The advancement of technology has changed many aspects of people's lives, including television. Today, the patterns of consumption of audiovisual material have changed. As a consequence, if companies want to keep their options to promote their products and services by these means must also change. Previously, the approach to television advertising was simple. It was about reaching a demographic target audience.
This audience was calculated by a panel of data obtained by a few thousand households through an audiometer. The gross rating point was generated, an indicator that marks the investment necessary to reach a specific audience. Thus, television advertising planners identified the spaces with the highest GRP of a specific demographic audience and hired the spaces to show their campaigns. Today, technology demands new ways to manage advertising spaces. One of the most relevant is programmatic television.
What Is Programmatic Television?
This is a form of television ad buying, which uses data and automation tools to target a more specific audience. The objective is to optimize the ROI on investment in television advertising media. This approach changes the traditional landscape in two ways:
- It incorporates technology into the TV advertising buying process, minimizing non-automated tasks.
- It overcomes the traditional demographic approach. Instead of thousands, it now takes into account data from millions of devices that allow for a more precise approach. Besides, this data can be enriched with other information such as user behaviors and, usage patterns. In this way, ads will be shown to those users who have a high potential to purchase a certain product or service, maximizing the probability of conversion.
Which Are the Modalities of Purchase in Programmatic Television?
In this type of systems, the sample of advertisements is adapted in such a way that those that best fit the target audience are selected to increase conversions. Then, marketers can pay for their ads in two main ways:
- Audience Buying: Here, advertisers aim to reach certain audiences and pay to reach them while watching television. The goal is, therefore, to find an audience and get a message across to them. This mode represents the current 95% purchase of programmatic tv.
- Directional households: the aim is to reach specific households chosen demographically or in a specific geographical area. Advertisers pay for local, focused, and targeted ads. This model makes it possible to control the behavior of consumers on these messages and to adapt them as much as possible to their interests. Even though it is the least frequent modality, this option is growing and is expected to be the global trend. If developed wisely, it will be the best opportunity to generate sustainable profitability in the world of television and digital streaming.
How Can You Boost Your Business Through Programmatic TV?
If you want to develop a strategy to maximize your ROI and increase the profitability of your business with programmatic television, the wisest thing is to look for an extraordinary group of specialists, such as Launch Media.
These professionals will be able to analyze your business, your industry, and your potential markets. Then, they will assist you in designing a comprehensive impulse strategy that will allow you to reach your current and potential audience in the best possible way, with the highest possible convertibility levels. In this way, you will achieve excellent returns for every dollar you invest in television advertising. If you want more advice from the experts, contact us; we will be happy to support you.programmatic tv Minneapolis