Understanding Programmatic TV advertising

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 technology and real-time auctions to automate transactions between buyers and sellers. This article discusses the changes to TV that enable the rise of programmatic models and proposes that programmatic TV's future success depends on the coordination and availability of three factors, abbreviated DAD: distribution, ad inventory, and data. It also elaborates on the effects of media context and how the TV program environment matters for advertising effectiveness. Finally, this article discusses the future of TV advertising and related research needs.

International Journal of Advertising
Edward C. Malthouse
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