Unlocking CTV’s Potential: Automating Ad Buying Beyond Programmatic

Introduction

The ad-tech industry has been abuzz with the rise of Connected TV (CTV) and the potential for automation in this space. As CTV continues to grow in popularity, advertisers are looking for ways to efficiently and effectively reach their target audiences on these platforms. One trend that has been gaining traction is the idea that CTV should be automated, but it doesn’t necessarily need to be programmatic. In this article, we will explore the current state of CTV, the benefits of automation, and why programmatic may not be the only solution.

The CTV landscape has undergone significant changes in recent years, with the proliferation of streaming services and the increasing adoption of smart TVs. According to a report by eMarketer, CTV ad spending is expected to reach $14.44 billion by 2023, up from $6.94 billion in 2020. This growth has created new opportunities for advertisers to reach their target audiences, but it also presents challenges in terms of ad buying and management.

One of the key challenges in CTV is the complexity of the ad buying process. Traditional TV ad buying involves manual processes, such as negotiating with publishers and managing ad campaigns. However, with the rise of CTV, advertisers are looking for more efficient and automated ways to buy and manage their ad campaigns. This is where automation comes in – by automating the ad buying process, advertisers can save time and resources, and also gain more control over their ad campaigns.

Trends

There are several trends that are driving the adoption of automation in CTV. One of the main trends is the increasing demand for addressable TV advertising. Addressable TV allows advertisers to target specific audiences based on demographic, behavioral, or other data points. This type of advertising requires a high degree of automation, as it involves analyzing large amounts of data and making decisions in real-time.

Another trend that is driving automation in CTV is the growth of streaming services. Streaming services such as Netflix, Hulu, and Amazon Prime have created new opportunities for advertisers to reach their target audiences. However, these services also present challenges in terms of ad buying and management. By automating the ad buying process, advertisers can more easily navigate these complexities and reach their target audiences.

Despite the benefits of automation, there is a growing debate about whether CTV needs to be programmatic. Programmatic advertising involves using automated systems to buy and sell ad inventory. While programmatic has been successful in digital advertising, some argue that it may not be the best fit for CTV. One of the main reasons for this is that CTV is a more premium environment than digital, and advertisers may be willing to pay a premium for high-quality ad inventory.

Another reason why programmatic may not be the best fit for CTV is that it can be complex and opaque. Programmatic systems often involve multiple intermediaries, which can take a cut of the ad revenue. This can make it difficult for advertisers to understand where their ads are being shown and how much they are paying for them. In contrast, automation can provide more transparency and control over the ad buying process.

Buy-Side Trends

From a buy-side perspective, there are several trends that are driving the adoption of automation in CTV. One of the main trends is the increasing demand for transparency and control. Advertisers want to know where their ads are being shown and how much they are paying for them. Automation can provide this level of transparency and control, by allowing advertisers to manage their ad campaigns in real-time.

Another trend that is driving the adoption of automation is the growth of advanced TV advertising. Advanced TV advertising involves using data and analytics to target specific audiences and measure the effectiveness of ad campaigns. Automation is critical to advanced TV advertising, as it involves analyzing large amounts of data and making decisions in real-time.

The rise of CTV has also led to an increase in demand for cross-screen advertising. Cross-screen advertising involves targeting audiences across multiple devices and platforms. Automation can help advertisers to manage cross-screen campaigns, by providing a single platform for buying and managing ad inventory.

In terms of industry consolidation, there are several trends that are driving the adoption of automation in CTV. One of the main trends is the increasing consolidation of ad-tech companies. As the ad-tech industry continues to evolve, there is a growing need for companies to consolidate and simplify their operations. Automation can help to drive this consolidation, by providing a more efficient and effective way to buy and manage ad campaigns.

The Privacy Sandbox is another trend that is driving the adoption of automation in CTV. The Privacy Sandbox is a set of proposals from Google that aim to provide a more private and secure way of targeting ads. Automation can help to drive the adoption of the Privacy Sandbox, by providing a more efficient and effective way to target ads while also protecting user privacy.

Conclusion

In conclusion, the trend towards automation in CTV is driven by several factors, including the increasing demand for addressable TV advertising, the growth of streaming services, and the need for more transparency and control over the ad buying process. While programmatic advertising has been successful in digital, it may not be the best fit for CTV. Instead, automation can provide a more efficient and effective way to buy and manage ad campaigns, while also providing more transparency and control.

The buy-side trends that are driving the adoption of automation in CTV include the increasing demand for transparency and control, the growth of advanced TV advertising, and the rise of cross-screen advertising. Industry consolidation and the Privacy Sandbox are also driving the adoption of automation, by providing a more efficient and effective way to buy and manage ad campaigns while also protecting user privacy.

As the CTV landscape continues to evolve, it is likely that automation will play an increasingly important role. Advertisers will look for ways to more efficiently and effectively reach their target audiences, and automation will provide a key solution. However, it is also important to consider the potential challenges and limitations of automation, and to ensure that it is used in a way that is transparent and fair.