Why Digital Signage Should Be Programmatic

Why Digital Signage Should Be Programmatic

For the longest time, ordering, setting up, and even reporting on digital signs and other forms of advertising has been manual. Enter programmatic buying and selling. This is the revolutionary new way of buying and selling digital ad space.

Without a doubt, the programmatic way is more effective and efficient. It completely streamlines how interested media buyers, including advertisers and businesses such as retail stores and shopping mall owners, bid and buy advertising space. This covers buying an ad slot or space for digital signage in target retail spaces in malls, airports, and bus stations. Also covered is buying ad space on the web as well as mobile device apps and social media platforms. 

Programmatic digital signage is more effective and efficient.

Understanding Programmatic Digital Signage 

First, programmatic buying is a great choice and readily available to any company looking to reach its target audience. Your specific industry, the size of your business, and any other such factors make no difference to the suitability of this new method. Second, is that there is a systematic way of going about programmatic buying and selling. 

How It Works

When you are looking to launch a digital campaign to promote your business offerings, you will get in touch with the programmatic ad agency. The agency will use a demand-side platform (DSP) to automate buying of the impressions required for your campaign.

With a DSP, the agency can buy ad inventory from different media owners and publishers. Programmatic buying is different from the traditional buying model in that it uses algorithms based on real user data to target potential customers. These algorithms are the drivers of the data management platform (DMP), which is responsible for managing audience data. While taking into account user behavior, location, demographics, and other criteria, the data will target the right audience.

When someone fitting the target audience profile gets on the publisher’s site, the site will send an ad request to the supply-side platform (SSP.) The SSP runs an auction with real-time bidding with the aim of realizing the maximum value for the network owner from each impression.

Also connected to the SSP is the DSP. This integration allows the DSP to evaluate the ad against the data received. This evaluation will determine the bidding price for the impressions. The process repeats when a user gets on a website or refreshes the webpage. 

Of course, this may seem like such a complex process that would take time. However, in reality, these programmatic transactions take no more than the time it would take to load a new page. That is a few milliseconds to determine whether a user would be interested in seeing an ad or not.

The Advantage of Programmatic Advertising 

Why should digital signage be programmatic? Succinctly put, there are several advantages to this new ad space buying model that will no doubt benefit your advertising efforts. There are also benefits for publishers. 

Benefits for Advertisers

Programmatic digital signage and advertising platforms have become popular among advertisers and business owners because of the following key benefits.

1. Superior Targeting 

There is no limit on the amount of ad space programmatic buyers can buy.

The algorithms render superior targeting capabilities to each ad. You can be sure that you will be reaching your target audience, allowing you to spend your advertising budget more efficiently.

2. Real-Time Flexibility

You can adjust your ads in real-time based on their impressions. Moreover, you can adjust and accordingly expand your targeting criteria and preset triggers to reach your audience. 

3. Easy Scaling

There is no limit on the amount of ad space programmatic buyers can buy. Such limits may have been commonplace in the traditional buying model, but not so for the programmatic model. You can buy an ad slot from any available ad inventory, allowing you to reach a large audience. 

4. Good ROI

It ultimately comes down to the ROI, and with programmatic digital signage, you can be sure of a good one. The ease of scaling, real-time flexibility, and most importantly, the superior targeting capabilities ensure that you get a good return on how much you invest.

Benefits for Publishers

Among the benefits of programmatic selling of digital signage for publishers include the following 

1. Selling Made Easier and More Efficient

Publishers have it easy selling ad space with the programmatic model. As a publisher, you can optimize your ad inventory sale with automated tools that reduce the time required to find advertisers.

On matters of efficiency, programmatic selling makes it easier to communicate and collaborate with advertisers. Streamlined communication translates to process efficiency for the benefit of both parties.

2. Better Earnings

With improved efficiency comes the advantage of lowering costs. Lower your costs, and you can raise your profit margins. It’s a win-win, as you earn from your ad inventory while giving the advertisers a good ROI. 

Programmatic Buying and Selling for DOOH Advertising 

You can programmatically buy ad space and have your content displayed based on the time of day.

Digital out-of-home (DOOH) advertising is any form of digital signage directed at reaching the target audience outside of their home. This covers digital signage and displays in public spaces through street furniture, digital billboards, and more.

For example, the huge digital billboards in Times Square are DOOH ads in action. Consider also the TVs at gas stations and the digitized advertising in street kiosks. For this out-of-home advertising space, you can programmatically buy ad space and have your content displayed based on the time of day. 


To sum up, the programmatic model of buying and selling ad and digital signage solutions has benefits for both advertisers and publishers. On the whole, advertisers get an excellent ROI, and publishers earn decent programmatic revenue.

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