“How do you define programmatic, and what are its implications on the buy/sell process of digital signage?”
The definition for programmatic digital signage is a bit blurred, remains up to different interpretation(s) and continues to evolve in lockstep with the emerging marketplace. It would be accurate to say that dynamic ad-serving and audience-based buying make up the foundation of programmatic buying. That is to say programmatic is automated and data-driven, but with the added benefit of occurring in a biddable, transactional space. At the present time, programmatic OOH is still in its very nascent stages and a lack of standardization in programmatic practices will undoubtedly be a challenge. Digital signage is typically a “one-to-many medium,” and its value proposition is deeply embedded in location, while programmatic digital signage does not allow for “specific” site selection, thus requiring a shift from a location-based buy to an audience-based buying strategy.
However, we predict that in the long run, growing pains will give way to a matured programmatic marketplace that will bring benefits in terms of efficiencies, audience targeting aligned more consistently with online and potentially greater efficiencies for garnering impressions when it matters most, given the flexibility of dayparting buys, over just copy which is the standard practice for today’s direct buys between suppliers and agencies/brands.