In your opinion, is Programmatic Advertising a good thing for DOOH? If so why? If not, why not?
My answer is – “it depends – on what you think programmatic advertising is” – Jerry Gondek’s recent article “Why is OOH Programmatic Problematic” did a good job of taking a high level look at the barriers of programmatic in DOOH. But, I do think that the POV on this topic depends on your own definition of the term.
If you define programmatic advertising as the act of automating processes of OOH media buying as inventory management, targeted media buying and on-demand pricing auctions, then Programmatic would be a good thing for DOOH. However – the reality that there is barely any standardization of formats, and a lack of consensus between most DOOH network operators on pricing – I don’t think there’s much of a chance for programmatic advertising to ever take root in today’s industry. Many DOOH companies have tried and failed to address this situation.
If you define programmatic as way for digital signage systems to react to real-time data feeds and other contextual viewer data, then – YES – programmatic is great for DOOH. This scenario is starting to play itself out in today’s newer installations, where smarter content management systems can use data feeds to trigger customized content, (ex. Motion tracking, sentiment analysis derived from the facial analytics data of people viewing the content) The bigger challenge is that the majority of DOOH networks don’t run content designed to create multi-sensory experiences, so most of the automated personalization still caters to a one-to-many type of message vs. individualized, one-to-one messages.
If we resolved the standardization and data analytics issues that currently plague DOOH networks – programmatic would the best think for DOOH, as it would allow closer integration with the rest of the of the digital media advertising ecosystem that successfully utilizes programmatic advertising – optimizing how brands/retailers buy their media.