Programmatic TV

David Alpern | January 31, 2017

Programmatic TV is gaining ground as data and automation advertising technologies advance. Programmatic TV provides the ability to finally be able to use television advertising to target specific audiences in a manner similar to digital programmatic advertising. What this essentially means is that media buying targeting the biggest screen in the house will ultimately move away from spots sold on a gross rating point (GRP) basis to an environment where ads seek targeted impressions bought on a CPM basis. Similar to data-driven digital media buying today, television advertising won’t be identical from screen to screen, but will vary based on hundreds of granular household or viewer data attributes.

Challenges still exist on the journey to programmatic TV including the pace of household technology adoption. Devices such as over-the-top (OTT) and connected TV lend themselves quite well to the new programmatic ecosystem. As such, programmatic TV buying is far ahead on platforms like Roku and Hulu than can be found on national and local cable networks. Other challenges include measurement as both Nielsen and comScore are talking about implementing measurement capabilities but are not entirely there, yet.

Bottom line, it pays to begin to become familiar with programmatic TV advertising and its potential applications for your business. It’s the wave of the future in advertising.