What is programmatic advertising?

7/3/2022

Behind programmatic advertising lie numerous growth opportunities for businesses. Thanks to big data and algorithms, this digital ad buying technology promises to maximize their chances of reaching their target audience. Combined with DOOH, these intelligent ads offer significant potential for agencies and advertisers wishing to benefit from the performance of an innovative and attractive medium.

 

What is programmatic advertising?

Programmatic advertising is based on a method that automates and facilitates the process of buying and selling online advertising space on specialized platforms. It enables advertisers to reach their audience through highly effective targeting, delivering a relevant message to the right person, at the right time and in the most appropriate place. While traditional display and over-the-counter (OTC) advertising offer the possibility of reserving spaces in advance, programmatic advertising works on the basis of real-time bidding, to gain performance on the management of paid media and DOOH campaigns. Indeed, this technology is set to develop rapidly for DOOH: programmatic advertising will then be able to automatically fill unsold advertising space on screen parks.

 

Programmatic advertising and RTB: what are the differences?

Real-Time Bidding refers to the technical aspect of instant bidding. This concept is therefore part of programmatic advertising, but refers only to the price determination process. Real-Time Bidding uses Big Data and algorithms to enable highly precise targeting, which is what sets programmatic advertising apart from other forms of display advertising.

 

Programmatic advertising: how does it work?

Programmatic advertising operates on AdExchanges, automated online market platforms where bids are placed in real time. AdExchanges bring together buyers (advertisers and agencies) and sellers (advertising networks and publisher support sites), and compare the data and criteria of each in order to launch the auction of advertising space.

To use an AdExchange, advertisers must register with a platform called Demand Side (DSP), such as Hivestack or Displayce for DOOH advertising. This allows them to define the parameters of their campaign: budget, target audience and location, as well as content. Publishers, for their part, register on a platform called Supply-Side (SSP), which is the equivalent of the DSP reserved for their use. For DOOH campaigns, for example, publishers can use the Hivestack and VistarMedia platforms. In turn, they can sell their programmatic advertising space, specifying price criteria, availability and accepted formats.

When a user visits a site linked to an AdExchange, the AdExchange sends a bidding signal to the latter. For DOOH, when a slot in the broadcast loop is empty, the digital signage player sends the same signal. The AdExchange contacts the DSP at contact to find out if it has any ads it would like to integrate into their advertising spaces. If so, the DSP notifies the AdExchange that the advertiser does indeed want to participate in the auction. The two platforms, DSP and SSP, communicate with each other to launch several auctions in real time. Thanks to the algorithms, only the highest-bidding advertisement is selected for display at the desired location.

 

The benefits of programmatic advertising

Programmatic advertising makes it possible to optimize marketing strategies and campaign performance for brands and advertisers, using algorithms and big data. It adapts to target audiences, so as to reduce broadcast losses. It therefore promises significant cost savings compared with other advertising processes. Programmatic advertising makes it possible to deliver contextualized advertising in real time to a visitor via the site he or she is visiting, regardless of the channel used (desktop, mobile, social networks, digital signage). More relevant, less intrusive, it has a far greater impact and generates greater engagement. Ultra-personalized, it meets the need of brands and advertisers to deliver an increasingly targeted and personalized message. It encourages interaction between the brand and its audience, and promises high ROI for marketing digital campaigns. Last but not least, it allows you to centralize the data you need to analyze campaign results, as well as your billing system.

 

Digital signage and programmatic advertising

DOOH, or digital outdoor advertising, represents an increasingly attractive support for advertising agencies and advertisers. It distributes content via digital panels deployed in shopping malls, city centers, railway stations, metro stations, airports and major roads, which then become real media. According to a survey conducted by French DOOH DSP Displayce in 2021, 84% of media agencies plan to increase their DOOH investments in the next 6 to 12 months.

The benefits of DOOH are based on the advantages ofdigital signage: an attractive, high-impact support with a tenfold memorization rate. It increases viewers' attention levels exponentially, thanks to the attractive visual power of digital. It allows multiple multimedia contents to be displayed in waiting or transit areas, providing visitors with an immersive, entertaining and interactive experience. The opportunities offered by DOOH are numerous, as it has the capacity to make an impact with highly localized mass communication. The DOOH system works in close proximity, delivering personalized, contextualized messages.

DOOH represents a new, high-potential playing field for advertising agencies, who can hope to maximize their revenues by filling empty advertising spaces with programmatic advertising at the last moment and without human action. Programmatic advertising also makes sense for advertisers and media agencies, who have more opportunities to be seen by an ultra-targeted audience in an automated way. Cenareo optimizes your screen inventory and maximizes its revenue stream with its dedicated digital signage solution. Deploy immersive programmatic advertising campaigns that are even more effective and engaging. Benefit from the alliance of two powerful, innovative technologies to serve all your growth objectives, thanks to the advent of programmatic DOOH. Optimized in real time, highly flexible and quick to set up, programmatic DOOH ad buying is centralized, automated and simplified. Cenareo helps professionals stand out from the crowd via an innovative, interactive medium that guarantees optimal ROI.

 

Boost the impact of your advertising displays with Cenareo. Our dedicatedoutdoor digital signage solution for advertising agencies lets you plan the broadcast of your multimedia content at the most relevant time and place. Remotely control your screens for increasingly contextualized, targeted and impactful outdoor communication, with excellent ROI.

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