Why Media Agencies Are Struggling With Connected TV: The Trade Desk’s Mitch Waters
B&T goes one-on-one with The Trade Desk’s general manager for Australia and New Zealand, Mitch Waters, to talk turkey about programmatic TV, and whether the end is nigh for traditional TV upfronts.
How do you rate the programmatic TV advertising landscape in Australia compared to our overseas counterparts?
It might be helpful to look at the TV landscape as a whole to answer that question. The most relevant comparison would be with the United States because it highlights the unique characteristics of the Australian market. One of the big differences is the prevalence and market dominance of subscription-based providers or what we might know as cable TV in the US. Currently there are 10 cable TV providers in the US, while in Australia we have one – Foxtel. Here, the big force is still free-to-air.
The key structural differences flow down to how media is bought and sold. In the US, something like 80 per cent of TV ad inventory is sold wholesale during upfronts. Australia has upfronts, but it’s more of a preview-type event – not many advertisers will lock in their commitment at this early stage.
The biggest content story of the last 10 years whether you are in the US or Australia has been the rise of internet TV, Connected TV, OTT (over-the-top) TV or whatever you want to call it – basically Amazon, Netflix, Stan and these types of players. The growth of these services has been nothing short of phenomenal – in the US, three out of four people own a connected TV. What’s interesting for programmatic is that we regard these types of TV services as ‘addressable’ – that is, we can figure out which user is attached to which devices and serve them relevant ads accordingly.
At The Trade Desk, we are currently running connected TV campaigns for a few forward-thinking Aussie advertisers. Despite the US having a much more mature programmatic landscape, as well as a far more variety of TV options, we are not that far behind in the programmatic connected TV sense. We are having the same conversations with agencies/clients in Australia and we face similar education requirements. This further reinforces our experimental nature in Australia.
What are the challenges that advertisers are up against when using programmatic TV? How can they be overcome?
I think audience measurement is the biggest issue that needs to be addressed. There’s no universal standard for measuring connected TV, which of course makes it tricky for traditional TV buyers to fully understand it’s effective targeting and reach. Tools like Nielsen Digital Ad Ratings’ on-target percentage is widely used for online video, however, CTV devices are not accurately captured, so there is a clear need for the metrics to catch up.
Connected TV advertising also got a bit of a bad reputation for not controlling frequency – that’s a nice way of saying advertisers were spamming the same person with the same ad over and over. This was happening because the ability to link up the same user across devices was still in its infancy. We now have much better methods of having visibility on the entire customer journey across devices.
One other challenge we’re seeing is that many media agencies have yet to figure out where exactly their connected TV buy is going to sit. Is it with the digital team, using digital budgets, or the television team? Or somewhere else altogether? The fact that it’s not a settled matter means the buying is shuffled around various people, so no one is getting the expertise they need to buy connected TV really effectively.
What can advertisers expect from The Trade Desk’s newly-launched programmatic TV offering in Australia. How will it be different from other existing offerings?
The Trade Desk platform stands out because our technology allows at-scale identification of users through IP targeting and storing CTV IDS and matching them to TDIDs, with a degree of accuracy that no other platforms (to my knowledge) can replicate. This means those problems of frequency are eliminated, we can apply first or third-party data targeting and the ability to measure across channels really effectively, which allows you to be with the customer on their entire journey.
It’s not specific to connected TV, but all buying on The Trade Desk utilises our unique architecture which uses a system called Bid Factors, as opposed to line items. This results in more dynamic and flexible bidding optimisation, especially when you want to do targeting related to factors like weather and geolocation.
How do you see programmatic TV evolving over the next five years?
As long as audiences continue to cut cords and consumer TV content across their devices, I don’t see how you can efficiently advertise to these audiences without programmatic tools. So, I believe the future is looking incredibly bright. The quality of the content just keeps getting better and better, and the marketplace keeps getting more competitive. Additionally, our technical ability to map devices and deliver on that customer journey I mentioned earlier is improving all the time.
