MarTech Podcast ™ // Marketing + Technology = Business Growth
Episode: Why Programmatic Buying Dominates CTV
Release Date: December 24, 2024
Host: Benjamin Shapiro
Guest: Angelina Marmorado, Associate Vice President of North America at Lemma Media
Introduction to Programmatic Buying in CTV
In the latest episode of the MarTech Podcast™, host Benjamin Shapiro delves into the dominance of programmatic buying within Connected TV (CTV). Joining him is Angelina Marmorado from Lemma Media, a company specializing in emerging formats of connected TV media. The discussion sets the stage by assessing the current lifecycle stage of programmatic media buying in streaming TV.
Angelina Marmorado opens the conversation by characterizing the programmatic media landscape in CTV as still being in its nascent stages:
"We're still in the early parts. If 10 is we're a fully mature ecosystem. I still think we're like at a three if that makes sense."
[02:06]
Evolution of Advertising Methods: Host-Read vs. Programmatic Ads
The conversation transitions to comparing traditional host-read advertising with the newer programmatic approaches, particularly highlighting differences between podcast advertising and CTV.
Benjamin Shapiro draws a parallel between podcast advertising and CTV, noting his preference for host-read ads due to their perceived authenticity:
"I am very strongly in the camp of host read advertising and the inferred credibility of the host. Talking about their sponsors is a better experience for the sponsor and for the listener, hopefully for the host, because they're selling directly than doing programmatic media."
[02:26]
Angelina Marmorado responds by referencing the historical shift in television advertising from sponsored segments to spot-based ads, emphasizing consumer expectations:
"So television has made that kind of evolution as well. It just kind of happened a long time ago. So the consumer expects to see ads that way."
[03:34]
Effectiveness and Challenges of Programmatic Advertising in CTV
The discussion deepens into the effectiveness of programmatic advertising versus integrated ad placements within content.
Benjamin Shapiro questions the effectiveness of programmatic ads, especially considering consumer aversion to traditional commercials:
"But nobody likes the commercials unless we're watching the Super Bowl. So is integrated advertising into content more effective?"
[05:14]
Angelina Marmorado acknowledges the frustration with programmatic ad placement's lack of relevance and personalization:
"Right now, it's too broad. Yes, you could get closer, but not close enough to where it feels like a good experience."
[07:39]
Strategies for Successful Programmatic Campaigns
Angelina offers actionable strategies for marketers looking to leverage programmatic buying effectively in CTV.
She recommends a multi-creative approach, starting with diverse ad creatives to gather data and refine targeting:
"For anybody that's new to connected television, we always recommend a multi creative approach... honestly for a few weeks and see when and where it translates."
[08:05]
Furthermore, Angelina emphasizes the importance of test and learn methodologies:
"There's so much that you can learn from running a programmatic campaign that there's really no excuse not to test and learn."
[08:29]
Understanding the Role of SSPs and DSPs
A substantial portion of the episode explains the technical infrastructure behind programmatic advertising, clarifying the roles of Supply Side Platforms (SSPs) and Demand Side Platforms (DSPs).
Angelina Marmorado elucidates the function of SSPs:
"An SSP is a supply side platform... we help them with yield optimization, pricing, auction dynamics, basically helping them get the most money and most value that they can from the buy side."
[14:29]
She also distinguishes DSPs, which media buyers use to purchase ad inventory:
"That's a demand side platform. So it could be, you know, hands on keyboard in there. So it could be the trade desk, it could be Google's DV360 product,..."
[15:06]
Industry Innovations and Future Directions
Towards the end of the episode, Angelina highlights innovations by major players like Netflix and Disney experimenting with more linear-style TV experiences to combat decision fatigue among viewers:
"Even what we would call most premium players are experiencing more and more with the linear experience to where you just hop right in to something that's playing."
[13:32]
Final Thoughts: The Necessity of Expertise in Programmatic Media Buying
Concluding the discussion, Benjamin underscores the complexities of programmatic advertising in CTV and advocates for the necessity of expert media buyers to navigate this fragmented landscape effectively.
"It's really hard as a channel to implement if you're buying directly and you don't have someone who is constantly buying this type of media. It's why we work with third party vendors to help us put our programmatic ad buys together for the Martech podcasts."
[12:38]
Angelina adds that partnering with SSPs like Lemma can provide unique advantages in targeting and inventory management:
"If you are a programmatic buyer, don't Forget about the SSPs because we do have a unique offering when it comes to helping you go from intermediate to advanced in terms of the type of targeting you're doing."
[16:03]
Key Takeaways
-
Programmatic Buying in CTV is Emerging: Still in early stages with significant potential for growth and maturation.
-
Host-Read vs. Programmatic Ads: While host-read ads offer authenticity, programmatic ads provide scalability but face challenges in relevance and personalization.
-
Strategic Campaign Management: Implementing a multi-creative, test-and-learn approach is essential for optimizing programmatic campaigns.
-
Technical Infrastructure Matters: Understanding and leveraging SSPs and DSPs is crucial for effective programmatic media buying.
-
Industry Adaptations: Major streaming platforms are experimenting with linear-style ad integrations to enhance user experience and reduce decision fatigue.
-
Expertise is Essential: Navigating the complexities of programmatic advertising in CTV requires specialized knowledge and often, collaboration with third-party experts.
Conclusion
This episode of the MarTech Podcast™ provides a comprehensive exploration of why programmatic buying is becoming the preferred method in CTV advertising. Through insightful dialogue between Benjamin Shapiro and Angelina Marmorado, listeners gain a nuanced understanding of the benefits, challenges, and strategic approaches necessary to harness the full potential of programmatic media buying in the evolving landscape of connected television.
For more insights and to connect with Angelina Marmorado, visit Lemma Media or check out her LinkedIn profile. Subscribe to the MarTech Podcast™ for daily streams of marketing and technology knowledge, and visit martechpod.com for episode summaries and additional resources.
Note: Timestamps are included to reference the specific parts of the transcript where notable quotes were made.