2017: The Year Yield Optimization Comes of Age in Digital Out-of-Home

Yield optimization essentially refers to the use of data analysis and optimization techniques to maximize performance and revenue Think airlines and hotels When a plane departs with empty seats or a night passes with vacant hotel rooms those revenuegenerating opportunities are gone forever And so airlines and hoteliers have become quite sophisticated in the discipline of yield optimization which helps them understand how to promote and dynamically price their seats and rooms to achieve as close to 100 capacity as possibleFor digital out of home DOOH media sellers yield optimization to date has primarily been in the form of inventory management But now the big exciting opportunity is to take yield optimization to a more targeted level by using visual recognition and location targetingI recently chatted with two experts in the fieldamp160 Rodolfo Saccoman CEO and CoFounder of AdMobilize and Andreas Soupliotis Founder and CEO of Ayuda AdMobilize is a machine intelligence company that connects the physical world to the online grid by utilizing pioneering computer vision and artificial intelligence AI technologyamp160Ayuda is a supplyside platform that is used by media owners worldwide to manage daytoday operationsSaccoman says that yield optimization quotis a big opportunity that can generate more revenuequot for DOOH networks and more precision for advertisersquotAds have historically been sold at static prices depending on daypart and locationquot he says quotIt39s been very basic But what we can now do is to serve ads on locationbased screens using mobile data and a knowledge of who is actually looking at the screen at any given time We can determine who is viewing by demographicamp160and their emotion while looking and how long they are viewing Sellers can start charging premiums for different ads Coke for example could target a specific demo and trigger DOOH ads to reach that groupquotThis example refers of course to upclose streetlevel viewing engagement in places like shopping malls health clubs restaurants and the like But here39s the thing The same targeting and dynamic pricing ie yield optimization can be deployed for largeformat screens like those alongside highways Saccoman says that technology can now determine the speed of passing cars so that specific spots can be served and dynamically priced in realtime So a longer spot or one whose creative requires a bit more attention can run at a premium rate specifically when drivers are in slowmoving traffic and thus have a longer exposure time to the screenAyuda39s Soupliotis says that sophisticated inventory and pricing optimization algorithms not dissimilar to yield management techniques commonly used by the airline industry are a key element of the secret sauce that makes this all possibleSoupliotis says quotWe39ve incorporated such algorithms into the ad serving platform which understands in realtime what is the best version of a creative to play based on external factors such as traffic speed What are the best screens to activate based on realtime availability and data from massive mobile geotemporal data sets And finally when are the best times of the day to activate these screens in order to optimize and pace an impression delivery goal against a custom audienceamp160The ad server further maximizes yield for the seller by analyzing historic fill rates on screens demand and even lease payout terms to deliver the most profitable campaign for the seller while delivering on locationbased targeting criteria for the buyerquotSo DOOH screens can now feel and adapt intelligently to real world events such as unpredictable consumer macromovement pattern changes weather traffic speeds etc Think about how weather satellite imagery helps visualize a developing storm Heat maps can visualize how a custom audience39s movements evolve such as consumers who have visited a QSR three times in the last month and their daily commutes Ad servers activate the best screens as animated by the heat map They choose the screen when they are in the eye of the storm It39s all about activating locationbased DOOH media along a custom audience39s journey and their path to purchase while optimizing the seller39s yieldThese are not futuristic dreams These new categories of yieldoptimized campaigns backed by realtime ad serving data and sensors are commonly executed by companies such as Ayuda and AdMobilize The yield optimization of the Internet is now available on locationbased screensAs the Marriotts Hiltons and United Airlines of the world have learned yield optimization drives millions of dollars in incremental revenue right to the bottom line In 2017 the DOOH industry will begin to see similar benefitsClick the social buttons above or below to share this story with your friends and colleaguesThe opinions and points of view expressed in this article are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated bloggers amp160

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2017: The Year Yield Optimization Comes of Age in Digital Out-of-Home

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Barry Frey

Jon Miller | Cofounder Marketo, Engagio | The Gumball Machine is Broken - Rethinking B2B Marketing - By Mike Linton

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2017: The Year Yield Optimization Comes of Age in Digital Out-of-Home

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