Programmatic TV is a leap in advertising technology. It can be defined as "a technology-automated and data-driven method of buying and delivering ads against TV content," according to Think With Google.

Marketers use hyper-personalized consumer data to exclusively target the viewers they want. That precision targeting reduces ad waste, yields higher ROI, and gets marketers' messages across to viewers most likely to buy their products or services.

But programmatic TV isn't right for every brand.

When the programmatic agency where I worked pitches existing and prospective clients, it carefully scrutinizes the business before determining whether it's a good fit.

Programmatic TV works (and I have the data to prove it), but for the right brands. Check out the following questions to ask when deciding whether a brand is a good fit for Programmatic TV.

1. Is the brand big enough?

Precision targeting is great, but you need to have a brand with targets spanning across multiple markets for it to truly work. The limited number of network providers that offer Programmatic TV won't even work with local brands in the first place.

Because select providers offer Programmatic TV ads, the majority of TV viewers are eliminated right off the bat. Household addressable makes sense if your brand is regional or—even better—national, so your messaging can be broadcasted to enough households.

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John Holmes is a partner of Sq1, a full-service indie digital ad agency based in Dallas, Texas.

LinkedIn: John Holmes