Even though these are all good indications, I’m always wary about how we perceive the world through our ad industry bubble where we assume everyone is under 35 and just watches Netflix. The fact is – and it’s borne out by independent research – that free-to-air TV remains the dominant force in Australia in terms of viewership, and that’s not going to change in a hurry. We need to get better at seeing how we as a programmatic platform can work in innovative ways with free-to-air providers and our clients.
Will programmatic advertising replace the need for the traditional TV upfronts?
I don’t think so. The upfronts are a crucial part of demonstrating the upcoming slate of content which is going to get viewers excited about their channels/apps/platforms. We have already seen local upfronts shift to start talking about audiences more and how to target through programmatic tools.
It’s important to remember that programmatic is just an alternative method for buying media. The content is the main event, because at the end of the day, that’s what gets the audience that advertisers need. Think of a gearbox in a car – it’s the mechanism for telling the engine what to do so it runs as efficiently as possible. Programmatic is a tool for transactions that keeps the advertising engine running smoothly.
Latest News
TV Ratings (18/04/2024): I’m A Celebrity Wins Prime Time And Key Demos
Aussie viewers can be a harsh lot at times. Only days after Ellie Cole bled her heart out, she has been sent packing.
Effie&co Launches New ConnectAsia Division To Help Aussie Brands Market To Asian Consumers Overseas & At Home
Not provided is advice on using chopsticks and not spilling ramen down your shirt.
Cashrewards Sets Out Stall For New CMO
Thinking of applying for the Cashrewards CMO gig? Here are some insider tips that, yes, are tantamount to cheating.
‘I Ask For The TV Industry To Stand Up And Defend Itself’ – Seven Boss James Warburton Steps Down
The Seven supremo heads for the exits after five years. Here's hoping the Spotlight team organised the farewell bash.
Poh! Jamie! Adriano! Paramount ANZ reveals its tasty plans for this year’s MasterChef
It's your fan's guide to this year's MasterChef! Although no tips on how to pronounce crudités or use a un fait-tout.
Dentsu’s iProspect Partners With MOOD Tea Ahead Of May Campaign Launch
We love a Mood Tea here at B&T. Although we do store old screws and nails in the International Roast caterer's tin.
Opinion: When Culture Starts Eating Itself: Navigating The Age Of Self-eating Nostalgia
Born boss David Coupland asks is adland going through a nostalgia period? But please, no repeats of Best Of Red Faces.
Who’s Going To Cannes?! The TikTok Young Lions Winners!
It's Aussie adland's next gen! They're off to Cannes with high hopes of bringing back a Lion & a foot-long Toblerone.
Adobe Launches Express Mobile App With Firefly AI
Want to be the coolest kid at Friday staff drinks but forgot your retro Nikes? This new Adobe wizardry may do the trick.
ThinkNewsBrands & IMAA Extend News Publishing Education In Brisbane
Industry duo takes its publishing roadshow to Brisbane. Was disappointed no male attendees were wearing walk socks.
B&T Chats With Wavemaker’s Provocative Pioneers On Their Cross-Pacific Sojourn
B&T TV heads to Wavemaker's Sydney digs to interview two staffers from its New York & LA digs. If that makes sense?
HoMie & Champion Launch “Give One. Get One” Campaign Supporting Youth Homelessness Via Town Square
Much like the fête's prized chutney wears a blue winners sash, so too should this top initiative from HoMie & Champion.
Thinkerbell Takes Us Back To Summer In Latest Work For XXXX
This beer ad wants to take you back to summer! Just minus any chance of a shark attack on your morning bus commute.
Cannes Lions Unveils 2024 Programme Featuring Queen Latifah, Jay Shetty & P&G’s Mark Pritchard
Are you one of the lucky ducks heading to Cannes in June? Check out the headliner acts you'll be queueing hours to see.
Scroll Media Recruits Costa Panagos From Twitch
Costa Panagos set to bring South American flair to the Scroll offices. Assuming that he is, indeed, South American.
