The fate of addressable TV is binding. The oldest screen will converge with the efficient world of programmatic.
Programmatic ad buying continues to make digital advertising increasingly automated and efficient. The data-driven decisioning technology benefits all players in digital advertising: publishers, advertisers and marketers.
These players are revving forward to gain more reach, and the latest screen in the lineup is TV. However, this household screen presents new complexities compared to digital, which need to be tackled to implement successful targeting.
Getting in the Game
Unlike programmatic’s kickoff into digital—more than 10 years ago—it is now a proven technology, which means marketers and advertisers are ready to embrace programmatic TV. However, publishers and networks are starting with limited inventory: only 5 to 10 percent with higher CPMs that aren’t encouraging utilization.
As with the adoption of programmatic for display, programmatic TV can expect incremental gains as marketers, advertisers and publishers become more comfortable with a sustainable solution that delivers for all parties.
eMarketer’s Lauren Fisher recently spoke with TruSignal Vice President of Marketing Pete LaFond to discuss his perspective on programmatic advertising and addressable TV. Here’s what he had to say about how companies are approaching programmatic TV:
“Most of the folks that seem to initially be very interested are direct-response-type folks. And the programmatic CPMs for TV are a little prohibitive for that. But what they are doing is connecting us with their brand teams so their brand teams can get smarter about making their branding more effective and efficient.
You’re starting to see case studies and testimonials about using programmatic TV to increase efficiency. Because programmatic is really about efficiency: How do I be more efficient with my marketing dollars and spend them on the people that matter and less on the people that don’t matter?
With the old traditional way of TV, it’s really difficult to move the efficiency knob because you’re guessing at audiences on particular shows. Programmatic provides an opportunity, and as more people try it and start to see success with it, I think there will be greater and greater demand.”
Excerpt from Addressable Programmatic TV: Inventory Is Minimal, but Ad Opportunity Is Massive
The Power Play
High CPMs for addressable TV will undoubtedly require marketers to turn a more critical eye on ROI analysis, which is a good thing. In turn, continual advertiser demand for addressable TV will require greater inventory allocations from publishers, resulting in efficiencies for everyone.
It’s true, we have progress to make. But for now, there are evident merits to addressable TV:
- Addressable TV can target households with accuracy that continues to build toward the capability of achieving precise 1:1 targeting.
- Ad buying automation drives more efficient media buys. You can target households based on whether or not they would be good customers for your brand, versus purchasing time slots in shows that may index well to a segment.
- Broader implementation leads to improved cross-device targeting and measurement.
These advantages are incredibly compelling considering that programmatic will only become more advanced, efficient and powerful.
Learn more about how marketers are learning the value of every programmatic impression in this TruSignal blog on people-based marketing.
Read the full Q & A at eMarketer.com.