Basics of Programmatic media buying

WHAT IS OUT-OF-HOME ADVERTISING PROGRAMMATIC MEDIA BUYING?

Out-of-home advertising is modern mass advertising at its best, and constantly developing technologies enable increasingly sophisticated digital solutions. In the 2020s, buying out-of-home advertising programmatically is also possible.

Programmatic media buying of out-of-home advertising means buying an out-of-home advertising surface with the help of an online system, where the buyer can be an advertiser or a digital or media agency. Programmatic media buying is possible through different purchasing systems, known as DSPs (demand side platforms).

DSPs allow for buying several different media from the same place, speeding up and streamlining campaign planning. In programmatic advertising, the buyer can manage their campaign themselves, meaning that advertising can be both bought and edited in real time. For example, editing the time of the campaign or its contents is easy and quick, as it can be done directly as soon as the need arises. In all programmatic media buying deals, you only pay for the impressions of completed transactions.

GO TO SECTION:

1. Why is it a good idea to also buy out-of-home advertising programmatically »

2. What kind of situation is programmatic advertising appropriate for »

3. How does programmatic media buying happen »

4. What is Clear Channel’s LaunchPAD »

5. Programmatic media buying glossary »

6. Frequently asked questions »

WHY IS IT A GOOD IDEA TO ALSO BUY OUT-OF-HOME ADVERTISING PROGRAMMATICALLY?

The benefits of programmatic advertising can especially be seen in data usage, effective campaign optimisation and the scalability of advertising.

1. OPTIMISING A CAMPAIGN USING DATA

Programmatic advertising enables effective data usage. Adapting and optimising advertising is easy and quick. Advertising can also be automatically bought based on data, for example, when the sun is shining and the temperature is over 22 degrees. This kind of dynamic targeting based on conditions such as weather enables the advertisement to be shown at the most favourable time. It can thus be ensured, through the use of data, that the campaign budget is used in the best and most effective way possible.

2. ENRICHING A CAMPAIGN WITH DEMOGRAPHIC INFORMATION

Through close cooperation with mobile data companies, advertising can also be further enriched through diverse demographic information, such as location data. In the future, out-of-home advertising will thus be able to offer the benefits of mass media with the data and targeting opportunities of one-to-one media.

3. REAL-TIME REPORTING

Programmatic media buying makes real-time campaign reporting and monitoring easy. Programmatic media buying platforms can help monitor, for example, the campaign’s impressions, GRP (gross rating point) and frequency. The advertiser can thus optimise their campaign through real-time monitoring.

4. MORE EFFECTIVE MULTI-CHANNEL CAMPAIGNS

Programmatic media buying makes planning multi-channel campaigns easier and improves the synergy benefits between different channels. By making use of programmatic media buying systems, different media can be bought in the same place. A campaign can be effectively planned to continue from an online environment to an offline environment, following a customer throughout the customer journey. This way, out-of-home advertising can support and strengthen online visibility and ensure that the brand stays on people’s minds. Out-of-home advertising is an excellent choice to pair with online visibility as it bolsters many media channels, and out-of-home advertising has a strong impact on online searches in particular (+54%). ⁽¹Facebook’s own research has also found that out-of-home advertising is the best media channel next to social media, increasing purchase intention by +15%. ⁽²

5. TARGETABILITY OF OUT-OF-HOME ADVERTISING

Thanks to our new project which makes use of mass data, out-of-home advertising targeting can be done at a large scale and with precision in both programmatic and traditional buying. Based on a client’s needs, our sales can recommend campaign solutions that reach the desired target audience most effectively, and a deal is made for the surfaces that best respond to these needs.

Read more about targeting possibilities of out-of-home advertising »

6. PREMIUM INVENTORY ON A LARGE SCALE

Out-of-home advertising is a one-to-many media which reaches a large audience quickly, effectively, and efficiently. As a modern mass media, out-of-home advertising has many benefits, which you can learn more about here »

For advertisers, managing programmatic out-of-home advertisement campaigns is effortless and quick, and materials can be efficiently delivered to various media all through the same platform. Since programmatic advertising is managed by the advertiser themselves, campaigns can react to changes and adapt their materials flexibly. A campaign can be connected to several different media, and through multi-channel advertising, the message can be repeated on the consumer’s path over and over again.

7. COST BENEFITS

Programmatic media buying makes it possible to utilise an out-of-home advertisement inventory even on a small budget. By making use of non-guaranteed deals, you can, for example, choose only a few surfaces in key locations for your operations or make use of the entire network within the limits of your budget. Although showing an advertisement at a specific time cannot be guaranteed, the advertiser will only be charged for realised advertisement campaigns. Indeed, the particular advantage of non-guaranteed deals is that they are cheaper.

