Dream on the Screen: Crafting Your TV Media Buying Strategy

For decades, TV advertising has been one of the primary marketing pillars for brands. It’s pretty reasonable: the number of TV viewers didn’t decline even after the rise of the internet. Still, something has changed, and it’s the way marketers can buy TV ads to get the most out of it.

The number of TV users is expected to reach 5.7 billion by 2029. At the same time, viewers are developing new watching habits as technologies keep evolving. This doesn’t mean TV advertising is slowly dying; it’s transforming, giving birth to multiple opportunities.

In this article, we’ll explore what exactly TV media buying is, where it came from, and how it’s adapting to the digital advertising landscape. By the end of this piece, you’ll be able to estimate your needs in the TV media buying solution. Also, you’ll know where to start from.

So, let’s begin our short course, TV media buying 101!

What Is TV Media Buying?

TV advertising will celebrate its 100th anniversary in 2041. The world saw the first TV commercial in July 1941, during the broadcast of a baseball game. The ad was promoting Bulova watches and lasted around one minute. It was the beginning of the TV advertising era. In the following decades, TV media buying became a golden standard for companies aspiring to promote their products.

The definition is straightforward: TV media buying is purchasing advertising space on television to show commercials and reach the target audience. Traditionally, it involves selecting channels and programs, negotiating prices, and planning the schedule of ad airing (including choosing the best time slots).

To achieve the goals, i.e., reach the right audience at the right time, advertisers must also consider viewers’ behavior and data, market trends, and available budget. If done correctly, TV media planning and buying can lead to impressive campaign results.

The Spectrum of Approaches to TV Media Buying

May the simple definition doesn’t fool you: there’s more than one way to buy ads on TV. Moreover, some TV media buying terms can seem complicated. It’s a good thing we’re here to explain them!

Direct Buying

Traditional TV media buying deals require direct negotiations between advertisers and TV networks or channels. On the one hand, maintaining communication with networks can benefit marketers. For example, close and trusting relationships may lead to lower prices.

On the other hand, building these relationships can be time-consuming, and the results aren’t guaranteed. Plus, direct deals often lack flexibility. Reallocating your budget may be difficult, even if performance metrics are worsening.

Programmatic Buying

The programmatic advertising approach applies to TV, too. It means you can buy ads on TV automatically using specialized platforms. Often, it happens in real time.

This approach offers flexibility that direct buying lacks. However, ad inventory may be limited, so competition can sometimes become fierce.

Upfront Buying

This term is an essential part of media buying terminology. It refers to purchasing ad inventory for an extended period, for instance, a TV season or a year.

Most often, it looks like this: networks devise a schedule for a season/year in advance. Advertisers choose the slots they’d like to fill with their ads and commit to paying for them. Such a “bulk” approach allows marketers to lower the rates and secure ad placement, even premium.

The downsides are clear: if advertisers have a long-term commitment, they can’t withdraw money from the campaign even if the chosen programs don’t deliver the expected outcomes. And if the marketing strategy changes mid-season, it will be hard to do anything with planned ads.

Scatter Buying

Here’s one more of the most popular TV media buying terms. It stands for purchasing ad inventory anytime, even close to the airing date. For instance, advertisers can use a quarterly approach: choose programs and adjust the amount of ad inventory depending on the latest trends and the current marketing strategy.

Scatter buying allows more flexibility, although often it comes with higher prices. Also, there’s a risk that the most popular programs won’t be available for ad placement because other advertisers prefer an upfront strategy.

There are some less common approaches to TV media buying. For example, sponsorship or ad integration. In this case, advertisers invest in the program and, in return, get to place a product in the content in the most natural way.

To conclude this part of our TV media buying guide, it’s important to note that companies often combine different approaches to achieve the best results. For instance, use upfront and scatter buying to minimize the risks of both and maximize the gain.

Types of TV Inventory

What does TV inventory mean? Simply put, it’s advertising space that can be sold and bought. Usually, TV media buying is based on 30-second time slots, although it may be optional.

There are two main types of TV inventory, and we’ll explore each of them.

Linear TV Inventory

This type is familiar to everyone and includes inventory on broadcast and cable channels. The time slots for advertising are scheduled, the ads are unskippable, and there’s no room for personalization of the content. Usually, advertisers buy inventory directly and apply an upfront or a scatter approach.

