Everything You Need to Know About Programmatic TV Advertising
Advertising is the fastest and most effective way to increase conversion for your business. However, this can be a complicated and costly process if you don’t do your research first.
Rather than spending extortionate amounts on different adverts that have no guarantees, programmatic TV advertising has now opened the doors to effective advertisements at affordable costs with minimal research or hassle required.
What is Programmatic TV Advertising?
Programmatic TV advertising is the process of buying advertising space automatically online. This is done through a portal where you’d be able to
access multiple possible advertising spaces and data regarding reach, previous conversion, and target audience accessibility.
This allows the buyer to understand exactly which advertising spaces are most beneficial for their particular business and which times they should put out their advertisement to capture the most views.
Some platforms that offer programmatic TV advertising also allow buyers to bid for advertising space, meaning that they don’t have to pay more than they can afford and can see at a glance, exactly how much they’ll need to spend.
Why Does This Differ from Traditional TV Advertising?
Traditional advertising methods usually mean months of intense research to find out exactly when your target audience is available to view an advert to increase the likelihood of high profits. Once you’ve decided on the best possible time to advertise, you’ll then be left to negotiate a price with the company selling the advertising space. Because you have no comparison on previous figures and no real-time competition, these negotiations are often lengthy and can cost a lot.
However, programmatic advertising allows you to conduct your own research into your target audience when they access the advertising channel and when you’re likely to gain most reach with your advert.
You can then look at how much other buyers are willing to pay for this space and put in a price based around these. This often means you can price out the competition for much less money.
The Types of Programmatic TV Advertising
1. Real-Time Bidding
Real-time bidding allows buyers to go head-to-head with their competition to put in bids for the advertising space. The space will be set at a minimum price and buyers can bid higher to claim the space before the bidding closes. This means that a buyer is able to stop bidding when the price is too high.
2. Private Marketplace
Works along the same lines as RTB, but it’s by invitation only. This could be for specific businesses or people who pay a small fee to have access to advertising spaces before others.
This is when sellers sell off their advertising space at a pay-per impression rate. This works best if you’re a smaller company, as you only pay for the traction that you get from the advertisement, meaning the more successful adverts rightfully cost more money.
Which Advertising Channels Does Programmatic TV Advertising Work For?
There are a few ways that programmatic TV advertising can reach the audience:
This is TV which doesn’t need to be connected by ariel or cable. For example, smart TVs or streaming devices such as laptops, iPads, or games consoles.
Digital Out-of-home Advertising
This can be in the form of interactive billboards or TV billboards often seen in city centres, airports, or other high-foot-traffic areas. When purchasing this advertising space, you’ll need to consider location as well as your target audience to determine the best advertising space.
Benefits of Programmatic TV Advertising
Programmatic TV advertising is massively beneficial for both buyers and sellers of advertising space.
Using real-time bidding or a private marketplace to bid on advertising space allows you to bid for the space and time that you’d like to advertise against other businesses that may want that same space.
This means that the premium spaces will make more money for the seller, as they will generate more views and therefore, increase conversion. However, a buyer for a business isn’t stuck paying a higher price than they can afford for that space. Once they’ve reached their limit, they can simply stop bidding and find another suitable space.
With traditional TV advertising, selling the space will involve lengthy discussions between the advertiser and the seller to produce a price. This means that the buyer can’t compare the price they’ve received with what other businesses may be willing to pay, often meaning that they pay a higher price as a result, making the advertisement less cost-effective
Using a programmatic TV advertising platform allows you to see which slots in an advertising schedule get the most views and which ones have previously done well. This allows the advertiser to make an informed decision regarding the best time and place to advertise to get the highest return.
With traditional advertising methods, you’ll end up using more of a trial-and-error approach, going for what you think is the best slot and hoping for the best. In this way, you will need to learn from your own mistakes, rather than developing your advertising strategy from someone else’s.
With programmatic TV advertising you can see exactly when your target audience is most likely to be watching your advertisement, meaning you can tailor your adverts to the specific times and channels that your particular customers are most likely to see them.
Programmatic advertising isn’t just beneficial for the buyer, but it also means that the seller doesn’t need physical people to make sales and negotiations. The platform is set up to automate all the stats and figures and will guide the buyers to the correct advertising space for them to make payment. It saves on wages, training, and time for the seller.
The data that’s available on programmatic TV advertising platforms helps buyers to understand the most up to date statistics on their particular audience and advertising methods. It gives an accurate picture of what is most likely to work well to increase their conversion.
Signing up to programmatic TV advertising is a massive time saver. It avoids all the potential meetings that you might have with advertisers to negotiate space, removes the need for excessive research into your target audience and their habits and allows you to get involved directly with your marketing.
Why Use the Programmatic TV Advertising Method?
Programmatic TV advertising has been proven to be the most effective method for purchasing advertising space. It’s more likely to reach your target audience and therefore, convert your potential customers into paying customers.