Understanding Programmatic DOOH (pDOOH): The Future of Advertising

As the advertising landscape evolves, programmatic digital out-of-home (pDOOH) advertising has emerged as a game-changer. Combining the broad reach of traditional out-of-home advertising with the precision of digital marketing, programmatic DOOH offers unprecedented opportunities for brands to engage with their audiences in real-time.

What is Programmatic DOOH?

Programmatic DOOH refers to the automated buying, selling, and delivery of digital out-of-home advertising, utilizing data and algorithms to optimize ad placements in real time. This technology-driven approach ensures that the right message reaches the right audience at the right time. Marketers are increasingly seeing the value in DOOH, as demonstrated by its growing share in ad spending. In 2023, one-third of all out-of-home (OOH) ad spend was allocated to DOOH, with a projected increase of 10% by the end of 2024.

So, what exactly is DOOH media, and why is it becoming a go-to choice for advertisers? Here are some standout benefits:

• Unmatched Size and Visual Impact: DOOH ads, displayed on large digital screens, provide a canvas for visually striking campaigns that outshine ads on personal devices. Smaller DOOH formats, like digital signage, bus stop displays, and totems, also offer a larger visual space that enhances creativity and engagement.
• Unskippable and Ad-Block-Proof: Unlike digital ads that can be blocked or ignored, DOOH ads capture attention by being right in the viewer’s line of sight. With no option to skip, block, or ignore, they boast high visibility—88% of U.S. adults report noticing OOH ads, and nearly 80% have engaged with one in the past 60 days.
• Amplifies Other Channels: DOOH isn’t just powerful on its own; it also strengthens other advertising channels. Research from MRI-Simmons and the Outdoor Advertising Association of America shows that pairing OOH with other channels can boost overall reach by up to 100%, amplifying brand visibility and recall.
• Drives Real-World Action: DOOH effectively motivates viewers to act. According to a recent Harris Poll, DOOH is the most impactful and action-driven medium, with 76% of viewers reporting taking action in response to a DOOH ad, underscoring its influence on consumer behavior.

Programmatic DOOH combines all these advantages with automation, streamlining the advertising process and enabling marketers to maximize impact with data-driven precision.

Benefits of Programmatic DOOH for Advertisers

pDOOH brings several advantages that make it ideal for reaching audiences effectively and efficiently:

1. Unparalleled Visual Impact: DOOH’s large screens, like those in Times Square or Shibuya Crossing, create visually impactful ads that are hard to ignore.
2. Unblockable and Unskippable: Unlike online ads, DOOH ads are “in the line of sight,” ensuring high visibility as they can’t be skipped or blocked.
3. Enhances Omnichannel Campaigns: DOOH works well in tandem with other digital channels, amplifying brand reach and engagement.
4. Real-Time Optimization: Campaigns can be adjusted based on data-driven triggers such as weather, location, or current events.
5. Advanced Targeting: By leveraging datasets, advertisers can target specific demographics or behaviors for improved engagement.
6. Measurable Impact: pDOOH enables tracking of KPIs, such as impressions, footfall attribution, and engagement, allowing for data-driven insights and continuous improvement.

Key Insights from Industry Leaders

Industry leaders provide valuable insights into the benefits and implementation of programmatic DOOH:

• Broadsign emphasizes the importance of real-time optimization and dynamic content in enhancing the effectiveness of programmatic DOOH campaigns.
• Vistar Media highlights the benefits of enhanced targeting and audience segmentation, which lead to higher engagement rates.
• Clear Channel Outdoor discusses the efficiency and flexibility of automated ad buying, making it easier for advertisers to manage and optimize their campaigns.
• KORTX explores the impact of data-driven decision-making in programmatic DOOH, showcasing the measurable benefits of this approach.
• Hivestack provides a comprehensive overview of the differences between traditional DOOH and programmatic DOOH, underscoring the advantages of the latter in terms of targeting and performance measurement.

