Wondering if linear or programmatic TV works better for your next campaign? You’ve come to exactly the right place. A Statista study says linear TV market shares fell 20% in the last five years. Polaris Market Research has a new forecast, though. It says programmatic TV will grow from $11 billion in 2024 to $13 billion this year. Our buying guide helps you find the lowest price and get free installation. Compare these two options before you make your final decision. Learn how addressable TV purchasing works, and how to target CTV precisely. Now is the perfect time to take action!
Comparison between Programmatic TV and Linear TV
Market Shares
Linear TV Market Share
Regular scheduled linear TV has dominated ad space for decades. It held total control of TV advertising for many years. It reached huge audiences during primetime, usually 8 to 11 pm weeknights. That time slot had the highest number of people tuning in. In recent years, its share of the ad market has gone down. A recent Statista study says its market share fell about 20% over five years. This drop happened because more people prefer streaming and on-demand services now. In the past, ad slots for big sporting events were really expensive. Now there are new viewing options, so this market is much more competitive. If you run a large brand that spends heavily on linear TV ads, you should mix up your ad choices. You can pick programming linear viewers still love, like local news and certain dramas.
Programmatic TV Market Share
Programmatic TV is growing fast right now. Polaris Market Research released a report this winter. The report tracks global programmatic marketing growth. It says the market will rise from $11 billion to $13 billion by 2024. Programmatic ads are getting more popular for TV. They give advertisers more flexibility and precision. For example, companies can use data insights to make their ad spending work better. They can target specific groups of people and certain locations to do this. Work with a Google Partner-certified agency to enter this fast-growing market. These agencies can help you navigate the tricky programmatic space. They can also help you build effective ad campaigns.
Differences in Ad – Buying
Programmatic TV Ad – Buying
Buying TV ads with automated tools is shaking up the ad industry. This method is called programmatic TV advertising. Old-style linear TV makes you book ads far in advance. Sometimes you even have to sign long contracts to get spots. Programmatic systems buy available ad space in real time. An online store could use this to target specific shoppers. Those shoppers are people who visited their site but never bought anything. The programmatic tool lets you set rules to bid on ad slots. You can pick slots during shows or times your audience likely watches. Ad experts say you should check your programmatic TV campaigns often. You should also adjust them to make them work better over time. To get the most value from your ad budget, track a few key metrics. Those metrics are viewability, conversion, and engagement. Viewability counts how many people actually saw your ad. Conversion tracks how many people bought something after seeing it. Engagement measures how people interacted with your ad.
Effectiveness Comparison
Programmatic TV is way more precise when targeting specific groups of viewers. ABM, short for Account-Based Marketing, lets advertisers use data they’ve collected. That data includes things like company industry, size, people’s job titles and seniority levels. Advertisers use it to reach high-value companies and potential new customers. Linear TV ads are much more broad in who they reach. They aim to get as many viewers as possible in a set time period. Here are the key takeaways.
- Regular live TV is still used for running ads. It works especially well for big ad campaigns. These campaigns help more people get to know a brand. Brands often run them during popular events that lots of people tune in to watch.
- This is a great pick if your marketing goals focus on results. Programmatic TV lets you target your audience much more accurately. You can tweak your ad campaigns right as they run. It also gives you a wide variety of options to choose from.
- Brands should use a balanced plan for all their TV advertising choices. That plan should lean into the good parts of both programmatic and linear TV. You can use our TV Advertising Effectiveness Calculator for guidance. It will show you how to use both ad types together to hit your marketing goals.
Addressable TV Buying and Programmatic TV
Programmatic advertising is growing really fast right now. Next year, advertisers using it will spend more than $200 billion. (Source: Internal data). The growth of programmatic TV and addressable TV will have big effects on the entire advertising industry.
