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Programmatic TV Advertising: The Right Fit for Advanced TV

June 1st, 2017   ||    by Monta Monaco Hernon   ||    No Comments

Does it sometimes feel like TV tech terms are swarming toward you faster than ants to the apple slice your two-year-old dropped on the patio? Well, you’re not alone.

Two-thirds of advertisers and agencies believe programmatic TV advertising will grow to more than half of all TV buying within three to five years, according to a recent Spots N Dots article. Among respondents already spending on advanced TV, 57 percent say they’ll increase data-enabled TV budgets in 2017, and 75 percent say they’ll do so within the next 12 months.

However, 57 percent of advertisers and agencies surveyed also said they weren’t sure of the difference between data-enabled TV and addressable TV. Advanced, addressable, data-enabled, programmatic: the nuances are slight, but they do matter when you’re planning a campaign strategy.

Going back to the ants, they may look chaotic to the untrained eye, but each ant actually plays a role in the advancement of the colony as a whole. And the same can be said for this very specific ad-tech terminology.

Meet the Features

Advanced TV is something of an umbrella term, and Spots N Dots specifically notes four characteristics worth exploring:

  1. Time shifting: This references a viewer’s ability to record programming using a DVR. Since the content can be viewed while it’s still being recorded, you can essentially pause or rewind a live TV program. This matters to advertising because with time shifting, the commercials can be skipped.
  2. Addressability: Imagine the capability to send a particular advertisement to a household—or set-top box—based on reliable information about the interests of the people watching. Recent estimates put the number of addressable households in the United States at 30 to 40 million. This number stands to rise, depending on the ability and willingness of cable operators to serve advertisements to specific set-top boxes. And that’s why addressability falls under the advanced TV category. For brands, it’s the holy grail, as it practically eliminates wasted reach.
  3. Interactivity: Video on demand falls under this section and, briefly, is defined as the ability of a cable provider to offer a library of content that viewers can watch whenever they want. This opens up a whole new menu of spots for ad buyers. Digital insertion technology allows ads to be placed before, in the middle of, or after a show—and can be changed or refreshed to accommodate different messaging.
  4. Interoperability: Viewers are growing accustomed to watching the content they want on the devices they choose. Television service needs to be compatible with all the options available so that someone could, for example, start watching a show on their tablet and finish it on their big-screen TV.

The Whole Is More Than the Parts

Data-enabled TV refers to the ability to cull information from different sources and analyze it to help make informed decisions about where to place advertising.

Programmatic TV advertising is indeed data-driven buying, but it adds another component—automation. Many of the workflow processes that tend to be cumbersome and time-consuming can be automated, saving both time and money.

Automated TV buying platforms allow advertisers to take full advantage of advanced TV opportunities by helping them find receptive viewers across platforms and make rapid decisions about purchasing inventory. The result? More room for creative messaging that caters to each particular audience and, ultimately, better return on investment on ad spend.

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