Tom Pachys, CEO of EX.CO, is at the forefront of programmatic advertising solutions for Connected TV (CTV). He delves into the transformative shift from traditional TV advertising to digital models, emphasizing the merging of sight, sound, and motion with precise targeting. Pachys elaborates on the complexities of measuring ad effectiveness and the rise of dynamic out-of-home advertising. He discusses the necessity for sophisticated tools and strategic data use in navigating this evolving landscape, paving the way for more efficient ad practices.
The integration of programmatic advertising into CTV is transforming traditional media, merging efficiency with the dynamic creativity of television.
The data scarcity in CTV presents unique challenges for advertisers, hindering effective campaign measurement compared to digital platforms.
Deep dives
Niche Publishing Survives Through Community Ties
The podcast highlights the resilience of niche publishing, particularly for local and regional publishers who focus on serving specific communities. These publishers have managed to establish solid business models by being essential to their audience, despite the rise of automated technologies like AI in the industry. The dialogue emphasizes that while modern tools may enhance operational processes, they do not alter the fundamental necessity of understanding and fulfilling local needs. The success of these publications reinforces the idea that genuine community connection remains a cornerstone for sustainable business in the publishing sector.
Programmatic Advertising's Expansion into Traditional Media
The discussion reveals that programmatic advertising, which initially thrived in the digital realm, is now successfully infiltrating traditional media platforms like CTV (Connected TV) and digital out-of-home (DOOH) advertising. This transition is facilitated by advancements in streaming technology and the growing acceptance of data-driven ad strategies within television. An important point raised is that while many traditional media outlets have been slow to adapt, the infusion of programmatic methods is transforming how advertisers approach these formats. As the barriers between digital and traditional media continue to blur, it signifies a shift towards more efficient advertising systems.
Challenges Surrounding Data Scarcity in CTV
A key insight shared is the data scarcity within the CTV environment, which presents unique challenges compared to digital publishing. This lack of comprehensive user and context data makes it difficult for advertisers to measure and optimize campaigns effectively. Unlike digital platforms that provide rich user signals, CTV relies on disparate data from various sources, complicating targeting efforts. The conversation suggests that addressing this issue of standardization and information flow will be crucial for the growth of CTV in the programmatic advertising space.
Out-of-Home Advertising's Digital Transformation
The podcast discusses the significant transformation in the out-of-home advertising sector, characterized by its late adoption of digital technologies. A projected compound growth rate indicates that digital out-of-home is set to expand rapidly as more traditional billboards convert to digital displays. The narrative underscores that while this is a vital step forward, true growth lies in integrating innovative advertising approaches that enhance engagement beyond simple digital signage. The evolution of out-of-home signifies an alignment with modern advertising strategies, which could lead to a more competitive landscape among advertising formats.
The worlds of TV and internet publishing operated separately. The platforms, the dynamics and even the language used was completely different. Linear TV was brand focused and driven by scarcity dynamics while the internet quickly became a direct marketing machine. Those divisions have nearly erased, thanks in large part to the rise of streaming.
Once TV began to be delivered across IP it was inevitable that the digital ad system would be ported over to be married with what was formerly a stodgy world. That’s led to a stampede of the Lumascape to TV, which has always had better ad options than what was on offer on webpages. The promise of streaming with programmatic ad mechanisms is to marry the sight, sound and motion of TV commercials with the targeting and efficiency of programmatic.
In this spotlight episode of The Rebooting Show, EX.CO CEO Tom Pachys discusses the transition of the TV ad model that is underway in streaming, the similarities and differences between TV and digital advertising, and why out-of-home is now a fast-growing ad category.