PROGRAMMATIC FAQ

FAQ FOR PROGRAMMATIC DIGITAL OUT OF HOME (OOH)

Programmatic advertising is a specific form of shopping. It doesn’t have to be RTB. Programmatic is a platform-driven and automated handling of campaigns.

It is essentially about evaluating an advertising space on the basis of extensive information in the form of data. In this way, it can be determined which advertising space best suits the user at what time with which content.

Currently (February 2018) it is possible to programmatically buy or sell the Digital Out of Home (DOOH) advertising space. However, the Real-Time Bidding component is not yet part of the Programmatic Out of Home (OoH). Currently, the advertising space is bought and sold on a programmatic guaranteed basis and not on a private auction or open auction basis.

There are various DOOH providers who programmatically sell DOOH areas nationally and internationally. Ströer, Seven One (Seven Screen) and Goldbach Germany are selling the areas in Germany as part of a program. There are also various digital out-of-home providers such as Clear Channel or JCDecaux who also programmatically sell the advertising space.

Various SSPs are present on the national or international market. Some Programmatic Digital Out of Home Providers: Broadsign, MyAdbooker, YieldLab, DISPLAYCE, DOmedia, AdPack, Ayuda

AdForm, Active Agent, Splicky, Outmoove,DOmedia. There are various national and international DSP providers such as The number of DSPs in the Programmatic Out of Home (OoH) area is growing continuously.

Programmatic display, mobile and video genres have been present for a long time and accordingly the coverage of the genres for programmatic is currently good. There are a handful of DSPs and

SSPs that can also offer Programmatic Out of Home (OoH). The next 2-3 years could see a significantly higher number of DSPs and SSPs for Programmatic Out of Home. It will
be a mixture of completely new players that are not yet present in the display, mobile and video areas and the existing DSP and SSPs that provide the functionalities for Out of Home (OoH)
would expand.

Depending on the provider and country, there are different control options in the Out of Home (OoH) programmatic area.

Traffic Situation

  • Geo-Targeting
  • Waether Targeting
  • Creativ & Rotation/ Sequencing*
  • Publishers Data
  • User data*
  • DMP Data*
  • Time targeting
  • Frequency per hour (EBL)

We will certainly see even more control options based on real-time data, artificial intelligence, audience measurement, external devices, external technologies, etc. in the next 2-3 years.

The main differences are:

  • Programmatic display, programmatic mobile and programmatic video is always one-to-one medium and programmatic out of home (OoH) is one-to-many medium.

  • Programmatic display, programmatic mobile and programmatic video work with the RBT protocol and the pricing aspect works via auction mechanisms (private auction or open auction) as well as fixed price mechanisms (preferred deal or automated guaranteed). In Programmatic Out of Home (OoH) there is currently no auction mechanism, no comprehensive real-time optimization and no real-time reporting or real-time bidding process. In the area of programmatic Out of Home (OoH), the campaigns are delivered according to a previously conducted negotiation (private deal).

  • In the Programmatic Out of Home (OoH) area, market research data is still used for planning and as proof of coverage. For Programmatic Display,

    Programmatic Mobile and Programmatic Video could use the real-time data for range measurement and, if necessary, for pre-bid strategy.

  • Ad blockers, viewability and brand safety are not yet an issue in the Programmatic Out of Home (OoH) area. With the real-time audience measurement, viewability and contact optimization etc. topics are approaching the “normal programmatic world” that we know from programmatic displays, programmatic mobile and programmatic video.

Unfortunately, the answer is NO rather than YES. There are currently different specifications and implementation options depending on the marketer. Certain standards will (have to) be established here, so that the genre becomes more “advertiser-friendly”. Programmatic should and will simplify processes, not complicate them.

Currently we could only speak of “near-time” reporting. There is currently no real-time reporting for Out of Home (OoH) Programmatic.

Currently, one could say that the counting differences are almost zero. At the hourly level, there could be “shifts” if a spot starts at 13:59:55 and ends at 14:00:05, for example.

No. In contrast to the other programmatic one-to-one approaches (programmatic display, programmatic mobile and programmatic video), the user does not have to be online to be found and to have the advertising delivered.

No. Campaign delivery for out of home programmatic campaigns with frequency capping is currently not possible.

The influencing factors in the programmatic media buying area are INVENTORY and PRICE MODEL.

