An opportunity for unified programmatic television in the EU

, Press Releases

In the second half of May, the second annual Programmatic Day conference took place in the Czech Republic. Programmatic Day is the only conference focused on programmatics in the Czech Republic. The main themes of this year’s conference were advertising on HbbTV hybrid television and multiscreen advertising.

An opportunity for unified programmatic television in the EU

HbbTV on the rise

The Czech Republic is consolidating its position as the European leader in HbbTV. For nearly two years programmatic advertising on HbbTV has been used to monetize this market in combination with linear broadcasting on the nation’s largest television stations. Continuous growth in the investment in programmatic television advertising can be seen even among the top publishers on the Czech market. This was confirmed by Lukáš Hnilička from Hybrid in his presentation when he said that sales of programmatic advertising on HbbTV increased by approximately 300% year-on-year.

The hot topic of discussion is still the prices of HbbTV advertisements compared to classic television advertisements. As a result, R2B2, the Czech leader in programmatic ad sales, has supplemented its regular benchmark, the RTB Index, with prices of programmatic advertising on HbbTV. In April 2017, television banners on HbbTV reached a CTR of 2.31% and were sold at an average CPM of €16.53.

Programmatic advertising across all screens

Modern day media consumption occurs on several devices simultaneously, thus it is necessary to address audiences across computer, mobile, and television screens. František Bauma, head of product development at R2B2, drew attention to the design of so-called Multiscreen which he calls the “second generation of advertising” and pointed out its advantages. “Programmatic is the only way to reach people on all devices and efficiently make use of targeting,” he explained as he showed graphs of the daily and weekly use of individual devices. Bauma also emphasized the importance of campaign optimization with the words: “Programmatic campaigns should be optimized according to the time of day, day of the week, and the type of device.”

Targeting is a necessity

According to research carried out by ComScore, over the period of a month, regular consumers see 1,707 banners online, as Tamás Ács from Cadreon pointed out in his presentation. Accurate targeting is a necessity today. Indeed, 94% of consumers are frustrated when they see advertisements that are not relevant to them, added Tamás Ács. Programmatic combined with the use of behavioral targeting should be the solution to this problem. The Czech Republic is trying to capture this trend, and last year 47% of all display ads were bought programmatically. With an increase in the share of programmatic, efforts to increase the number of DMPs that offer audiences for effective targeting are visible. R2B2 is actively working on ad targeting, even for HbbTV.

The conference showed that a unique opportunity for a unified, unfragmented approach to the programmatic purchase of television advertising has emerged on the European market which is advantageous for broadcasters, advertisers, and publishers alike. It copies the conveniences of online programmatic advertising and at the same time penetrates linear broadcasting. It is compatible with one DSP. On the other hand, there are still legislative questions to be answered and support must be extended to several new models of televisions. However, as the presentations have shown, the television screen is for Czech programmatic buying now a given.