From the Blog

3 Things to Consider with Programmatic Television

The relatively new world of programmatic buying on TV presents a new kind of challenge to advertisers and their agencies when it comes to figuring out the best way to use the platform for the biggest benefit.

The promise of programmatic TV – combining available data and the latest technology to reach a target audience that goes beyond age and gender – leads to a logical question:

Why wouldn’t every television advertiser want to use this platform to reach their key consumers on a more granular level? The easy answer to that question is “of course, they would.” However, it’s not as simple as just hitting the go button. Even with new programmatic vendors and technologies seemingly popping up every month, there isn’t a turnkey approach to success.

Many advertisers should be able to reap benefits from devoting a piece of their budget to programmatic TV. The challenge becomes finding the right combination of vendor/platform, custom target, and KPIs for evaluation. Testing a variety of combinations may be necessary, but these tests can be done quickly with minimal investment.

So as you look at programmatic TV, here’s some advice to consider:

1)  Keep your objective clear. Is the test goal to drive increased conversion to sale by reaching a more targeted customer? To extend reach by utilizing networks and programs not included in the current media plan? To increase media efficiency against a specific segment of your target audience? Identifying the primary goal of the programmatic TV test should drive the decision about which vendor to use, since they all have differences in their approach and capabilities.

2)  Be open to different approaches for building a custom target. There are many ways to skin a cat, and the myriad of data out there can provide multiple ways to define the target audience. Third party data (MRI, Experian, Acxiom, Nielsen, Kantar, Rentrak, to name a few) and an advertiser’s own first party customer data can be combined to create the custom target, which becomes the focus of the campaign. Testing more than one over the course of time will provide learning about how to use programmatic TV to build your business and complement your overall ad campaign. In fact, it may help identify new or unlikely consumer segments that will inform your overall marketing efforts.

 3)  Evaluate the test based on relevant results.  Every programmatic vendor offers unique reporting and analysis – from basic calculation of incremental reach driven by the test to attribution modeling that endeavors to connect media weight to sales. Just as important as identifying the objective of a programmatic test is identifying the key metrics for evaluation. Direct response advertisers have an advantage in this regard because they can clearly observe not only direct sales, but whether the consumers responding to programmatic advertising are more qualified due to data targeting. But the bottom line for any advertiser is to not lose sight of the fact that a programmatic test needs to be held to the same standards as any other media vehicle: does it drive sales by reaching the right people with your message?

Data, automation and technology have made programmatic TV buying a reality that is predicted to become a larger part of the TV advertiser’s world in the coming years.  Testing the platform now makes sense so you can learn how it can best be incorporated into your marketing efforts in the future.

For further definition of programmatic TV and its potential, here are a couple of articles to read:

http://adage.com/article/advertising-week-2014/agency-execs-predict-programmatic-tv-ramp-year/295189/

http://www.mediapost.com/publications/article/233218/a-practical-definition-of-programmatic-tv.html

See more posts »