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Programmatic TV Ad Sales: It’s a Different World Than Digital Display & Video

Written on
Jul 30, 2015 
Author
Adotas  |

Adotas talks with Shereta Williams, president of Videa, about the sometimes-confusing world of programmatic advertising sales on TV.

Q: How does programmatic advertising for TV differ from video and digital display?

A: Programmatic TV advertising is done through the automated buying and selling of linear TV ads that leverage audience data, and is primarily conducted through private marketplaces. The TV market is comprised of premium quality inventory in scarce supply, so programmatic technology must allow transactions to be done on a forward reserve basis to maximize yield for inventory holders.

Digital programmatic advertising, on the other hand, is most associated with real-time bidding, or RTB, in which marketers buy and publishers sell ads dynamically, in real-time, based on impressions. There is virtually an unlimited supply of display, mobile and video impressions available.

Q: What are some ways local programmatic TV can help stations drive value for their full inventory?

A: Automation of the sales process and data-driven decision making will help create value for local inventory. Automation will remove numerous pain points from the ecosystem and make local TV more accessible and competitive with other forms of media, which will enable new sources of demand and allow smaller markets and stations to compete at a national level. Programmatic TV will also bring data targeting to television with audience-based buying. This will lead to better value for less desirable time periods by illuminating niche audience impressions that are not currently leveraged through traditional broad market demos.

Q: How does audience targeting information help advertisers and broadcasters?

A: Audience targeting through programmatic buying will optimize the selling process and increase demand for local broadcasters. The more data broadcasters can gather on their audiences, the more relevance they will be able to provide to advertisers. When advertisers can deliver their message to a better-defined audience, they maximize their return on investment. Layering data on top of traditional TV ratings and regional demographics further enhances audience engagement for brands.

Q: Compared to digital video, how does TV adhere to quality standards?

A: TV advertising has a much higher bar for quality due to the very nature of broadcasting and the regulations that have governed it for decades. More investment and quality control goes into each campaign, and TV stations are held accountable for anything inappropriate that airs so the entire system is setup to ensure quality and engagement. Finally, unlike digital, there is no danger of bots or fraudulent traffic with TV.

Shereta Williams is president of Videa and leads the organization in overall strategic and product direction. Shereta has over a decade of experience with Cox in various investment, strategy and development roles focused on digital media. She has held previous roles with financial start-ups, and in Mergers and Acquisitions at Lazard. She also holds an electrical engineering degree from MIT. Shereta is passionate about creating growth by building products and services that solve big problems.

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