Relationship between Programmatic TV and Addressable TV Buying
Programmatic TV Enabling Addressable Features
Programmatic TV is a total game-changer for TV advertising. Old TV ads used a one-size-fits-all approach for years. Now, programmatic TV lets advertisers pick who sees their ads. They can use all sorts of different details to choose their audience. Platforms like StackAdapt even let you use account-based marketing targeting. This uses facts about companies and the people who work there. Those facts include the company’s industry, size, a person’s job title, or how senior they are at work. All this helps target companies that are worth a lot of money to the advertiser. Ads go only to the specific viewers the advertiser wants to reach. They don’t get shown to a huge, untargeted group of people. Here’s a quick advertising tip if you run ads. Start using these advanced programmatic TV platforms early on. Their targeting options will give you an edge over competitors when you’re trying to reach your desired audience.
Differences in Ad Delivery and Audience Targeting
Programmatic TV and addressable TV ad buying are not the same. Programmatic TV often uses real-time bidding to buy ad space. This is a dynamic, efficient, flexible way to buy ads. It responds right away to what audiences and markets are doing. Addressable TV focuses more on reaching specific households and viewers. Programmatic TV can target audiences using more data, like behavior and demographic info. But addressable TV lets you target people at an even finer level. For example, it can target specific households with certain viewing habits. One recent case study looked at a cosmetics brand. The brand used programmatic TV to target women between 25 and 40 years old. Those women were interested in beauty-related content. When they needed to reach a more specific group, they used addressable TV buying. That group was high-income households in certain zip codes. Those households watched beauty-related shows very often. A 2023 SEMrush study shared related new data. It found top-tier agencies used addressable TV buying 25 percent more in the last year. The Step-by-Step Guide:
- First, figure out what you want your advertising to achieve. Decide which of two main goals fits your needs best. You can aim to reach a much wider group of people overall. Or you can target your ad closely to specific individual households.
- Programmatic TV tools are the best option for three key needs. They let you bid on ad spots right as they become available. They also let you show your ads to more of the right viewers. You can use built-in programmatic TV features with these tools too. Make sure any tool you pick lets you target ads super specifically.
- First, set your advertising budget. Base it on how much different ad methods cost. That’s the most important thing to remember here.
- Programmatic TV uses really precise targeting tools. This gives it special features that let it reach exactly the right viewers.
- RTB is a flexible way to buy TV ads. It works differently from addressable TV ad purchases. Addressable TV purchases focus on targeting specific individual households.
- Addressable TV is really good for targeting specific viewers. Tools like Adalytics have guidance for people who run TV ads. They say ad managers should check their campaign results often. This applies to both programmatic TV and addressable TV ad campaigns. Some platforms, like The Trade Desk, specialize in programmatic TV. Companies that focus on addressable TV ad buying work really well. They can target exact households with very high accuracy. You can use our TV Advertising Performance Calculator to see how well your campaign is performing.
Factors Influencing Programmatic TV Share in the Overall TV Advertising Market in Next 1 – 2 Years
TV advertising is always changing these days. Programmatic TV’s market share will shift a lot in the next one to two years. By 2024, far fewer people will watch regular traditional TV. They’ll use streaming services or connected TVs instead. This big shift is why digital and automated marketing tools are growing. A Statista report looks at global programmatic ad spending. It says spending will rise steadily from 2017 all the way to 2028. That shows programmatic advertising is a major part of the marketing world right now.
Technological Advancements
AI and Automation
AI and automation have totally changed programmatic TV advertising. Automating ad placement and buying lets advertisers reach more people. AI tools can sort through huge amounts of data quickly. They find the best time and spot to run each ad. One analyst report looked at connected TV tech and advertising. It noted AI can make ads work better, cut costs, and boost returns. Advertisers should start adding AI tools to their programmatic TV ad campaigns. Google Partner-certified strategies keep you following Google’s rules. They also help you use AI to target the right audiences more effectively.
Data – driven Approach
Programmatic TV is built around using data to guide all its decisions. Advertisers can make more personal, targeted ads for viewers. They do this by collecting and studying data about what customers do, like, and who they are. Advertisers can use a strategy called ABM on programmatic platforms, like StackAdapt. These tools use data about companies and the people who work there. That data includes a company’s industry, its size, and a worker’s job title or rank. Here’s a helpful tip: Build a strong system to organize all your data. This system will let you collect, study, and use important data about your customers. It will help you make ad campaigns that work much better. You’ll also be able to spend more of your ad budget on programmatic TV.
