PHOTO
Getty
Programmatic platforms need to become a part of a brand’s vernacular, as it appears we are moving into a new media environment. These platforms are becoming more readily used by companies to access their inventory to share brand messages through traditional media.
Accessing media inventory through human-to-human contact is a model that appears to be getting replaced due to technology allowing for better pricing, time efficiencies in placement, and nimbleness of media campaigns, which, in turn, can positively impact performance.
Currently, all we are talking about is accessing inventory through broadcast TV, cable TV, outdoor and radio. What we should be speaking about is Google, Facebook or programmatic display inventory. Jelli, Wide Orbit, Adobe, Trade Desk, AdRoll and other programmatic platforms allow you to commerce traditional media, such as TV, radio, outdoor and cable, via programmatic buying methods.
We also need to begin discussing the shifting media trends. Consumers are watching more Hulu, Netflix, HBO Now, Roku, Disney+, and listening to more tunes through their iPhones, Pandora and Spotify.
We are beginning to see more adoption not only from media buyers; the seller side is also beginning to make more inventory available through the auction. Broadcast and outdoor companies can make more money paying platform commissions than they can with sales reps, general sales managers, general managers, traffic coordinators, sales support, compensation, health insurance, and the many other human costs.
Here are some of the facts:
Hearst Television and NBCUniversal’s local stations have reported on moving to a CPM model from the CPP model. That means they are impression-based versus rating-point-based. Impressions are served programmatically while rating points are negotiated through reps and media buyers. The Television Bureau of Advertising (TVB) is supporting this shift because it understands that viewers are on all screens, including digital and streaming services.
Earlier this year, Apollo, an investment bank, purchased all Cox radio and TV and is in negotiations with Tegna, and presumably looking at other media properties. Investment banks are not usually in the business for investing long-term in properties but instead taking over for 5-7 years and then selling their investment off. This leads me to believe they are going to automate these buildings and remove the human costs, which would drive down overall costs and increase margins. Once they have the technologies enabled and the cash flow is determined, I predict they will look to sell the properties. I’m not trying to take you through an economics class, but brands should know what’s coming and what the changes will be in how media is purchased.
In 2018, Volvo ran a programmatic TV campaign that generated a 35% increase in sales. The brand released a video on Roku and Samsung TVs. Making the shift to programmatic allowed the brand to create more targeted and personalized campaigns based on location, including local deals. This campaign generated about 526K unique engagements across about 95K homes.
The ability to commerce broadcast TV, radio and outdoor has already commenced. The media inventory is already available through programmatic means. PWC predicts that by 2021, approximately one-third of global TV ad revenue will be programmatic. This new era is here, and the velocity of adoption seems to be on the cusp. Here is the good news: It will be better for brands!
Benefits For Brands
Programmatic buying can help brands with multiple aspects of marketing. We should know — our agency has been making the shift to programmatic buying for years. Back in 2016, we began working with Jelli to begin programmatic radio buying for some of our clients and saw a 17% savings in our radio campaigns. That said, here are some of the overall benefits of going programmatic, no matter what platform you use:
Better Targeting: Better targeting is one of the top benefits of programmatic buying. It gives you the flexibility to target audiences based on location and keywords or retargeting in a more personalized way.
Easier Creative Changes: When doing traditional buying and programming, you often have to go by the media rep’s schedule. With programmatic buying, you are able to make real-time changes to your creative or scheduling.
Tighter Feedback Loop On Performance: Programmatic advertising allows you to see real-time measurements on how all aspects of the campaign are going and make changes accordingly.
Broader View Of Video/Audio Inventory: When buying advertisements programmatically, it allows you to see all media options and buy all at once instead of having to do each one separately.
Items To Consider
If you want to continue a more traditional model, find a trusted vendor and communicate buy flow. If you are thinking of making the switch, do what you can to begin gaining experience. The buying atmosphere is more nimble and the characteristics of an effective buy need to be analyzed. Gain familiarity with programmatic and auction-based bidding before you start any buying.
One of the greatest advantages of programmatic buying, in my opinion, is that the platforms can give you a more in-depth view of video distribution. This can show you new ways to distribute video besides TV, including Facebook, Instagram, YouTube, OTT, video pre-roll and native advertising.
While change is never easy, this journey should be fulfilling and make campaigns perform even better. Ready or not, here you go!
How To Get Started
Your first step is to start looking into platforms that will allow you to commerce all media without human-to-human contact. Next, you can begin to use these media platforms and gain analytics from campaign usage. The types of analytics you should be seeing is money savings and more engagement from media messaging. If this seems cumbersome and not in your organization’s core competencies, begin to vet adtech agencies that can assist you with developing a strategy for this new media economics.
In summation, the future of media buying will not consist of media reps but, rather, tech-savvy programmatic buyers, and will be limited to no human-to-human contact. It’s time to make the shift if you haven’t already done so.
