First of all, it is necessary to lay the foundations of the vocabulary specific to programmatic TV. The term "programmatic" in television refers to the automation of the purchasing chain on the basis of a digital reference system (performance), which is in contrast to traditional purchasing methods that depended on a poorly automated chain with the audience as its reference system. On the other hand, on the digital side, when we talk about programming, we often refer to RTB (real-time biding), but this real-time auction system will not apply to television.
Addressed advertising, essential for the growth of local advertisers' markets
Linear television may sometimes seem outdated to marketers, but that's without relying on its unique value and unprecedented reach. This media, the most powerful in the world, can reach the widest audience in the shortest time and its impact on the exposed audience is now measurable through TV analytics solutions.
With the automation of the purchasing process and addressed advertising, television could extend its reach and move closer to digital while maintaining a serious advantage: that of offering secure contextual environments, adapted to all audiences, within which advertisers can place their ads in a totally controlled manner (Brand Safety) - which can be opposed to digital, even if initiatives such as the Digital Ad Trust appear.
Being able to address a particular audience according to specific targeting criteria (household profile, geolocation and consumption preferences) would allow television to offer advertisers the most powerful impact on it, and then maximize the effectiveness of their speaking engagements. On the advertising management side, the probability of attracting new advertisers who would not have considered television before the arrival of addressable advertising...
Programmatic purchasing and addressed advertising, or the multiplication of inventories for the TV sales houses
Addressed advertising, the future of TV and the TV of the future? Yes! according to the study presented by the SNPTV and carried out by the firm Demain, if addressed advertising were allowed in France with the possibility of geolocating viewers, TV operators even estimate that it could increase the TV advertising market by 200 million euros by 2022! We are thus witnessing a multiplication of inventories, which will make it possible to offer different messages according to the segments but also to help small advertisers access TV and to enhance the value of the screens already present. And maybe, who knows, to finally compete with the GAFAs!
Similarly, having automated access to inventories (and next, hopefully, in real time) allows the market to sell all the spaces at the best price. However, it should not be assumed that it is enough "simply" to apply the rules of programmatic purchasing on digital television. Operators will have to be extremely efficient to manage the high number of requests and the multitude of box flows, especially in the event of exceptional events with high audiences, such as the Football World Cup, the Tour de France or the presidential elections - if it turns out that they will be open to the programmatic.
TV programmatic purchasing, a time saving for media buyers
TV purchasing tools and protocols as they exist today have been in place for several decades and appear to be poorly adapted to the new challenges that are emerging.
As with any automation, the automation of the TV buying process will save time and simplify the process, undoubtedly for better productivity. That’s why Realytics has developed Ad Plan, a solution that already supports this transition by automating media planning to achieve performance objectives, based on artificial intelligence. This new planning solution can simulate thousands of media plans in minutes, when it would take a human being several hours to create even one. The AI then selects the best media plan according to the advertiser's brief, for a better ROI!
It is worth considering the adjustments that will have to be made to adapt the process of automating TV purchasing, which differs from digital in many respects.
To come in a second opus: "The programmatic purchase in linear TV, what adjustments? »
