Rising Programmatic TV Investments Have Better Targeting in Mind

October 16, 2017

This article is included in these additional categories:

Advertising Trends | Customer-Centric | Data-driven | Programmatic & RTB | Spending & Spenders | Television | TV Advertising

Programmatic TV is mainstream, declares Adobe Digital Insights (ADI) in a recent study that surveyed more than 400 US and UK professionals from agencies and brands. These executives, who are decision-makers for placement of TV or digital media marketing, expect programmatic TV to increase its share of TV budgets.

These attitudes align with those found in recent research from Videology and Advertiser Perceptions, in which almost two-thirds of advertisers surveyed predicted that the majority of TV dollars would be traded programmatically within the next 3-5 years.

Reach Plus Targeting?

TV’s main draw over the years has been its reach, but programmatic’s appeal lies in its targeting. Indeed, the ability to target audiences they couldn’t otherwise target with TV emerges as both agency and brand executives’ top perceived advantage of programmatic TV.

Among those increasing spend on programmatic TV in the next 6 months, 62% agree that it has the advantage of reaching a more targeted audience – making this the top perceived benefit. Almost half likewise agree that programmatic offers the benefit of targeting audiences they couldn’t otherwise target with TV.

What’s interesting to note is that a recent Nielsen analysis of CPG campaigns found that while TV topped digital in reach, it also had a much higher on-buyer percentage than digital. In a surprising result, the use of purchase-based segmentation to examine campaigns found that 80% of TV campaigns were considered “On-Buyer Target” compared to just 31% of digital campaigns. This may have been a function of the vertical in question, as TV viewers tend to come from larger households, which in turn are heavier CPG buyers.

First-Party Data Only Makes Things Better

The ADI study demonstrates that advertisers see the value of first-party data: 63% agree that first-party data enhances their ability to derive better insights out of programmatic TV.

Aside from gaining better insights, agencies and brands also believe that first-party data will allow them to deliver more tailored ads for key audiences and drive better ROI.

The full study is available to view here.

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