Warc, 14 August 2013
CAMBRIDGE: European broadcasters are better positioned than
those in the US to lead the way in the development of programmatic buying of TV
advertising, thanks to a fragmented media landscape, a leading industry analyst
has said.
A new report from Forrester – Convergence Disrupts Europe's
TV Ad Market – identifies five trends across the region, including on-demand
viewing, TV anywhere, online professional content, addressable advertising and
programmatic buying.
Author Jim Nail said these trends would result in the
disruption of established buying practices over the next three to five years
and that marketers would have to adopt new tools and strategies in order to
achieve the desired reach and results from their video advertising.
He told Ad Exchanger that the whole idea of programmatic
buying remained "nascent" in both the US and Europe, "but the
hurdles to accelerating programmatic in TV within Europe versus the US are much
lower," he added.
He pointed to the range of technological and regulatory
practices across the continent and argued that this had allowed greater
flexibility and a willingness to experiment.
"So Europe will likely point the way for development of
programmatic TV buying in the US," he concluded.
More specifically, Nail expected the biggest changes to
happen outside primetime viewing in areas of low demand.
"The nice thing about niche cable and local avails,
there is a lot less risk for marketers buying spots in those areas, as opposed
to the difficulty in changing the way they buy primetime," he said.
"That's where programmatic TV will emerge."
And once it proved successful, he anticipated "its use
will expand and accelerate upward across the different tiers of value".
He warned, however, that marketers needed to craft different
messages for different audiences according to device, mindset and time.
"If it's an insurance company, and the target audience
is older, you probably don't need to extend that TV ad to mobile, where the
audience tends to be younger. So that thinking has to change before
programmatic TV can truly take hold," he said.
Data sourced from Forrester, Ad Exchanger; additional
content by Warc staff
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