Streaming TV Advertising: How to Get Started - Simulmedia

The Ad-Bidding Process for Streaming Television

The ad-bidding process for streaming television is similar to the process for traditional television but with some key differences.

Real-Time Auctions and Programmatic Advertising

One way that the ad-bidding process works on streaming television platforms is through real-time auctions, also known as programmatic advertising. With programmatic advertising, streaming television platforms use software to automatically match advertisers with ad inventory in real-time. Advertisers can bid on ad inventory in real-time auctions, and the platform will automatically award the ad space to the highest bidder.

Bidding Process

When an advertiser wants to bid on ad inventory, they submit a bid that includes their desired ad placement and targeting parameters, such as demographics, location, and the specific shows they want the ad to run on. The platform's software will then automatically match the advertiser's bid with the available inventory and will select the winning bid based on a variety of factors such as highest bid, targeting accuracy, and brand safety.

Guaranteed Ad Inventory

Another way is to purchase guaranteed ad inventory, which ensures that the advertiser will get a certain amount of ad space at a fixed price, without the need for a real-time auction.

Influencing Bid Prices

In programmatic advertising, the bid price for ad inventory can be influenced by various factors. For example, ad inventory that is in high demand, such as ad space during a popular show or movie, will typically have a higher bid price. Advertisers may also be willing to pay more for ad inventory that is more likely to reach their desired target audience.

Additionally, some streaming television platforms may use a combination of real-time auctions and guaranteed inventory to sell ad space.

Traditional Sales Channels

In addition to programmatic advertising, streaming television platforms can also sell ad space through traditional sales channels such as direct sales teams and ad networks. In these cases, the ad-bidding process may involve more negotiation and manual pricing, rather than real-time auctions.

Overview

Overall, the ad-bidding process for streaming television can vary depending on the platform and the specific ad inventory being sold. However, programmatic advertising and real-time auctions are becoming increasingly common, allowing advertisers to bid on ad inventory in real-time and streamline the process of buying and selling ad space.

Audience Targeting

Audience targeting is a key feature of advertising on streaming television platforms, as it allows advertisers to reach specific groups of viewers with their ads.

Methods of Audience Targeting

  1. Demographic Data: Streaming television platforms can use demographic data such as age, gender, income, and education level to create demographic-based target groups, such as "18-34 year old males" or "households with incomes over $75,000."
  2. Geographic Location: Platforms can use a viewer's IP address or other location data to serve ads specific to that region, useful for local businesses.
  3. Viewing History: Platforms can track user viewing habits and create target groups based on the types of shows and movies that viewers are watching. For example, targeting viewers who watch cooking shows with relevant ads.
  4. Behavioral Data: Data such as search history, purchase history, and browsing history can also be used for targeted ads. For instance, targeting viewers searching for specific products.
  5. Third-Party Data: Platforms can utilize third-party data, like social media information, to create target groups based on interests and hobbies.

Conclusion

Overall, streaming television platforms have various audience targeting capabilities that allow them to reach specific groups of viewers with their ads. These capabilities include demographic data, geographic location, viewing history, behavioral data, and third-party data, which can all be used to create targeted advertising campaigns that reach the right audience.