Despite the same fundamental principle, broadcast and cable TV inventory differ. While the first is based on an over-the-air signal, the second is delivered via cable infrastructure or satellite.

Broadcast TV's reach is broader, so it can show your ads to a vast audience. At the same time, cable TV allows more targeting options since it’s distributed by subscription. For example, your ads can be shown to cooking fans if you place them on the cooking channel.

Also, there’s a difference in the frequency and length of commercial breaks. Typically, they are longer and more frequent on cable channels than broadcast TV. On the other hand, cable TV offers more flexibility in choosing time slots for your ads.

Digital TV Inventory

The main feature of this type is that TV content is delivered via digital platforms. Like linear TV, you can fill time slots within this content with your ads. Unlike linear TV, advertisers have more opportunities for precise targeting, measuring campaign performance, etc.

Now, we’ll introduce you to several new TV media buying terms: CTV (connected TV) and OTT (Over-The-Top) inventory.

Connected TV means that TV programs are delivered to viewers via the internet to their devices (smart TVs, for instance). OTT’s definition sounds similar: it’s also about delivering the content directly to the customer via the internet. So, what’s the difference between CTV and OTT?

Simply put, all CTV is OTT, but not every OTT is CTV. CTV usually refers to big screens, such as smart TVs, and OTT may include watching content on mobile devices. Streaming services like Netflix can be examples of both CTV and OTT platforms.

Also, you may hear the word “streaming” as a synonym for OTT. It’s okay to use them interchangeably because OTT platforms most often rely on streaming technology (delivering the content in continuous flow).

Differences Between Broadcast and OTT/Streaming

Who knows, would TV still be popular if digital TV wasn't invented? Traditional programs delivered over the air or via cable/satellite infrastructure lack the flexibility needed in the modern world. Also, customers want to watch the content they pick whenever they are ready.

Broadcast TV's reach can be broad, but so is OTT's. Viewers can often stream their favorite shows while traveling (although sometimes this feature may not be available due to content rights limitations).

However, the main differences between broadcast TV and OTT are ad targeting and performance tracking. Digital TV allows advertisers to find the audience based on advanced analytics, including demographics, interests, and behavior.

Broadcast TV usually relies on ratings to measure performance, while OTT can provide advertisers with detailed data on users’ engagement, ad viewability, click-through rates, etc. No wonder digital TV media planning and buying are more efficient than traditional.

What Are The Most Common TV Advertising Formats

Today, advertisers can choose among various formats to deliver their messages most effectively and cost-effectively. Here are the typical options on the TV media buying menu:

1. Traditional commercials. We all see them during breaks in TV programs, and depending on the creativity of the production team, they can be boring or look like art. Commercials most often last 15, 30, or 60 seconds.

   The strengths of traditional TV ads include their broad reach and engagement potential. If your commercial is creative, it can become viral and make people talk about it. Some ads become classics, bringing the brands behind them tremendous advantages. Still, the spots for commercials may be costly, so comparing the pros and cons makes sense before spending money on them.

2. Bumpers. These ads are short (typically 5 to 10 seconds) and placed at the commercial break's beginning or end. They aren’t suitable for delivering long and complex messages but are great for reminding viewers about your brand. A few seconds of the audience’s attention can make a difference if your message is short and clear.

3. Infomercials. These ads can be long, reaching half an hour or even more. Companies can use this format to educate customers about their products or services. Also, they often include a call to action so a viewer’s interest can be immediately converted into a tangible result for the brand. At the same time, this format doesn’t fit all: the product should have a “TV potential”. If people get bored looking at it, don’t expect an outstanding performance.

4. Product placements. In this case, the product is integrated directly into the content. It draws the audience’s attention without irritating viewers with commercial breaks, which may result in a higher engagement rate. However, it’s only true if brand integration is seamless and natural.

5. Interactive TV ads. Now, we’re entering the realm of modern TV technologies. This type of advertising allows viewers to use the remote control or connected devices to perform a suggested action (for example, click to get more information). What’s more, some ads are shoppable, meaning that viewers can make a purchase immediately when they see a product on their screen.

   Sure, not all TVs can offer these functions, which is the main limitation of interactive ads. Also, shoppable ads usually require integration with e-commerce platforms.

