What are the key considerations for buying into Programmatic and Addressable TV? We consider activation based on key case study learning and client experiences. Performics’ Josh Martin will explore: programmatic models, inventory supply dynamics, pricing/data (with comparison to traditional linear) and acquisition performance.

1. Built for the relentless pursuit of results
Reflections from the
Advanced TV Frontlines
Josh Martin: EVP and Head of Mass
Market Acquisition Media,
Performics

2. 5 key considerations
when thinking about
Advanced TV…
Relax it’s only 5…

3. The Model

4. Reflection
Two leading approaches emerge:
 Audience Concentrated vs. HH Addressable
4

5. Reflection
Programmatic TV Models are
Different than Programmatic Digital
Inventory/
Supply
No RTB Costs

6. Inventory

7. Critical to understand the dynamic of
TV Programmatic ad inventory supply
Most ads not
served by
impression =
More Waste
Inventory more
limited and
primarily fulfilled
through from
local cable
supply
Unwired and
SSP partners
are dominating
ad supply vs.
direct sources
Reflection

8. Programmatic TV Landscape
8

9. Reflection
Are ad inventory supply sources equal?
Importance of
Commercial
Position or POD
comes into
question
Not equal to pure
“national” mass
reach airings
Multiple vendors
contribute to cost
increases &
premiums
Direct inventory
owners looking to
secure additional
premiums

10. Pricing

11. Reflection Programmatic TV providers looking to
charge significant premiums for
advanced targeting via enhanced data
Counter
diminishing
audience
delivery
Opportunity for
networks to
further
increase
revenue
Advertising
rates at a
premium

12. Case Study
12
Comparing CPM of
Nielsen Demo to
Strategic Target Audience
• Programmatic TV: ~30%
premium
• Addressable: 3x – 4x
premium
Comparing cost delivery of strategic
target of both control and programmatic
buy
• Strategic target audience concentration
index favored the programmatic buy
• The control cable buy was ~6% more
efficient in delivery of strategic target
CPM (even with higher waste)

13. Performance

14. 14
Better targeting did yield better
response rates (~20% lift); however,
need to carefully evaluate cost
premiums to determine cost per
response effectiveness
It very well may pay
to buy the waste…
Reflection

15. Tools

16. Reflection
For audience concentrated approaches, our agency toolkits were (overall)
extremely effective at determining best placements
16
 Findings in-line with current
buying strategies and
network selections
 Test identified other top
performing networks
previously considered for
buys, but eliminated due to
limitations

17. Key Takeaways
Summary
Built for the relentless pursuit of results

18. Reflections
• Programmatic TV is different than
Programmatic digital in many ways
• Determine best buy approach
• Understand the inventory supply and
associated limitations
• Evaluate cost premiums vs. potential uplift
• Design tests with clear measures for success