Life in Programmatic Digital Out-of-Home
00:13:34 · Gavin Wilson
[00:13:34] S2: Yeah, this is really interesting insight, in my opinion. And again, if we sort of take a step back, I guess it's quite logical. Let's just sort of define programmatic guaranteed quickly for our audience. Your programmatic guaranteed is where the media owner essentially agrees a price and a volume of impressions with a buyer. And that buyer will essentially fulfil that level of impression at that price. So it's quite similarly linked to a direct buy. However, obviously, utilising the benefits of flexibility, you know, sort of more recent planning, recency into the programmatic ecosystem. So that the programmatic guaranteed model does really work for all stakeholders, you know, it can get that really kind of high impact budget out a key time. And the media owner obviously has some certainty with that. What we're finding is a natural evolution though is non guaranteed. And that really is where as it sounds, there is much more flexibility around how a buyer may buy, and how they might sort of target an audience still in real time. So there's less kind of guarantee on what the buyer will buy, there's no certainty, there's no must buy certain volume of impression. And it becomes more of sort of trading auction mechanic, where a buyer can really in theory, a portion more data to the buy, often that's done on the DSP or buy side. And it allows then certain triggers to create more of that optimal way of buying. So you'll find a buyer or a DSP might set some data conditions, they might still have a very healthy budget, but obviously subject to those triggers or conditions being met, then obviously that would in essence mean the DSP bids and buys. Think of it as they really want that impression based on a certain condition. And when that sort of data is realised, or that impression is seen and witnessed, they will buy and they will buy, you know, a really kind of high value CPM. So it's flexible in a different respect, it's probably bringing outdoor and real time kind of outdoor more akin to the other channels way of buying, where perhaps it's more of an audience buy than necessarily an inventory buy.
00:15:46 · Gavin Wilson
And again, there's pros and cons to both, because you may still have such a high impact brand launch that you want to guarantee certain impressions, you know, at certain times, whereas that non guarantee sort of luxury gives you a bit more of that precision on an audience. And again, you know, it could be linked to a weather dynamic or an emission dynamic or, you know, real time creative link to an event or sporting event or a concert or anything. So I think there's a really nice flexibility now creeping into outdoor. I think we're seeing that non guarantee is just growing in that popularity. And it probably links to my previous answer that as agencies are more and more people are buying out of home in a way they're accustomed to buying other channels, you're probably seeing that the non guarantee for those agencies is just more wedded to the flexibility they see in buying, display or video. I think if you're a media owner, you know, it's brilliant, because hopefully it's, in many cases, really incremental demand. And as I said, that could be being moved around from other channels. But hopefully, if you've got a good programmatic guaranteed strategy as well, you've got that assurance of really high impact sort of premium pricing that you can command as well from buyers wanting to secure inventory in that way. So yes, interesting, The UK is moving that way. I do see it as a bit of a global shift as well. I think both will hold place in the future. And I think different markets will just see spikes and troughs in NG and PG at different times of the year as well.
00:17:26 · Philippa Evans
[00:17:26] S1: Completely agree. I think from our perspective, we've also seen it as an almost efficiency layer as well, where non guaranteed you can repeat, use the same deal ID over and over again for different buyers for different purposes, different times of the year, this always on kind of mechanism that we have in the non guaranteed world. It just makes it easier on everyone involved, less admin and just a more fluid approach to buying, which I think is one of the aspects of non guaranteed that gives it its charm. Alrighty, next question is, can you describe some of the key trends revealed in the research when it comes to budget allocation and who's planning and buying programmatic digital out of home?
00:18:12 · Gavin Wilson
[00:18:12] S2: Absolutely. So lots of data in the state of the nation. Obviously, much to go through today, but maybe a couple of headlines. Think to tackle the second part first, we're still seeing that a lot of the specialist media agencies are a key kind of resource in the determining of who is buying and who is where the investments coming from. As high as 78% of responses actually cited that buying group as one of the key investors in the channel, which was actually quite higher than I thought. But I guess it does make a lot of sense in The UK, we've got some great, great agencies, some great specialists. And obviously, you know, there are some brilliant out of home experts in all of that. So I guess that does make sense. What's interesting is the role of DSPs has grown substantially. We found that actually 43% of marketeers are now leveraging the DSP for that planning and buying and actually they're using perhaps in a sort of managed service capability or going in and utilising that platform to do that planning or even seeking the advice of the DSP to help influence on how do they allocate and how do they spend. That's actually gone up about 30 percentage points year on year. Again, that's quite logical, we've seen a real emergence of more and more omni channel DSPs, we've actually seen quite a lot of DSPs incorporate out of home planning into their platform. And again, you know, many of them offered display video mobile capability, but actually outdoor has been almost that last major channel to be incorporated into their platform. And that's kind of really taken off in the last couple of years, which obviously bodes well for us all, I think. In terms of sort of year over year growth in new programmatic out of budgets, we see about 24% figure now of net new budgets, which is up nine percentage points. That's really interesting in The UK market, because that's showing a swell of healthy new revenue coming in. Obviously, it's coming from somewhere else. And what we're seeing is some of that is not just trial, but it's trial and repeat as well. So you know, both brands, agencies, and users of DSPs are saying, actually, this is now a really attractive and viable channel. And as I said, you know, nine percentage points growth, I think, in a year is a really interesting data point.
00:20:43 · Gavin Wilson
And then maybe sort of finally, we're seeing that agencies, when it comes to dedicated programmatic out of home budgets, they in the main still seem to be the sort of main protagonist in terms of driving the creation and spend levels. So about 26% of the responses that came back actually indicated that agencies rather than advertisers are those creating those new budgets. And again, that's quite interesting. It shows that agencies are either being briefed or they're talking to their customers and saying, let's really try this channel and invest in up weight in programmatic outdoor. And I think that's quite, again, healthy and quite indicative of how outdoor is now seen as very much an omni channel plan, and part of a plan. And it's just easier to do, which just, you know, let's think logically operationally, if it's easier to do, you're going to have more people trialling it, I would think. They're probably the main headlines, Philippa, we've seen, but yeah, nearly all bodes very well for kind of continued investment in the channel.
00:21:52 · Philippa Evans
[00:21:52] S1: Agreed. I just personally think it's great to see how much more diverse the pool of buyers is compared to how it was in the first few years and how that is slowly but surely contributing to a collaborative space and thus refining our best practices, which was missing in the beginning and we're now getting to a stage where everyone knows what they want to achieve, how they want to achieve it and we can all streamline those practices and make it easier for everyone involved. Alright, penultimate question. According to the research, what are the key requirements for further growth of programmatic digital out of home and who should be responsible for driving these?