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The impact of programmatic advertising on local broadcast television
Thesis   Open access

The impact of programmatic advertising on local broadcast television

Charles Thomas Scott Jr.
Master of Science (M.S.), Drexel University
Sep 2019
DOI:
https://doi.org/10.17918/00000954
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Abstract

Communication Television broadcasting Advertising
With digital predicted to take over 50% of U.S. media ad spending in 2019, it is a crucial time for television to adapt its legacy business models and compete against interactive, data-driven and targetable digital media. One solution that may assist in shifting ad revenue share back to television could be programmatic, the automated buying and selling of advertising inventory. The purpose of the study was to measure the implementation of programmatic television within the local television industry. The study method included semi-structured interviews with five executives from a local television station group, whose collective fields included sales, research and sales operations. Interview data was measured through a coding system that analyzed reoccurring themes and sub-themes. Results defined programmatic television from a local television station group's perspective and showed how broadcast television stations are experimenting with the new sales transaction model. The study also identified specific obstacles from the sell-side of the television advertising ecosystem, including commoditization of inventory, audience measurement deficiencies, technology fees, and lack of integration between vendor systems. Nevertheless, it was revealed that there is optimism in overcoming these challenges and a positive outlook on programmatic television serving a role in the local television advertising industry by automating manual processes and uncovering new revenue streams from non-traditional television advertisers.

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