Despite the rise of digital advertising, local TV remains one of the most powerful mediums for reaching mass audiences. According to BIA/Kelsey, US local television advertising revenue is expected to hit $20.8 billion this year. At the heart of this robust marketplace, is a series of technological advancements revolutionizing the way local TV advertisements are bought and sold. Powered by automated inventory transactions and the growth of supply-side platforms (SSPs), the future of local linear TV advertising is as powerful as ever. While traditionally considered a slow sector to adapt to change, the television industry is making the transition to an automated ecosystem.
Digital Advertising is Pressurizing Broadcasters to Streamline Campaigns
The buying and selling of TV inventory have remained primarily a manual process for over 50 years, but the immediacy of digital advertising is increasingly placing pressure on broadcast providers to streamline transactions and overall execution of advertising campaigns. Historically, the lack of automation has required media buyers to accept a more time-consuming process for buying local spot TV or, in some cases, purchase national advertising simply because it’s easier.
SSPs have filled that gap by capitalizing on the power of programmatic to meet new consumer demands and enable media buyers to leverage automation and analytics to better reach target audiences with more speed, accuracy, and transparency. By providing buyers with real-time inventory, SSPs help agencies make smarter, more targeted television buys across platforms to plan and execute campaigns more efficiently.
SSPs offer Cross-functional Solutions
As the landscape of programmatic TV continues to gradually evolve in complexity, SSPs are offering cross-platform and cross-functional solutions by forging new alliances and partnerships. We are approaching a turning point for TV – a point in which the advancements in programmatic will help to bridge the gap between linear TV and digital advertising. This is especially true for local TV – a recent BIA/Kelsey report predicted that advanced TV (which includes automated and programmatic TV) will help push the local video advertising market from $32.6 billion this year to $37.1 billion by 2022.
Broadcasters must change
For advertisers and broadcasters to fully take advantage of this market opportunity, broadcasters need to leverage one of the most vital ingredients to success: change.
Broadcasters must leverage their leadership and communication skills to translate change across different generational and operational groups to help guide their teams through this transition. It is the broadcasters who hold the key to the future of TV.
Broadcasters, who are taking appropriate measures to change their businesses to align with the needs of marketers and advertisers of today and of the future, will likely find themselves ahead of competitors, as they help pave the way forward for the future of local TV advertising.