Connected TV has produced an unprecedented acceleration in the transformation of traditional TV advertising. Added to all this is the enormous spread of streaming platforms such as Netflix and Prime Video which have produced changes in the habits of using traditional television content.
In recent months there have been many news announced by the most used and famous video platforms in Italy. The new investments and solutions presented show that streaming focuses on advertising technology, as well as content.
The new generation audience is increasingly looking for a highly personalized and immediate content experience, where they are the ones who choose the content directly on the streaming instead of having to navigate through television channels.
This change forces the different players to review their strategies and evolve in order to remain competitive and relevant in an ever-changing environment.
In this scenario, it becomes essential to develop advertising solutions that adapt to this new medium.
The Changing Of Traditional TV Advertising
Traditionally, TV advertising has been based on a time-based ad buying model, with campaigns planned in advance, segmented by time slots, and generic demographic targets. The most common ad formats were TV break commercials, with the possibility of high reach but without granularity in performance data and real-time optimization.
While still effective in terms of visibility, this model has encountered limitations in an increasingly complex digital environment, where the need for measurability, personalization, and advanced targeting has grown exponentially.
Programmatic Advertising: Definition and Benefits of Streaming
Programmatic advertising is an automated approach to ad buying, which uses algorithms and technology platforms to optimize and personalize ad buying.
The use of programmatic advertising proves to be an excellent opportunity for both advertisers and broadcasters. Advertisers have the ability to create highly profiled audiences and use them for campaigns, and through data enrichment activities they can expand by increasing the reach and addressability of campaigns. Broadcasters can create clusters that are more defined and at the same time composed of more engaged users: a more profiled and interested audience is undoubtedly more interesting for advertisers as well.
In the context of streaming, the integration of programmatic has enabled a number of benefits, including:
– Profiled Audiences: Unlike traditional TV commercials, programmatic streaming allows you to target campaigns to precise and profiled audiences. Through the analysis of users’ viewing habits, it is possible to target ads to very specific segments, improving campaign delivery and campaign performance.
– Adaptability and flexibility: Programmatic campaigns can be optimized in real time, with the ability to adjust budget, targeting, and creative based on performance data. This dynamic approach allows you to respond quickly to changing market needs and optimize results.
– Measurability and Traceability: With real-time data tracking, advertisers can access detailed dashboards and reports on user engagement data with ads by tracking every user behavior so they have a detailed view of the entire customer journey.
Benefits for Broadcasters: Inventory Optimization and New Monetization Opportunities
Broadcasters, who have traditionally based their revenues on the sale of advertising space on a time-based basis, are now facing a fundamental transition, in which the integration of programmatic advertising into streaming represents a unique opportunity. Let’s see some of the main benefits:
Improved monetization of ad inventory: Programmatic advertising allows broadcasters to optimize the sale of their ad space, including on streaming platforms, by using technology to sell inventory more efficiently and targeted.
Cross-channel campaign optimization: Programmatic advertising allows broadcasters to manage advertising campaigns across multiple channels (TV, OTT, digital) simultaneously, while maintaining overall visibility of the entire media ecosystem. This means that campaigns can be optimized based on data from all sources, improving effectiveness and reducing duplication of impressions.
Real-time optimization: programmatic TV allows real-time optimization of advertising campaigns based on user behavior or other factors, thus ensuring greater relevance and personalization of content.
Advanced segmentation and profiling: Using data and artificial intelligence, broadcasters can segment users not only by demographic, but also by viewing behavior, favorite content, viewing times, and more, improving targeting accuracy.
Benefits for Advertisers: Accuracy, Efficiency and ROI
For advertisers, the adoption of programmatic advertising in streaming offers a number of strategic benefits that not only increase campaign effectiveness, but also operational efficiency:
Precise targeting: Access to a vast amount of behavioral data allows advertisers to segment their audiences in great detail.
Continuous optimization: programmatic advertising allows a constant improvement of advertising campaigns, based on real-time analysis. Advertisers can adjust spend, targeting and creative formats based on the results they achieve, continuously improving the effectiveness of advertising.
Increased ROI: As advertisers can optimize their ads in real-time, reduce waste, and target messages to a more relevant audience, the likelihood of a conversion increases dramatically. The data-driven approach guarantees a higher return on investment than traditional models of buying advertising space.
Advanced measurability: Advertisers can monitor every stage of the campaign, analyzing precise metrics such as viewability, engagement, and conversions. This level of transparency allows for better control over the performance of your advertising spend.
An Increasingly Programmatic Future for Streaming Advertising
The integration of programmatic advertising into the world of streaming is transforming the TV advertising landscape, offering significant benefits for broadcasters and advertisers alike.
For broadcasters, it means more efficient and flexible monetization, with the ability to manage ad inventory optimally and generate new revenue streams. For advertisers, programmatic advertising represents a unique possibility of precise targeting, continuous optimization and advanced measurability, leading to better campaign performance and superior ROI.
As streaming platforms evolve and programmatic advertising continues to grow, we can expect this model to become the norm, taking the TV advertising industry to a new level of efficiency and personalization. The future of TV advertising is not only more digital, it is also smarter and more interactive, with programmatic advertising playing a central role in this revolution.
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