Programmatic OOH (pDOOH) has some advantages as well as potential disadvantages if not utilized carefully.
Here’s a list of advantages of pDOOH:
- pDOOH can automate the process of DOOH advertising and make the industry more efficient.
- A modernized DOOH advertising industry can benefit from an accelerated growth rate.
- It brings control to the buyers, who can manage their campaigns, verify ads, and have real-time reports. This would increase trust and confidence in this medium.
- It brings operational efficiency to the agencies.
- It automates existing sales channels of media owners and/or creates an alternative sales channel.
On the other hand, there are some potential pitfalls of pDOOH.
- We must learn from the digital industry’s mistakes (e.g. fraud, supply-path optimization, supply-chain transparency) and not repeat them. Currently, some trends in the industry seem to be repeating some of those mistakes.
- Media owners should be careful about pricing on programmatic channels and not cannibalize their existing sales channels.
- Data points in DOOH are usually not real-time, so buyers shouldn’t expect the same effectiveness as programmatic ads on digital advertising channels.
- Regulations, increasing data constraints from companies like Apple and Google, data quality, and the one-to-many nature of the DOOH medium are pushing the advertisers to question the efficiency and/or make cost-benefit analyses regarding using audience data in the industry.
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