Finally, programmatic advertising on TV also helps to speed up the purchasing process since it can be done almost immediately instead of waiting for a fax (which is still a major way of communication in the industry).
The fear is that the inventory on hand will be undervalued if it is sold programmatically. In reality, there will always be a demand for ad space, and sellers will always have limited supply. If anything PTV may increase the value of ad space, because the impressions can now specifically target a desired audience.
Finally, brand managers want to know what it is they are buying. For example, when it comes to set-top boxes and smart TVs, there is a lack of standardization in the industry. Because of that, there is no clear and unified definition of what an impression, impression timing or idle time is.
Like anything new, programmatic TV is evolving and growing. In an article featured in Home Media Magazine, NPD estimates that by 2017, there will be 47 million connected TVs in the US. Bigger networks, such as ABC, ESPN, and Dish Network, are already starting to test programmatic technology. According to Magna Global, it is estimated that the global spend on Programmatic TV will reach $53 billion by 2018.
With programmatic TV in its nascent stage, it is important to understand that it is still changing, and evolving. Agencies, programmers, tech vendors and brand advertisers are still learning all the pros and cons of it. However, with consumers streaming TV, programmatic TV is the wave of the future. It is this accelerated move from consumers that is fanning the growth of programmatic TV.
This new capability answers a pressing need from programmers who are seeking to monetize newly unlocked addressable inventory, and monetize a hybrid of digital and traditional TV through a single platform. It also represents an inflection point for the industry, signaling the arrival of automated, addressable buying traditionally reserved for digital TV content.
Reducing fragmentation has been a longstanding goal within the programmatic ecosystem. Buyers have sought out solutions to consolidate inventory sources across display, web video, and OTT access points.
While managing linear replacement programmatically represents a major step forward, reaching scale requires accompanying solutions that protect linear revenue streams and minimize risk. One such risk is that a programmatic placement will run alongside a linear ad from a competitor.
So, addressable TV advertising is the ads that are individualized according to the household. On the contrary, CTV ads are delivered to Internet-connected devices and are often enabled by the programmatic algorithm.
A vital element of the concept of addressable TV is data. Consumer data (programs watched, devices owned, websites visited, and behavior across devices) is collected by marketers and used to create household profiles. The data is often provided by cable providers. When campaigns are served through connected TVs they are usually served via programmatic and this means that programmatic platforms utilize available third-party data so that an advertiser could channel the ad to the right user/household.
The addressable TV allows both advertisers and publishers to use programmatic platforms which offer a wide variety of benefits. Just like with web programmatic ads, media buyers tune up their OTT campaign through DSP.
Apparently, ESPN could. At the beginning of 2015, the channel officially started broadcasting the advertisements to the TV audience using the real-time auction instead of sticking to the familiar but slow direct TV ad buying methods over email or phone.
Programmatic TV buying (PTV) represents a programmatic platform that enables the launching of programmatic ad campaigns while broadcasting TV, including programmatic advertising on linear, connected, and addressable TV.
An umbrella term that includes all kinds of live, real-time broadcasting television. Traditional television operates on traditional automated TV buying platforms that utilize standard ad performance metrics.
Providers of addressable TV serve different ads to different households while broadcasting the same shows to various audiences. Technically, this is a container for programmatic television advertising.
Real-time targeting is what sets the distinctive line between these two kinds. Programmatic companies deliver data-driven software that facilitates the process of ad buying, planning, optimizing, and ad serving.
The information about users, including their lifestyle, personal preferences, financial situation, or any other indicator used in programmatic ad targeting, will be available for tuning in the system.
With PTV advertising, there will be absolutely no need for manual program selection sifting through possibly appropriate shows; programmatic ads will be served once the TV audience matching the targeting options watches the TV.
Advertisers often prefer programmatic TV buying algorithms because of their data-driven unified ad campaign management and real-time targeting that allows them to optimize campaigns and buy relevant audiences instead of making blind choices.
The early adopters of PTV buying can take full advantage of the situation and penetrate an uncharted TV audience market with minimum efforts brought into competition and achieve better results with advantages that ads on PTV have to offer:
Audience-based targeting is the first and foremost. Through the programmatic buying platform, the advertisers can access selected demographics and serve the ad messages with a more precise, narrow focus.
The ratings of the TV shows continue to drop every year, as well as overall TV revenues that failed to reach the worst-case scenario rate last year. This situation pushed publishers and advertisers to turn to cross-platform programmatic TV.
The former manual process of buying and selling inventory didn't provide an analysis for the advertisers on whether their ad budgets were spent effectively. Programmatic TV platforms have essential functionality in-build for media planning, statistics, and analytics.
This fundamental change is the reason why advertising on programmatic TV advertising platforms appears to be a single gateway to formerly unavailable TV audiences or audiences that will completely vanish from traditional TV media tomorrow.
Understanding current programmatic TV advertising trends, SmartyAds is already preparing to launch its own programmatic TV solution that will help advertisers to master the new programmatic buying niche easily, reducing advertising costs and increasing every ad impression efficiency.
So far, every publisher can monetize their ad inventory programmatically via our SSP, and advertisers can set their individual deep criteria for audience targeting, getting better revenues from SmartyAds DSP.
Programmatic technology has revolutionized the way digital media is targeted, transacted and measured. By automating and improving once laborious processes, advertisers experience reduced complexity, lower costs, better data, precise targeting and increased brand lift. Publishers, in turn, can optimize revenue, streamline operations and provide useful data to improve the overall buying process. Until recently these benefits have been limited to desktop and mobile advertising, absent from the biggest screens in the house: TVs.
Like we saw when programmatic advertising was introduced, there is still much confusion around the actual definition of programmatic TV. While it can range from the simple to the complex, the industry seems to be settling on a more generalized definition like the following:
Programmatic TV
Marketers analyze viewership data by a wider set of attributes as provided by STBs and specialized data providers. They may define their target audience as auto intenders with a minimum income of $75,000 and at least one child in the home. TV spots or programs that have viewers best match this criteria are purchased and served using programmatic technology. However, viewers who tune into this program outside the target audience will still see the video ads.
Private Exchanges Drive Opportunity
While premium inventory is scarce at this point, programmatic data can allow both sides to more efficiently transact and fulfill each deal and to gather more data on the ads being served as the practice evolves.
Creative Execution
Creative needs to catch up to what programmatic can do. For that to happen, agencies and clients need to shake up their traditional thinking and create ads that work in tandem with the advanced audience targeting capabilities programmatic TV delivers.
On the buy side, since programmatic addressable TV was the first programmatic option to roll out, the limited amount of addressable inventory made it difficult for large brand advertisers to achieve adequate scale. In addition, addressable TV is not cost efficient for every advertiser, especially those with broad targets and mass appeal products. However, the introduction of data-enabled, high-index programmatic TV options addresses both these issues.
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