Programmatic TV creates value and operational efficiency for both buyers and sellers by automating the planning, buying, and selling of impressions from available television inventory. As a marketing investment, this technology currently offers three investment paths, each with its own distinct advantages:
1. Connected TV (CTV) offers the most precise targeting
CTV offers 1:1 unique targeting when reaching audiences (for example, Samsung Smart TVs, Roku, Apple TV, and Amazon Fire). CTV consists of a TV set with resident Internet capabilities or connected via over-the-top (OTT) devices such as Blu-ray players, or gaming consoles—all with the ability to access long- and short-form web content. CTV represents the convergence between computers, TV sets, and set-top boxes.
2. Linear addressable TV widens targeting opportunities
Targeting opportunities expand with this approach and its 1:1 household targeting by distributing through multichannel video programming distributors (MVPDs), for example, Dish, DirecTV, and Charter. With this approach, brands dynamically serve different ads to unique audiences (that are watching the same program) or video on-demand (VOD) on Internet Protocol Television (IPTV) or set-top boxes. Audiences can be further segmented by behavioral, demographic, or geodata from first-, second-, or third-party.
3. Linear TV audience indexing expands reach even more
This approach is even broader than Linear Addressable TV with its one-to-many audience targeting opportunities. It is also the truest representation of programmatic TV technology capabilities as they exist today. Linear TV Audience Indexing is essentially linear TV programming advertising purchased through automated workflows coupled with the ability to use hyperdata-informed audience indexing.
Understanding and discerning the players
Regardless of the investment path you choose, multiple players will be involved to facilitate the buying and selling processes that all fall within the programmatic TV landscape (See Figure 1). For example:
- TV advertisers and media agencies who plan and buy the campaigns
- The demand-side platforms (DSPs) who act as programmatic buying platforms to marry the data from DMPs and execute the buy
- The supply-side platforms (SSPs) who act as programmatic selling platforms. SSPs integrate into legacy TV systems for each network to make the automated buy possible
- The data management platforms (DMPs) who provide audience data, engagement metrics, and purchase data to enable smarter buying decisions
- Broadcast networks who supply and monetize the inventory