The Three Challenges Programmatic TV Advertising Faces

Source: Digiday

Programmatic TV advertising refers to the data-driven automation of audience-based advertising transactions. Following the gradual proliferation of programmatic ad buying on digital platforms, TV seems like the next one to embrace this new form of ad buying. But the fact is, less than 1% of TV inventory has been sold programmatically this year. Why is the market so slow when it comes to programmatic TV ad-buying?

  1. Inertia: TV executives are concerned programmatic will commoditize and devalue their limited inventory, and simply aren’t motivated enough to change. Their institutional resistance severely hinders the adoption rate.
  2. Supply: Real-time ad bidding and auctions that are common practice in digital programmatic ad buying just don’t work as well with the TV marketplace, where supply is limited and sellers are looking to secure future commitment.
  3. Data: Brands, agencies and media partners may not feel they have access to accurate data. Since programmatic ad buyers rely on audience data to pipe advertising to optimal slots, an accurate, accessible and universal alternative to Neilsen will have to be developed in order for programmatic ad buying to take over TV.