Programmatic TV is growing as advertisers emphasize using first-party data to better target their ad campaigns, according to a new study.
Adobe said that it found that 38% of the advertising decision makers in the U.S. said they plan to increase their programmatic TV budget. Only 28% said they planned to increase their overall TV budgets.
Of those planning to increase their programmatic spending, 62% said they were doing it to reach a more targeted audience. Meanwhile 51% said programmatic would be more cost-efficient. Other factors cited included making it easier to manage ad campaigns and faster execution.
Related: Analyst Sees TV Ad Spending on Downswing
The use of first party data makes programmatic TV more attractive, according to the study. 14% of the agency staffers and 10% of people working at brands said first party data helps them gain better insights. First-party data also allows them to deliver more tailored ads to key audiences, drive better return on investment and reduce waste.
A large share—84%—of the ad executives already employing programmatic TV said they would be likely to increase programmatic spending if they had access to first party data targeting.
And a good chunk—45% in the U.S.—said they would be likely to start buying programmatic if they had access to more first-party data targeting.
The survey was taken between May 30 and June 5 and involved more than 400 people in the U.S. and more than 200 people in the U.K. identified as decision makers for the placement of TV or digital media.
(Photo via Ervins Strauhmanis's Flickr. Image taken on Sept. 19, 2014 and used per Creative Commons 2.0 license. The photo was cropped to fit 16x9 aspect ratio.)
Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.
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