‘Shift the conversation from cost metrics to business impact metrics’

Has reverse auctioning commoditised OOH inventory? Yes, reverse auctioning has commoditised a meaningful portion of Out-of-home advertising inventory, especially lower-differentiation OOH inventory however the highest-value OOH assets remain resistant to commoditisation because they retain scarcity, status, or contextual power. E.g. iconic landmark sites, dominant transit hubs, Tier 1 Airport media, data-rich retail media integrations, experiential or unique 3D installations. 

In a reverse auction, media owners compete downward on price to win advertiser demand. Price becomes the dominant signal: Instead of “Which site best fits the brand?”, the question becomes “Which screen delivers the cheapest reach?” 

Yield pressure increases: Media owners often discount unsold inventory aggressively to maintain occupancy, reinforcing downward pricing expectations. 

What happens to premium inventory? 

To some extent reverse auction has as impact on premium inventory valuation however most of the high-value OOH assets remain resistant to impact as they offer premium audience, status or contextual power. 

There is a huge impact on the pricing discipline when it comes to smaller premium inventory because of the reverse auction there is a significant drop in the pricing for these smaller premium inventories and once the low price is locked with the client getting the sites resold at their higher initial rates becomes tougher. 

The growing pressure on media owners 

In many digital and traditional media buying environments, advertisers or agencies use procurement-led processes where media owners compete mainly on price. 

A reverse auction means: Buyers set the demand, multiple media sellers compete downward on rates, The lowest-cost acceptable option often wins (L1). 

For media owners this creates pressure such as: Falling rates, commoditization of inventory, reduced ability to charge premiums for quality audiences or content, margin compression. 

What needs to change? 

We should move from “discussion” to “collective market correction.” Reverse auctioning survives because every stakeholder benefits in the short term while the ecosystem loses in the long term. 

The next step should be stronger media pricing by premium publishers, industry-wide quality benchmarks, outcome-based measurement instead of impression-led buying and greater transparency around viewability, attention, and brand safety. 

The next step needs to be taken collectively by media owners/publishers, agencies, brands and marketers. 

Media owners and publishers must stop treating inventory as a pure commodity. If quality publishers continue to undercut each other for short-term volumes, the market will keep rewarding the cheapest option instead of the most effective one. 

Agencies and trading teams need to evolve KPIs beyond lowest CPMs and cheapest reach. Procurement-led media buying has to be balanced with effectiveness-led planning. 

Brands and marketers must recognize that low-cost inventory often creates hidden inefficiencies: poor attention, weak engagement, unsafe environments and lower business outcomes. 

Unless the ecosystem collectively agrees that “cheap reach” is not equal to “effective reach” reverse auctioning will continue. 

Ultimately, media owners define the perceived value of their inventory. When premium publishers repeatedly discount pricing to win budgets, they unintentionally signal that differentiation does not matter. Over time, the market stops valuing: audience trust, contextual relevance, premium environments and attention quality. 

But while media owners do carry responsibility, expecting them alone to solve the issue is unrealistic. If buyers continue rewarding the lowest cost irrespective of quality, media owners will naturally respond to that incentive. 

The healthier approach is a shared commitment where media owners protect quality, agencies advocate effectiveness and brands reward outcomes rather than just efficiency metrics. 

How can brands understand the value of the medium 

The industry must shift the conversation from cost metrics to business impact metrics. 

Most reverse auctioning thrives because media is still evaluated heavily on: CPM, CPC and short-term buying efficiencies but premium environments contribute to factors that are harder to quantify immediately: stronger attention, higher trust, better recall and improved conversion quality. 

A few approaches that can help: 

• Demonstrating studies linking premium environments to stronger brand outcomes. 

• Using attention metrics, dwell time, and engagement quality instead of only reach. 

• Comparing “cheap impressions” versus “effective impressions.” 

• Highlighting hidden costs of low-quality inventory such as fraud, non-viewable ads, and reputational risks. 

• Creating case studies where premium placements delivered stronger ROI despite higher upfront costs. 

Shifts in the ecosystem 

The ecosystem needs both commercial and mindset shifts. 

Commercial shifts 

• Move from volume-led buying to value-led buying. 

• Adopt outcome-based pricing models where possible. 

• Build stronger private marketplaces and curated premium ecosystems. 

• Reduce dependence on open exchanges that commoditize inventory. 

• Introduce stricter quality standards around fraud, viewability, and attention. 

Measurement shifts 

• Expand measurement beyond CPMs. 

• Standardize attention and quality metrics. 

• Reward effectiveness, not just efficiency. 

• Incorporate brand lift, recall, engagement quality, and business outcomes into evaluation frameworks. 

Agency shifts 

• Planning teams need greater authority versus pure trading functions. 

• Agencies should incentivize long-term effectiveness, not just short-term savings. 

• Strategic media thinking must regain importance over algorithmic optimization alone. 

Industry shifts 

•  Need for stronger pricing discipline. 

• Premium players may need more collective alignment around value protection. 

• Investment in differentiated content, data, and audience experiences becomes critical. 

Brand mindset shifts 

• Marketing teams need to stop treating media purely as a procurement function. 

• The conversation should evolve from “Where can I buy cheapest?” to “Where will my brand perform best?”. 

The long-term solution is not eliminating automation or bidding. It is ensuring that quality, trust, effectiveness, and outcomes are weighted as heavily as price in media decision-making.