Programmatic technology or how to exploit segmentation on television

In an audiovisual scenario that tends to converge between television and online video, addressable TV is emerging as the next revolution by taking the personalization of the advertising experience one step further.

The advertising industry is in constant evolution in the television field. In recent years, the use of programmatic technologies has made it possible to widely automate the buying and selling of advertising, making the entire campaign management process more efficient. In an audiovisual scenario that tends to converge between television and online video, the next revolution to take the personalization of the advertising experience one step further: let's welcome addressable TV.

Programmatic technology already represents an advance when it comes to serving advertising on television, through the use of software for campaign management. But a new twist, based on the application of intelligent layers of technology to achieve a much more precise segmentation of audiences, will come from assignment advertising. Or, as it is known in Anglo-Saxon markets, addressable TV. As a consequence, the broadcast of advertising on linear television goes from being uniform to becoming a personalized and individualized experience for households. This represents a great advance compared to the segmentation models that conventional television has today.

Given this disruptive situation, which will modify the television advertising ecosystem, what is the opinion of the main players in the industry? From a technology point of view, we recently published the study TV Nations: The Future of Progressive Solutions for TV Advertising in collaboration with MTM, which shows the current state of the realities and desires of the industry regarding programmatic television. And what emerges from the report is that there is a consensus on the part of all actors to promote the development of progressive technological solutions for television advertising throughout Europe.

Leading industry players predict an increase in new advertisers and TV campaigns thanks to customizable advertising. According to a recent study by the Video Advertising Bureau, 71% of advertisers are willing to pay higher prices for better targeted advertising. Progressive solutions for television advertising will undoubtedly help drive significant growth in the television industry. And some estimate a surge in this market, which will reach billions in a few years.

Convergence of online video and television

Today, television continues to lead the way in terms of video consumption in Spain, with linear television being the star. Audiovisual media consumption habits reveal that they consume four hours of linear television per person per day in Spain. The total count of audiovisual media consumption increases if second screens are considered.

Ante esta situación, el futuro de anunciantes y agencias irá de la mano con la convergencia. De nada servirá controlar muy bien el móvil o bajo demanda si no se consigue un producto audiovisual convergente que sea capaz de competir en igualdad de condiciones en cuanto a fuerza y estabilidad. En España disponemos de la tecnología disponible para aplicar la convergencia de vídeo online y televisión y una demanda por parte del consumidor creciente, por lo que deberíamos reflexionar sobre su implantación real para que no nos coja desprevenidos.

Convergence is the goal towards which the market must head. For some time now, business giants like Google and Facebook have focused their interest on television, the next big screen where they have set their goals. The rest of the actors, if we want to compete on equal terms, must take steps towards that convergence where advertisers can develop campaigns with the possibility of brand safety, safe environments and quality campaigns.