Programmatic TV refers to the possibility to buy advertising placement on TV using data-driven algorithms. This automation gives the opportunity to target a specific audience, use specific messages depending on the audience, etc. This evolution of TV advertising will change tremendously the way TV advertising will evolve and it will get closer to the digital environment. There are three placements possible to buy programmatic tv: linear tv, addressable tv or connected tv.
Different placements for programmatic tv
The first method consists of being present on linear TV. This refers to traditional ads that are bought automatically. This is the type of buying that is further away from happening today. DPG Media announced the creation of a tool called “DPG Demand” that is an advanced buying platform created also to offer the possibility to buy linear tv ads. This is still in development and should be available in 2023.
The second placement allows the use of addressable TV. It was launched in 2020 with the collaboration of Proximus, Telenet, DPG Media, Ads & Data, RMB & IP Belgium. It is Telenet and Proximus, two tv suppliers, that offer the possibility to target, based on data, specific segments of users. They are using the technology of the set-top boxes to define households and specific criteria for each of them. With addressable TV, you no longer select a network or a program to advertise on, you select the household you want to see your ads. Indeed, once there is a match with the profile of the viewing family, the set-top box selects and broadcasts the most relevant commercial. For example being able to target a specific age, a specific localisation, specific interests (family, business professionals, green living, etc) or even matching your clients list is possible. The advertisers have collaborated to standardize the offer to make it as easy as possible.
Finally, the third method is to buy placement on connected tv. A connected TV is the possibility to watch content on your television but without cable or satellite subscriptions. It refers to four different devices:
- Streaming devices: devices that connect to a TV screen to display video streams (Roku, Apple TV, etc.)
- Smart TV: TVs with integrated internet connections (Samsung Smart TV, etc.)
- Gaming consoles: internet-connected gaming consoles (Xbox, PlayStation, Wii, etc.)
- Set top boxes: devices delivering traditional cable and video-on-demand (VOD) content.
Those devices can show different types of content:
- Over-the-top (OTT): refers to streaming services that deliver content via the internet. It is delivered “over the top” of another platform. Netflix, Disney+, Amazon Prime are good examples of OTT service.
- Linear / Live TV: Traditional television sometimes offer the possibility to watch their content through streaming TV apps over the internet
- Video on demand: Television programs that stream on demand at the request of the viewer. This is also referred to as “non-linear” tv.
Let’s deep dive into the connected tv possibilities:
Why does connected tv placement become more and more important
All studies show a growth evolution for connected TV in households. In the US, 46% of adults have watched video via a connected TV device daily in 2022. On youtube, 700 million hours of content is watched on TV devices. The number of smart TV owners is growing fast to reach 70% owners in 2023. The volume of users using VOD is now at 34% and is expected to increase to 47% by 2027. All those numbers are showing the importance of connected tv today but also in the future as the growth of connected tv is definitely in place.
Why should we advertise on connected tv
First of all, the audience reach is complementary to linear tv, you can target users that aren’t watching cable anymore to get a higher visibility. This knowing that among the youngsters, the streamers are more important than the cable subscribers. Secondly, you can use smarter measurement by controlling the frequency per user, define a specific audience, or to connect to your consumers.
How to advertise on connected tv
As explained at the beginning of the article, connected tv can be bought programmatically via many ad networks. Note that some types of content are also available via direct deals on connected tv.
DV360 has connected tv (CTV) inventory packages available when setting up a new campaign. For that, at insertion order level you can choose the type “connected tv” when creating your campaign. This insertion order type is especially designed for TV ads with configurations selected by default. Afterwards, the specific line item selection allows to target “youtube & partners on connected TV”, there also, the bidding, device, ad format are by default applied to be compatible with connected tv.
More than DV360, connected TV campaigns are also available on the trade desk, Xandr but also on Teads who launched connected tv campaigns in the US in 2022. Also, Amazon has specific “streaming tv ads” available among their DSP platform on Twitch, live sports on Prime video or Fire TV.
Many possibilities exist and we can be sure more possibilities will exist in the future.
Floriane Defacqz
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