Like every new channel that gets the programmatic treatment, connected TV is being touted as the new, new holy grail that will transform marketers’ digital campaigns into flowing rivers of conversion gold.
The same promises have so far been made for everything else: from display, to native, audio and every other imaginable channel in-between.
Ok, well maybe not display…
With programmatic TV buying (PTV), the hype Kool Aid may actually be drinkable for the reasons that we’ll outline further. A research report produced by IAB found that in Australia, 82% of consumers watch digital video each month and the video market is experiencing 58% year-on-year growth.
Another piece of research carried out by Hulu in 2017 about the video consumption habits of Gen Z found that for them “it’s all just ‘watching TV’” – without regard to the delivery method.
Given this current consumer sensibility and the impressive growth of the PTV channel both locally and globally, it’s definitely worth a closer investigation.
This is the first time in history when marketers can gain all of the benefits provided by traditional TV advertising coupled with the advanced targeting and detailed reporting they’ve come to expect from digital media buying.
But first let’s start with a programmatic tv definition to ensure there’s no confusion.
As with every programmatic channel that emerges suddenly, the terms being bandied about can get very technical and very confusing, very fast.
So, what is programmatic TV, exactly?
At a basic level, PTV television buying refers to the automated purchasing of audience-based advertising through a DSP or an agile marketing & media platform such as Bench.
But what’s all of this OTHER stuff then:
Connected TV, addressable TV, targetable TV, over-the-top TV, smart TV, catch-up TV, VOD television?
No doubt, TV-land has seen simpler times but, fear not, most of these terms are not as confusing as they seem:
As a preamble, at Bench we advocate taking an omni-channel approach to advertising and not relying on any one publishing platform or medium to sustain your marketing strategy.
So, we’re all for diversifying channels in order to enhance your overall advertising results and PTV presents a great opportunity to do just that.
Addressable TV can help to round out your strategy in the following ways:
The advent of any new media channel involves a significant fragmentation of the landscape in terms of the technology solutions that enable it. Programmatic TV advertising is no different.
There are a number of emerging programmatic TV companies and startups that facilitate the ad buying process. Yet the programmatic TV Mediascape visually shows how nascent the channel is in Australia:
Comparing this to the now several-year-old video Lumascape shows just how much room for growth still exists:
In Australia specifically, the major TV networks and publishers are currently trying to figure out how to best capitalise on the programmatic opportunity. As a result, the advertiser solutions are only starting to mature.
However, IAB’s white paper points out that Connected TV already represents 35% of broadcasters’ online video inventory.
When it comes to the adoption of digital advertising channels, Australian marketers lead the pack globally. So, there’s no reason to think that PTV will be any different in terms of being rather quickly integrated into local brands’ media mixes.