DSP: Driving Force of DOOH Advertising in 2024

The Pandemic's Impact and DOOH's Resilience

During the pandemic, the OOH (Out-of-Home) industry took a hit as people reduced their travel and outings. However, we are now witnessing a resurgence in DOOH advertising investment. In 2022, the total investment in out-of-home advertising in the United States reached $8.6 billion, marking a 20.7% annual increase. According to Kantar's 2023 Media Reactions report, consumers still value "in-person" points of contact, including sponsored events, cinema ads, retail locations, and digital out-of-home media.

The Rise of DOOH and its Integration with DSP

In 2024, we believe there will be a significant increase in the adoption of DOOH capabilities thanks to strategic collaborations between agencies and advertising technology service providers with DSP and DOOH providers. Notable examples include partnerships like Basis Technologies with Vistar Media and Place Exchange, Yahoo with Adsquare, and Quotient with Hivestack. These alliances enable advertisers to optimize their campaigns, consolidate budgets in a single platform, and execute seamless transactions, all while having access to a vast inventory of DOOH ads in one place.

Understanding the Purchase of DOOH

But before delving into the exciting world of DOOH advertising, it's essential for marketers to understand how it works, how it compares to other forms of digital advertising, and the opportunities it offers. Let's explore some key concepts:

DSP Meets DOOH

Outdoor advertising is one of the oldest advertising methods. In recent decades, it has evolved into Digital Out-of-Home (DOOH) advertising, leveraging cutting-edge technology to provide interactivity and data-driven segmentation. A crucial point to consider is that DOOH ads are not affected by ad blockers, offering a benefit to brands and advertisers seeking alternatives to cookies and consumer privacy restrictions.

The Benefits of DOOH DSP

A DSP with access to DOOH inventory simplifies the purchase and optimization of campaigns across multiple networks and screens. This includes dynamic image ads, videos, and interactive content in physical locations. Let's look at the key benefits:

1. Targeted Advertising: DSPs with DOOH inventory offer advanced targeting capabilities, allowing advertisers to optimize campaigns in real-time based on factors like time of day, pedestrian traffic, and location. This can boost participation and conversion rates.

2. Efficient Transactions: Purchasing DOOH through a DSP provides access to a wide range of media owners' inventory in one place. This streamlines the process, saves time, and provides transparency in the purchase and management of campaigns.

3. Real-Time Ads: DOOH ads can be optimized in real-time, a critical factor for outdoor advertising. DSPs are known for their analytics and reporting features, allowing campaigns to be dynamically updated for relevance and attractiveness to the target audience.

The Future of DOOH and DSP

As technology continues to advance, DSPs for DOOH are emerging as key players in the future of advertising, especially in 2024. The IAB Tech Lab's update of the OpenRTB standard will make programmatic access to DOOH easier than ever. With specific DOOH guidelines and technical resources for real-time bidding, programmatic buying of DOOH inventory will become standardized.

In conclusion, programmatic DOOH represents an exciting evolution in advertising, offering automation and campaign optimization. We hope to see more programmatic advertising technology companies embrace this trend, forming partnerships with DSPs and DOOH providers. As the advertising world moves toward new horizons, programmatic DOOH stands out as a powerful tool for effectively and meaningfully reaching audiences.