Targeting Is Programmatic TV’s Killer App

Programmatic television might sound like the future of advertising, but the truth is that automated TV buying is already widely used by brands and agencies, according to Adobe Digital Insights.

This article is part of CMO.com’s September series on the state of media and entertainment. Click here for more.

Programmatic television might sound like the future of advertising, but the truth is that automated TV buying is already widely used by brands and agencies, according to new research from Adobe Digital Insights (ADI).

Indeed, nearly three-quarters of media decision makers are buying advertising on television programmatically. Additionally, ADI found that programmatic TV will continue to gain market share in both the United States and United Kingdom, with planned budget increases of 28% and 39%, respectively.

Why the shift in spending? “Our research found that brands and agencies feel that programmatic TV’s main advantage is better targeting, allowing brands and agencies to reach audiences they couldn’t target with traditional TV in the past,” said Taylor Schreiner, managing analyst at ADI. “Agencies and brands also said programmatic TV is more cost-effective and offers more transparent reporting and insights.”

Underscoring Schreiner’s point: 62% of media buying professionals who are increasing spend on programmatic TV in the next six months said the main benefit is reaching a more targeted audience.

“Marketers report that first-party data significantly increases their ability to gain better insights out of programmatic TV,” Schreiner said. And 21% said they are delivering more tailored ad experiences.

As targeting improves, Schreiner said, more investment will follow. Currently, 84% of purchasers said they would likely increase their spend if they had access to first-party targeting data. Additionally, nearly half of those who do not currently purchase programmatic TV (45% in the U.S., 53% in the U.K.) would be likely to start buying if they had access to more first-party targeting data.

“The future of every advertising medium lies in low-waste precision targeting,” Schreiner said. “First-party data-driven targeting through programmatic TV brings that future to advertisers who want to reach their audience on the biggest screen in the house.”

View the full report below, or click here to view it on Slideshare.