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Analyzing Advanced Television: Programmatic TV

Analyzing Advanced Television: Programmatic TV

Thanks to the internet, television as we know it has changed forever. These days the TV viewing experience has expanded far beyond an analog signal and receiver. With video on demand and streaming services, advanced TV offers a wide-ranging variety of viewing options to all kinds of audiences.

For advertisers and brands, the advent of advanced TV is a positive step. Unlike analog television, advanced TV provides advertisers and brands more data than they’ve ever had before. With a growing bank of information available at their fingertips, brands can make better informed decisions when it comes to wisely choosing where to spend their advertising budget. Reaching the right audiences (those who are most likely to convert into customers) is just one of the major reasons why advertisers and brands should be bullish towards Advanced TV.

Over the course of the next few weeks, we’ll examine in depth three major subcategories of advanced TV advertising. This week, we look into the prospects of programmatic TV ads.

Programmatic TV: Where Automation Reigns King

The foundation of programmatic TV buying is built on data and automation. Advertisers and brands can target the exact audience they want and automate the processes that oftentimes are the most tedious aspects of a campaign.

There are a couple key factors that separate programmatic buying from manual buying. PTV advertising offers high scale automation of transactions that follow buyer/seller specifications. Compared to manual buying, PTV buying is data driven and audience-based, utilizing third party data. Lastly, buyers are able to make more informed decisions with the advertising budget thanks to front-end planning systems that connect available inventory to advanced targeting descriptions.

PTV includes a wide variety of advertising options, including linear TV audiences as well as addressable TV households on both broadcast and cable. It also includes ad buying on platforms like DVR and video-on-demand.

Here’s what eMarketer had to say about the opportunity to programatically purchase linear TV inventory in their report on advanced TV’s progress:

“The method holds great potential for advertisers that purchase TV commercial time across 40 or 50 of the 212 local US TV markets, for example, by reducing the labor required to buy in each individual market.”

At the moment, spending on programmatic TV is approximately $1.13 billion. That figure is expected to double to $3.8 billion by 2019. In alignment with this trend, many brands and advertisers are realizing the importance of implementing a programmatic strategy as part of their campaigns. It’s become commonplace for them to allocate an equal amount of resources towards traditional buys and programmatic buys.

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