Programmatic TV involves the automated management of advertising space purchases for TV spots. Unlike programmatic buying in online advertising, the approach in television is not based on auctions or individual targeting. Currently, it focuses on automating processes and reducing costs by acquiring advertising space spot by spot.
With the rise of connected TVs, real-time programmatic buying of TV advertising space could become a reality. In this scenario, commercials would be delivered household by household, with pricing based on cost per thousand impressions (CPM). Targeting would be based on available data for each household or viewer, thus breaking with the traditional model based on programs and overall audience reach.
Intermediate steps could include early auctioning of advertising slots for all viewers before moving to real-time delivery. Individual targeting represents the ultimate and potentially ideal goal of programmatic TV, although this may seem ambitious.
It’s worth noting that when someone watches content on YouTube via their smart TV, they are already exposed to programmatic advertising campaigns running in real time through the AdWords platform. Specific references are available for further concrete examples and illustrations.
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