Year13, Microsoft & KPMG Australia Launch AI Course For Gen Zs
Born around the 2000s? Need to amp up your AI creds? This guide's for you (although it's not really that age specific).
General Motors Snares Heath Walker From Scania
Do you rage about oversized American cars on our roads? You need to bail up Heath Walker at parties & industry events.
VML Launches New “Envoyage” Brand For Flight Centre
VML unveils new brand for travel operator Flight Centre. Alas, no sign of those paid actors pretending to be pilots.
Subaru Places Media Account Up For Review
Subaru puts media up for review, as adland journos get set for mandatory "agency drives off with..." headline.
TV Ratings (17/04/2024): Contestants Faced With Harsh Realities As Alone Australia Heats Up (Or Cools Down)
Alone still doing the business for SBS. Overly long train journeys not doing the business, but they persist anyway.
Ben Fordham Loses Number One Spot As Ray Hadley Celebrates 156th Ratings Win
The radio numbers are in! Discover who's off for a boozy lunch today & who's waiting for the dreaded HR death knock.
Gourmet Ice Cream Brand Connoisseur Launches New “Thrill Your Senses” Iteration, Via SICKDOGWOLFMAN
Rattling the old "truth in advertising" adage comes this ice-cream spot full of noticeably thin people.
Paramount’s Global Sales Boss: ‘Australia’s Converged Model Is A Blueprint For How I’d Like All Of Our Markets To Be’
Paramount's global sales boss gives local sales ops the thumbs up. Didn't weigh-in on the Lisa Wilkinson debacle.
TikTok Starts Testing Its Instagram Rival In Australia
In exciting news for piano playing cats & brattish pranks in shopping centres, TikTok unveils its Insta rival plans.
Man Wrongly Named By Seven As Bondi Killer Hires Lawyers
Struggling to save for a house deposit? Why not get wrongly identified by Sunrise!
Smartsheet Appoints Indie Agency Sandbox Media To Its Media Account
Can't stand your colleagues? Like to dob them in when they miss a deadline? These work management platforms are ideal.
Boss Not Letting You Come To Cannes In Cairns? Use This Business Case To Convince Them!
Stingy boss won't spring for a ticket to Cairns? Add this to your persuasive argument repertoire. Or grovel.
Alt/shift/ Brisbane Builds Portfolio With Ausbuild Creative, PR, Content & Social Account Win
The Brisbane comms/PR agency lands constructor Ausbuild. Also hoping for a discount on its new glass conservatory.
Young Guns Versus The Old Guard: Who Adds More Value to Our Industry?
Cannes In Cairns poking this hornet's nest in a lively debate. Just so long as the oldies can get up the stairs.
70% Of Aussies Don’t Have Green Power Plans ENGIE Says In Major Brand Campaign Via HERO
Are you the notorious "light leaver on-er" in your flatshare? Quell any infighting with this green energy news.
PrettyGood Launches Offering Brand & Media Solutions For Australasian SMEs
B&T applauds the charitable nature of this new agency. Although we'd hate to see it impact any Chrissie present sends.
A Blunt End: Dolphins Medicinal Cannabis Sponsorship At Risk
Yes, it's another NRL drug story. Yet, thankfully it doesn't involve coke in Kuta during the off-season.
Slew Of New Creative Hires At Leo Burnett Australia
Ahhh, all black! The outfit of choice for agency creatives, David Jones staff and everyone in Melbourne.
Under Armour Unveils Local “Live in UA” Campaign
American apparel brand set for yet another tilt at the Aussie market, as Nike declares "we'll see about that".
Pepsi Launches New Look, Refreshing Classic Fashion Staples Via Special PR
Are you always the bridesmaid, never the bride, as the old saying goes? How do you think Pepsi feels?
Pure Blonde Returns To A Place Purer Than Yours In New Campaign Via The Monkeys
B&T's always been a huge fan of the 'drink yourself thinner' diet plan. So big thanks to Pure blonde, vodka & tequila.