Market Trends
Growth of Connected TV (CTV)
CTV’s growth is a major factor shaping programmatic television. CTV mixes regular TV’s wide visual reach with digital media’s precision and speed. CTV and streaming services grew super popular in 2024. That caused a drop in how many people watch traditional TV. SEMrush’s 2024 report says CTV lets advertisers target specific audiences super accurately. A well-known consumer goods company tested this with CTV programmatic ads. They used the ads to reach young professionals who live in cities. CTV’s targeting tools helped the brand boost both awareness and sales. It worked way better than their old regular TV ad campaigns. Investing in CTV programmatic ads lets you reach CTV’s fast growing audience. You just need to make fun, high-quality ads made just for CTV viewers.
Business and Regulatory Factors
Business rules and trends have a big effect on how much programmatic TV gets used. Advertisers are always looking for new ways to grow their ad budgets. They also want to get the best possible results for every dollar spent. Programmatic TV offers more clarity and control over ad spending than regular TV. Privacy rules around the world create some hurdles for this work. One example is Canada’s PIPEDA privacy law, and many other places have similar data protection rules. Ad agencies have to follow all these rules when they run programmatic TV ads. You should stay up to date on the latest business and rule changes. Work with legal experts to make sure your programmatic TV ad campaigns follow all requirements.
Industry Adoption and Competition
Programmatic TV is affected by two main industry factors. One is how widely people in the industry use it. The other is how much competition there is. Competition keeps growing every year. More ad agencies and brands are adopting programmatic TV. Right now, brands want to stand out from their competition. They do this by focusing on their unique selling points. For example, some companies use creative new ad formats. Others use special targeting plans to set themselves apart. Comparative Table.
| Aspect | Programmatic TV | Linear TV |
|---|---|---|
| Targeting Precision | High, uses data – driven targeting | Limited, broad demographics |
| Ad Spend Efficiency | Higher, automated buying | Lower, less flexibility |
| Ad Placement | Real – time optimization | Pre – scheduled |
When you run organized TV ad campaigns, focus on standing out and trying new things. Keep an eye on what your competitors are doing. Look for ways to give your audience more of what they care about. Those are the main points to remember.
- Programmatic TV is growing more popular all the time. Better, newer technology is driving this growth. Two common examples of this tech are AI and automation.
- CTV is growing really fast right now. That’s a big trend in the TV market. It affects how much of the market programmatic TV takes up.
- If you want to get the most money back from what you spend on a business, you have to think carefully. You need to look at two main sets of things. First, think through all the regular parts of running the business. Second, make sure you account for all official rules you have to follow.
- More TV ad teams are switching to automated ad buying really fast these days. The competition for good ad spots has gotten a lot stiffer. Brands have to come up with creative plans to stand out. Industry experts say ad managers should check their automated TV ad campaign results often. They should adjust those campaigns based on what the data shows. You can use our automated TV ad calculator to measure how successful your campaign is.
Targeting Precision in CTV within Programmatic TV Ecosystem
Polaris Market Research put out a 2024 report about ad markets. It says the global programmatic ad market will hit $117 billion in 2034. That’s an 800% jump over the next 10 years. The main reason for this growth is Connected TV’s precise ad targeting. This tool works within the programmatic TV system to drive that growth.
Factors Influencing Targeting Precision
Audience – related Factors
How precise your CTV ads are depends mostly on your audience. You need to know what your audience likes and how they act. Say a fancy beauty brand wants to target women aged 25 to 45 who read fashion blogs. They can easily do that with CTV ads. A 2023 study from SEMrush shares useful findings. Ads targeted to detailed audience profiles work better than untargeted ones. More people who see these targeted ads take the action the brand wants. You can use tools to dig into details about your audience. Good options include Google Analytics and social media insight tools. This research helps you build accurate audience profiles. Those profiles will make your CTV ad campaigns run better.
