Independent agencies drive programmatic CTV growth: FreeWheel Report

FreeWheel last week released a report titled The State of Programmatic Independent Demand. The report examines the growth of programmatic advertising within the Connected TV (CTV) market, particularly among independent agencies.

Independent agencies drive programmatic CTV growth: FreeWheel Report

FreeWheel last week released a report titled The State of Programmatic Independent Demand. The report examines the growth of programmatic advertising within the Connected TV (CTV) market, particularly among independent agencies.

Programmatic advertising utilizes automated platforms to buy and sell ad inventory across various channels, including CTV. This approach streamlines ad buying compared to traditional methods and allows for more targeted campaigns.

The FreeWheel report highlights a 24% year-over-year increase in programmatic impressions from independent agencies within the CTV market. This growth is attributed to several factors:

  • Increased Use of Multi-Publisher Bundles: Advertisers are increasingly utilizing bundles that combine inventory from multiple premium CTV platforms. This allows them to reach target audiences more effectively. The report found a 119% increase in the use of these bundles by independent agencies.
  • Improved Measurement and ROI: Programmatic advertising offers more comprehensive campaign measurement capabilities compared to traditional methods. This allows independent agencies, working with clients across various industries like pharma, gaming, and retail, to demonstrate the return on investment (ROI) of their CTV campaigns.

The data used in the FreeWheel report is based on advertising activity processed through their platform specifically for the independent market. The report defines "independent demand" as ad buys originating from agencies and buying entities outside of large holding companies.

Future opportunities in programmatic CTV

The report identifies several potential growth areas within the programmatic CTV market:

  • Live Sports Advertising: Live sporting events offer high viewership and engaged audiences, making them attractive to advertisers. However, programmatic activation within this space is currently limited due to technical complexities associated with managing high viewership spikes.
  • Shifting Large Advertiser Commitments: The report suggests that large advertisers may transition more of their CTV budgets to programmatic buying in the future.
  • Programmatic Political Advertising: Programmatic advertising offers potential benefits for political campaigns, such as increased efficiency and stricter control over ad placement. However, this area requires solutions to ensure compliance with campaign finance regulations.

The FreeWheel report suggests that programmatic advertising is becoming a more prominent force within the independent CTV market. This trend is likely to continue as independent agencies leverage programmatic tools to deliver measurable results for their clients.

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