The Rock and Roll of Programmatic Advertising on Mobile TV

The $70 billion television advertising business is poised for a change. Following the path of desktop, social and mobile ads, the television industry is beginning to flirt with programmatic technologies [1]

Global Head of Digital & Innovation at Zenith Media, Benoit Cacheux, has stated: “We believe that the growth of programmatic will continue to be fueled by improvements in the quality of media available in programmatic environments... and the greater availability of programmatic mobile media, as well as the sophistication provided by ad tech solutions such as data management platforms and connected ad tech stacks” [2].

So What Exactly is Programmatic Advertising?

In a nutshell, programmatic advertising is buying advertising space and placing ads via an auction procedure. OONA – known as the YouTube of TV, offers AVOD (advertising-based video on demand) and premium options via its OTT TV platform which serves 185 million Indonesians. It is also on course for delivering its revolutionary to other parts of Asia, Africa, South America, the Middle East, the US and Europe. OONA focuses on user experience for competitive advantage, so naturally, OONA is very geared towards programmatic advertising which employs various parameters including viewers' historical data and advanced algorithms in order to calculate real time bids for each advert that is placed by channel owners and content holders. The purchasing transactions are immediate.

OONA offers a strong business model to channels and content holders via its OTT monetization methods. Programmatic advertising is a highly successful advertising option on the OONA platform. It effortlessly streamlines the process of ad buying via the use of automated data-driven, technology. There are three platforms involved in this type of marketing automation: 1. DMPs (data management platforms) which analyze and collect the users' information to drive specific targeting. 2. SSPs (supply-side platforms) which maintain the publishers' ad inventory, and 3. DSPs (demand-side platforms) which provide ad purchases on the open market [3]. OONA's advertising options include: 1. A programmatic advertising video (30 seconds), CMP and CPC revenue; 2. Programmatic display advertising (30 seconds), CMP and CPC revenue; 3. Programmatic advertising short-video (pre-roll 6 seconds); and 4. Pay per view micro-transactions.

So What is So Advantageous about Programmatic Advertising?

“Programmatic advertising has risen to dominate the digital display market in just a few years, having accounted for just 13% of display adspend in 2012. Programmatic adspend grew from US$5bn in 2012 to US$39bn in 2016, at an average rate of 71% a year” [2]. And the spending for programmatic digital display advertising: “is projected to grow to 45.72 billion in 2019” [3].

Programmatic marketing empowers channel and content owners so they can target specific audiences. This can cover various demographic segments including location, social standing, gender, age and interests. Moreover, ads can be limited to certain frequencies and specific times in the day to coincide with target markets, such as in between live sports specials. With this method, channel and content owners are only paying for hugely effective adverts, delivered at the right time to the right people.

The bottom line is that programmatic advertising increases efficiency and saves money - two very valuable advantages. By opting for automation, it puts human beings are out of the equation, and buying ads becomes less expensive and more dependable. Also, very importantly, program channels and content holders are able to optimize their KPIs (key performance indicators), and attain a deeper insight into the behavior of consumers [4].

The Rock and Roll Future of Programmatic Advertising

There are a number of exciting predictions: 1. Purchases of programmatic advertising will skyrocket, and ultimately, purchasing will surpass conventional, manual ad purchasing. Furthermore, industry experts predict that leading up to 2020: “programmatic advertising will drive 100% of advertising purchases. Organizations not championing automation will fall behind those that do” [4]. 2. Traction will be gained in the field of DCO (dynamic creative optimization), the cutting-edge display advertising which delivers automatic multi-variate testing, namely, algorithms which interpret results and ascertain how to deliver advertisements for the most optimal performance. 3. There will be more header bidding [2], such as that offered by the OONA platform. This empowers channels and content owners with a high tech method so they are able to offer inventory to multiple advertising exchanges at the same time. 4. Personalisation will become more intelligent. When channels and content owners are able to laser focus their programmatic ads to individual viewers, then they can leverage strategies including explicit demographics and geographical location [4].

References

[1]. Blattburg, Eric (2013). “WTF is Programmatic TV Advertising?” Digiday UK. https://digiday.com/media/wtf-programmatic-tv-advertising/ Accessed 12 Dec. 2017.

[2]. Zenith Media (2017). “Programmatic ads to grow 31% in 2017, ahead of all other channels.” Retrieved from: https://www.zenithmedia.com/%EF%BB%BF%EF%BB%BF%EF%BB%BFprogrammatic-ads-grow-31-2017-ahead-channels/ Accessed 12 Dec. 2017.

[3]. Statistica (n.d.).“Programmatic digital display advertising spending in the United States from 2013 to 2019 (in billion U.S. Dollars).” Retrieved from:

https://www.statista.com/statistics/278727/programmatic-display-ad-spend-in-the-us/ Accessed 12 Dec. 2017.

[4]. Kloefkorn, Sheila (2017). “Trends In Programmatic Advertising To Watch This Year.” Forbes. Retrieved from: https://www.forbes.com/sites/forbesagencycouncil/2017/05/16/trends-in-programmatic-advertising-to-watch-this-year/#781cb7cf7f11 Accessed 12 Dec. 2017.