Auction based Vs. non-auction based programmatic OOH
Published: December 3, 2019
Generally, there are two types of programmatic out of home buying. Auction based and non-auction based. While each may have their own benefits, when it comes to the programmatic world, billboard and screen owners tend to prefer the ability to set their own pricing.
Auction based programmatic buying refers to the process of listing advertising space for sale on a digital screen and allowing advertisers to “bid” how much they would pay for that space at any given time. If one advertiser is willing to pay more for said space/time then the ad space is awarded to the highest bidder.
This model is how most online ad sales are set up. Google AdWords, for example, will show your ad on top of the search results page if your bid is higher than other advertisers. This is also the case with most websites, where the display ads that appear on the site are bought through Programmatic RTB (Real-Time Bidding) on a per-impression basis in an instantaneous auction.
Non-auction based programmatic buying refers to the process of listing space for sale on a digital screen for a set cost without any auctions or bids in place. This gives more control to screen owners and ensures that they won’t be running ads that are undercutting what current advertisers have already agreed to.
This model guarantees the advertiser’s ads will play at their selected times without the risk of being outbid for that space. The screen owner is also guaranteed a certain amount of revenue without diminishing the value of their screen.
Comparing the two: The auction-based model may be more appealing to the advertiser, which will in turn, generate more ad sales for the screen, but at a lower cost. The billboard with a set price (non-auction based) will make more money from each advertiser and will guarantee that ad plays, but there may be fewer sales because of the higher cost. Both models are guaranteed to attract a completely new sub-set of advertisers, as digital out of home grows and proves to be effective.
Adomni’s digital out of home platform has over 150,000 programmatically connected screens available to purchase within minutes by geo or audience demographics. If you’re a media owner, contact Adomni to list your inventory on a programmatic demand-side platform.
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