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How to Advertise on Streaming TV

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

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.

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.

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

In programmatic advertising, the bid price for ad inventory can be influenced by a variety of 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.

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.

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

One way that streaming television platforms can target audiences is by using demographic data such as age, gender, income, and education level. This information can be used to create demographic-based target groups, such as "18-34 year old males" or "households with incomes over $75,000."

Another way to target audiences is through geographic location. Streaming television platforms can use a viewer's IP address or other location data to determine where they are located, and serve them ads that are specific to that region. This can be especially useful for local businesses or for advertising products or services that are only available in certain regions.

Another way is through viewing history. Streaming television platforms can track the viewing habits of their users, and can use that information to create target groups based on the types of shows and movies that viewers are watching. For example, a streaming television platform might create a target group of viewers who have recently watched a lot of cooking shows and then target that group with ads for cooking-related products.

Moreover, streaming television platforms can also use behavioral data, such as search history, purchase history, and browsing history. For example, if a viewer has recently searched for information about a particular product or service, the streaming television platform can use that information to target them with ads for similar products or services.

Lastly, streaming TV platforms can also use third party data, such as data from social media, to create target groups. For example, a streaming television platform might use information from a viewer's Facebook profile to create a target group of people who are interested in a particular hobby or activity, and then target that group with ads related to that hobby or activity.

Overall, streaming television platforms have a variety of 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.

Find out how Simulmedia’s unique TV+® platform for TV and streaming advertising provides unified access to premium linear and CTV inventory across all networks and publishers. Request a demo or email us at advertise@simulmedia.com.