The magic eight ball has spoken: 2017 will be the year automated solutions change our lives.
Not into predictions by childhood toys? How about statistics based on surveys of industry insiders? A recent study showed that 73 percent of media buyers plan to spend as much as half their 2017 budget for television on automated buys, as cited by MediaPost. Additionally, eMarketer predicts spending on programmatic TV ads will double this year to reach $2.16 billion.
The first half of 2017 will be dominated by use cases and testing, while the number of scaled TV buys through automated platforms will grow throughout the year, Videa’s President, Shereta Williams, predicted recently. Don’t think, however, that automated TV buying is not primed and ready to go.
Take a look at Videa’s recent deal with Carat, a media agency that is part of the Dentsu Aegis Network. Carat, which has done work for heavy hitters like GM, Macy’s, and Dannon, will use Videa’s automated platform to reserve inventory across five broadcast stations in Jacksonville, FL.
These are not last-minute remnants that have already been picked over and rejected. Carat has access to full-schedule inventory for the local Cox affiliates up to a year in advance. The networks price and package unsold spots and make them available via Videa. They also set the parameters and rules—unlike digital public-auction models, where real-time bidding can result in bargain pricing. With programmatic TV, the exchange is private, and both buyer and seller benefit from having the forward-reserve inventory available.
One of the primary advantages Carat expects from the deal is the automation of buys. Videa’s integration with workflow system Mediaocean Spectra, should make that happen, according to AdExchanger. The automated platform cuts down on the interactions needed for a transaction, which can shorten the process to seconds rather than days or weeks.
Get on Board
If you’re looking at your own 2017 budget and seeing a decided lack of automated buys in the planning, it may not be too late to incorporate it into your strategy. As Carat figured out, the scale and reduced overhead from having multiple stations available in one system are reasons enough to jump onto the automated bandwagon.
By incorporating audience-based insight into buying decisions, an advertiser can place ads and craft creative messaging in a more cost-effective manner through automated buying. Additionally, automated and data-driven buys facilitate the combination of TV and digital into one comprehensive strategy.
Automated buying is becoming a reality today and will have a bright future throughout 2017.