As out-of-home (OOH) advertising recovers from its pandemic decline, programmatic trading of digital signage offers new opportunities. According to Insider Intelligence’s latest OOH report, programmatic OOH spend will triple between 2022 and 2025, though it still accounts for less than 10% of total outdoor ad dollars. For programmatic media agencies, OOH introduces unique inventory to diversify campaigns across channels.
Retail media and billboards make up most programmatic OOH impressions currently. As retailers digitize in-store signage, they enable demand-side platforms (DSPs) to access this new ad inventory programmatically. And large billboard operators like Clear Channel Outdoor and Lamar Advertising now sell digital boards via private marketplaces.
What’s Driving Programmatic OOH Growth?
Programmatic OOH grows over 100% annually in the US, albeit from a small base. Buy-side interest is surging as DSPs add outdoor inventory to expand the reach of digital video and mobile campaigns. Brands also want reporting on audience delivery and foot traffic lifts from programmatic DOOH networks.
OOH lacks the individual-level targeting of digital media, but programmatic trading makes the channel more amenable to performance marketers. Demand-path optimization allows creative personalization and Sequential Messaging lets advertisers serve ads to the same audiences across multiple screens.
As measurement improves, programmatic OOH unlocks nuanced campaign optimizations. Per Insider Intelligence, over 90% of deals transact through private marketplaces offering reserved, guaranteed inventory with pricing transparency. This contrasts the more volatile pricing and availability issues with real-time open auctions.
Navigating the Fragmented Supplier Landscape
A challenge for DSPs is that programmatic OOH inventory comes from various media owners, each with different data, tracking and verification capabilities. Billboard companies, retailers, gas stations, convenience stores, airports and public transit systems all sell programmatic DOOH today.
To help consolidate inventory, Google added programmatic outdoor buys to its Display & Video 360 platform last summer. Roku has also partnered with over a dozen DOOH suppliers to make connected TV and OOH planning easier for advertisers. As programmatic platforms integrate more outdoor media partners, fragmentation will decline to help this channel scale.
The Future of Automated OOH Buying
Though programmatic OOH grows rapidly, Insider Intelligence expects over 60% of outdoor budgets will still transact directly as insertion orders through 2027. But as measurement and consolidation help grow trust in programmatic DOOH, its scope will keep expanding over the coming years.
For programmatic agencies, OOH provides distinctive inventory to augment mobile and online video campaigns. Retail media offers new in-store digital signage for programmatic targeting. Smart billboards also connect to mobile IDs for sequential messaging possibilities. As this inventory becomes more addressable, programmatic OOH unlocks unique branding and attribution potential.