Busting Advertising Jargon - What is Programmatic?

What is programmatic Out of home (OOH)?

Programmatic out of home is buying digital billboard and place-based screen time with software. You set a budget, choose locations and timing, upload creative (your ad files), and the system serves ads to eligible screens in near real time.

Delivery is tracked by proof of play (a logged record that your ad ran, with screen and timestamp) and reported as impressions (the estimated number of people who had an opportunity to see the ad). You usually pay by CPM (cost per thousand impressions).

How it works in five steps

1. You set goals, budget, geography and timing, then upload creative.
2. A DSP (the buying platform used by advertisers) bids for matching screens.
3. An exchange (the marketplace) connects that DSP to SSPs (the selling platforms used by media owners).
4. Winning bids are played on screen and logged as proof of play.
5. Reporting models impressions and, if set up, footfall lift (extra store visits among an exposed group compared to a similar control group).

How programmatic differs from booking direct

What you buy
Programmatic buys impressions or plays across many screens that match your rules. Booking direct secures specific panels for fixed dates, so you know exactly which sites you hold.

Speed and control
Programmatic launches fast and lets you change geography, dayparts (specific hours or days), budgets and creative during the flight. Direct buys run to longer timelines, with slower changes.

Targeting
Programmatic can use polygons (custom map boundaries), audience segments and live triggers like weather or traffic. Direct focuses on selecting exact sites and simple dayparts.

Pricing
Programmatic is CPM based and includes a fee stack or take-rate (platform and data fees as a share of spend). Direct is usually a negotiated package price for the sites and dates you hold.

Measurement
Programmatic centralises proof of play, impression modelling and options like footfall or web-uplift studies. Direct reporting varies by media owner and often needs stitching together.

Creative
Programmatic makes it easy to swap versions or run dynamic creative (copy that updates by time, place or data). Direct is great for bespoke approvals, long holds and special builds. Classic static billboards also require print and install.

Access
Programmatic opens a lot of inventory across many owners. Not every landmark site is online. Direct can unlock premium or exclusive locations and custom packages.

Pros and cons

Programmatic OOH

Pros

• Quick to launch, easy to pause and adjust
• Flexible targeting by area, time, audience and triggers
• Can optimise to outcomes like store visits or web activity
• Unified reporting across many owners
• Simple trafficking for multiple creative versions

Cons

• Less certainty of exact panels and timing
• Can be more expensive
• Over-tight targeting can throttle delivery or lift price
• Not all premium sites are available programmatically
• Impressions are modelled and methods vary by partner

Booking direct

Pros

• Certainty of exact locations and long holds
• Sharp rates possible at scale or for longer terms
• Access to landmark and exclusive sites
• Suits special builds and complex approvals
• Can book static (non digital) sites

Cons

• Slower to brief, negotiate and change mid-flight
• Less dynamic targeting and optimisation
• Reporting quality varies by owner
• More admin if you manage multiple vendors
• Harder to test many messages quickly

Some examples of how programmatic may work for you

Umbrellas at pharmacies in rainy weather

You sell umbrellas stocked in pharmacies. Target pharmacy locations nationwide, set a weather trigger for rain in each suburb, and only play during the hours of commute and lunchtime windows. Creative line: “Caught in the rain? Umbrellas inside now.”

Coffee near train stations, mornings only

Target a 1–2 km radius around major stations and CBD walkways. Only play 6–10 am. Run weekday and weekend variants, then push budget to the copy that correlates with stronger store visits.

Hot meals when it is cold
Serve around petrol stations and supermarkets after 4 pm with a temperature trigger below a set point. Rotate family bundle creative. Pace budgets to Fridays and Sundays.

Gym launch
Focus within 5 km of the new club, favour roadside digital and gyms, and daypart to commute peaks. Target to 25-40 year old professionals.

When to choose each

Choose programmatic when you need speed, time-of-day or weather logic, short bursts, lots of creative testing or unified reporting across cities.
Choose direct when the exact site matters, when you want long continuity, when you need a showpiece location or when you are building something special.

We can help you design a clean programmatic outdoor campaign that works.