Why Programmatic DOOH is the Future of Advertising

As the advertising industry continues to evolve, programmatic DOOH stands out as a future-proof solution that combines the strengths of digital marketing with the expansive reach of out-of-home advertising. This innovative approach offers numerous benefits, including real-time optimization, enhanced targeting, efficiency, and measurable impact.

For businesses looking to leverage the power of programmatic DOOH, partnering with an expert in the field is essential. At International Advertising Solutions, we specialize in crafting innovative and effective programmatic DOOH campaigns tailored to your brand’s needs. Our team of experts uses the latest technologies to deliver high-impact, measurable results for your out of home ads.

Methods for Purchasing pDOOH Inventory

pDOOH inventory can be purchased through various methods, each offering flexibility and scalability for advertisers:

1. Open Real-Time Bidding (RTB): Advertisers bid for ad space, with the highest bidder winning the slot instantly.
2. Private Marketplace (PMP): Media owners offer exclusive access to inventory for preferred buyers.
3. Programmatic Guarantee: A direct agreement with a media owner ensures ad placement without competition from other buyers.

These options provide a range of choices to suit different campaign goals and budget considerations.

pDOOH vs. DOOH: Why Programmatic Digital Out-of-Home is a Game Changer

Imagine taking all the benefits of DOOH—high visibility, unmissable screens, and impactful visuals—and adding in the power of data-driven targeting, on-the-spot flexibility, and seamless integration. That’s the magic of programmatic DOOH. Let’s dive deeper into what makes pDOOH the next-level evolution of digital out-of-home advertising.

Data-Enhanced Impact: Programmatic DOOH at Its Best

Programmatic DOOH brings precision to traditional DOOH by using advanced data analytics to provide in-depth insights on campaign performance, engagement, and effectiveness. Where traditional DOOH relies on general location demographics and traffic patterns, pDOOH enables advertisers to reach audiences in a much more targeted way, maximizing relevance and ROI. With programmatic technology, brands can analyze the real-time performance of their campaigns and adjust strategies as needed for optimal results.

Programmatic’s real innovation? It lets advertisers use various data triggers to automatically purchase ad slots when specific conditions are met. These triggers can range from time of day and weather changes to real-time event updates, market conditions, or audience demographics in the area. This flexibility allows advertisers to tailor campaigns dynamically, so the right message reaches the right person at precisely the right moment.

For example, foodora recently used pDOOH with weather, location, and time-of-day data. When it was sunny, audiences saw messages encouraging a stroll to pick up food; when it rained, they were invited to treat themselves to delivery. The messaging adapted automatically based on each location and time, requiring no manual adjustments once set up.

Speed and Flexibility: The Real-Time Advantage of Programmatic DOOH

With programmatic DOOH, advertisers gain the flexibility to purchase ad space in real-time through automated platforms, allowing them to adjust campaigns immediately based on performance, availability, or changing conditions. Traditional DOOH typically requires pre-booking ad slots, limiting responsiveness and adaptability. In contrast, pDOOH enables advertisers to buy inventory instantly without committing upfront, making it easy to optimize placements and adjust spending on the fly.

In fact, according to IAB Australia’s 2024 report, 52% of advertisers now see pDOOH as an essential or regular part of their media strategy, with 68% of agencies and 55% of brand marketers citing flexibility as a key driver. With programmatic, brands can reach audiences faster and more efficiently, delivering tailored messaging without repeatedly coordinating with publishers.

Returning to the foodora example, different ads ran at lunchtime versus dinnertime, adapting effortlessly to weather and location variables. Once configured, the campaign required no further input to deliver relevant content that resonated with audiences at the ideal moments.

Easy Access Through Leading DSPs

As more DSPs incorporate programmatic DOOH, adding DOOH to multichannel campaigns is becoming easier than ever. Many DSPs now allow advertisers to access pDOOH seamlessly alongside other digital channels, simplifying the process of expanding reach across diverse screens and networks. Adaptive formats like dynamic DOOH and HTML5 make it easy to repurpose existing online or mobile content for DOOH, streamlining cross-channel campaigns and enhancing brand consistency.

