The availability of programmatic buying for linear, over-the-air, broadcast TV is growing. This means advertisers should look for platforms that offer the potential for opportunistic ad buying, expansive reach with targeting and in-flight optimization, and full transparency, writes Will Offeman, chief product officer, WideOrbit.
Automated buying, commonly known as programmatic, is quickly becoming a preferred method used to purchase ads. Although TV was initially slower to adopt this trend, it is becoming increasingly common, particularly for advanced TV. But the availability of programmatic buying for linear, over-the-air, broadcast TV is also growing.
And make no mistake — over-the-air TV still reaches significant numbers of viewers. According to Horowitz Research’s State of OTA 2020Opens a new window report, TV antenna penetration in the U.S. grew by 38% last year, now reaching 40% of all TV content viewers 18+. That’s approximately 48.4 million households with an antenna. And that number is in addition to those who access broadcast TV by other methods.
Because of the unparalleled reach, effectiveness, and brand safety of over-the-air broadcast TV, it’s crucial for advertisers and agencies to embrace programmatic to gain efficient access to premium broadcast TV inventory. But with any new technology comes a natural sense of hesitancy. So, what should media buyers look for when vetting programmatic options to fit their needs?
Whether you want to extend a campaign across multiple channels, place an opportunistic local TV spot buy, or streamline an existing partnership, there is a set of core, must-have features to look for when selecting a programmatic advertising platformOpens a new window .
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1. Seizing the Potential For Opportunistic Ad Buying
It’s best to look for a platform with an open marketplace, particularly for opportunistic TV campaigns. This allows advertisers to secure spots up to one day in advance of airtime, unlike traditional TV buying methods that can take weeks to execute.
Open marketplaces allow for expansive reach through open access to inventory from many local TV stations, including network affiliates. Advertisers can use data to find their target audience, assess the value of inventory, and make offers instantly. Broadcasters can then choose to accept or reject those offers, so they should be in line with generally accepted rates. Spots aren’t guaranteed until an offer is accepted.
Programmatic open marketplaces are also beneficial for buying several TV ad spots in a single transaction to create campaigns across multiple timeframes, stations, and markets. Opportunistic buyers can evaluate inventory across sellers, allowing them to pinpoint the right placements for engaging target audiences.
2. Combining Expansive Reach With Targeting and In-Flight Optimization
One of the most appealing aspects of programmatic TV is the ability to combine TV’s uncontested reach and impact with targeting and in-flight campaign optimization. Traditional TV buying is still largely based on ratings limited to market, audience size, and age, forcing marketers to forego the more precise demographic and consumer preference targeting they’re used to with digital.
However, programmatic TV allows buyers to target audiences based on affiliates, programs, and stations, in addition to audience size and age. Real-time stats and feedback from sellers then allow advertisers to optimize by market, channel, affiliate, day, daypart, or program as the campaign is airing. This reduces waste in ad spend and helps reduce TV’s overall eCRM (effective cost per mille), making TV more affordable than ever.
3. Full Transparency Into What You Are Buying
Advertisers should have the ability to make offers on any station-controlled inventory — any show, any time — and have the confidence that their spots will air during the selected programming and deliver the agreed-upon performance. While packages can offer great value, especially those that combine TV, radio, and digital ads in a single buy, buyers should be wary of packages that dilute CPMs and ad effectiveness by blending premium spots with a less desirable inventory.
This transparency should apply to both buyers and sellers. Sellers should have visibility into the brands they are selling to, as well as their creative materials, to maintain control over whose ads they’re running and maintain competitive separation and avoid channel conflicts.
The final piece of the transparency puzzle is performance reporting. Buyers should look for a platform that offers on-demand reporting for ordered spots, pulled from a traffic system, to allow for the previously mentioned in-flight campaign optimization.
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Looking Ahead
The evolution of audience behavior and the removal of barriers to doing business will undoubtedly impact how advertisers choose to allocate their budgets. The growth of programmatic buying creates an opportunity for local TV to better compete with digital and may even provide a competitive advantage.
Adoption of programmatic buying for broadcast TV means that the ease and speed of a digital buy now apply to TV as well, making TV more accessible and more affordable to more advertisers. The next step in this evolution is the ability to create, plan, target, and purchase omnichannel campaigns all in one place, campaigns that include linear TV, radio, digital audio and video, and digital display advertising. Advertisers who engage with programmatic TV today will be at the forefront of the next evolution of media planning.
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