Why programmatic out-of-home advertising isn't taking off in Mexico
Programmatic out-of-home advertising isn't taking off in Mexico because it doesn't suit the people who control the screens. A handful of companies own most of the inventory and make more money selling by the month. I lived it with Kimik: we sold a million dollars in six months and still shut down in 2021.
- Programmatic DOOH lets you buy ads on outdoor screens by location, time slot and budget, just like a digital ad.
- In Mexico, the inventory sits with very few companies, and they prefer the traditional monthly sale.
- Measuring results is good for advertisers; for screen owners, not so much.
What programmatic DOOH is
DOOH stands for digital out-of-home: advertising on digital screens in the street, like LED billboards. Programmatic means you buy it automatically, by location, time slot and budget, instead of negotiating with a salesperson and paying for full months.
The difference for a brand is huge: you can launch a campaign in minutes, pay only for the time slots that work for you, and measure what happened afterward.
Why it isn't taking off in Mexico
The market is small. DOOH in Mexico is still a small share of ad spend. A model that charges per impression needs volume, and that volume isn't there.
Few companies control the inventory. Almost all the good screens belong to a handful of owners. If they don't want to sell programmatically, there's no alternative.
Monthly sales pay them more. Selling a whole screen by the month, or exclusively, is more profitable for the owner than selling it by the hour. At Kimik we felt it: we got leftover space, no priority, and sometimes they took our campaigns down when they sold an exclusive, even though our clients had already paid.
Measuring results shifts who holds the power. At Kimik we used geolocation data to measure who passed in front of each screen and whether they later visited the store or downloaded the app, in 7 to 30 day windows. That attracts advertisers, but it also exposes which screens don't work. For someone selling inventory, more transparency isn't always good news.
What would have to change
- Advertisers demanding it. If big brands only buy measurable out-of-home, screen owners will have to open up their inventory.
- New inventory coming in. Screens owned by smaller players, or in places like malls and transit, can grow outside the big companies.
- Programmatic getting guaranteed inventory, not just leftovers. Today it already coexists with monthly sales, but only with the space that's left over, and that can disappear at any moment. On top of that, advertisers aren't used to buying remnant inventory in out-of-home. As long as programmatic only gets the leftovers, it won't be a serious channel.
Frequently asked questions
What is DOOH advertising?
Advertising on digital outdoor screens, like LED billboards on the street. DOOH stands for digital out-of-home.
What is programmatic DOOH?
The automated purchase of space on outdoor screens by location, time slot and budget, without negotiating full months with a salesperson.
Can you measure a billboard?
Yes. With geolocation data you can know who walked or drove past the screen and whether, in the next 7 to 30 days, they visited the store or downloaded the advertiser's app. Kimik was doing this in Mexico.
Why isn't programmatic DOOH growing in Mexico?
Because the market is small and few companies control the screen inventory. They make more selling by the month or on an exclusive basis than programmatically.
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