Programmatic TV is the future of advertising

We are still in the very early stages of programmatic TV.

As we move towards a digitally-driven world at a high pace, it is essential for brands to stay ahead of the curve and discover/develop newer and effective ways to reach the consumers ensuring impact. Now in the ever-evolving digital world, advertising has bypassed the traditional approach. With affordable internet prices across the country, digital advertising has evolved into a global marketplace at large. This new and evolved sector requires many relationships that extend further than the typical publisher/advertiser bond that brands and agencies were familiar with. Although new platforms for advertising have emerged but the value for television advertising is still growing. Television is of paramount importance for brands as they know TV ads work in reaching a larger set of audience who either has limited access to the internet or no access at all. Over the last decade, television has undergone major technological development which has enabled marketers to direct commercial messages in a focused manner on an individual level.

With the invention of Smart TV’s, traditional ways of TV ad buying are being challenged by the programmatic approach.  Programmatic TV largely refers to the TV inventory that could be bought via a programmatic platform.  As simple as it may sound but it is rather a complex mechanism which has many broad categories with several types to choose from. They consist of video on demand (VOD), digital linear TV, video and terrestrial linear. One can always purchase the programmatic inventory of the TV by either open exchange or via a private market place. Open exchange can be accessed by anyone by using real-time bidding to auction inventory to the highest bidder and private market place, on the other hand, is more direct and based on impressions rather than the traditional guarantees of time and place. This digitization has overall enabled marketers to apply data segment to leverage big screen and create high impact on the audience. Programmatic TV is a one-stop solution for brands as well as advertisers as it largely applies digital advertising’s efficiency model to traditional TV advertising with the automation of buying process with connected devices.

While programmatic TV as an option has an exceptional potential but it’s still quite new. Hence, programmatic TV is not living up to its true potential given that we’re still in the very early stages. Going by the pace of the adoption, the industry is likely to adopt it in phases. The first phase will induce buyers and sellers to use programmatic tech to transact digital video buys. This phase is actually underway and making notable strides across platforms. As per a report by Google Data, a 4x growth in impressions for videos was visible in 2014 itself. The second phase will ensure the overall development of the programmatic infrastructure, making it easier for buyers and sellers to place ads in streaming and video-on-demand TV content across connected devices efficiently. Both these phases will create pathways for the third and most important phase i.e. Linear TV. Support for Linear TV in programmatic is the most complex phase as it will take some significant work to integrate digital platforms with traditional systems and data vendors across the TV ecosystem. If done right, programmatic TV will help the sector in overcoming several ideological and technical challenges. The sector needs to get programmers and broadcasters along with advertisers to help understand what programmatic TV can do instead of what people think it does. This will then result in brands focusing on the things that really matter such as universal measurement across all advertising platforms for better ROI, the ability to reach viewers across screens, access to inventory devoid of rights issues along with programmatic buying support for set-top boxes and so on.

As per e-marketers research, programmatic TV would be a multi-billion dollar industry by 2022. Though it accounts for less than 1 per cent of all TV ad spends for now. As brand advertisers, programmers, distributors and ad tech providers work their way through the real-world challenges, programmatic TV will begin to live up to its true potential making it the future of advertising on TV.

(The author is co-founder and managing director, Makani Creatives. The views expressed are his own and may not subscribe to them.)

Latest Reads
Eyetalk Media Ventures launches data-driven audience measurement tool

NEW DELHI: Content-driven integrated DOOH media company, Eyetalk Media Ventures has launched PEOPLE - a unified data management platform that gathers, organises and activates first, second- and third-party data. While the OOH industry post the Covid2019 pandemic moves from selling location - media...

MAM Media and Advertising Out Of Home
Affle appoints Martje Abeldt as chief revenue officer of RevX Platform

NEW DELHI: Affle (India) Ltd, the consumer intelligence technology company, today announced the appointment of Martje Abeldt as chief revenue officer - Affle RevX Platform to strengthen its leadership team as part of Affle2.0 growth strategy. In his new role, Abeldt will drive business and platform...

MAM Media and Advertising People
Wiggles launches India’s first 100% alcohol-free sanitizer for pets

Considering the growing hygiene and sanitation related concerns by pet owners and more so during the COVOD-19 pandemic, preventive pet care brand Wiggles launches India’s first 100% alcohol free and pet-safe instant sanitizer. Wiggles’ ‘Instant Pet Sanitizer’ is the first of its kind hassle-free...

MAM Marketing Brands
Motilal Oswal launches new TVC campaign 'Skin in the Game'

NEW DELHI:  Motilal Oswal Mutual Funds has launched a new TVC lead ad campaign - ‘Skin in the Game.’ Conceptualised by Mullen Lintas, the 'Skin in the Game' proposition helps demonstrate the conviction that the brand has in its product and a reason why investors should trust the brand. 

MAM Media and Advertising Ad Campaigns
Cornitos expands business ops with e-commerce website

NEW DELHI: Snack brand Cornitos has announced the launch of its e-commerce website, with an aim to offer easy and safe accessibility to its customers. The decision has come at a point of time when business across verticals are witnessing a dip in the sales as manufacturing and distribution were...

MAM Marketing Brands
Scroll Mantra wins PR mandate for Airmeet

NEW DELHI: Scroll Mantra, an integrated communication agency in India, bags the PR mandate for Airmeet, an all-in-one platform for virtual events, summits, meetups and workshops for communities and enterprises. Scroll Mantra bagged the mandate after a competitive review in which a few leading...

MAM Media and Advertising Account
Lux Toilet Soap is top brand in BARC week 26 ratings

NEW DELHI: The Broadcast Audience Research Council (BARC) of India has released its data for top advertisers and brands for the period between 27 June to 3 July 2020, respectively. The data reflects the top 10 advertisers and brands across genres on India television, 2+ Individuals, NCCS All...

MAM Marketing Brands
Mamaearth celebrates #GoodnessInside as brand purpose

NEW DELHI: Mamaearth, the toxin-free personal care startup, announces its brand purpose as “Goodness Inside”. Mamaearth’s latest video brings forth this idea of ‘Goodness is a Choice’ to its consumers. It is a digital and social media led campaign with the key message that goodness isn’t a...

MAM Marketing Brands
Madison OOH launches OTS measurement updates for Covid2019 unlock periods

NEW DELHI: The Covid2019 lockdown has significantly changed the user mobility (traffic flow patterns). The current traffic movements are very different when compared to the pre-Covid2019 lockdown movements, and are quite unpredictable. Realising this unpredictable outdoor scenario, Madison decided...

MAM Marketing MAM

Sign up for our Newsletter

subscribe for latest stories

* indicates required