It’s no surprise that video continues to lead as one of the most powerful mediums for connecting with consumers, but the ways in which they access that content and how marketers buy it are rapidly shifting.
According to eMarketer, 2016 was the first year in which more than half of U.S. digital video advertising was expected to be bought and sold programmatically, accounting for 56% of total digital video ad spending. Even with the increasing adoption of programmatic media buying, there is still a lot of confusion among advertisers about this particular space.
To create some clarity, the American Advertising Federation (AAF) Columbus recently hosted a unique Perspectives on Programmatic Video panel discussion, and I was privileged to participate. The event featured insights on the cable and broadcast world from Chris Locks of CTV Media, opinions about the programmatic marketing technology space from Jennifer Dawson Smith of Adobe/TubeMogul, and my own perspective on how agencies can tap into this new medium. Chrsytie Reep, from Fahlgren Mortine, also moderated the discussion, helping direct the conversation to the real-world issues agencies face today.
Those who attended the event were also able to snag a handy guide on programmatic video and TV buying. But for those of you who missed it or those who just need a quick recap, I’m happy to share the highlights below:
What is the true definition of programmatic media buying?
“Programmatic” on its own simply refers to automation. Programmatic media buying is automating the process, usually through an ad exchange or a demand-side platform.
Is Advanced TV the same as Programmatic TV? And what is Addressable TV?
Nope. Advanced TV is any television content that has evolved beyond traditional, linear television delivery models. This umbrella term is inclusive of interactive TV, connected TV, smart TV, linear addressable, programmatic TV and VOD addressable. Programmatic TV is automated linear TV buying. It streamlines the buying process through automation while layering in enhanced targeting through first-party data and behavioral targets. Whereas, Addressable TV is a targeting capability under the Advanced TV umbrella.
What are the advantages of Programmatic TV and Advanced TV?
Programmatic TV and Advanced TV are the evolution and future of traditional TV advertising. They bring greater efficiency through automated buying, enable audience-first targeting allowing you to go beyond the standard demographics of age and gender, and enable more sophisticated optimization metrics than TV GRPs. Furthermore, they can help you connect your audience across different video viewing channels, allowing you to control audience reach and frequency across devices. Now, you can translate offline television audiences to online targetable audiences, reaching “cord cutters” who have completely abandoned traditional TV in favor of streaming services. What’s more, Advanced TV can inform your traditional TV buys. You can apply your insights gained from your digital TV buys to your linear buy in a more efficient and smarter way.
What’s next for Advanced TV?
To be blunt, it will keep advancing (no pun intended). The space needs time to mature and evolve. Right now, there are many walled gardens, a lack of aggregated inventory and conflict between seller sources. But as the walls come down, enhanced data will become available and buying sources will consolidate. This will lead to a greater volume of inventory that programmatic media agencies can access, enabling marketing to invest more into the space. An enhanced investment will help spur further advances in technology in the space leading to deeper reporting, which will help improve campaign optimization. This will bring data that proves the channel as valuable and spurs even further adoption, and the investment cycle will continue.
Want more? Download the full guide for useful definitions, acronyms, data and trends in programmatic video. Fill out the quick form below to get instant access:
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An integral part of Goodway Group’s sales-enablement team, Melissa delivers thorough pre-sales research and clever strategy to make clients heroes every day. Drawing from her extensive experience working with full-service agencies in the media world, she truly enjoys helping clients navigate the ever-evolving landscape of digital media, search marketing, and performance analytics.