Navigating the DOOH Landscape: Lessons Learned

Innovation in the field of technology has been transforming various industries, but one sector that seemed to lag behind was out-of-home (OOH) advertising. As we embarked on this market, we realized that the public space was not benefiting from technological advancements. When we started building Beeyond, we discovered that OOH inventory was being sold using outdated methods, reminiscent of the past. It was astonishing that in 2023, amidst the artificial intelligence revolution, phone calls and Excel spreadsheets were still the norm. This realization prompted many companies and entrepreneurs familiar with the evolution of digital inventory buying and selling models to consider a programmatic approach. Thus, Supply Side Platforms (SSPs) and Demand Side Platforms (DSPs) emerged, aiming to convince media owners to connect with them and agencies to purchase through their platforms. Matching inventory became their primary objective, and soon, agencies and companies began buying DOOH indiscriminately, overlooking inventory quality. This approach proved detrimental to our industry, and in this blog post, we will explain why.

Questionable Reach Metrics:
The majority of reported reach information is not verified by any authoritative body. Instead, they rely on what is known as opportunity views rather than confirmed views. Upon closer examination, one would notice that the reported reach for a screen in a mall on a weekday at 2 p.m. is very similar to that on a Sunday at the same time, which is simply implausible. When some industry professionals highlighted this issue to protect advertisers' interests, it caused a significant uproar. Advertisers pay for impressions, yet the true reach remains difficult to accurately calculate with current tools. This led to the proliferation of solutions involving video cameras and intelligent software, which initially seemed like a viable option. However, privacy concerns were raised, and the concept of confirmed views came to a temporary halt. While it is likely to make a comeback in a few years, this pause has at least prompted greater caution regarding the information provided by SSPs.

The Essence of Branding in OOH:
One of the most critical aspects is often overlooked by DSPs, which is the fact that OOH is primarily a branding tool rather than a performance-driven one. While some argue for the concept of brandformance, which combines branding and performance, the fundamental purpose of OOH is to establish brand authority. The coverage and quality of the inventory play a pivotal role in shaping the brand's authority and aspirational appeal. When agencies or advertisers solely rely on an audience system that fails to distinguish between a screen in a bar's restroom and one in a proctologist's waiting room, it indicates a lack of serious planning. Unfortunately, this is the situation with most DOOH DSPs today. The desperate need for sales justifies any sales process, even though we all know it's not the right approach. It's clear that a screen on 5th Avenue and another on 42nd Street in New York convey different messages and represent distinct locations. When we built our DOOH platform, we chose to utilize oRTB and programmatic systems for inventory purchasing. However, we made sure to prioritize thorough planning, working closely with professional planners from agencies or advertisers. Therefore, when our platform makes a purchase, it buys what has been carefully planned, and that makes all the difference.

The Importance of Human-Assisted Planning:
Consider this: Would a brand willing to invest half a million dollars do so blindly? Solely relying on automatic segmentation is an inadequate approach. It is detrimental to everyone involved, harms the industry as a whole, and is ultimately unsustainable due to poor results. In contrast, when a brand manager or an agency's trade desk collaborates with us to plan campaigns on Beeyond, assisted by an expert who comprehends the brief and can make changes based on client feedback, the campaign's success becomes more likely. We adopt this approach not only because it differentiates us, but because we believe it is the right way to operate. It is how we honor the trust our clients place in us. Doing things properly not only feels good but is the correct approach.

As the OOH advertising industry evolves, it is crucial to prioritize innovation and technological advancements. However, we must not forget the importance of planning and quality when it comes to DOOH campaigns. Reliable metrics, verified reach, and a thorough understanding of the branding nature of OOH are essential for successful advertising. By combining programmatic systems with human expertise, we can create impactful and effective campaigns that honor the trust of our clients and drive meaningful results. It's time to revolutionize the industry by embracing the right approach to DOOH advertising.

 

by Alejandro Donzis,  CEO at Beeyond Media 
Twitter: @aledonzis