Media ad buys used to be so simple. Where traditional television advertising targets certain demographics using GRPs or Gross Impressions, today it seems like every media buy has its own fee structure. Newly added to the mix is programmatic TV, which changes the old formula in two ways:
- It puts a layer on top of TV’s trafficking and booking system, which allows an automated buy; and
- It uses a data-driven approach that goes far beyond the up-until-now industry standard.
The Issue of Transparency
You’d be forgiven for assuming that the concept of TV ads being bought and sold using automated technology and precision data was a sure thing. But while there are clear benefits to programmatic ad buys, a lack of transparency in its associated fee structure could have an impact on the adoption and growth of the new technology. At a panel hosted by Videonuze early last year, programmatic TV obstacles and hurdles was the hot topic. It’s apparent the transparency issue is one the industry needs to solve for this business model to succeed.
The Transparency Solution
Where to start? Some experts say right at the beginning: in the negotiation phase. Transparency in digital ad buys is an issue across the board. Traditional ad buyers worry that their tried-and-true business model will be upended by programmatic TV, resulting in the loss of control over the buying process. It would seem the best way to allay their fears is by providing them with very high levels of control and transparency from the start. Advertisers must be given access to:
- The source of TV inventory for their programmatic campaigns.
- The direct or indirect channels through which the inventory for those campaigns is secured.
- The value provided by each intermediary along the way.
Some experts believe that negotiation, planning, scheduling, and reporting can all be integrated to streamline the workflow. One point most agree on: if programmatic platforms don’t provide transparency in the fee structure, further growth could be inhibited. For agencies and advertisers to be able to evaluate their ROI, they need accurate information, including how their campaigns are being run. For programmatic TV to succeed, both sides will need to come together to agree on common standards, as well as the way to make sure those standards are followed.
To learn more about transparency for programmatic TVor for more information contact American Target Network today.