Google and Programmatic Television Advertising
Programmatic advertising uses real-time bidding to serve ads to audiences based on brand data. This technique allows brands to spend their advertising budgets serving ads to the most relevant audience for their products or services. Last year, programmatic advertising accounted for nearly 80 percent of digital ad spending. And it is not done evolving.
Programmatic ad buying has made its way into the television sector. With more than $73 billion dollars going into traditional television advertising, there is significant room for programmatic advertising to grow into, but some advertisers are skeptical.
Television advertising is largely rooted in traditional methods, including direct negotiations for ad space. As the way television is consumed changes, advertisers have to change their methods to keep up. On digital platforms, the goal of programmatic advertising is to increase the efficiency of advertising budgets. When it comes to television, though, the goal of programmatic advertising will be to reach highly-specific audiences and, ultimately, see higher ROI for their TV ad spend.
CBS is jumping on the programmatic train with their streaming service, CBS All-Access. One of many network services that will be partnering with Google to deliver TV ads through their platform, CBS is a major win due to the popularity of the network as a cable provider. Google, a leader in what seems like everything, has been trying the break into the television sector for a while now; this most recent partnership stands to gain the platform significant leverage as a go-to provider for serving television ads.
As an established leader in the search world, Google, has access to a host of information that would be beneficial to advertisers looking the capitalize on television audiences, including what users are searching for during and following shows and advertisements. This information can give advertisers more immediate information regarding the effectiveness of their TV spots.
Additionally, Google’s ad serving platform, DoubleClick, is the most widely used platform on the web, allowing advertisers to programmatically serve ads on YouTube. This gives Google an advantage over other providers because of this experience, which parallels that of serving ads on streaming services.
Television advertisers and broadcasters alike are in a unique situation to cultivate this newest endeavor into programmatic advertising. Brian Stempeck, chief client officer at The Trade Desk, says that the shift into programmatic television advertising can only be successful if it remains focused on improving the advertising experience for consumers. “If we’re replicating TV we’re doing it wrong,” he says. Advertisers are already experimenting with how to reinvent the consumer ad experience, from Fox’s 6-second shorts to ads that allow for consumer engagement.They will continue to test new methods and ideas to bring successful advertising seamlessly into a consumer’s life, instead of interrupting it. Great innovation is needed to ensure that the quality of both the advertisements and the television programs is not compromised as this new approach to traditional advertising takes hold.
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