Programmatic Advertising and TV Ads! They are Breaking Down the Walls. Programmatic advertising and TV advertising seem to be two channels that are quite different from each other at first glance. While programmatic advertising evokes factors of speed and flexibility, TV advertising is more compatible with the concepts of slowness and traditionality.
However, TV advertising is still a favorite of advertisers despite its disadvantages. Many advertisers prefer TV commercials first to tell their stories and evoke the emotions they want on the other side. Looking at the statistics around the world, it seems that this situation makes quite sense. According to IGEM Digimonitor research, 91 percent of the Swiss population watches TV.
That’s almost twice the number of viewers on digital streaming platforms. Of course, we should not miss an important point here: In order to reach their target audience effectively, advertisers need to be aware that both channels have their own advantages and actively use both channels.
Programmatic Advertising and TV Ads
We are in a period where the digital age is expanding its sphere of influence at an unprecedented pace and affecting society. Advertisers want to move from TV advertising to digital advertising in order to benefit from the returns of the age and not to miss this wave.
Marketers are working hard to make their TV campaigns as effective as digital campaigns. However, the media ecosystem still lacks a holistic functioning, and advertisers find it difficult to plan a joint campaign across multiple channels. Unfortunately, advertising channels today are still thick walls, and also there is little flexibility between channels.
Times are changing and this negative picture will not always proceed like this. With the development of the advertising industry, the walls between channels are gradually weakening. In this way, marketers can plan and implement their campaigns more efficiently on both TV and digital channels.
Differences between channels’ campaign processes
A little detail reveals the differences between the functioning and processes of TV and programmatic channels. Moreover, it is possible to see these distinctions in the purchasing processes of TV advertising and programmatic advertising channels.
While there are fixed prices for certain broadcast times in TV ads, prices have a variable structure in programmatic advertising. In addition, real-time bidding can be given in programmatic advertising. Therefore, in the purchasing processes of both channels, advertisers need to follow different strategies.
The measurement and evaluation of the success of TV campaigns and programmatic campaigns also differ. When the two channels are compared, programmatic campaigns are more advantageous in terms of being fully measurable.
This allows advertisers to collect data from as many people as possible. TV campaigns and other offline channels are often based solely on guesswork. Measuring the success of a TV campaign through gross rating and audience impression scores, as well as reach and forecasting, is quite inconvenient compared to programmatic campaigns. Since programmatic campaigns are fully measurable, the evaluation of programmatic advertising can be precise and targeted to the target audience.
Smart TVs are becoming an integral part of everyday life with Programmatic Advertising
Today, the vast majority of the television market is made up of smart TVs. More than half of the nearly 39 million households in Germany have at least one smart TV. This shows that smart TVs have become an integral part of everyday life. When we look at today’s TV landscape, we can see that legacy systems have been incapable of measuring the actual reach between platforms and channels and pages.
According to a survey, smart TV is the most used device for watching TV over the internet in Switzerland after the computer. The increasing popularity of smart TVs is driving an increase in TV viewing ads on these devices. The proliferation of TVs that can connect to the Internet is driving increased opportunities for programmatic advertising and breaking down the walls between channels.
According to a survey, more than 70 percent of viewers in the 16-49 age group use smart TVs, which expose them to programmatic advertising content. This shows that TV and programmatic advertising channels are rapidly approaching each other for viewers. Advertisers need to overcome the differences between programmatic and TV ads to create lasting connections between these two channels.
Connecting channels opens up new opportunities and sets new standards
With the proliferation of smart TVs and the breaking down of the walls between advertising channels, new and exciting opportunities are emerging in the advertising industry. While a combination of TV and programmatic channels can lead to increased ad spend, connections between channels allow advertisers to gain more reach, new audiences, and greater ad impact. In the new channels that emerge, an uncertain atmosphere can be observed because the basic standards have not yet been formed. Despite this, advertisers are making lasting connections between programmatic and TV channels, helping them take advantage of new opportunities.
Due to the unintegrated and discrete advertising channels of the advertising sector, some criteria of programmatic advertising cannot be easily transferred to TV advertising. Technically speaking, though, a digital TV commercial isn’t much different from an online video ad in a web browser. In this context, real-time bidding, VAST metrics and OM Web Video SDK can also be used for TV spots shown on smart TVs.
There are also ways to use a Transparency and Consent Framework and fight ad fraud. If smart TVs allow advertisers to bid and use IDs to exchange multiple ads in real time, the foundation for programmatic advertising can be laid. In this case, cross-channel frequency capping and integrated branding, performance campaigns will also be accessible and measurable.