By Alex Mardikian

Programmatic DOOH simply means purchasing DOOH ad inventories through computer programs. Basically, the system is automated.

Programmatic buying is efficient. Conventional purchase of DOOH ads involves regular communication between an advertiser and network owner to decide the pricing, placement, audience targeting, and duration of the ads. Once these factors have been decided, the network owner then has to schedule the campaign manually.

Programmatic buying allows advertisers to purchase screen space from a networks inventory after specifying criteria. This method is not only efficient and transparent, it also allows advertisers to integrate DOOH marketing with online advertising. Online ad spaces are sold programmatically.

One way of selling DOOH inventory is through real-time bidding (RTB). This is basically an auction of available DOOH inventory. The bidding process is extremely fast and the winning advertiser can begin to run ads immediately. Such bidding can be held on open forums or it can be an invitation only affair.

Programmatic direct is another way of selling DOOH network inventory through an automated process. In this method inventory is sold to advertisers on the basis of previously decided metrics such as number of impressions, number of screens, location, etc. While the cost/1,000 impressions with this method many higher, it affords greater control to the advertiser.

DOOH network owners that use both these models for selling inventory are usually able to sell most of their inventory, thereby keeping their screens occupied and operating costs low.

Running ads across digital screen when certain given criteria are met means that advertisers can display relevant messaging at the right time. Changes in weather and temperature are two of the most popular external criteria used for altering content on display screens. There is virtually no end to the number of factors you can select to trigger the display of an ad. Regular events that happen in the vicinity of the display screen, the release of a book, the launch of a new product, or sporting event, etc. are some of the triggers. Programmatic buying is wonderful way to come up with creative messaging for a targeted audience.

Unlike online ads, where a programmatic ad triggered based on a criterion is invariably seen by one person, a programmatic ad displayed on a digital screen outdoors or indoors will be viewed by multiple people. The cost per thousand impressions for digital signage is therefore lower.

As more and more DOOH network providers begin to offer programmatic buying, advertisers will begin to see better returns on investment and more accurately planned marketing that yields excellent results.

Programmatic buying is undeniably the future of DOOH advertising. Targeted DOOH advertising will also help in creating and executing streamlined and accurate VODXS ads that are increasingly being displayed in public washrooms.