Four years ago in 2012, one speaker made ten predictions at the 10th i-China Forum. To date, most of them have been materialized, such as the explosive growth of RTB, the sharp increase of programmatic buying, the popularization of audience buying, the great potential of videos and smart phones, the competitiveness of big data, etc.
At the iResearch Shanghai Summit at the end of 2016, this speaker once again shared his observations and ideas about the status quo and the future of programmatic TV. He is William Gu, R&D Vice President of hdtMEDIA.
So, what does the widely-watched programmatic TV mean? As explained by William, it refers to the automatic or data-driven purchase and dissemination of ads in TV programs with the support of technologies, including digital TV ads delivered on the Internet, mobile devices and Internet TVs as well as the cable TV ads delivered via the STB. Programmatic TV is not the equivalent of programmatic TV devices or programmatic data. Rather, the carriers of the all-inclusive programmatic buying range from smart TVs to PCs, tablets, mobile phones, game consoles and outdoor screens, etc.
As digital screens get more diversified and user time increasingly fragmented, what is the status quo of the TV advertising industry and what urgent problems are advertisers confronted with? William summarized his experience and observation into four points. First, GRP, the yard stick of traditional TV media, can no longer meet the need of new channels; Second, a cross-channel and unified management and controlling mechanism for TV and video delivery still hangs in doubt; Third, deliveries fail to get support from data beyond population classification, not to speak of real-time optimization; Fourth, manual purchase procedures are complicated, inefficient and error-prone.
How will programmatic TV find solutions for these problems in the foreseeable future and where will it head for in the long run? According to the data provided by IAB, programmatic buying has passed by the era of PC and mobile advertising and is stepping into a new era of online video media. In the future, it will leap toward smart TV and live TV. These changes are expected to happen in 5 years or even longer.
The development of programmatic TV is to answer the call of industry stakeholders in emergently dealing with the aforementioned 4 headaches. Programmatic TV can optimize population positioning, improve efficiency and accuracy with automatic working procedures, and achieve better inventory value with the support of big data and new monitoring indicators.
In terms of the programmatic TV, hdtMEDIA’s programmatic video advertising platform hdtOTV boasts comprehensive domestic top-notch video media resources and allows cross-media joint screen-control. With the cross-media TA population data collected by our data management platform hdtDMP and supplementary data provided by third parties, hdtOTV can help advertisers in achieving more effective coverage of target population and at the same time lowering CPUV.