Programmatic Advertising: Functions and Benefits

by Josh Biggs in Tech on 16th June 2021

Connected TV programmatic has been proven to be an effective tool in digital advertising. The technology has showcased its efficiency, and helps advertisers make their ad campaigns more granular and provide higher returns. Programmatic connected TV uses software meant to buy programming for CTV devices and digital advertising for video content. 

In this regard, it’s important to highlight that CTV refers to the TV sets which access content beyond what is available from a cable provider, and deliver that content through the internet. CTV encompasses ads purchased programmatically, displaying them on mobile or computer streaming, or via over-the-top (OTT) devices.

What are the main features of programmatic advertising? 

Programmatic advertising offers immense opportunities for product promotion, being highly automated. This technology is aimed at employing all the benefits of digital and traditional media and offers tools to measure reach and attribution, as well as precise target. 

Google, Amazon, and Apple have been actively incorporating this technology into their game plan. Following the examples of the big players, many marketing specialists are starting to make programmatic advertising TV a part of their marketing strategy. 

What benefits do companies get from using Programmatic TV? 

Increased coverage. With programmatic video ads, you can promote your products across multiple screens, like mobile devices, tablets, and computers.

Interact with cord-cutters. The ability to reach consumers who have cut the cord to traditional television through programmatic video media buying.

Reaching audiences on streaming services. Programmatic CTV advertising enables you to show ads on Netflix, Roku, Direct TV OnDemand, and other premium content providers to reach cord-cutting households. 

How does CTV Advertising Work?

The programmatic media buying ecosystem operates with multiple levels of auctions, with unique parameters for price and access at each level of the auction. The private marketplace inventory sale sits just one auction level above the open exchange but allows marketers the chance to access specific placements in an auction with fewer bidders, which makes win rates higher. However, associated costs are higher as well.

When considering connected TV over regular video advertising, one thing to keep in mind is that this premium ad space often requires participants to pay a certain price floor or higher-priced minimum CPM. CTV is sometimes 3–5x more expensive than a standard video placement, but CTV is almost guaranteed to produce a better outcome.

Categories: Tech