The digital development of out-of-home advertising has been rapid and has constantly provided this medium with new functionalities, making it an even more attractive and versatile media option for advertisers. Now, another giant leap forward has been taken as digital outdoor advertising will also be available through programmatic buying in Finland!
Programmatic DOOH advertising complements the media functionalities of outdoor advertising by allowing for dynamic targeting based on a campaign’s goals, a specific identification of the target group, effective selection of advertising spaces and formats, and optimising the media price. You can utilise nearly our whole range of digital advertising spaces, only excluding the digital screens inside public transport vehicles.
What does programmatic buying of DOOH advertising mean in practice?
Programmatic buying is a familiar term from the online world. When it comes to outdoor advertising, it means automatic buying of advertising space through an auction held on a trading platform. The auction for media space is held between the buyer, such as an advertiser or a media agency; the demand-side platform (DMP); and the supply-side platform (SSP) of the provider, in this case JCDecaux.
With programmatic DOOH advertising, the buyer will utilise the system to determine the boundary conditions for the purchase order. Such boundary conditions may include features such as the time of day when they wish to show the advertisement, the maximum price they are willing to pay for the visibility, the location of the advertisement and even the weather conditions. The supply-side platform then determines the price for the media space based on supply and demand. As out-of-home media counts as one-to-many media, meaning that several people can see the advertisement at the same time, the price is determined based on the cost per mille (CPM) measurement.
The graph shows the trading process, in which the supply-side platform (SSP) and the demand-side platform trade for media space by exchanging offers.
At the moment, programmatic buying of DOOH advertising is implemented through closed private marketplace (PMP) auctions. The buying takes place in almost real time. Advertising space can be bought with both guaranteed and non-guaranteed models.
In the guaranteed model, a contract is compiled for the purchase terms, which determines the advertising screens and locations, the number of impressions and the purchase price.
A non-guaranteed campaign does not give the customer any guarantees on how many impressions they will be able to buy for a certain time period in a certain media or advertising space. Additionally, the buyer does not always know in which location the ads are shown. On the other hand, the buyer also does not commit to a certain volume, but rather buys just what they need at any given time.
The benefits of programmatic buying for advertisers
Programmatic buying offers many benefits to advertisers:
Programmatic buying allows for creating measurable and carefully targeted campaigns by utilising geographic information in order to choose the best possible advertising location within the boundary conditions set by the buyer. This can be done almost in real-time based on consumers’ behaviour and the audience movement patterns.
Effectiveness and flexibility
Making a purchase order is easy, and the campaign can be adjusted and optimised in real-time. The buyer can also decide by themselves when, where and how many impressions they wish to buy. The same platform (DSP) can be used for these transactions as for purchasing online media space, which improves the purchase process’s efficiency and effectiveness.
Programmatic buying is possible for both outdoor and online advertising. However, when placing an online advert, the advertiser can never be sure of the context in which the advertisement will be shown in the online channel. Outdoor advertisements, however, are shown in carefully selected locations so the advertiser can remain certain that their brand will not be shown in an inappropriate or unfavourable context.
The system used for purchasing media space utilises the available real-time data of the public as well as the buyer’s or a third party’s own data for targeting the ads and also takes into account the available locations’ value for the advertiser. The advertisement’s creative content can also be edited by using data available from different sources.
The advertiser will receive a detailed report of outdoor advertising purchased through programmatic buying, including information such as:
• The locations where the ad was shown
• Screen hubs
• The advertising format
• DOOH impressions
• Number of times the ad was shown
• Dates and times the ad was shown
• The budget used
DOOH impression as the currency of programmatic buying
The currency of programmatic buying is a data-based DOOH impression, the use of which was started in digital out-of-home advertising towards the end of last year. DOOH impressions use data to verify the contacts received by the ad.
Here, contacts refer to how many times the ad was looked at; when buying DOOH impressions, the advertiser pays for the contacts the advertisement is predicted to receive in its chosen location. This prediction is based on audience data collected from the advertisement device’s location.
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