The global TV advertising business was a $182 billion business in 2017. Most of this inventory is bought manually, in the US in an upfront process with unsold inventory in a scatter market.
In Madmen the insignificant guy in the corner office was the TV buyer who quivered to the print and radio buyers. The TV buyer became dominant but is about to be usurped by the digital TV ad buyer.
Programmatic TV or digitalTVadbuying will become the norm.
Programmatic TV can be defined as an automated and data-driven approach to buying and delivering ads against video content on television, including ads served across the web, mobile devices, and connected TVs, as well as linear TV ads served across set-top boxes .
The nirvana is that the TV ads will become adressable to the household or individual level, providing a level of targetting and measurement beyond the traditional reach/frequency, carpet bomb approach to marketing.
TV, instead of being a siloed spend becomes integrated inside a single software suite, allowing full funnel measurement and attribution, awareness to sale.
Key Players In The New Landscape
- Data Management Platforms (DMP), allows an advertiser to leverage their data more effectively for targetting their TV buy by audience rather than age and gender only.
-Demand Side Platforms (DSP)
Software that provides access to the inventory and allows purchase of the media digitally.
-Supply Side Platforms
Allow TV ads to be served digitally to the programming and are the bridge between the DSP and inventory owner.
-TV Network or Publisher
Provide the content where ads can run, paid or free TV.