Technological Factors
The tools used to target ad audiences affect accuracy a whole lot. StackAdapt and other advanced automated ad platforms use two types of data for a strategy called Account-Based Marketing, or ABM. One data set covers individual people’s traits and interests. The other covers key details about different companies. They use facts like industry, company size, and a person’s job rank. This helps them spot high-value companies and possible new customers. Top industry ad automation platforms recommend these tools. They help make CTV ad campaigns run way more efficiently.
Interaction between Audience – related and Technological Factors
Technological Enablers for Audience Targeting
You need to think about how your audience and tech tools work together. The right tech tools help you understand your audience better. They also make it easier to show your ads to the right people. One helpful tool is machine learning, which sifts through huge piles of audience data. It spots common patterns and what those people like and prefer. This tech lets you send custom ads to exactly the right people at exactly the right time. One food delivery service tested this with CTV targeting powered by machine learning. In just one month, their total number of orders went up 25 percent. If you want your own CTV ad campaigns to work better, look for platforms that use machine learning for targeting.
Impact on Different Types of CTV Advertising Campaigns
How precise CTV ad targeting works affects every campaign type differently. Some campaigns are made to help people get to know a brand. For these brand awareness campaigns, precise targeting is really useful. It makes sure the brand’s message reaches the right people. It also gets as many people as possible to see that message. Other campaigns focus on getting people to take action. These performance-focused campaigns lead more people to do what the ad asks. They also give companies a better return on the money they spend. Take a travel company as a quick example. It can run a CTV performance campaign aimed at people who just looked up vacation spots. This makes those people much more likely to book a trip with the company.
| Campaign Type | Impact of Targeting Precision |
|---|---|
| Brand Awareness | Increased exposure to target audience |
| Performance – Driven | Higher conversion rates and better ROI |
Key Takeaways:
- How well CTV can target the right viewers depends on two sets of factors. Some factors have to do with the people watching the content. Others relate to technical details of how CTV works.
- You can make CTV campaigns work a lot better. Technology lets different key factors work together smoothly. This teamwork between the factors makes the campaigns far more effective.
- Different CTV campaigns have different core goals. Some are meant to make more people aware of your brand. Others are built to get viewers to take specific actions. Some also work to make your brand easy for people to recognize. Each of these campaign types hits their target audience with different levels of accuracy. Use our CTV campaign targeting calculator to see how this affects your own campaigns. This section was last updated in 2024. Your individual results may end up looking different.
FAQ
What is addressable TV buying?
Addressable TV is a type of ad targeting specific viewers or households. A 2023 SEMrush study looked at top ad agencies’ use of this tool. It found addressable TV use jumped 25 percent at those top agencies. These ads work more precisely than regular TV advertisements. That makes them perfect for reaching small, specific groups of viewers. This info comes from an analysis called Addressable TV Buying and Programmatic TV.
How to choose between programmatic TV and addressable TV buying?
First, figure out what you want your ads to do. Programmatic TV works if you want to reach a wider audience. It also lets you bid on ad spots in real time. Addressable TV is better for targeting specific households. Second, set your ad budget. Adalytics is a common industry tool used to measure ad performance. You can find more details in the section titled “Relationship Between Programmatic TV And Addressable TV Buying”.
How to enhance targeting precision in CTV within programmatic TV?
Use tools like Google Analytics or social media insights to do deep audience research. Top programmatic platforms in the industry have a simple recommendation. Pick programmatic platforms with advanced features, like machine-learning driven targeting. Our study, Targeting precision in CTV in the Programmatic TV Ecosystem, has all the extra details you might need.
Programmatic TV vs Linear TV: Which is better for ad spend efficiency?
Programmatic TV makes your ad spending go further. A Statista report says linear TV is losing market share. Unlike linear TV, programmatic TV uses automated systems. These systems let you place ads in real time. You can adjust programmatic ad campaigns with professional tools. You can find more details in [Differences between Ad-Buying]. Your final results can vary based on several factors. These include your target audience, ad formats, and current market conditions.
