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How Will Automated TV Spend Grow?

August 24th, 2017   ||    by Charlene Weisler   ||    No Comments

Programmatic and automated TV spend is on the rise. Addressable TV spend will grow 65.8 percent—reaching $1.26 billion in revenue—according to a July 2017 eMarketer estimate. While this is still a small portion of the overall media spend, the robust growth forecast nevertheless indicates that addressable and audience-targeted media buying is becoming a force within the media ecosystem.

As technology continues to advance and even more datasets make their way into the buying and selling parlance, expect the growth to not only continue but also accelerate. But with increased competition from buying platforms, walled gardens of data, and technology that’s, well, always changing, how can addressable continue its impressive growth and amass a greater slice of the advertising pie?

Be Simple—Not Complex

One way for addressable TV to strengthen its market position is by making the purchasing cycle easy and real-time, essentially like the way digital is purchased. This simplicity will create a more seamless and satisfying purchasing experience for advertisers.

Ben Tatta, president and co-founder of media measurement and analytics firm 605, notes that the growth of automated TV spend “will be driven in the coming years by improved audience measurement, the ability to use data to more effectively target specific audiences, and the emergence of new applications.” Tatta explains that automated TV platforms should simplify the planning and buying process and “enhance the returns on a marketer’s investment across local and national markets.”

Definitely Outdo Digital

As platforms merge, who will emerge as the best in show? Since television remains the premier way for advertisers to effectively reach their target audiences with premium content, it seems likely that in a TV-digital merge, TV will retain its competitive advantage. Keith Petri, chief strategy officer at marketing technology company Screen6, agreed that the digitization of TV buying will benefit TV over digital media.

“With over $70 billion up for grabs—and a continuous shift in the media-mix modeling by some of the largest spenders—there’s a lot at stake,” Petri says. However, he asserts that “the innovation seen across desktop and digital is now expanding into the traditional linear TV market as the medium converts to digital delivery. Assuming a successful conversion, there should be a unique opportunity for TV advertising dollars to hang on to their market share.”

Be Accountable

But to stay ahead of the pack, addressable must also provide buyers with metrics that offer insights into return on ad spend and attribution, which some feel are not adequately addressed with television. With the digitization of TV, Petri explains, “there is now the opportunity to connect a digital set-top box identifier with conversion metrics such as in-store visitation rate, online transaction data, app downloads, and lead generation across tablets as second screens.” Because more first-party datasets can now theoretically be digitized and activated across all touch points, he adds, “it will allow for a clear understanding of a consumer’s path to conversion and better inform the allocation of marketing spend across these channels.”

In the end, TV’s best asset is the quality of its content. With hyper-targeted spots enabling advertisers to better take advantage of this quality, it’s no wonder automated TV buying is on such an upward trend.

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