The programmatic theme marks the beginning of the end of classical media planning as we know it today.
There has been a lot of talk about transformation over the past 10 years, and there has been more talk of digital transformation for 6-8 years. From a media and marketing perspective, there is a media transformation in the media world. On the one hand, we have a new device landscape and new technologies that fundamentally change media consumption. On the other hand, there are programmatic, automation of processes, tracking, measurement methods and standards that fundamentally change media planning. The programmatic theme marks the beginning of the end of classical media planning as we know it today. So Digital Out of Home is no exception, because even today Programmatic Out of Home is possible.
Programmatic Out of Home is not about the future, it’s already there. It is the logical evolution of digitization, automation and media standardization. This will not affect advertisers, digital out of home marketers and media agencies, so it wants to affect all creative agencies. The optimization of creation motives wants to be an important topic.
You only have to focus on programmatic display, mobile and video, and it becomes more and more measurable and data usage, as well as change and more automation, has led to process relocations and process changes. This article deals with the central question of all these means for the various market participants and for the Digital Out of Home genus itself.
In an international comparison, the development in Germany is somewhat slower and more different than in the other countries. Much depends on the infrastructure, digital out of home reach, market participants, experimentation and not least privacy. In Germany, spend 22% in 2017. In the UK, USA and Australia, the share is already over 40%. Of course, IT and Internet infrastructure play a very important role here.
Changes for marketers
For the marketer landscape, Programmatic Out of Home is a process change. It starts with understanding Programmatic, Programmatic Sales and Programmatic Process Definition. Whether small or large marketers, the direct sales and the programmatic sales and operation processes must be offered in parallel and kept alive. Know-how for data integration, technology, technologies and market players must first be built in-house and then used for programmatic.
Programmatic Out of Home offers great opportunities for marketers to programmatically maximize their use of Digital Out of Home space and generate as much ROI as possible. Of course, one will have to deal with yield management to generate maximum utilization and maximum revenue. Programmatic Out of Home is not yet capable of Real Time Bidding (RTB), but it’s only a matter of time. Then you will not only have to deal with Programmatic Guaranteed but also with Private Auction and Preferred Deals.
Audience recognition, Facial Recognition technologies and Beacon, WiFi, blueTooth and NFC measurement and tracking capabilities will open the doors to on-the-fly optimization, real-time measurement and campaign readjustment. With data, targeting capabilities, more measurability and transparency, the One-To-Many Programmatic Out of Home is already capable of generating fast „smart reach“.
Of course, Programmatic also means control handover for the marketer. When the purchasing systems or the programmatic units of agencies and trading desks make the purchasing decisions & optimization decisions, the marketer gets for the most part not always with, why, where and what was optimized.
Programmatic Out of Home also offers the opportunity to plan and conduct transnational international campaigns more easily. The first DSP, SSP and Exchanges are already in the process of integrating more and more space and partners. Through process standardization, target group data, measurability, TKP as a purchasing model and programmatic controllability, it is easy to implement an international Programmatic Out of Home campaign, and possibly through a Programmatic SSP / Programmatic Exchange provider.
Simplification and more efficiency for advertisers
Programmatic Out of HOme brings immense process simplification to advertisers.
Accurate audience targeting through increased data usability, measurability and timely reporting on the one hand, and very high reach on the other hand, mean increased return on media investment as well as time efficiency and short response times for the advertiser. Especially for cross-media campaigns, which may be controlled via a DSP, the campaign settings, reporting and optimization logics can be coordinated even more precisely.
Various targeting options such as geo-targeting or hyperlocal targeting could be set and controlled in a uniform manner for all programmatic activities (display, mobile, digital out of home (DOOH) and video). Inter-generic budget optimization, range optimization and creative controls mean flexibility for the advertisers.
The biggest advantage of operating processes, however, is that advertisers can handle as many marketers, networks and, in the future, even individual screens through a Programmatic DSP / Exchange provider. Even international campaign management is much easier with Programmatic Out of Home than it is now. Also, the user does not have to be online to consume the Programmatic Out of Home messages.
New opportunities for agencies
For the agency landscape, whether media agency, creative agency or performance agency, Programmatic Out of Home offers new opportunities for the intelligent planning of cross-platform programmatic strategies for new products. Especially the combination of Digital Out of Home and Mobile or Programmatic Out of Home and Video offer new possibilities for communication and interaction.
The use of targeting options search as traffic situation, weather, locations, DMP With programmatic out of home, better creative campaigns for digital out of home, optimize their creations, and gain the trust of existing and new customers through better service, performance, and increased return on media investment.
For many media agencies and programmatic agencies, Programmatic Out Of Home wants mean in-house process change. Because the planning of programmatic out of home is not out of home / outdoor advertising unit but Programmatic Unit or Agency Trading desks.
Once the topics are as Private Auction, Open Auction and Preferred Deal are also part of the Programmatic Out Of Home ecosystem, the marketer / agency relationship wants to play an important role in negotiations, pricing strategies, cross-media and cross-platform offerings.
Programmatic OOH becomes game changer for media releases
Overall, Program Out of Home has the potential to be a game changer in terms of programmatic reach, campaign performance measurement (return on media investment) and mass communication. Digital Out of Home has shown in recent years that this genus can grow quickly. As more and more digital out of home spaces are programmatically controlled, they therefore speak about adblock-free, moving, real-time measurable, interactive and high-reach programmatic influencer media.
Guest Commentary in New Business
Mandar Ambekar, Managing Partner of blueShepherd, gives insights on Programmatic Out of Home as well as the consequences and opportunities for market participants in the current print edition of New Business (Issue 10, ET 05.03.2018).