Sources:
1) Rapport. Standing on the Shoulders of Giants. 2019.
2) Facebook IQ: Maximize Reach With Out-of-Home and Facebook Campaigns in EMEA. 2019.

WHAT KIND OF SITUATION IS PROGRAMMATIC ADVERTISING APPROPRIATE FOR?

Out-of-home advertising is suitable for both tactical and brand advertising. We will explain more about different deals later.

Programmatic media buying is very well-suited for tactical out-of-home advertising when you want to buy specific media surfaces effectively. Programmatic media buying makes it possible to utilise an out-of-home advertisement inventory even on a small budget – for example, you can select only a few surfaces in key locations for your operations and make use of non-guaranteed deals.

Out-of-home advertising is also well-suited for brand advertising. In such cases, it is best to choose a sufficiently broad network and campaign time. Non-guaranteed deals especially are suitable for bringing out your brand, as brand advertising is important regardless of time and advertisement device. By making use of non-guaranteed deals, you gain visibility at a lower cost.

Programmatic media buying of out-of-home advertising supports and strengthens a company’s online campaigns and continuous online visibility. Out-of-home advertising is an excellent way to be visible in an undisturbed media environment just before a purchase decision. Combining out-of-home advertising with multi-channel online campaigns helps effectively strengthen a company’s brand and visibility. Digital out-of-home advertising can be targeted to locations near stores.

Brick-and-mortar stores and the physical buyer’s journey still hold importance in the daily lives of consumers, and online visibility cannot replace the unique features of offline visibility. Shopping streets have throughout time acted as marketing hubs that offer inspiration and experiences, but they have also successfully adapted to the recent changes in consumers’ buying habits over the last few years. Business premises still have an important role as a company’s marketing channel, which shopkeepers have been delighted to notice: for example, it has been found in Britain that online sales are twice as large in areas where their physical shop is located. ⁽¹The importance of traditional stores and markets can also probably be explained in part by the fact that they usually have a closer relationship with the consumer’s everyday life than online stores and are considered more important to oneself. Out-of-home advertising works as a brand’s physical display window along roads, in shopping centres and in grocery stores.

Sources:

1) CACI: The Online Halo. 2019.

HOW DOES PROGRAMMATIC MEDIA BUYING HAPPEN?

Programmatic media buying happens digitally as sales and purchasing platforms communicate with one another.

Purchasing platforms – DSPs – communicate digitally with sales platforms – SSPs. The buyer defines their goals and their desired media on purchasing platforms (DSP) and the seller defines their inventory and prices on sales platforms (SSP). These platforms communicate with one another and carry out a sale if the conditions are fulfilled.

Clear Channel’s programmatic media buying of out-of-home advertising currently favours private deals, meaning that the advertiser contacts us in advance to agree on a CPM and duration for the deal. Although advertisers agree on a CPM in advance with the seller in private deals, programmatic media buying offers advertisers the following benefits among others: smooth delivery of materials through a DSP, the opportunity to change materials easily if needed, real-time reporting on the campaign, costs determined on the basis of delivered contacts.

MAKING PRIVATE DEALS PROGRAMMATICALLY:

1. A CPM and the duration of the deal are agreed upon with the seller.

2. The deal is targeted to the buyer’s DSP and most commonly directly to the client’s “seat,” in which case a “Seat ID” number is also required.

3. Clear Channel delivers a Deal ID to the client.

4. Materials are delivered for the purchase through the DSP in use.

5. The campaign is reported on in real time through the DSP in use.

6. The total final cost of the campaign is determined based on the number of delivered contacts.

WHAT IS CLEAR CHANNEL´S LAUNCHPAD?

LaunchPAD is a technical solution which enables programmatic media buying.

LaunchPAD is a technical solution which enables programmatic media buying, connecting Clear Channel’s digital out-of-home advertising inventory to sales systems (SSPs) and through them, to the purchasing platforms (DSPs) used by customers. With its help, advertisers can make use of out-of-home advertising as part of their multi-channel media planning.

LaunchPAD is not a SSP system or any other self-service interface that advertisers can log in to in order to buy advertising. With the help of LaunchPAD, advertising buyers can make use of the DSP systems they already use as part of their work.

LaunchPAD is also Clear Channel’s brand, which connects programmatic media buying services in various markets in Europe and Latin America.

WHAT DO THESE DIFFERENT TERMS MEAN?

