In this guest piece, Broadsign ANZ sales director Ben Allman (pictured below) busts some of the myths and misconceptions around programmatic in digital out-of-home.
While still in its early stages in Australia, digital out-of-home (DOOH) is rapidly emerging as a viable and valuable programmatic channel.
To ensure we all make the most of this new opportunity and avoid the pains felt by our programmatic predecessors, education is vital.
Every link in the supply chain needs to understand how programmatic DOOH works, who is involved and the value they bring to the table. So while we have a job to do in educating the ecosystem on what programmatic DOOH is, it’s also essential to look at what it isn’t and get to work on dispelling the many misconceptions already surrounding the space.
- It ain’t online programmatic
While both mediums can now be transacted in a similar way, it’s important to remember that DOOH and Online are still two very different mediums, with different affordances. These differences need to be taken into account when planning, buying, optimising and evaluating any programmatic DOOH campaign. Beyond the fact that one exists in the physical world and the other in the digital world, there are numerous differences in the way both mediums fit into the media mix. OOH and DOOH have always been planned and bought in a somewhat siloed fashion and while programmatic technology opens up DOOH to more easily be bought alongside other media, we must remember that it performs a unique role and therefore should be treated that way.
- It ain’t a race to the bottom
Since its inception, Online programmatic has been labelled by many as a ‘race to the bottom’, with an endless long tail of sites vying for clicks and driving prices down. The fact DOOH exists in the physical world and is far less ubiquitous than Online in terms of inventory will go a long way to ensuring it doesn’t go for peanuts in the programmatic marketplace. Every impression is a premium impression to someone and as a supply-side platform (SSP), it is Broadsign’s job to find that someone. By bringing more potential bidders to the auction house, we’re increasing the demand for publisher’s inventory, producing greater yields. Better yet, publishers maintain full control over their pricing and whether they transact in a guaranteed or non-guaranteed fashion, in private marketplaces (PMPs) or on the open exchange is entirely up to them.
- It ain’t all about remnant inventory
Firstly, there’s no such thing as remnant inventory, just inventory that hasn’t been sold yet. When used properly, programmatic is an effective yield management tool, enabling publishers to extract more value from their assets. If a manufacturer of luxury German vehicles wants to target investment bankers in office elevators the day they receive their bonuses, then they should pay a premium for those impressions. Meanwhile, a lower price may be offered to a company selling toilet paper, who are less concerned with the who, when and where of the targeting and are simply looking for anyone with more than $2 who uses the bathroom from time-to-time.
The luxury vehicle manufacturer is after a very specific type of impression and wants to be certain they’ll get those impressions once they become available, whereas the toilet paper company is willing to forego certain impressions which may be of a higher value to other advertisers.
In this situation, the publisher could provide the first look in any relevant deal to the luxury car manufacturer, while the toilet paper company is there to take a last look at the deal should it still be available and hopefully wipe up (sorry, couldn’t help myself) any impressions which may have otherwise gone unsold. Programmatic DOOH can certainly be used to sell inventory which may otherwise have gone unsold, however it is just as often used (in some cases more frequently) to extract greater value from even the most premium of assets.
- It ain’t the death of sales teams
Connecting to programmatic pipes and watching money fall from the sky is one of the most common programmatic myths sold to publishers. We are often asked by publishers how much money there is to be made from programmatic and our response is always the same, “how good is your sales team?”.
Programmatic is simply a different way of transacting, not a different way of selling and still requires the backing of sales teams, particularly in these early stages. The publishers making the most of the programmatic opportunity are upskilling their existing sales teams and bringing in salespeople with valuable programmatic knowledge, relationships and experience. In some markets, we’ve even seen OOH publishers creating separate programmatic sales teams to sit alongside their direct sales teams.
- It ain’t perfect
Like anything, programmatic DOOH certainly isn’t perfect. As an industry we’ve made considerable advances in this space over a relatively short period of time, however the real work has only just started.
In addition to the need for greater education, there is work to be done in developing more reliable, robust and standardised audience measurement, among other things. If we can continue to recognise that programmatic DOOH isn’t a perfect solution and constantly keep pushing one another to adopt the best possible practices, then the future is extremely bright. As our GM of Programmatic Platforms, Adam Green likes to say: “we can’t give you 20-20 vision but we can give you better glasses”; and the prescription is only going to get better, year-after-year.
Independent brand and digital agency, Archibald Williams (AW) has been appointed to lead the NBA account across the APAC region. The NBA is one of the most prestigious sporting leagues in the world and basketball is one of the fastest-growing sports in Australia. Effective immediately, AW said it was “excited” to work across all digital, […]
B&T's shining a light on industry folk prior to adland. Preference given to anyone purporting actual UFO abduction.
Leading digital outdoor company QMS has announced it is the first-ever inaugural partner for Most Contagious APAC, the landmark London event by creative and strategic intelligence company Contagious, which will be showcased in Australia on Tuesday, 12 December in Sydney and Wednesday, 13 December in Melbourne. Most Contagious is an event that delivers key advertising […]
Omnicom’s data and analytics division Annalect has partnered with Meta, giving it access to Advanced Analytics (AA) – one of Meta’s privacy-focused measurement solutions – to provide Omnicom’s clients with future-proof, next-level measurement. Omnicom is the first holding company to have access to AA. AA allows advertisers to combine their first-party data with Meta’s ads […]
WPP’s AKQA has launched Fixmas.gift, an environmentally conscious AI-powered DIY assistant, affectionately known as Fixie, for a one-stop solution for all things repair. Fixmas.gift hosts an array of guides and inspiration to empower people to prolong the lives of their belongings or purchase pre-owned items that need a little love and care. Fixie can: Help […]
Marc Collister (pictured) of P2 Content Creators spills the beans on his 2024 predictions drawing from two decades of experience in the advertising, film and television industry. I’m certain it will come as no surprise that in 2024, we can expect our industry to move at breakneck speed again. With even more rapid shifts in […]
Zeno Australia has announced expanded creative design capabilities and the appointment of Jim Michell (lead image) to its senior leadership team. The new moves support strong growth in the region. Zeno Australia’s clients, including Abano Healthcare, Motorola and Yorkshire Tea, can now tap into a suite of creative design services to augment the agency’s work […]
Assembled Media, is drawing upon the creative power of TikTok Creator Marketplace to help generate unique, impactful content for iconic stationery brand, BIC. The social activation campaign titled ‘A Pen for Every Side of You’ promotes the flexibility of BIC’s 4 Colours pen and is active nationwide on the BIC Stationery TikTok account. The campaign […]
Pinterest reckons jellyfish & moody cowboys will be big in 2024. Refused to be drawn on the return of shoulder pads.
IAB Australia has launched ‘Evolution in Market Mix Modelling’, the fourth module in its Marketing Measurement Innovation Series, which has been developed by IAB Australia’s Ad Effectiveness Council. The module explores what is driving the increased use of MMM and how the technique is evolving with advances in computing power and machine learning to provide […]
Scope3, the collaborative sustainability platform leading the decarbonisation of media and advertising, announced the addition of digital out-of-home (DOOH) to its emissions measurement. With DOOH ad spending predicted to grow from $17B in 2023 to nearly $24B by 2028, measuring this channel brings us one step closer to understanding the total impact of digital advertising […]
NRF 2024: Retail’s Big Show Asia Pacific, is now open for online registrations for the main conference. Jointly organized by the National Retail Federation and Comexposium, Retail’s Big Show Asia Pacific will take place from 11 – 13 June, 2024 at the Sands Expo and Convention Centre in Singapore and is expected to draw thousands […]