Targeting Is a Key Driver of Programmatic TV 

Two fundamental elements define programmatic TV buying: high-scale automation of transactions that follow buyer-seller specifications; and the capacity for data-driven, audience-based buying using third-party data. The marketplace is indicating that targeting is the core driver for programmatic TV activity, much like addressable TV, where data enrichment enables more precise targeting, as explored in a new eMarketer report, “Television Update Q2 2016: Advanced TV’s Progress” (eMarketer PRO customers only).SHARE00000Programmatic TV ad spending in the US is likely to pick up steam over the next couple of years. eMarketer estimates programmatic TV ad outlays will total $710 million in 2016 and skyrocket to $4.43 billion by 2018, accounting for 6.0% of the total US TV ad market.Targeting is the primary impetus for programmatic TV buying, more important than cost efficiency or automation, according to a March 2016 survey of US marketers conducted by WideOrbit, a firm that provides sell-side inventory management systems for the TV and radio industries. When asked to select the most important benefit of programmatic TV, nearly 58% of respondents chose targeting.A July 2015 poll of US senior-level agency and marketing professionals conducted by Advertiser Perceptions for Interactive Advertising Bureau (IAB) supports WideOrbit’s findings. More than half (51%) of respondents cited better targeting capabilities as the No. 1 advanced TV benefit.

Source: Targeting Is a Key Driver of Programmatic TV – eMarketer

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