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Programmatic buying will change both local and national ad sales.

Programmatic TV Ad Buys Signal Change at National, Local Levels

June 9th, 2015   ||    by Jonathan Crowl

As programmatic buying enters the television world, one of the larger systemic changes is how automated TV ad buys affect the national and local advertising markets. Programmatic solutions allow for automated buys that give advertisers time slots that can better reach their ideal target audience.

Better targeting is the product of better information. Detailed audience data adds another layer of intelligence to complement traditional TV ratings and regional demographic information. Advertisers gain a more developed picture of the audience through this enriched data, allowing them to target with greater accuracy to produce greater overall ad value.

The ability to divide a larger audience into smaller, more relevant groups helps advertisers move from broad campaigns to ones that are more selective and built upon local, specialized ad targeting. In doing so, broadcasters and advertisers are both positioned to increase their return on investment from TV ad buys.

Broadcasters can choose the ad inventory that best suits their budget, and advertisers can add constraints to their local and national spending so that they remain competitive while keeping projected ad returns in mind.

Targeting the Local TV Market

Automated buying stands to have the greatest impact on operations and optimization at the local level, where broadcasters can create more value for their smaller markets. Meanwhile, automated buying and selling can reduce the workload placed on these smaller broadcasters, all while optimizing the sale value of each ad spot. Instead of painting with a broad brush and pursuing the volume exposure of a national campaign, advertisers can be more selective and focus on local markets where relevance is at the highest.

A farming equipment company, for example, has clients all over the country — but typically not in urban areas. Instead of paying for a national campaign, that company can focus on broadcasters servicing more rural areas, thereby reducing spending at the national level while increasing ad efforts in local areas. The company can combine broadcaster insights with third-party data, as well as its own in-house information on the makeup of its consumer base and how it responds to TV advertising, to choose the best ad types and delivery strategies for a local TV campaign.

Programmatic solutions streamline these efforts by electronically calculating and weighing all these variables. Over time, simple tweaks to this approach can help refine the strategy, while evaluating ad performance can offer valuable insights into how the automated approach can be further optimized.

Automated buying and local targeting bring marketers closer to achieving the dream of one-to-one marketing. It divides a single national campaign into dozens, even hundreds, of smaller-scale local campaigns; for advertisers, this offers a much more customizable television ad inventory without increasing the workload. Broadcasters, meanwhile, will be able to provide local marketers new revenue streams and heightened competition.

Because of the reduced time spent on the process and the increased investment on both sides, it’s only a matter of time before programmatic buying becomes the primary form of selling ad space—both at the national and local level.

For more detail on automated TV ad buys, check out Videa.

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