Maximizing Reach: The Benefits of Programmatic CTV Advertising

Today, 54% of marketers rely on Performance TV to drive their sales pipeline. With proven success, marketers are planning to increase their CTV ad spend by 23.6% this year. 

As Performance TV rapidly becomes a key growth channel, we set out to discover how marketers are incorporating CTV ads into their overarching marketing strategies and the impact it has on their business outcomes. Our benchmark report, 2024 State of Performance TV, is based on survey results from over 600 marketers, highlighting these insights.

We included the most critical data points for clarity and conciseness in the report, but the survey also revealed insights into the different ways marketers are buying CTV ads. Drawing from some of the unshared insights, we’re diving into a topic that’s always on our minds as fellow marketers: the incredible power of using broader, programmatic platforms for purchasing CTV ads. 

How Are Marketers Buying CTV Ads?

One particularly intriguing insight that didn’t make it into the final report is how marketers are approaching their CTV ad buys — and the results were fascinating. 

The results, while very close, revealed that more marketers are running ads through programmatic platforms than ever before. 

Some respondents noted that they’re utilizing a blend of buying strategies — combining direct deals with programmatic platforms. However, this mixed approach may lead to further data fragmentation down the line, especially as streaming apps’ churn rates rise. On the other hand, buying programmatically allows you to see unified data for all of your campaigns across all platforms — but more on this later.

The Evolution of Consumer Viewing Behavior

Over the past decade, the way consumers view TV has dramatically changed. 

With the rise in streaming services, the majority of consumers today are more frequently turning to platforms like Netflix, Hulu, and Prime Video to view content over traditional TV. In fact, Nielsen’s report shows that 40.3% of US consumers watch TV via streaming services, surpassing cable (27.2%) and broadcast (20.5%). 

But viewers aren’t loyal to one streaming platform, either. Instead, most people often switch between multiple streaming services depending on content availability. And with so many platforms to choose from, consumers frequently find themselves in an endless loop of subscribing and unsubscribing to various streaming services. In fact, according to Deloitte’s study, the average churn rate across all paid SVOD services is about 37% in the US. 

So, what does all of this mean for CTV advertisers? To maximize reach and find your target audience everywhere they go, you’ll want to use a programmatic platform.

The Benefits of Programmatic Platforms

Programmatic platforms revolutionize CTV advertising by offering unparalleled benefits:

1. Broader reach across multiple platforms

One of the biggest benefits of buying CTV ads through programmatic platforms like tvScientific is that you can buy ads across various channels and platforms simultaneously, while still having access to precise audience targeting options. 

Most programmatic platforms have a vast inventory of ad space across numerous publishers and networks. In fact, tvScientific connects marketers with 95% of AVOD streaming apps through direct deals, so you can reach the entire CTV universe and find the right audience across platforms. This expansive reach ensures that campaigns can be scaled effectively and target users across their preferred devices and platforms.

2. Efficient ad spend

Despite the broad reach, programmatic platforms like tvScientific excel in providing precise audience targeting options. On tvScientific, you have access to thousands of unique behavioral targeting segments to ensure you can reach your ideal customers on demand.

Additionally, programmatic platforms offer real-time data and insights, which are crucial for optimizing campaigns across multiple platforms and streaming services. Marketers can track performance metrics, such as impressions, clicks, and conversions, in real-time and make informed adjustments to their ad strategies. Not to mention, programmatic buying often utilizes real-time bidding (RTB), which can lead to more competitive pricing and cost savings. 

This dynamic optimization ensures that ad spend is efficiently allocated, and campaigns are continuously refined to achieve the best possible results. By targeting specific audiences and optimizing in real-time, programmatic platforms help minimize ad spend on irrelevant or non-performing impressions, reducing overall ad waste.

3. Unified measurement and reporting

Even though Performance TV provides greater data insights, two myths remain in the minds of marketers that prevent them from leveraging the channel: it’s hard to target the right audience and it’s difficult to measure the results.

However, by using a programmatic platform, you have a centralized hub for aggregating performance data from various networks and channels — streamlining measurement and reporting. 

Using a single platform like tvScientific for measuring and analyzing campaign performance across all networks offers numerous advantages, including:

• Unified data views
• Streamlined reporting
• Enhanced data accuracy
• Comprehensive insights

This consolidation leads to improved attribution, seamless optimization, and more cohesive strategy development.

Challenges and Considerations

Now that you know the benefits of programmatic platforms, let’s talk about some challenges you may need to consider. 

1. Technical complexity

First, the technical nature of programmatic advertising can be overwhelming for those not familiar with the technology, which may lead to errors in campaign setup and management. For this exact reason, we have in-house strategists always standing by to help guide you through the entire programmatic buying process, from setting up your campaign to measuring performance. 

2. Limited creative flexibility

While programmatic allows for efficient ad delivery, it may limit creative formats and personalized messaging options compared to direct buying, where advertisers can negotiate more tailored ad experiences. 

3. Need for robust data management 

When it comes to programmatic buying, there may be fragmentation across platforms and devices. Discrepancies in data collection and reporting can hinder the ability to gauge true campaign effectiveness. 

The good news is that tvScientific has innovative multi-touch data tracking and a measurement system that simplifies results. No gray areas here! 

4. Bid duplication

Bid duplication has been a pervasive issue in the industry for years. In fact, it’s most prominently found when dealing with programmatic providers that purchase inventory through the open exchange.

tvScientific has direct relationships with our supply partners and does not purchase inventory through the open exchange. Additionally, tvScientific has built-in technology that proactively protects our customers from duplicate bid requests to ensure the integrity of our client’s advertising campaigns. This technology prevents overspending on high-volume inventory and overpaying CPM.

Unlocking the Power of Programmatic Platforms for Superior CTV Advertising

Unlike direct buying, programmatic platforms offer broader reach across multiple channels, precise audience targeting, and unified measurement for better performance tracking. Investing in a programmatic platform like tvScientific can enhance your advertising efforts, maximize reach, and improve campaign efficiency. 

For marketers aiming to stay competitive and optimize their CTV campaigns, adopting programmatic solutions is an effective choice. Check out our complete report, 2024 State of Performance TV, to dive deeper into CTV insights. 

If you’re ready to get started with programmatic platforms, book a demo to see if tvScientific is the right solution for you.