Programmatic TV: The Future of Video Advertising

Future of Video Advertising

Change is one of the most constant factors in almost everything. It is especially more constant in the technology sphere. Through constant innovations, new ways of doing things keep coming up, rendering previously successful methods and techniques redundant and outdated. It is thus necessary to keep abreast with changes in your industry for you to remain competitive. The wind of change has recently hit the TV advertising sector. Thanks to technological advancements, programmatic TV is now replacing traditional TV advertising.

Programmatic TV buying companies make this an automated and data-driven approach to buying and delivering advertisements against traditional video content on TV. It includes adverts on the web, connected TVs, mobile devices, as well as linear TV through set-top boxes.

Television advertising has always been lucrative. While traditional TV ad models have been working, the new trend brings a new dimension to advertising. The method is precise in targeting specific consumer trends to drive the return on investment on media spend higher. It is based on data about consumer segments. The data helps advertisers target individual households. Advertisers purchase TV ads from cable and satellite companies and send them to households based on their consumption patterns.

Programmatic advertising works on the premise of automated ad selling and buying via a unified platform for all channels. The technology allows for real-time bidding for video impressions. Multiple advertisers place their bids for the unique impression simultaneously with the leading bid placed in real-time to the targeted viewer.

Programmatic TV brings precise targets, which enhances the relevancy of ads. Since it is based on consumer data, the ads are more relevant to each demographic or household, reflecting their lifestyles or spending habits. This precision and relevancy makes it the future of video advertising. Hence, advertisers need to pay attention and position themselves to take advantage of the future opportunities it presents. With the current growth projections, it would be unwise not to pay attention to this developing trend away from traditional TV advertising.

The trajectory of programmatic advertising has been upward for the past few years. This growth is projected to continue into the future with spend expected to exceed $70 billion by the end of 2020 with the TV share of this spend being over $5 billion. The positive trajectory has been due to the success of programmatic advertising. The trend has caused an increase in cord cutting, with people discontinuing their traditional viewing channels. As the trend grows, more people are bound to disconnect from their corded subscriptions for traditional TV.

Some may ask, “Why programmatic Advertising?” Well, programmatic advertising offers more than traditional TV advertising. First, it is data-driven, meaning that it uses the data to determine the consumer behavior. That helps in identifying the target audience for specific ads. That way, it is more efficient as the ads target audiences most likely to respond to the ads. Secondly, the targeting capabilities of programmatic advertising make it cheaper than traditional television advertising. Since the ads are precise and specific to target audiences, advertisers spend less unlike traditional methods that require more spending with no specific target audience.

Great businesses have the ability to adapt fast to changing environments. It is imperative for you to keep abreast with changes for you to constantly enjoy the advantages of technology. Traditional TV has proved inefficient when it comes to advertising in this new age. Thus, it must give way to new, better and efficient methods of advertising. With more and more people disconnecting from traditional TV channels, programmatic advertising is gaining traction at an even faster rate. Advertisers must therefore adapt or risk becoming obsolete.