Strategy Analytics Press Releases

Programmatic Buying to Reach 20 Per Cent of US TV Advertising Says Strategy Analytics

by David Mercer | May 14, 2014
TV Advertising Likely To Follow Online Towards More Automated Media Buying

Boston, MA - May 14 2014 - The process of buying and selling television advertising is poised for a significant transformation according to the latest research from Strategy Analytics' Digital Media Strategies service. The report, "Programmatic Buying: Is This The Future of Television Advertising?," found that television advertising processes have been fairly static for decades but will begin to change over the coming years as various stakeholders in the ecosystem use advanced data analytics and tools to make more informed buying decisions and improve operational efficiencies.
  • Programmatic buying is the use of data, technology, and software to drive better media buying decisions and ultimately automate media buying workflows
  • The report concludes that programmatic buying will account for 20% of US television advertising dollars by 2018
"There are challenges ahead, notably in industry education, technological limitations and control over pricing," comments Michael Goodman, Associate Analyst and the report's author. "But we believe that the benefits of programmatic buying are beginning to outweigh perceived obstacles to its wider adoption in television."

Programmatic buying has already become entrenched in online advertising and is making significant inroads in online video. The process has been introduced in a number of television services, notably by Cox Media in partnership with clypd, a technology platform, as well as Sky TV's Adsmart platform in the UK.

"Initially, programmatic buying has made inroads into addressable advertising, local advertising, and TV Everywhere/OTT TV," notes Goodman. "Over the coming months we expect it to expand into the scatter and spot markets, and from 2015 we will be looking out for significant moves into the upfront market."

The report is available to clients of Strategy Analytics' Digital Media Strategies advisory service and discusses the benefits and drawbacks of programmatic buying, and assesses its likely impact on the television advertising industry.