Pricing Model: The first option is Fixed Price purchasing and the second is “Auction Price” purchasing in Programmatic Media Buying.

Inventory: It also applies to the inventory whether it is “reserved inventory volume” or “unreserved inventory volume”.

Programmatic Guaranteed in the programmatic media buying area combines the advantages of direct and programmatic campaigns. Here, the advertiser buys into a guaranteed inventory at fixed prices and the processing is automated or programmatic. Firmly negotiated purchasing conditions are used here. There is no auction.

The advertisers get transparency, if necessary access to premium formats and premium inventory. The Programmatic Guaranteed Deals could thus reduce the complexity of negotiations and generate time savings.

  • Price: Fixed
  • Inventory: Reserved
  • Relations seller -> buyer= One-One
  • Other terms for Programmatic Guaranteed: Automated Guaranteed, Programmatic Direct, Programmatic Reserved, Programmatic Premium.

In the Programmatic Out of Home (Programmatic DOOH) area, there is currently only Programmatic Guaranteed.

The Preferred Deals in the Programmatic Media Buying area offer buyers (advertisers or agencies) an opportunity to completely bypass auctions. The advertising inventory is sold to a selected buyer. Here, the advertiser buys a non-guaranteed inventory at fixed prices and the processing takes place automatically or programmatically.

  • Price: Fixed
  • Inventory: Not Reserved
  • Relations seller -> buyer= One-One
  • Other terms for Preferred Deal: Preferred Deal, Unreserved Fixed Rate Deal, Private Access Deal, First Right of Refusal.

The private auction in the programmatic media buying area offers the advertising space sellers (publishers or marketers) the opportunity to sell their advertising inventory exclusively to one or more

sell to selected buyers (advertisers or agencies). Here, the advertiser buys a non-guaranteed inventory at the auction prices and the transaction takes place
automated or programmatic.

  • Price: auction price
  • Inventory: Not Reserved
  • Relations seller -> buyer= One-Few
  • Other terms for Private Auction: Invitation-Only Auction, Private Marketplace, Closed Auction

In the case of an open auction in the programmatic media buying area, the advertising space seller (publisher/marketer) gives everyone access to the advertising space/inventory offered. Hierbei kauft der Werbetreibende zu den Auktionspreisen ein nicht garantiertes Inventar ein und die Abwicklung erfolgt automatisiert bzw. programmatisch.

  • Price: auction price
  • Inventory: Not Reserved
  • Relation seller -> buyer= One-Many
  • Other terms for Open Auction: Open Marketplace, Open Exchange

There are 3 types of sales how inventory is sold by programmatic advertising sellers.

1) Transparent: Example: www.abc.de/wirschaft or www.xyz.de/reise. Here, as a programmatic buyer, you are shown exactly which page area/domain area is involved. All information about the occupied page or domain is visible to the programmatic buyer (programmatic advertiser).

Other terms for domain level transparency: URL transparency, full transparent, fully transparent

2) Semi-Transparent: Example: www.abc.de or www.xyz.de. Here, as a buyer, you know exactly which page/domain it is. The programmatic buyers / programmatic advertisers receive limited information max. at Top Level Domain.

Other terms for Semi Transparent: Domain Transparency Level, Site Transparency

3) Blind: Example: Xa5e22465e835d6y or bf19194579cad6416.anonymous.google. No information about the booked page or domain or the booked network is given here
or channel visible to the programmatic buyer.

In the first-price auction in programmatic buying, the highest bidder pays exactly the price for the display of their advertising that they bid. On the other hand, in the second-price auction in programmatic buying, the highest bidder only pays the price that is higher than the second-highest bid, but lower than the highest bid.

Example:

Company “ABC” and company “XYZ”, both want to programmatically buy pre-roll from publisher “Total Toll”.

  • Bid Request from Publisher Total Toll is for at least. 12 euros CPM.
  • Company ABC places a bid of 14 euros CPM and company XYZ submits an offer of 13 euros CPM.
  • Result of second-price auction: Company ABC wins the pre-roll ad impression at the “clearing price” of 13 euros + 0.01 euros = 13.01 euros CPM.
  • Result of the first-price auction: company ABC wins the pre-roll ad impression for the 14 euro CPM price offered.

As we see here, in both cases ABC company wins the pre-roll ad impression. Company ABC’s purchase price differs depending on whether they are doing the pre-roll
won an ad impression in a first-price or second-price auction.