An additional advantage? Programmatic DOOH enables simultaneous purchasing across multiple publishers, bypassing the need to coordinate individually with each network. As more advertisers incorporate DOOH into their media plans, programmatic capabilities are poised to make DOOH a core component of mainstream media strategies.

In short, pDOOH doesn’t just make digital out-of-home more effective; it makes it smarter, faster, and easier to integrate into today’s data-driven media landscape.

Measuring the Effectiveness and ROI of Programmatic DOOH Campaigns

Brands often approach digital out-of-home (DOOH) advertising hoping for a measurement standard similar to online impressions or gross rating points (GRPs). However, DOOH operates differently from web, TV, or in-app ads, spanning diverse display types and a one-to-many environment. A single DOOH ad may reach hundreds of people at once, making it more complex to gauge with standard metrics. So, how can we effectively measure a DOOH impression, and what metrics provide accurate insights?

The recent rise of programmatic transactions in the DOOH space has introduced more precise measurement methods, helping brands assess and optimize DOOH campaigns. Below are some of the key performance metrics and advanced measurement solutions available to track the impact of programmatic DOOH (pDOOH).

Key Metrics for pDOOH Success

DOOH is primarily a brand awareness tool with proven effects on metrics like brand recall and consideration. For marketers looking to assess the impact of DOOH on multi-channel strategies, technological advancements now enable more detailed, privacy-compliant data collection. Planning which metrics to track from the outset will improve campaign design and measurement of its ROI. Here are some of the top measurement solutions that provide direct attribution insights:

• Brand Lift: Brand lift studies assess the DOOH campaign’s influence on brand metrics such as ad recall, awareness, perception, consideration, and intent. These are often conducted via surveys in geolocated areas within a defined range of the DOOH screens to gauge brand awareness uplift among exposed audiences.
• Foot Traffic Attribution: Particularly valuable for brands with physical locations, foot traffic studies help measure the impact of DOOH on store visits by tracking audience movement patterns before and after they encounter specific screens. This approach provides real-time attribution insights and captures the immediate effect of DOOH on in-store visits.
• Mobile Retargeting / Mobile ID Passback: By incorporating mobile retargeting into an omnichannel strategy, brands can amplify DOOH impact. Specialists in device ID passback capture device IDs when audiences enter certain location boundaries. This data can then be translated into qualified audience profiles, enabling retargeting with mobile ads through DSPs, and allowing brands to measure how DOOH influences engagement across other channels.
• QR Code Attribution: QR codes on DOOH ads offer an interactive way to directly measure engagement. They allow advertisers to track scans, assess A/B performance, and measure sales conversions attributed to each campaign. QR code tracking is particularly effective for brands looking to analyze immediate audience interactions and obtain data on in-store or online actions driven by the campaign.

Enhancing ROI with pDOOH Measurement

With these advanced metrics, brands can effectively track the ROI of pDOOH and make informed decisions about how DOOH integrates with other channels. By leveraging programmatic’s data capabilities, marketers can better understand and optimize the brand impact of their DOOH campaigns, from awareness to action, across multiple touchpoints.

Out-of-Home Advertising Services by International Advertising Solutions

At International Advertising Solutions (IAS), our out-of-home advertising services are designed to maximize your brand’s visibility in high-traffic public spaces. We offer a range of solutions including digital and static billboards, transit advertising, street furniture, gym screens, restaurant advertising, and airport advertising. Our team of experts craft customized strategies to ensure your message reaches the right audience at the right time. With a focus on innovative technology, creative excellence, and measurable results, IAS delivers impactful OOH campaigns that enhance brand awareness and engagement.

Learn more about our OOH advertising services at International Advertising Solutions.