In our Intro to Programmatic Advertising post, we introduced you to the concept of programmatic advertising and the benefits that this type of advertising offers.
Advanced TV harnesses the targeting capabilities of programmatic ad platforms to help brands reach viewers that traditional TV advertising cannot. While advertisers have always targeted TV-viewing households, they can now measure their campaigns and retarget those audiences to make a greater impact in your marketing.
Traditional TV is not what it used to be
The ecosystem of TV advertising has witnessed rapid changes over the years. We’ve been hearing that traditional TV is out, and streaming devices (also known as OTT or over-the-top devices) are in. Not surprisingly, in the past 6 years, there has been a 30% drop in the time millennials spend in front of the television, opting for streaming devices and other entertainment types instead. In 2017, 22.2 million US adults cut cords (and switched to non-traditional TV).
Here are a few clear indicators that brands need to change their TV ad strategies.
Advanced TV Opportunities
To a consumer, an advanced TV may sound like one that offers more options in terms of viewing. To an advertiser, however, advanced TV means a completely different ecosystem of advertising, ad spending and data mining.
There are three kinds of advertising, depending on the kind of service the consumer has — Linear Programmatic TV, Addressable TV, and Connected TV.
- Linear programmatic TV This is most like traditional TV. Ads run in between programs just like they do on traditional TV, but advertising is planned with advanced audience data, and is purchased programmatically (not manually).
- Addressable TV Ads are aired on traditional TV time, but to selected addresses or households. The audience is customized, as only specific households are targeted.
- Connected TV Ads are purchased real time and viewed on OTT applications or through streaming apps on Smart TVs. This kind of advertising most resembles digital advertising as it is done online.
Growth of Programmatic TV
According to research by Grand View, the global smart TV market will be worth almost $293 billion by 2025. Advanced TV is a global phenomenon. And the Advanced TV trend is only predicted to increase. There will be more and more consumers of Smart TV, with nearly 81 million cord-cutters and cord-nevers (those who have never used traditional TV) by 2021.
Why Embrace the Change
Traditional TV is being upgraded for devices connected to the internet, and Advanced TV advertising is surely the future. And as it develops into a more niche and customized experience targeting specific audiences, Advanced TV marketing should be on your radar.
Benefits of Advanced TV include:
- Audience targeting With Advanced TV, you use data effectively to capture niche audiences. It is executed using software automation and advanced audience data, beyond traditional demographics, delivering a quality that is impossible for humans to achieve efficiently.
- More customized and personalized ads Targeting the right audiences increases the credibility of the ad and its potential to convert top-of-funnel consumers into customers.
- There is closed loop TV attribution This means that Advanced TV can take advantage of customer data, such as the info in your CRM. It lets you measure your customer’s behavior across online and offline data points, allowing you to maximize the influence of your ad.
4 More engagement Viewers on OTT devices are more engaged with the content. Research shows that OTT viewers complete or watch 98% of the video ads that they’re served.
You can understand now how Advanced TV and programmatic advertising methods help increase leads, drive sales and drive revenue of your business model.
According to Per Forrester Research, more than half of marketers are likely to include Advanced TV in their advertising schedules this year. The time is now to break into programmatic advertising and increase the reach, engagement, and impact of your TV ads in a dramatic way.