling advertising inventory. In DOOH, the buyer is responsible for manually selecting and negotiating rates and flights for the inventory. On the other hand, programmatic DOOH takes a more automated approach. In this case, a Demand-Side Platform (DSP) determines the bidding strategy for each impression, and a Supply-Side Platform (SSP) determines the winner of the impression through an open real-time auction or a private marketplace (PMP). This automated process streamlines the buying and selling of DOOH inventory, making it more efficient and data-driven.

By adopting programmatic DOOH, advertisers and media buyers can benefit from increased efficiency and targeting capabilities. The use of DSPs enables precise audience targeting and optimization of ad campaigns, while SSPs ensure fair and efficient allocation of impressions. This automation allows for quicker decision-making and real-time optimization of ad placements, resulting in more effective and measurable advertising campaigns. Ultimately, programmatic DOOH revolutionizes the way outdoor advertising is bought and sold, paving the way for a more efficient and data-driven advertising ecosystem.