Earlier this month, Mad Men returned to TV screens for the final time. Since the very first episode, Don Draper and the various ‘creatives’ showcased in the programme have been applauded for their visionary tactics and the way they tap into the zeitgeist of the time. However, I feel the spotlight is now shifting focus to include others in the glow that creatives have traditionally soloed in. In this, the 60th year since TV advertising was introduced to UK TV screens, it is the transactional and targeting model rather than creative that is experiencing incredible advancement.
Recently, we conducted some research into what I feel is the innovation that will transform TV advertising most over the next decade: programmatic TV. For the first time ever, advertisers will have the opportunity to use data to go beyond traditional age, gender and socio-economic factors in order to target ads and reduce wastage. But, we don’t see programmatic TV as a replacement for the traditional ad buying model. Instead, we believe it adds significant value as a complementary marketing tool to supplement premium ad buys.
Until now, advertisers have been reliant on BARB ratings drawn from a panel of just over 5,000 households. But, what of the 30% of programming that is ranked as having a zero rating? Is that inventory useless? Or is there an opportunity to take advantage of this inventory for niche or first-time advertisers who desire the opportunity offered by the most powerful brand marketing tool available, yet are limited by budget or a need to showcase and deliver hyper-targeted ROI to higher-ups in the executive chain?
Sky took the first step in targeting the untapped market of zero ratings through their development and launch of AdSmart last year. AdSmart draws data from the millions of set-top boxes installed with their subscribers, monitors viewing habits and then gives advertisers the chance to select specific targets based on that data which is then integrated with traditional age, gender and socio-economic information. Already Sky has seen success, with over 70% of advertisers using AdSmart new to TV advertising.
As Kevin Longhurst, Head of Trading and Partnerships of G14 explains: “Brands marketing certain products could take advantage of zero-rated shows or less premium ad spots to put together a TV campaign. For example, if you switch on the television late at night, you often see gambling ads. I would argue that there are opportunities for gaming companies and men’s lifestyle products because plenty of consumers playing things like Call of Duty are awake, potentially using the TV as a second screen.”
But, programmatic TV is more than just addressable TV. eMarketer defines it as ‘an automated, technology-driven method of buying and delivering linear TV ads’. And the ability to plan and manage programmatic TV ad buys alongside other programmatic video campaigns (such as mobile and desktop video) on a single centralised platform is arguably the biggest benefit of the bunch. Brands can fully integrate their branding strategy to better target audiences and control spend. The end result? Better efficiency, less chance for mistakes and stronger return for less cost.
Programmatic TV isn’t just a pipe dream. It’s already here. While the American market is vastly different from how we operate in the UK, we have already seen premium ad buys performed programmatically around premium inventory like the Super Bowl by Mondelez. And there’s plenty more of that to come on both sides of the pond. 4oD has already started to trade VOD inventory programmatically and 90% of surveyed video industry experts stated that programmatic buying is ‘likely to become ever more prominent’ and will ‘determine the future of TV advertising’ according to a recent report compiled by Digital TV Europe.
Are you ready for it?
By Nick Reid, UK Managing Director of TubeMogul.
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