What is Programmatic TV Advertising?

Source: https://www.bidmind.com/post/what-is-programmatic-tv

Thanks to the technological advancements that have impacted every business market, the television advertising industry has gradually evolved too. Often, marketers use TV media kits to determine where their advertisements should be placed. This helps them to estimate the number of viewers for a given TV program. However, programmatic TV advertising deviates from this norm because of its cutting-edge approach, which emphasizes using automatically obtained data to find a precise target audience. It assists advertisers in placing adverts in the best location.

What is Programmatic TV exactly? How does it work?

The use of data-driven algorithms in programmatic TV (PTV) improves the precision and effectiveness of marketing planning for the television industry.

The inherent automatic processing for ad purchases is the basic tenet of how programmatic TV advertising operates. You have to think about the following actions before beginning programmatic TV advertising (PTV) ad buying:

• Determine ad attribution by the location at which the produced ad content must be presented.
• Take part in real-time bidding on particular platforms where the advertisement place can be purchased or sold for a set fee.
• Utilize a certain ad tech system to determine the target user and display an advertisement related to marketing goals.
• Use the right measures to assess an advertising campaign’s effectiveness.
• Real-time reporting for ad campaign optimization and adjustments.

This strategy helps marketers and advertisers make fresh, more precise choices that will help them succeed in the TV industry without having to go above and beyond. As a result, it aids individuals in achieving greater results by:

• Increasing the value of their first-party data; increasing the size of their audience reach; creating a precise marketing plan; and generating large profits.
• Providing better targets, reaching a target audience, and raising the discussion rate to enhance an ad campaign. The marketing concept is increasingly replacing the cable TV ad model. It also provides a chance for those who wish to view their preferred TV shows on the device of their choice at a convenient time and location.

As was already noted, programmatic TV advertising uses a unique method to grow TV services as well as buy and deliver TV ads. It allows for an efficient search for a target market and the successful distribution of a customized advertisement.

What Is Programmatic Advertising?

Programmatic TV advertising (PTV) gives you the tools needed to create successful advertising marketing models by automating in-depth analyses of end users and personalizing ad content. In turn, distributors and publishers can supply certain TV program formats based on the preferences of viewers and their unique characteristics, such as age and gender, which serve as the primary audience metrics in the bulk of TV purchases.

Via networks that facilitate automated advertising, programmatic TV advertising also offers you a chance to reach a larger audience. These are some of those platforms:

• Digital linear TV – a form of advertising content that is shown on set-top boxes (Comcast, Time Warner);
• Video on Demand (VOD) is the term for TV shows seen on streaming services like Netflix, Amazon Prime, and Disney+.
• Connected TV (CTV) is the term for online video material streamed through a device that is linked to the internet (Roku, Amazon Fire TV, Apple TV, and more).

For programmatic TV advertising, which enables accurate audience targeting and prompt automated task processing in marketing planning, the terms “addressable” or “targetable” are frequently employed.

How Does Programmatic TV Work?

You need to understand the difference between traditional and programmatic ad buying and display while understanding how advertising programmatic operates.

Traditional advertising will involve face-to-face communication between you and the publication. Cooperation will frequently entail pricey trade and drawn-out negotiations. That can lead to an advertiser receiving an overpayment and make it challenging to gather the required data. As a result, there will undoubtedly be several errors that are caused by human factors.

On the other hand, programmatic TV advertising is the automated buying and selling of web advertisements. You can quickly evaluate possible ad spaces that are available for booking with the aid of artificial intelligence. As a result, the application will start real-time bidding to discover a matched consumer to display adverts to after you’ve chosen the ideal target demographic, set a budget, and input all the necessary data. The procedure is made simpler, and the danger of error and overpaying are both diminished. Also, a marketer may always tweak and improve their advertising plan.

Programmatic Buying Models

The three primary categories of programmatic ad buying are the following:

• Real-Time Bidding (RTB)

The most popular method of purchasing programmatic tv advertising is RTB. Another name for it is a real-time open auction. If you wish to purchase programmatic advertisements, you can get free access to RTB. Cost-effectiveness is achieved by setting the price for an advertisement spot by supply and demand.

• Private Marketplace (PMP)

It is an auction as well, although there are fewer advertisers. Hence, to take part in this ad-buying model, you must either be invited or apply to be invited.

• Direct Programmatic

Programmatic direct does not use an open auction, in contrast to other approaches. Instead, a publisher will charge you a set price per thousand impressions for an advertisement place (CPM).

The Future of Programmatic TV Advertising

As the lines between digital and traditional channels continue to blur, programmatic possibilities, such as those that lean into streaming platforms and Connect with TV, provide reasons to reevaluate the opportunities for TV advertising in your marketing mix. Whether complexity or cost has deterred you from watching TV, know that things are changing quickly. But the industry still has ways to go.

Programmatic TV advertising is new to the market in every way because streaming is still a young industry. Even while streaming and CTV are becoming more affordable and verifiably accurate, traditional TV ad buying may be the most dependable option for you.

Conclusion

The programmatic TV advertising strategy makes new prospects for the TV industry to flourish in the digital domain apparent. It is expected to grow dramatically, even if not all TV inventories are now benefiting from it. According to eMarketer, programmatic transactions will represent more than 90% of all digital display ad expenditure in India by 2022. A new era of marketing opportunities is set to begin as well since the programmatic display sector will make twice as much money in 2020 as it did in 2019—$61 billion and $115 billion, respectively.