Outdoor advertising and the CPT model – cost per 1000 impressions
Does outdoor advertising seem expensive and inaccessible?
Do you think billboards are only for big brands with million-dollar budgets? That’s how it used to be: monthly rental, fixed locations, no guarantees of effectiveness. But now everything has changed.
Programmatic (DSP) has made outdoor advertising accessible for any business — from small cafes to local services. Now you can launch ads at the right time, in the right place, and even depending on the weather or traffic, paying only for actual impressions. The use of DOOH (Digital Out-Of-Home) technologies, such as video wall software or a player for digital signage, makes this process even more efficient.
In this article, we’ll figure out how small and medium-sized businesses can promote themselves in OOH without unnecessary expenses and test ads without risking their budget.
What is DSP and how does it work?
Programmatic (DSP) has completely changed the approach to DOOH advertising, making it accessible and manageable like online advertising. Now, instead of paying for a monthly rental of ad space, companies can buy impressions tailored to their tasks — for hours, days, or weeks when it’s truly needed. The use of pDOOH (Programmatic Digital Out-Of-Home) allows automating the process and achieving maximum efficiency. What’s especially important is that a more flexible sales model can be implemented — cost per thousand (CPT) impressions of the ad creative.
How does DSP work? It’s a technology that allows launching OOH ads through an online platform. You simply choose the necessary screens or digital signage, set display parameters — time of day, days of the week, weather conditions, traffic levels — and the system automatically places your ad. This approach eliminates unnecessary expenses and makes outdoor advertising a flexible tool that can be adjusted to marketing goals in real time.
One of the main advantages of DSP is flexibility. There’s no longer a need to overpay for a monthly billboard rental if advertising is needed only for a few days or specific hours. For such tasks, a player for digital signage is ideal.
Another important distinction is budget management. Instead of fixed rental costs, businesses pay only for actual impressions. This makes DOOH advertising accessible even for small companies that previously couldn’t afford it. Now you can launch campaigns with any budget, test creatives, and scale successful solutions without unnecessary expenses thanks to DOOH and pDOOH technologies.
Setting up ads for specific conditions
Programmatic (DSP) has made outdoor advertising as precise and effective as possible. Thanks to Digital Out Of Home (DOOH) technologies, businesses can now not only place ads on LED billboards but also control their displays depending on specific conditions. The use of DOOH software allows video ads to be configured based on time, location, and even weather conditions, significantly increasing their effectiveness.
Advertising at the right time
Previously, DOOH advertising had to be paid for upfront for an entire month, regardless of how effective it was on certain days or hours. Today, with DSP, this is a thing of the past. Now you can launch video ads only when they will have the maximum impact. For example, a restaurant can display ads during lunch breaks, a fitness club — in the morning and evening, and a taxi service — during peak hours. With the help of digital signage players, advertising becomes even more flexible and tailored to business needs.
Targeting based on weather and traffic conditions
Another advantage of programmatic is the ability to set ad displays based on external conditions. For example:
– A clothing store can advertise umbrellas and raincoats only during rainy weather.
– A café launches ice cream ads when the temperature exceeds +25°C.
– An auto repair shop offers tire replacement services with the onset of the first frost.
– A taxi or food delivery service activates ads during heavy traffic periods when people are less likely to leave home.
Digital LED billboards allow content to be quickly adapted to changes in weather or traffic situations, making advertising more relevant to the audience.
Local advertising where the client is needed
Thanks to DOOH technologies, outdoor advertising no longer wastes budgets on unnecessary displays. If a business operates in a specific area, ads can be shown precisely there. For example, a beauty salon can promote itself within a radius of 2–3 kilometers, while a delivery service — within its service zone. This reduces costs and increases ad effectiveness because only potential clients see it.
The DSP system combined with DOOH software allows businesses to use DOOH advertising with the same precision as digital channels. LED billboards and digital signage players turn it into a controllable tool for solving specific tasks and attracting the desired audience.
Ease of launching ads through DSP
Launching outdoor advertising using a programmatic approach (DSP) has become as simple as setting up ads on social media. Modern technologies allow businesses to avoid lengthy negotiations with advertising operators or the need to book billboards months in advance. Now everything can be done online in just a few minutes using software for LED screens and DOOH Display Solutions. This solution provides flexibility, speed, and full control over the budget. Moreover, DOOH networks allow businesses to reach a wide audience thanks to the integration of modern advertising screens capable of broadcasting video ads in real time.
Thanks to DSP, businesses gain the ability to quickly adapt their ad campaigns to market changes or customer needs. For example, a company can launch ads on LED screens in a specific city district or at particular hours of the day when its audience is most active. The use of such technologies makes DOOH advertising accessible even for small companies.
Flexibility: test, change, optimize
The main advantage of programmatic advertising lies in its flexibility. Unlike traditional outdoor advertising, where the creative remains unchanged throughout the entire billboard rental period, with DSP, ad videos can be changed at any time. For example, a company can test different visuals and messages to determine the most effective option. Additionally, content can be easily adapted for seasonal promotions or special offers.
For retail, restaurants, delivery services, and other dynamic businesses, this opens up new opportunities. For instance, a restaurant can broadcast video ads for lunch specials specifically during lunch breaks on LED screens in the city center. Or a clothing store can advertise a winter sale only during the cold season. The use of DOOH Display Solutions makes it easy to update content and ensures high-quality displays even on large LED billboards.
Real-time control and analytics
One of the key advantages of DSP is the ability to monitor and analyze the effectiveness of an advertising campaign in real time. In their personal account, advertisers can track the number of impressions, analyze reach, and receive detailed statistics on audience interaction. For example, if an ad performs better on certain days or at specific hours, the budget can be quickly redirected to increase impressions during that period.
Software for LED screens also provides an additional level of security and allows maintaining a log of all operations. This is important for large DOOH networks where it is necessary to synchronize the operation of many advertising screens simultaneously. Such an approach enables businesses not only to use their budget efficiently but also to respond promptly to market changes.
Opportunities with DOOH networks
DOOH networks open up vast opportunities for businesses by integrating digital technologies into DOOH advertising. They allow using geolocation for audience targeting and personalizing content depending on the location of advertising screens. Moreover, modern technologies make it possible to adjust displays based on weather conditions or traffic congestion.
For example:
– A restaurant can advertise hot drinks during cold weather.
– A sportswear store can promote summer collections only when the temperature exceeds +25°C.
– A food delivery service can activate video ads during peak hours or heavy traffic jams.
DOOH Display Solutions enable the creation of interactive content and its broadcast on high-resolution LED billboards. This makes outdoor advertising not only effective but also attractive to the audience.
DOOH advertising: a modern tool for business
DOOH advertising opens new opportunities for businesses by enabling them to create flexible and effective campaigns. Thanks to innovations such as centralized video management systems, companies can easily update content, adapt it to conditions, and control displays on digital screens in real time.
This approach allows businesses to work precisely, reaching the right audience at the right moment. DOOH advertising ensures not only a vibrant brand presence but also maximum efficiency for each campaign. This is the future of DOOH advertising that is already helping businesses achieve their goals today.
Advision — Content Management System for remote management and media planning of video and audio content broadcast. We help offline businesses and advertising companies automate workflows and implement reliable Digital Signage infrastructure using our own software and hardware solutions.
Contact us and we will help you implement the most modern technologies to solve your problems!
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