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Everything You Need to Know About Programmatic TV

As programmatic TV advertising continues to reshape the media landscape, advertisers must harness its potential to engage audiences with precision.

 

Fortunately, programmatic TV does just that. By utilizing precise audience targeting, programmatic delivers video content to its desired audience across large-screen digital players online.

 

Here’s everything you need to know about it:

 

Traditional vs. Programmatic TV Advertising

 

Traditional linear television broadcasts content through TV antennae, cables, or satellites. Placing ads on linear works, however, it takes some trial and error to figure out if that audience is who is right for that ad.

 

Meanwhile, programmatic advertising was introduced to enhance efficiency in reaching specific target audiences. By automating the ad buying and selling process, programmatic technology allows advertisers to precisely target their desired audience segments. Through programmatic TV, the right ad can find the right audience.

 

The Shift to Programmatic TV

 

With an increasingly fragmented consumer journey, as well as a fragmented media landscape advertisers are under pressure to deliver effective, targeted solutions. These solutions must ensure an optimal user experience, brand-safe environments, and data protection while adhering to high-quality TV advertising standards.

 

Here’s how companies are switching to programmatic TV:

 

One-to-One vs. One-to-Many

 

Another important note about programmatic TV is that it offers different approaches for targeting and communication strategies. Here’s the breakdown of a couple:

 

  • One-to-Many: With this method, broadcasters pre-plan linear TV ad breaks and broadcast them to all households receiving the linear signal. This means the same ad is seen by all households watching a specific TV program at a given time.
  • One-to-One: If a TV device is connected to the internet via a set-top box, digital media player (i.e. Firestick), or direct Wi-Fi connection (i.e. Smart TV), it enables one-to-one communication with that specific device. This method allows for more targeted ads for that specific user instead of trying to find the right audience in a huge pool of viewers.

 

Considering this, you can see how this method makes it much easier to target the right audience.

 

Think of it like throwing a dart at the board blindfolded. One can only assume it hit, but programmatic takes the guess out of the equation. Not only did the dart hit the board, but it hit a bullseye!

 

Benefits for Advertisers

 

As we’ve seen, programmatic TV advertising has a handful of benefits to both viewers and advertisers:

 

  1. Precise targeting: This is the number one differentiator between programmatic and linear TV. The ability to target specific users with the ad that fits best to them is what makes this strategy so powerful.
  2. Data-Driven: Programmatic TV ads use audience data, like demographics, lifestyle, purchase patterns, or behavioral data, to guide an advertiser’s decision-making.
  3. Efficiency: Automated processes save time and effort while still giving manual opportunity for traders to optimize their ad spend, ensuring that each dollar is strategically allocated to reach the most relevant and valuable audiences.
  4. Brand Safety: Programmatic advertising ensures that ads appear in safe environments, by setting specific standards for each DSP, 3rd party brand safety providers, and advertising policies.

 

All in all, programmatic TV has made waves in the ever-changing world of marketing. Buying and selling processes are now more automated, and precise targeting allows for ads to be shown to the perfect audience more efficiently.

 

Programmatic TV is the future of marketing as the tools and skills it provides are changing the way people buy, sell, and view ad content.

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