Programmatic buying to reach fifth of US TV advertising
| 15 May 2014
Research from Strategy Analytics has confirmed the growing power of programmatic in media buying, with TV advertising likely to follow online towards more automated media buying.
Indeed the report Programmatic Buying: Is This The Future of Television Advertising makes the bold prediction that the process of buying and selling TV advertising is poised for a significant transformation that programmatic buying will account for 20% of US television advertising dollars by 2018.
The report also found that television advertising processes have been fairly static for decades but will begin to change over the coming years as various stakeholders in the ecosystem use advanced data analytics and tools to make more informed buying decisions and improve operational efficiencies and ultimately automate media buying workflows.
One area in which programmatic has made major inroads is in online video and Strategy Analytics notes that the process has been introduced in a number of television services, notably by Cox Media in partnership with clypd, a technology platform, as well as Sky TV's Adsmart platform in the UK.
"There are challenges ahead, notably in industry education, technological limitations and control over pricing," commented report's author and Strategy Analytics associate analyst Michael Goodman. "But we believe that the benefits of programmatic buying are beginning to outweigh perceived obstacles to its wider adoption in television. Initially, programmatic buying has made inroads into addressable advertising, local advertising, and TV everywhere/OTT TV. Over the coming months we expect it to expand into the scatter and spot markets, and from 2015 we will be looking out for significant moves into the upfront market."