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Programmatic TV Targets Relevant Audiences

What Is Programmatic Buying Doing for Your Bottom Line?

August 21st, 2015   ||    by Callie Wheeler

Broadcasters and buyers who are familiar with the concept of programmatic TV have probably heard many reasons to consider a foray into TV advertising’s latest advance. But what is programmatic buying doing for broadcasters’ and agencies’ bottom lines?

Programmatic TV’s simplest advantage is part of its name: the ability to programmatically purchase inventory. This new method of purchasing increases efficiency for all parties involved and can be traced to two main advantages: the speed and simplicity of the buying process, and the dependence on data to make buying decisions.

A Simpler Buying Process

As broadcasters and agencies know, inventory has been sold in nearly the same manner for the last six decades. The most substantial changes are in the ways in which the parties communicate, such as via fax or e-mail. Broadcasters and agencies are still largely dependent on these back-and-forth exchanges, whether in the form of phone calls or e-mailed requests for proposals and insertion orders.

While automated buying still involves communication between buyers and station groups, it is far simpler. The use of automated technology to procure slots, based on predetermined criteria, cuts down on e-mails, phone calls, and orders. This frees up time for both broadcasters and buyers to focus on other tasks.

Data-Driven Decisions

In addition to a simpler buying process, programmatic TV promises data-driven opportunities. Buyers can advertise to specific audience segments across programs and dayparts, rather than spending valuable time guessing at which programs their audiences will watch each season.

A targeted approach gives buyers a greater chance to reach the right audiences. The content they deliver is supported not only by traditional measures of audience relevance, but it is also supported by a greater wealth of consumer data.

This strategic approach is just as much an advantage for broadcasters, whose inventory might focus on an audience’s qualities in addition to the time of day or popularity of a new program.

A Symbiotic Solution

Programmatic TV is ultimately good news for broadcasters’ and buyers’ bottom lines because it equips both with the data they need to reach the right audiences. Broadcasters can allow their audience to become their greatest asset as they use segments to pair the right buyers with the right consumers.

Buyers, on the other hand, can use the same data to strategically spend their dollars, all while saving time on the research and buying process.

What is programmatic buying capable of doing for your bottom line? For more insight into the efficiencies of programmatic TV, chat with Videa.

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