Programmatic TV is still a very small proportion of total TV expenditure, but it's growing, as advertisers understand how it can help their strategies. Mauricio Leon (pictured below), commercial director, TubeMogul, tells ExchangeWire that programmatic TV can do so much for marketers and is a powerful tool for engaging consumers.

Last year, TubeMogul ran a poll to determine consumer attitudes towards paying the BBC licence fee, and the results were surprising. Almost 60% of the population said that they no longer wanted to pay the fee and believed that the corporation should turn to an advertising-funded model.

Now, I love the BBC. I grew up watching its countless quality productions and get my news by its reporters every single day. For me, the BBC is a part of the family. But, in this age where younger generations have varied media habits, struggle to make ends meet, and have issues with paying for content, I can understand why there is resentment over what many people see as a flat entertainment tax.

According to Thinkbox’s ‘Truth About Youth’ study, released in June 2015, 16-24s have a more varied video diet, with TV accounting for 65% of their total video viewing, compared to the UK average of 81%. Millennials and post-millennials are diversifying the way in which they engage with content. They want to enjoy content in a way that meets their lifestyle needs, whether that be by changing the device on which they view it (tablet as opposed to TV) or by demanding ads delivered in a way that doesn’t conflict with their viewing habits. And that’s why programmatic is so important.

At its very basic level, programmatic TV is the use of technology to automate the television ad buy. But there is more to it than just that. In order for the technology to be effective, it needs data – lots and lots of data. Marketers turn to programmatic TV because it allows them to better target the right ad, to the right person, at the right time of day.

Programmatic TV also cuts down on wastage and creates more value, especially for low- or zero-rated spots that have been traditionally undervalued by advertisers. While BARB ratings might state that no one is watching a particular programme, the additional data provided by programmatic TV might uncover that there is a healthy, hidden audience of male gamers or female bingo and light gambling fans that was previously untapped – ideal for companies launching products such as a new games console, or online betting and chat site.

If we are to keep viewing figures up and continue engaging audiences with television – whether that be on traditional TVs or online – then we need to ensure that advertising becomes more helpful and less of a perceived hindrance. And programmatic TV is the solution.

Almost a year ago, Channel 4 dipped its toe into the programmatic pond allowing third-party platforms, like TubeMogul, to overlay their data with Channel 4's own data from a programmatic reserve perspective. While not a completely programmatic buy, as we understand it in the digital context, it is an illustration of the ambition advertisers in the UK market have to use audience data to make more relevant and targeted campaign decisions.

Seeing an ad for a new car a few weeks after you bought one is an intrusion. It’s taking time out of your viewing enjoyment to sell you something you don’t need. Seeing an ad for an automobile when you are considering a purchase is, however, seen as potentially useful and helpful. Programmatic TV uses data, including viewing habits, gender, age, socioeconomic information, and more, to determine what viewers are most likely to be engaged by, when they are most likely to be receptive, and on what stage in the path to purchase they are. It ensures that everything – and not just the programme – is relevant, interesting, and informative.

People use ad blockers because they don’t want intrusive ads on their computer or tablet screen. They also leave the room or use services to ignore ads when they appear on their TV. Wouldn’t it be better if consumers no longer had to resort to this behaviour? If the ads were looked forward to and enjoyed (or at least tolerated) a little more than they are now? Programmatic TV gives marketers that opportunity.