#mooinsights: Programmatic TV: Television buying of the new age
The world of Television was built around the concept of gross rating points (GRPs) – a rating system that was built to estimate an audience’s reach tased on age and gender demographics. However, as the media landscape evolves and becomes more fragmented – there is a new wave of how to buy television effectively – advanced, programmatic TV.
Programmatic TV
Programmatic TV is similar to how we buy digital media today, extended to the “offline television world”. The beauty of Programmatic buying is that buying can be done through an automated demand side platform. This demand side platform leverages advanced data sets for more granular audience targeting.
In many markets, television buying is rapidly changing to allow for real time budding and placement of ads within a television feed. If I were a consumer of Television content, however, there is no difference – the ads show during regular scheduled programs as per usual. The key difference is is that with programmatic television buying, media buyers have more control over addressability and advanced measurement capabilities.
Why this is the future
Programmatic TV is based on software automation and advanced audience data to target the right people at the right time, with the right message. It creates a lot of efficiencies in a system – especially given that the media landscape has so many dimensions and fragments now than ever before.
It’s undebatable that the future includes measurable one-to-one communication at scale. Therefore, the three key aspects to why I believe that this is the future of TV buying are: a) TV Attribution b) Better Customer Experiences and c) Streamlining Audiences
a) TV Attribution:
It is important to be able to understand the effectiveness of media spend on Television, however, for the most part, this has always been in the grey area with a lot of proxy metrics. The gap lies in understanding the causal impact of these media investments on sales.
By buying TV programmatically, measuring attribution of TV spends is more attainable than ever before. It will enable us to have a better understanding of customer journeys and make better marketing decisions based on every incremental dollar spent.
b) Better Customer Experiences:
With traditional TV buying, targeting is very mass market – with everyone being in the audience pool regardless of age, gender or demographics. For most people, this leads to a poor customer experience with irrelevant messaging and advertising.
By using programmatic TV buying, there is more sharpness in targeting and messaging to reduce wasted impressions and provide a better overall customer experience.
c) Streamlining Audiences:
It is important to have greater audience granularity in terms of audience targeting capabilities. Given that programmatic Television allows for options to build better pools of audience – it provides the opportunity to manage ad frequency, match exposure data to conversions and measure engagement and video completion rates.
Therefore, the ability to streamline audiences is critical in order to build high impact television experiences.
Front to the future
The opposite to back to the future – is here. Let’s stay on top of the latest shift in how marketers of today will buy television tomorrow. Through programmatic TV buying, marketers will have the ability to reach the exact target audience while providing a more seamless and relevant customer experience.
In the fight for attention while the number of cord cutters (for television) are increasing, it is important to not just be a mass marketer, but a smart marketer.
Let’s get on that boat. #moosights
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