Non-guaranteed deals are highly suitable for situations where advertising does not need to be shown at a specific time. The advertisement is shown on such a screen which has the space for it, and the advertiser only pays for completed transactions. When there is advertisement space in a network, a programmatic media buying platform selects locations suitable for the defined budget and the transaction is made in real time. However, a programmatic inventory does not target only night hours or individual locations, unless the client themselves sets this as a goal at the DSP’s end. Visibility is usually distributed across the entire network and at different times of day. Because specific places in the network are not reserved for the advertiser’s use in non-guaranteed deals and the specific time of the advertisement being shown cannot be guaranteed, the implemented advertisement campaigns can be cheaper. We currently favour non-guaranteed deals in our offerings.

Guaranteed deals on the other hand are suitable for situations where you want to ensure that you receive specific advertisement surfaces for use at specific times.

Private deals are the pricing form we currently favour. In private deals, the advertising CPM or cost per thousand impressions is agreed upon in advance.

Open deals on the other hand are deals which are available to everyone.

Auctions are where advertisement space is auctioned in real time. Clear Channel will be adding the opportunity to purchase advertising through auction soon. In this case, the CPM will be determined based on the auction.

CPM means the cost per thousand impressions. Since out-of-home advertising is a one-to-many

DSP or Demand Side Platform is a platform which is used for purchasing media inventory. The buyer defines their goals and their desired media on purchasing platforms. DSPs enable the advertiser or media or digital agency to manage their campaigns in real time, for example by changing their materials or campaign time.

SSP or Supply Side Platform is a sales system. Media publishers have their own sales systems through which they offer their inventory for sale programmatically. Sales systems are integrated into DSP systems. These two systems communicate with each other either directly or through ad exchange in order to implement sales, in the event that the conditions are fulfilled.

FREQUENTLY ASKED QUESTIONS

What is Clear Channel’s LaunchPAD? LaunchPAD is a technical solution which enables programmatic media buying, connecting Clear Channel’s digital out-of-home advertising inventory to sales systems (SSPs) and through them, to the purchasing platforms (DSPs) used by customers. With its help, advertisers can make use of out-of-home advertising as part of their multi-channel media planning. LaunchPAD is not a SSP system or any other self-service interface that advertisers can log in to in order to buy advertising. With the help of LaunchPAD, advertising buyers can make use of the DSP systems they already use as part of their work.

Is visibility guaranteed? Do you reserve inventory from the loop for programmatic media buying? We are developing programmatic media buying services and are now at a stage where we are implementing commercial pilots in cooperation with select partners. At this stage, we favour private non-guaranteed deals. Specific locations in the network are not reserved for non-guaranteed deals, but this also makes advertising cheaper. Although we do not reserve inventory from the loop for programmatic campaigns, it is naturally in our best interests to make sure that the agreed upon campaigns are implemented successfully.

Is there a risk of visibility being weighted more towards dark nighttime hours or to individual locations? A programmatic inventory does not target only night hours or individual locations unless the client themselves sets this as a goal at the DSP’s end. Visibility is usually distributed across the entire network and at different times of the day.

Do you already have target audiences in use at this stage?
Clear Channel’s inventory is not yet available on such DSPs which support targeting. Platforms supporting targeting will be made available soon, and up until then our sales can tailor the surfaces included in the programmatic deal and recommend an implementation which reaches the desired target audience more effectively. Our target group-centred campaign planning tool Audience Engine is used in implementation. The CPM of a deal with a tailored target audience is +15%.

What is a programmatic out-of-home advertising impression? When out-of-home advertising is sold programmatically, the advertiser pays for impressions. This is a result of the fact that out-of-home advertising is a one-to-many media, meaning that one shown advertisement produces more than one impression on average – the advertisement is seen by several people simultaneously. As such, out-of-home advertising differs from display advertising, for example, where traditionally showing an advertisement once correlates to one impression.

How are contacts formed? The official currency of digital out-of-home advertising is the OTC number, which describes the gross contact number achieved by advertisement devices in one week. Programmatic buying is based on the same OTC figure, divided to a more precise hourly level.

In which networks is programmatic media buying currently possible? Currently, we offer programmatic media buying in the Downtown Digital networks of Helsinki, Espoo, Vantaa, Turku and Tampere.

What inventory will we be able to sell programmatically in the future? Our technical readiness enables the selling of over one thousand surfaces programmatically. Our inventory will be opened up to programmatic selling in phases.

How is a campaign reported on? A campaign report is received through the DSP in which the media space was purchased.

Which DSP systems can currently be used to buy Clear Channel inventory? Through the SSP (Supply Side System) we use, we are able to provide programmatic out-of-home advertising through over 30 DSPs (Demand Side Platforms). Please contact us and we will inform you whether the DSP you use is among them!

PROGRAMMATIC MEDIA BUYING