this may sound like it's going to be a conversation about programmatic it's not in fact this concept has very little to do with the programmatic landscape at all it has everything to do with how we grow the pie of advertisers using out of home to elevate their brand so let's start by breaking down what a DSP is and why it's relevant DSP is short for demand side platform this is the literal interface used by marketers to deploy ads this can be Facebook ads manager Google ads manager or even the trade desk or Google's dv30 simply
put a DSP is how marketers access inventory and run campaigns pretty simple for out of home and more specifically programmatic digital out of home there are platforms like Vistar or outm move these platforms are designed to be selfs serve exclusively for programmatic trading and that's a good place for us to kind of put our first pin in the map there are very clearly self-served dsps that's something I think we can all agree to uh that are designed for programmatic trading so then what would the opposite of that be it's not self-service it would be managed
service and if it wasn't just programmatic it would be all of out of home it would be full stack out of home traditional out of home programmatic out of home digital out of home wild postings experiential all of those things right full stack out of home including all the formats all the buying methods it's not going to be exclusively limited to digital formats that are only available programmatically right so you can quickly see that dsps exist on these two spectrums the first spectrum is uh of self- serve versus managed service and the second spectrum is
as digital programmatic exclusive buying or full stack out of home traditional buying programmatic all things out of home so you could think about these two operating uh or coexisting on like an XY axis if you will all right so you're probably catching on where I'm going with this what this means is that out of home Specialists are dsps as well out of home Specialists would be classified as a managed service full stack DSP they either offer a technology platform to their clients or they act as what's known as an iPass an integrated platform as a
service also what we call an agency okay so what does this have to do with the last episode where I was talking about creative agencies and everyone being a DSP well because creative agencies are a type of DSP to see each DSP has their own USP their own unique selling proposition it's the thing that they believe makes them the better Mouse trrap for programmatic DSP it might be some really cool Target getting uh dashboard uh and the benefit of never having to talk to a real person for an out of home specialist it might be
that you offer expert insight and the hands-on experience that scaling brands are looking for and for a creative agency it might be that instead of a flashy dashboard or having you know a whole team to handle the media by you ultimately offer the alignment of building from the Creative Vision outward so whether you're programmatic DSP an out of home Specialist or creative agency from a competitive standpoint we are all dsps so what are we fighting for we're fighting for the longtail if you've never heard of the long tail before that's okay we're about to break
down what it is and what it means for out of home and if you have I think you'll appreciate this perspective on it but the longtail was a concept popularized by Chris Anderson who is the editor of wire.com uh really one of the companies that pioneered a lot of the internet but basically the long tail boils down into these three pillars first first that a huge number of mildly popular products can out sell a small number of Evergreen hits meaning that if you can offer a sufficiently large number of Niche products you can compete with
the few best sellers think about this in the context of out of home 80% of out of home's Revenue comes from local advertisers this is across all of the formats from Billboards to bus shelters one sheet posters and laundromats to Digital Play Bas screens eight out of every $10 spent on our channel is coming from local advertisers that means that despite the popularity of a few amazing screens we see all the time in Times Square or Las Vegas that the backbone of our industry is local said in another way a huge number of mildly popular
products can out sell a few number of hits okay check first pillar down next pillar next pillar the way to think about this is the unique Dynamic of out of home in that anyone can start a media company and we continue to see new networks and new offerings pop up seemingly weekly but the next pillar is since everyone can now produce their own content the tail keeps getting longer the barrier to entry to becoming an out of home media owner is literally zero you could go into business today offering some new format hanging posters on
Telephone polls in the sub suburbs uh you get paid cash in advance and you don't even have to give up a single scent of valuable capital in your business right this pillar actually applies doubly here because it also pertains to the democratization of content creation and being able to Simply go into your business for yourself so as the long tail for distribution gets longer AKA ad space AKA new networks the longtail for Content that is new brands and new products gets longer as well this just keeps going it keeps feeding itself because the means of
production are now available able to everyone the tail is completely exploded in length and keeps getting longer last pillar here aggregators make accessing Niche products easier which increases the number of products for sale and makes the tail get fatter go back to the brook a magenis episode recap and listen to the part about being in as many storefronts as possible as a media owner there are two types of aggregators online and the same is true for out of home they're hybrid aggregators which catalog physical goods online to make them searchable and then they ship whatever's
ordered and there are digital aggregators which only sell digital products that can be bought anytime from anywhere hybrid aggregators these are the out of home Specialists who have cataloged all that historical planning information know who all the vendors are who continue to add new networks and new information that catalog doesn't need to look like a Shopify website could be a spreadsheet it's the concept here that I really want you to to take away is most valuable and the digital aggregators well I mean that's basically like the 101 explanation of what a programmatic DSP offers right
only sell digital products that can be bought at any time from anywhere so we have both out of home has both types of aggregators meaning that the third and final Peller well check to that one too it turns out that we're all dsps chasing the long tail the reality is that programmatic dsps will continue to be better suited for the new money into our industry and that strategically programmatic dsps I believe should be looking for qualified managed service full stack dsps yes those are out of home Specialists to partner with to ensure that there are
more uh ways that the spend stays within their ecosystem long term for outof home specialist the newly dubb managed service full stack DSP it's critical to start investing in technology now if you haven't already because this is the game you are playing in whether you realize it or not and regardless of whether you want to participate those are the rules because when the customer's expectation changes for any one thing in their life changes for all the other things Amazon Prime created an expectation now that everything is just a day away uh the other day I
ordered mouthwash before bed and I had it on my doorstep the next morning it doesn't matter if it's mouthwash or marketing when the expectation changes it changes for everything for creative agencies I think it would be smart to partner with programmatic dsps because uh you make their offerings more valuable especially once you can demonstrate that campaigns are more effective with better creative otherwise on the flip side of that potentially partnering with an out of home specialist who can give you scale in being able to offer media buying to your clients as a uh as an
additional service to potentially offset the undervalued creative Services you're offering the landscape has changed and collaboration is key so in the spirit of collaboration please share this episode with a colleague or a client and start a conversation today make sure to check out double oy.com whether you are a growing company that wants to find out of home specific Talent or a job Seeker ready to write your next chapter double.com is the first completely free career Marketplace just for out of home post your open roles for free engage directly with hiring companies for free all part
of the out of home Insider brand so please make use of it right before sitting down to crank this episode out actually got a uh a message sent to me via the inbox uh from from a gentleman Thanking us for the career Marketplace because it has led to him getting an interview already with a company that he's interested in uh I heard a statistic the other day it said something like only 3% of resumés even get reviewed by a human and when you're using sites like indeed or whatever to just fire off your resume it
makes sense but what we've got here with dou hire.com is a curated onetoone environment where you're engaging directly with the person who is hiring for the role which is sometimes the CEO or founder of themselves it's pretty crazy if you think about it okay that's all for this one remember season 1 those are your guest spotlights season two those are your guest Spotlight Recaps season 3 that's where this episode's going to go those are kind of the bed Tim riffs a lot for you to think about here so live Hungry Stay full we'll see youall
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