Online Advertising

Digital transformation coming in programmatic out of home (OOH)

Web advertising is currently in his own digital transformation. Yesterday, advertising was handle by advertisers, agencies, publishers & multiple intermediaries. Today, in web advertising, we are seeing a more and more closed relationship between advertisers & publishers as a consequence to cut intermediaries like agencies. This situation will be for sure duplicate in radio, TV AND out of home formats in few next years.

Out of Home Advertising

Out of Home formats represents all formats which are basically out of your home, for example billboard on bus stop, or huge billboard you are seeing along the highway. Since decades, advertising OOH campaign were spread over all this billboard inventory through a print paper which were glued on the billboard. And beside this, you had many people who were working on each step of the process to make this ads appear: advertisers, publishers, creatives, and several intermediaries again. Since few years, we are now seeing more and more screens, like in airports, malls & bus stop, and less and less paper billboard. This new formats is the first step of digital transformation of out of home advertising. But we are still making this process with many resources from each company during the process: sales people, financial people, creative, agency guys, etc.

OOH Out of home advertising

OOH Out of home advertising

Tomorrow, all Out of Home formats or better to say DIGITAL Out of Home formats will be screens implemented everywhere, linked to each other, and sell will be handle automatically: It will be pushed by programmatic DOOH selling.
Here is a quick definition of programmatic from digiday website: “Programmatic ad buying typically refers to the use of software to purchase digital advertising, as opposed to the traditional process that involves RFPs, human negotiations and manual insertion orders. It’s using machines to buy ads, basically”
And you can also read article from Servane called “The importance of programmatic”

On the sales offer side, the advantage will be to be able to handle your DOOH budget directly from one platform without any intermediaries and with the possibility to mix it to data provide by your publisher.
Thanks to an instant selling mix to big data, we will have in few years a right DOOH ads delivered at the right moment at the right person. It will change again an industry which is a bit old even if they recently switch to digital screens. The way how they sell this type of ads today is still through sales guys, advertiser per advertiser and this a waste of time and a waste of money. Why wasting money, because when you are selling ads on a market place, rates raised in order to demand and then it permit to do yield management on your inventory. At the end, the goal will be to have an advertiser on the left side, a publisher on the right side and in middle the market place which provide programmatic selling including RTB. Few actors would be able to integrate this environment like Data Management place which provide data to the market place and permit to offer specific targeting to advertiser.
We can imagine that an ads can follow a person in an airport during his journey via different billboard on different part of the airport or even different airports …
On the bad consequences, we will have a “machine”, our market place, will basically replace many employees thanks to his automated process.

About the author

Olivier Le Bas