4 Reasons Why Programmatic TV is Shifting to High Gear

Posted by Brittany Coriaty on Jan 12, 2016 2:40:11 PM

shift-868980_1920Remember when internet was introduced early on?  Very few saw its potential, except for those who had a stake in the game.  In 1995, Clifford Stoll wrote in a Newsweek article, “The truth is, no online database will replace your daily newspaper, no CD-ROM can take the place of a competent teacher and no computer network will change the way government works.” For a proclaimed visionary, Stoll certainly got it wrong.

The internet has changed the way society functions in a big way.  It has broken down barriers between the people and government, giving the people a voice that’s louder and more united than ever before, it gives us more news than a daily newspaper, and not only do we have online schooling, but competent teachers rely heavily on the internet when teaching their students.

So how does this relate to Programmatic TV?  Because it offers substantial potential, but will likely be met with skepticism along the way.

Programmatic TV is an evolving ad technology and yet it’s still expected to reach $10 billion of ad spend in the U.S. in 2019.  That’s not a small chunk of change, especially when television ad revenue is $70 billion.

Here are a four reasons why we think Programmatic TV is tracking well on its adoption curve:

  1. Expanding Ad Inventory: Programmatic TV currently relies on aggregation of local inventory, and national networks have watched the benefits for local inventory and are building strategies to adopt programmatic. But from a viewer perspective, there is no difference between local and national ad inventory.  Technology allows advertisers and agency to choose the networks and dayparts they want to air on.  And there is as much programmatic TV inventory in prime as in other dayparts.
  2. Continued Improvements: Much progress is being made in using a variety of viewing and consumer data sets to enable advertiser defined audience buys that better align Programmatic TV ad plans with the desired advertiser audience. There has never been more advanced TV ad data than now and more is on the way.
  3. It’s Not Just About the Data: However, automation has mostly focused on use of the data to derive plans, but Visible World’s technology has extended automation into Programmatic TV execution which benefits both sellers and buyers.
  4. Cross-Attribution is Getting Huge: DSP’s buying into Programmatic TV platforms prove that digital sees the potential of advanced TV targeting and wants in. This ensures a more efficient and sophisticated media buy for those trying to figure out consumer behavior and interests.

There’s a bigger picture that’s being missed about Programmatic TV, and that’s the advancement of quality in both ad execution and programming execution.  Better targeting and implementation means better quality all around.  And this leads to better business outcomes that can be proved with programmatic TV.

So when Stoll says, “So how come my local mall does more business in an afternoon than the entire Internet handles in a month?” He hadn’t anticipated Amazon’s takeover.  When skeptics doubt the rise of Programmatic TV, they might not be anticipating the improving standards and transparency the industry is rolling out.

Author: Brittany Coriaty, Marketing Associate

Topics: Ad Inventory, Advanced Data, Blog Posts, Cross-Attribution, Data, Industry Buzz, Internet, Programmatic, Programmatic TV, Programmatic TV STandards, transparency, TV advertising

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