Programmatic TV Advertising: What is it and How Does It Work?

In the ever-changing world of digital marketing, television has been transformed by leaps and bounds.

Until recently, marketers would review TV ratings to determine the proper content and times to run advertisements. However, digital marketing and access to better data has made TV advertising more adaptable and preferable to both consumers and marketers around the world. 

 

What is Programmatic TV?

Programmatic TV is a method of advertising which relies on digital tools in determining the best way to produce and share advertisements on TV.

Marketers can now automate the TV advertising process by using software platforms to purchase advertising inventory based on audience data.

 

What data is used in programmatic TV advertising?

Programmatic TV advertising allows marketers to use demographics such as age, gender, race, income level and general preferences to help them reach the right audiences through TV. In the past, TV advertisers relied heavily on linear TV schedules and show ratings data to inform decisions about where and when to advertise on TV.

With programmatic TV advertising on streaming platforms, marketers have an opportunity to target the right audiences down to a granular level.

 

There are advantages and disadvantages to Programmatic TV.

Advantages of Programmatic TV

1. Automation can make the ad-buying experience easier.

2. Marketers can make better data-driven decisions.

3. You can see the performance data in real-time.

 

Disadvantages of Programmatic TV

1. It can be expensive. Programmatic TV is often more expensive than traditional TV advertising because it is more targeted.

2. Many networks aren’t using it yet. There is a fear right now that the value of TV networks’ inventory will decrease and commoditize if they make anything programmatic public.

3. It is only as good as the data. If the data you are using is not high quality, you may not see results.

 

What is the future of TV Advertising?

Programmatic TV is still evolving rapidly. Streaming especially remains an emerging marketplace. While streaming and Connected TV become more affordable and accurate, traditional TV ad buying might be a more proven option.

As the lines between digital and traditional channels continue to blur, programmatic options, including those that lean into streaming platforms and Connected TV, provide reasons to rethink the opportunities for TV advertising in your marketing mix.

 

Interested in working with a programmatic TV company?

Marketing Architects is an All-Inclusive TV agency with expertise in linear TV and programmatic TV advertising. We rebuilt the traditional agency model to help brands drive profitable growth using our homegrown technology to solve TV's pricing, measurement and scale challenges. Check out our work or get in touch with us to learn more!