Understanding programmatic TV advertising

Abstract

Television is undergoing tremendous technological developments, which will enable marketers to direct commercial messages to more specific audiences at the individual and/or household level. Traditional ways of buying TV advertising are being challenged by the programmatic approach, which originated with search and display ads, and uses data and technology and real-time auctions to automate transactions between buyers and sellers. We discuss the changes to TV that enable the rise of programmatic models and propose that its future success depends on the coordination and availability of three factors, abbreviated DAD: distribution, ad inventory and data. We also elaborate on the effects of media context and how the TV program environment matters for advertising effectiveness. Finally, we discuss the future of TV advertising and related research needs.

Challenges and Future Directions of Computational Advertising Measurement Systems

“…While personalization has been possible for many years, it is increasingly done in real time with better data that have been collected or purchased about the target customer (Segijn and van Ooijen 2020). In addition, the decisions about whom to target, when, and with what message are made more quickly in CA compared to traditional advertising (Malthouse, Maslowska, and Franks 2018).…”

Advancing Computational Advertising: Conceptualization of the Field and Future Directions

“…Many advertising touch points have gone from being targeted at broad demographic segments to segments of individual consumers because of CA. The amount, variety, and quality of data available on individual consumers will likely improve in the future, especially with better data about the current state of the consumer/user, which Malthouse, Maslowska, and Franks (2018) call contextual variables, inspired by contextually aware recommender systems (Adomavicius and Tuzhilin 2011): who is with the user, what the user is doing, when the touch point occurs, where the user is (location), why the user is doing it (motivation), how the user is interacting with the brand (e.g., device), and the current emotional state of the user. In the past, advertising scholars and practitioners were mainly interested in the media vehicle that carried the ads (e.g., placing ads for cars in the automotive section); in the future, this broader definition of context will supplant media context.…”

Beyond reciprocal: the role of platforms in diffusing data value across multiple stakeholders

“…List rental services (e.g., Roberts and Berger, 1999) and third-party data providers like Experian, Epsilon and Axciom have existed for decades, while programmatic ad exchanges (e.g., Zhang et al, 2014;Malthouse et al, 2018) that collect data sets to improve targeting have emerged more recently. However, different countries have different rules governing the sale of such data, and recent EU legislation and the Cambridge Analytica affair are causing companies to rethink these sharing practices (Sloane, 2018).…”

“…Another way that platforms can derive value from data is through advertising and the sale of access to consumers to advertisers. Because the platform has rich data on consumers it can provide precise targeting, which improves the effectiveness of advertisements (Malthouse et al, 2018). Platforms like Facebook and Google make much of their revenues from advertising.…”