Member blog: The evolution of Programmatic TV Advertising
Programmatic advertising on addressable and Smart TVs is on the rise. We started to see TV Broadcasters start their addressable TV campaigns in the second half of 2017. The audience that can be reached and the potential of combining programmatic digital and programmatic TV is huge; this will be a game breaker for TV and media companies.
In 2017 Ferrero and Johnson & Johnson ran Programmatic TV ads as overlays on traditional spots to prove the effect and reliability of Programmatic TV solutions. Without targeting settings, the first goal was to measure if a user saw the original linear spot and if not, the user was delivered an ad using Smart Adblocks to give the Brand Advertiser more reach. This was a smart way to introduce Programmatic TV advertising.
The next evolution was to make so called ‘Switch Ins’ (see example below) available programmatically.
This format allowed advertisers to target the audience based on keywords and content and has high response rates. With this approach advertisers can reach over 10 million households with Programmatic TV advertising and lift the brand awareness to a much higher level among a broad target audience.
Now TV and Mediabroadcaster, together with a Data Management Platform like The ADEX are launching the next step. They are bridging TV, with digital media channels, online and mobile, making digital data available for TV Targeting. This bridging is based on IP targeting with enhanced machine learning and cross-device capabilities, for large scale and high matching rates. With this method a large amount of available data meets huge TV audiences and could be a gamechanger for the advertising industry. Quality targeting with TV audiences in the millions could have high CPMs and could have massive potential for media owners, publishers and broadcasters.
In conclusion, the future is bright for Programmatic TV advertising and the evolution of solutions will be interesting to watch.