Thanks to new registration requirements, broadcasters such as Channel 4 are able to offer more and more programmatic inventory. Mike Shaw, VP EMEA at dataxu compares the measurement and brand safety capabilities of traditional and programmatic TV inventory.
After the challenging past year for the media industry, with ads online appearing next to harmful content and stories of data sold illegally, brands are looking to move their content to more brand-safe environments. While traditional TV has long been considered expensive and difficult for micro-targeting, it is also renowned for being brand-safe and offering high-quality inventory. Advanced TV will be able to combine the best of both worlds: The prime environments of traditional TV with the precise targeting and measurement opportunities of online advertising.
Uniting opposing objectives
Recent brand safety worries have led to advertisers investing in traditional TV. Channel 4 announced record revenue thanks to increased ad buys after last year’s Youtube scandal. TV has recently received an additional boost from government side. The new registration requirements in the UK introduced at the beginning of the year make it easier to address audiences. Channel 4 has since been able to turn all their advertising inventory programmatic, offering amazing targeting opportunities to brands looking to reach a specific micro-audience. The readily available programmatic TV inventory allows for the same level of hyper-targeting and measurement possible with online campaigns, while still providing the high-quality, reputable and safe placements of TV. Advanced TV is at an exciting time right now, and brands should jump right in to make the most of the opportunities on offer.
Advanced TV targeting
At dataxu we recently asked both brands and media agencies why they decided to include Advanced TV in their media plans. Brands know that programmatic TV gives them the opportunity to reach specific target audiences in a precise manner that is not possible with traditional TV advertising. According to our own recent research, getting mass reach and scale (21%) and targeting ads to specific households (22%) are their top two reasons, followed by linking TV exposure with offline sales (19%).
The media agencies we surveyed see similar benefits but are focusing on the advantages Advanced TV can bring to costs and measurement. Their top three reasons as to why they are buying Advanced TV include getting mass reach and scale (20%), improved attribution and reporting (17%) and low-cost CPMs (15%) – interestingly, the last reason wasn’t mentioned by brands at all. It shows that agencies are more concerned about the reporting and measurement capabilities, which will allow them to prove the value of programmatic video to their partner brands.
Brand safety – the ultimate goal?
While brand safety is a complex issue, Advanced TV can offer reassurance to brands when it comes to their image and reputation. While the brands we spoke to don’t see brand safety as the main reason to invest in Advanced TV, they do name it as part of their top four reasons. When looking at online advertising, brand safety and scale have often stood in opposition to each other. In order to reach large audiences, brands would have to give up control as to where their campaigns are shown – and in which environments. In this regard, Advanced TV is part of a completely different world – high-quality inventory provided by the big names, such as Sky and Channel 4 will reassure brands that their campaign appears next to positive and safe content. At the same time, the targeting opportunities of programmatic mean that brands are able to reach exactly who they want to talk to, rather than addressing their messages to the wide open.
The key result of our research is that brands already recognise that Advanced TV offers various benefits over both traditional TV and online advertising. Thanks to the many different solutions under the umbrella term “Advanced TV” (such as Connected TV, Addressable TV etc.), there will be the right opportunity for every brand’s individual needs and requirements. As the industry is working towards renewing itself and emerging from a troubled 2017, Advanced TV will become an even more important pillar of high-quality inventory.
By Mike Shaw