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Broadcast Advertising Terms: A Glossary for an Evolving Industry

October 9th, 2018   ||    by Susan Kuchinskas   ||    No Comments

Broadcast media is changing: The convergence of TV and digital, plus new planning and buying options such as programmatic TV, have spawned a new language, including new broadcast advertising terms that may not be rolling off the tongue just yet.

We’ve identified nine need-to-know broadcast advertising terms that will grow in importance along with the continuing evolution of TV. Here’s a chance to test out your knowledge of the current scene, or expand your vocab before your next industry event.

Addressable TV: The ability to target specific ads to different households watching the same show. New technologies like set-top boxes, IPTV, and smart TV sets let advertisers address different audiences using first-, second-, or third-party data.

Automated content recognition (ACR): ACR software uses data from smart TVs—when TV owners have agreed to share data—to determine what commercials they’ve watched, as well as their IP addresses. This can be matched with other profile information to give marketers real-time viewing and attribution data.

ATSC 3.0: This new standard from the Advanced Television Systems Committee, also known as NextGen TV, offers ultra-high-definition television, better spectrum use, higher quality on mobile, and the ability to replace linear commercials in live broadcasts with targeted ads.

Convergence: The growing ability for broadcasters and local stations to sell and track advertising on linear television and digital/over-the-top programming at the same time. Convergence will make it easier for advertisers to plan and buy cross-media campaigns while letting station sales reps offer a variety of packages to meet advertisers’ campaign goals.

DMP: A data management platform, or DMP, used to store and manage data. DMPs’ advanced functionality can combine a variety of first-party data types, as well as pull in data from outside sources. DMPs can tie into demand-side platforms and supply-side platforms to let advertisers discover and segment audiences, and plan and analyze campaigns.

DSP/SSP: A demand-side platform, or DSP, is software that lets advertising and media agencies buy impressions on multiple ad exchanges efficiently and at the best price while using their own and third-party data to target. Supply-side platforms, also called sell-side platforms or SSPs, are media-operated ad exchanges that offer inventory to buyers. The new programmatic TV buying platforms are SSPs that let agencies buy TV spots more efficiently.

Private exchange: Also known as a private marketplace, this is an invitation-only, automated platform where broadcasters offer inventory to a selected group of buyers. It offers the same data-driven targeting as other forms of programmatic buying. For a deeper dive into private exchanges, DSPs, and SSPs, read this.

Programmatic: Programmatic TV is the automation of audience-based TV advertising through a software platform. It’s more efficient for buyer and seller and lets marketers take advantage of data to purchase TV spots based on audience rather than programming. It can also optimize pricing for both parties.

Targeting: Segmenting audiences and delivering different ads to segments is a capability that’s coming to television, thanks to the convergence of TV and video, and ACR. Advertisers can use a wide variety of data to segment, including not only traditional factors such as geography or household demographics, but also purchasing behavior, internet use, and political affiliation.

For even more broadcast advertising terms, check out Advertising Terminology: A Primer for the Uninitiated or Confused.

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