3 questions for Mirco Guadagnin, Lead Product Management at Livesystems

How has programmatic advertising developed in recent years and how can the technology be applied in practice?

To put this into historical context: the first programmatic online campaign was carried out in 1996 with Double Click. Two years later (1998), Google was founded. It then took 23 years for the first programmatic DOOH campaign to be implemented in Switzerland. That was in 2019. The technology for automated buying and selling has been around for some time. However, it took a relatively long time before it was used in Switzerland.

Programmatic DOOH is now a game changer, mainly thanks to its flexibility and data integration. Companies can adapt their campaigns in real time, for example based on location or weather data. In addition, media purchasing can be automated: parameters are defined and campaigns are played out on this basis.

An example: an energy drink is advertised at petrol stations that stock the product, specifically in the early morning and at lunchtime. The drink is intended to give the target group the energy they need to start the day or to prevent the dreaded midday slump immediately after lunch. Of course, two different advertising motifs with appropriate calls to action are also used for this purpose. The timed approach attracts walk-in customers to the respective shop and significantly increases the likelihood of a purchase.

Livesystems has now made the majority of its DOOH inventory available programmatically, enabling companies to place their message flexibly and automatically. That's over 13,000 screens throughout Switzerland. We are also the first in the Swiss market to enable programmatic bookings on moving screens (screens in public transport).

Where is programmatic digital out of home headed?

In the long term, PDOOH will not only become more flexible, but also more contextual. Location data, weather information, purchasing habits and even traffic data can be used in real time to target specific audiences. I expect brands to manage campaigns based on specific consumer habits and behaviours in the long term, which will greatly increase relevance and thus impact.

An example from the USA (New York City): McDonald's used a PDOOH campaign that varied in real time based on weather data. When the weather was warm, drinks and ice cream were advertised; when the weather was cooler, hot drinks and warm snacks were advertised.

However, in order to make the most of these opportunities, the data base of outdoor advertising providers is also crucial: How up-to-date is the data? Is it representative? Does it come from one or more sources? Does it allow for targeted advertising, and according to what criteria?

Let's continue with the McDonald's example: Based on its data, McDonald's knows that certain drinks are preferred by a young female target group and others by an older, male target group. Based on the provider data, McDonald's now displays a different subject in areas where there is a disproportionately high number of people from the respective target group. This approach can even be combined with weather targeting to create a campaign experience that is perfectly tailored to the target group and situation.

What challenges and opportunities do you see for programmatic DOOH in Switzerland?

One of the biggest challenges for programmatic DOOH in the Swiss market is that digitalisation is progressing slowly. Political and (building) legal conditions limit the possibilities for outdoor advertising and digitalisation. Unfortunately, Switzerland cannot (yet) compete with Times Square in New York City – but I remain confident (laughs).

There is also a lot to be done in terms of targeting. In contrast to online programmatic advertising, which is already somewhat better established, we are a one-to-many medium. We are addressing this challenge by continuously measuring performance values and ensuring high data quality based on a representative panel. This enables us to understand which advertising areas are particularly attractive for which customer segments.

In addition, some advertisers and agencies still need to be educated about the added value of programmatic DOOH compared to traditional outdoor advertising bookings. Not everyone has addressed this issue yet. We therefore hold regular discussions with advertisers and agencies to highlight the opportunities and break down barriers.

As for the opportunities: compared to many traditional media, which are in decline, outdoor advertising achieves consistently high reach. Customers who have been in the advertising industry for a long time are clearly noticing this change. PDOOH can give them a significant advantage in planning and, thanks to moving images, offers more possibilities than static subjects.

Timing can also be a significant opportunity. Thanks to the flexibility of the digital medium, even short-term projects can be implemented without any problems.

Programmatic DOOH can be particularly successful in Switzerland through local adaptations and innovative approaches, offering greater flexibility and agility than traditional outdoor advertising – with just a few clicks in real time.