6. Overlays. These ads don’t wait for the commercial break; they appear along with the content. Because they are located at the bottom of the screen, they often remind viewers of banners on web pages.

   A similar ad format is called pop-ups. They also appear while the program runs but disappear in a few seconds. While overlays and pop-ups may be great for engaging viewers for a short time, the main factor that defines the outcome is the quality of the ad.

7. Pre-, mid-, and post-roll ads. These formats are common for streaming and CTV. A pre-roll ad is shown before the main content, post-roll after it ends, and mid-rolls appear during natural breaks (for instance, between different topics in the video). The least engaging between these three is post-roll.

   As you can see, there are plenty of fish in the TV media buying sea. And since it’s all pretty clear about traditional TV, let’s talk more about CTV.

How CTV Changes the TV Game

Digital advancements significantly influenced the TV media buying process, making it easier for advertisers to reach their target audiences and efficiently deliver their messages.

We’ve already mentioned advanced targeting options and performance tracking, but the benefits of CTV go far beyond that. First of all, CTV has changed the culture of watching. Customers can access content from various devices; they often binge-watch many episodes in one sitting instead of waiting for the next part of the show, like with traditional TV. This forces advertisers to change their strategy to make ads more compelling (for example, choose product placements more often).

The ads are also changing. With linear TV, viewers were passive recipients of advertising messages. With digital reinforcement, they turn into active participants. Customers can click, scan QR codes, and sometimes buy products they see on the screen immediately. As a result, the whole user experience changes and brings new opportunities for advertisers.

Next, CTV makes TV advertising more affordable, even for small companies. Pricing models have become more flexible, and programmatic TV media buying offers options for almost everyone. There is no need for direct buying, just cost-efficient practices.

So, CTV is shifting the advertising landscape, allowing every company to find the optimal TV media buying solution tailored to specific needs. The only question is, how can you start?

The TV Media Buying Process

Typically, the process of TV media planning and buying includes several steps:

1. Set the goal. What do you want to achieve with your TV campaign: increase brand awareness, boost sales, generate new leads, etc.?

2. Research the audience. Find the most crucial information about your target customers: their demographics, behavior, viewing habits, etc. It will help you identify perfect programs for your goals and audiences.

3. Decide on a budget and create a media plan. It should include your chosen channels, programs, and time slots, and budget limitations should be considered.

4. Buying. This step depends on your buying approach. If you’ve chosen direct buying, you should negotiate the rates, and if you’re going for programmatic buying, then start exploring platforms.

5. Choosing the metrics. Every campaign must have indicators of success, such as reach, ROI (return on investment), etc.

Next, companies usually create ads and launch the campaign. But it’s crucial to remember about post-campaign analysis. What worked well, and what could be improved? After all, advertising is a repeated process, and you should progress at every new iteration.

Wrapping Up

As our TV media buying guide is approaching its end, there’s still one thing left to say. Most likely, traditional TV will stay with us, digital TV will continue to develop, and the line between them will keep blurring. Advertisers can benefit from this process if they learn more about TV media buying and apply their knowledge.

To do so, they need reliable platforms providing vast functionality for launching campaigns, analyzing performance, and optimizing results. One of the best options is Epom White-Label DSP. With its help, you can set up CTV campaigns and reach your advertising goals. You can also try it for free to see its strengths.

FAQ

• What is TV media buying?

  TV media buying is purchasing advertising space on television to show commercials and reach the target audience.

• What are the main approaches to TV media buying?

  They include direct, programmatic, upfront, and scatter buying.

• What is TV inventory?

  It’s advertising space that can be sold and bought. Usually, TV media buying is based on 30-second time slots, although it may be optional.

• What are the primary types of TV inventory?

  Linear TV Inventory includes inventory on broadcast and cable channels. The time slots for advertising are scheduled, the ads are unskippable, and there’s no room for personalization of the content.

  Digital TV inventory includes CTV (connected TV) and OTT (Over-The-Top) inventory. The main feature of this type is that TV content is delivered via digital platforms.

• What are the differences between broadcast and OTT/streaming?

  The main differences between broadcast TV and OTT are ad targeting and performance tracking. Digital TV allows advertisers to find the audience based on advanced analytics, including demographics, interests, and behavior.

  Broadcast TV usually relies on ratings to measure performance, while OTT can provide advertisers with detailed data on users’ engagement, ad viewability, click-through rates, etc.