Programmatic buying -- the process of buying media using automated technology -- has transformed the way marketers, agencies and publishers buy and sell digital inventory.
TV is next, with programmatic buying accounting for up to 5% of TV buying in 2015 and more rapid adoption in the coming years, according to predictions by agency executives speaking on an Advertising Week panel called "Programmatic TV, Advertising's Next Great Frontier." That's up from only about 1% now.
However, TV and digital programmatic are different, moderator Dan Ackerman, AOL's senior VP-programmatic TV, emphasized. Programmatic TV buying is not necessarily about automating the entire transaction as it often is with digital inventory. Rather, it's better defined as buying inventory based on data derived from programmatic technology.
Panelists included: Kris Magel, chief investment officer for Interpublic's Initiative; Doug Ray, global president of Carat; and Joseph Abruzzo, exec-VP and chief exploration officer at Havas.
Though it's still in its nascent stage, most programmatic TV buying is happening in local cable and satellite markets, and national TV networks are just now beginning to extend their inventory sets, according to Mr. Magel. He said that some of the networks probably wouldn't want to be named since they're worried that the move will be perceived as commoditizing TV inventory.