Thanks to the developing technology, there has been a significant change in the purchase of digital advertisements in recent years. The fixed pricing system that used to be widely used has been largely replaced by programmatic advertising. This way, advertisers can manage their budgets much more efficiently.
However, the same does not go for television. Pricing models that have been used for decades in television advertising continue to be used. This system, which is based on sampling-based data and whose reasonability is questionable, is slowly changing. The use of programmatic advertising on television is increasing, thanks to the efforts of advertisers who want to utilize the opportunities offered by online advertising on television and publishers who want to offer wider opportunities to advertisers.
What is Programmatic TV Advertising?
In its simplest terms, programmatic TV advertising is a type of advertising in which personalized messages can be delivered to the audience. The biggest difference from traditional TV advertising is that TV programs have such a structure that centers the audience individually instead of an advertising strategy set according to their target audience. While traditional TV advertising is based on data obtained from a sample and updated rarely, programmatic advertising is based on data that is always up-to-date and represents the entire universe.
What are the Advantages of Programmatic TV Advertising?
The biggest advantage of programmatic TV advertising is that targeting is based on much more accurate data. This is a very important advantage in an environment where it has become very difficult to segment the target audience into meaningful segments.
Another critical advantage of programmatic TV advertising is purchasing automation. Thanks to this automation, it is possible to make much more sophisticated media plans. Manually allocating budgets in traditional TV advertising leads to missing many opportunities.
Ease of measurement is another crucial advantage of programmatic TV advertising. The direct processing of data covering the entire universe enables many planning maneuvers to be performed easily.
The facts that the data can be processed so easily and the purchasing is done with automation allow the ad campaigns to be optimized instantly. The ability to intervene immediately on campaign performance allows advertisers to achieve their marketing goals more efficiently.
Are We Ready?
We can say that programmatic TV advertising has just taken its first steps. Programmatic accounts for only 3% of total television advertising spending in the US. However, this rate is rapidly increasing every year.
The biggest obstacle to progress in programmatic TV is that the budgets required for programmatic advertising are higher than those for traditional planning methods. The biggest reason for this is that the inventories of televisions for programmatic are not sufficient. As the inventory improves, its programmatic costs will decrease.