January 1, 1970 | Manuel Klabacher

PDOOH and Online-Programmatic are not the same

Digital Out-of-Home (DOOH) advertising has been transforming the advertising landscape with its innovative, eye-catching displays in recent years. While programmatic DOOH has been gaining ground, it's essential not to confuse it with online programmatic advertising. In this blog post, we will delve into the key differences between programmatic DOOH and online programmatic advertising, and why these differences make them incomparable.

Different Environments
The primary distinction between programmatic DOOH and online programmatic advertising is the environment in which they operate. DOOH adverts are displayed in public spaces, such as billboards, transit stations, and airports, reaching a broad audience as they go about their daily lives. In contrast, online programmatic advertising targets users while they are browsing the internet on their personal devices.

Audience Measurement
Online programmatic advertising relies on cookies and user data to track and target individual users based on their browsing behavior. This enables advertisers to deliver highly personalized ads to specific users, optimizing their campaign performance. On the other hand, programmatic DOOH uses aggregated audience data, such as foot traffic, demographics, and location information, to target a broader audience. This difference in data granularity makes it difficult to compare the two advertising mediums directly.

Ad Format and Creatives
Online programmatic advertising offers a wide range of ad formats, including display, video, and native ads. These formats are designed for the digital space, allowing for interactivity and rich media experiences. Programmatic DOOH, however, is limited to static images or video content displayed on digital screens. While these ads can be eye-catching and dynamic, they don't offer the same level of interactivity or customization as their online counterparts.

Inventory and Pricing Models
The inventory and pricing models for programmatic DOOH and online programmatic advertising differ significantly. Online programmatic advertising operates in a real-time bidding (RTB) environment, allowing advertisers to bid on individual ad impressions. This process is highly competitive and depends on various factors, such as the user's browsing history and the advertiser's budget.

In contrast, programmatic DOOH inventory is often sold in packages or time slots, with prices based on factors such as location, screen size, and audience reach. While some DOOH providers have started adopting RTB models, the majority still follow a more traditional approach to inventory management and pricing.

Regulation and Privacy Concerns
Privacy regulations and concerns have a significant impact on online programmatic advertising. Laws like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) require advertisers to obtain user consent for data collection and usage. This has resulted in stricter targeting limitations and an increased focus on privacy-compliant practices.

Programmatic DOOH, however, relies on aggregated, anonymized data that does not identify individual users, minimizing privacy concerns. As a result, DOOH advertising faces fewer regulatory challenges and can operate more freely in terms of audience targeting.

While programmatic DOOH and online programmatic advertising share some similarities, the differences in their environments, audience measurement, ad formats, inventory management, and regulatory landscapes make them fundamentally different. It's essential for marketers to understand these distinctions and adopt unique strategies for each medium to maximize their advertising effectiveness.
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