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Programmatic Advertising Is Changing the Landscape of TV Advertising

Jonathan Rolley
Jonathan Rolley Posted on Apr 25, 2016, 10:00:00 AM

TV advertising is evolving. It has to. Its digital marketing counterparts have taught marketers that data analytics and performance-optimised media are the best marketing strategies to ensure positive ROI. TV now has to start delivering data-driven insights if it is to stay competitive, and the first step is to give marketers the ability to target strategically segmented audiences.

a TV screen with a man pointing at a box that he is holding that says 'Ultra! Top'

Better data analytics allow marketers to take a more targeted approach to their TV advertising.

In the past, marketers only had access to traditional TV ratings. These ratings only took into account age and gender, demographics that by themselves are far too limited for targeted campaigns. But now, with new data analytics technology, marketers will have the ability to target audiences with demographics such as education level, income and ethnicity. It’s called programmatic advertising, and it allows marketers to segment their target audiences in ways that were not previously possible.

A new kind of user interface saves time.

Despite the advantages of improved data analytics, the real beauty of programmatic TV advertising is the speed and ease with which media buyers can buy spots. True programmatic media buying will allow marketing agencies the ability to buy spots through a private interchange, just as they would buy online video advertising spots. This online interface negates the need for calls to a sales rep, resulting in both huge time savings and faster responses to feedback. Marketers can amend their media schedules on the fly and without the need for working with the networks.

Programmatic TV advertising is already here.

MCN has already transitioned to programmatic trading. As programmatic TV advertising is expected to grow exponentially in the next few years, many other channels will be getting on board. These new platforms, if implemented correctly, will enable marketing agencies to buy traditional, linear TV advertising spots from their desktops, and will transform the way that advertising and marketing agencies buy and sell advertising spots.

The most progressive advertising agencies will leverage their data analytics for programmatic TV advertising.  

The advertising agencies that will be most successful with this new technology will be those that leverage their analytics to take advantage of the new data. Such advertising agencies will first segment their target audiences and then their media buyers will buy advertising spots based on the demographics of the audiences they attract. They will then measure the response rate and cost per response for each of the TV ads, and amend their campaigns in real time as their marketing strategies change. Careful attention to time of day, day of week, network and creative will ensure that they adapt their campaigns for the greatest ROI.

Since the formation of our Melbourne advertising agency, we have been at the forefront of the revolution that is driving change in TV advertising, and it is with great expectations that we announce the arrival of programmatic TV advertising.

If you would like to learn more about how analytics will be geared for this new technology contact us for more information.

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Image credit: Venture Beat

Jonathan Rolley
This post was Written by Jonathan Rolley

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