By: Austin Dicharry
Programmatic advertising is making substantial inroads with television audiences and businesses that want to reach those viewers. It’s a form of data driven audience buying that delivers an advertisement to a defined audience. It’s an effective means of automated advertising because it reaches a specific demographic regardless of the show that they are tuned into or a show’s particular popularity ratings. Businesses understand that retargeting the demographic that is most inclined to purchase their products or services will maximize sales.
While programmatic advertising has made waves across all different types of electronic mediums, it is now building serious momentum on television. Businesses are learning that the particular programming that they choose to place their advertisement on doesn’t matter as much as whether their target audience is actually watching. For example, sporting goods outlets will find that it’s not prudent to advertise during specific popular television programming like Desperate Housewives or CSI. Even though plenty of people are interested in these programs, the business’s target audience isn’t likely to watch such shows.
Instead, they’re more likely to find success purchasing programmatic TV spots that will be seen by a certain number of people in their target demographic. For example, a local sporting goods outlet can purchase programmatic TV spots to be seen by 100,000 sports fans between the ages of 20 and 30. When such ad space is purchased, the client doesn’t know exactly when the spots will run or during what programming but they are assured that they’ll be reaching the target demographic that is most likely to purchase the products and services that they sell.
While programmatic television advertising can leverage specific demographic information and automate insertion orders, it still has plenty of room to grow. In the next few years, businesses will find that this form of advertising will grow by leaps and bounds as new programmatic pipes are implemented. Every day, we learn more and more about which particular audiences are watching specific programming and what time of day they are watching.
Part of the reason why programmatic television advertising hasn’t reached a mainstream tipping point is that it is a threat to conventional advertising during prime time. It automates the purchasing, selling, delivery and assessment of advertising so it benefits everyone involved except for television’s “old guard”. The old guard is concerned about programmatic advertising’s potential to undercut expensive commercial slots during peak hours.
This resistance will quickly crumble and the status quo will continue to relent to the technological advances of programmatic television advertising. Businesses that ride the wave will find that programmatic television advertising is both efficient and effective.