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How Will TV Everywhere Change Ad Strategy?

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Ad buying on TV Everywhere is more complicated than linear TV

In this series, we’ve looked at the increasing popularity of the TV Everywhere service. However, consumer daily viewing behavior has changed since the advent of TV Everywhere. According to the Adobe Digital Index (ADBE) Q1 2015 Digital Video Report, TV Everywhere has changed the heavily viewed Thursday night lineup to Wednesday. This means that the highest share of video viewing from TV Everywhere now happens on Wednesdays followed by the weekends.

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This makes ad buying on TV Everywhere more complex than on linear TV. The report recommends that “if advertisers employ a programmatic strategy to their ad buying, they will gain an advantage on the competition by creating campaigns that are more efficient and productive.” So what is this programmatic strategy?

Programmatic ad buying is a technological framework for conducting automatic real-time auctions of display ads through an ad exchange.

Programmatic ad market shows high growth potential

The programmatic ad market has huge growth potential. According to a report from eMarketer and as you can see in the above graph, programmatic ad spending in the United States will more than double in two years. It is expected to go from $10.06 billion in 2014 to $20.41 billion in 2016. At this rate, the market will expand to account for 45% of the total US digital ad spending in 2014 and 63% of the total in 2016.

Google’s (GOOG) Partner Select is an example of a programmatic premium video marketplace that helps publishers monetize their video content. This push into the video ad market has helped Google take the fourth spot on the list of top video ad properties in the United States. BrightRoll, Specific Media, LiveRail, and AOL (AOL) are some of the top players in this market, according to a report from comScore. Incidentally, a few months ago, Yahoo! (YHOO) acquired BrightRoll and Facebook (FB) acquired LiveRail.

For diversified exposure to Google, you can invest in the Technology Select Sector SPDR ETF (XLK). XLK invests about 3.63% of its holdings in Google.

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