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Programmatic ad buying, standard in digital, doesn't work well for TV. The market is too concentrated, with ~90% of inventory controlled by just 10 major publishers. This makes direct integrations and relationships far more effective and efficient than automated, auction-based programmatic systems.
Unlike the fragmented digital web, TV advertising is dominated by about 10 publishers. Tatari argues that direct, one-to-one tech integrations with these giants are superior to programmatic exchanges, as they eliminate intermediary fees, reduce fraud, and ensure brand safety in premium content.
Historically, TV advertising required massive budgets and long commitments. Self-serve connected TV (CTV) platforms now offer low minimums, allowing DTC brands to test and iterate creative with the same agility and small budgets used for search and social channels.
Despite early 2010s optimism that programmatic ads would equalize competition, tech platforms like Google have only increased their market share. The promise that publishers could match big tech's ad targeting scale and reclaim revenue never materialized, as tech's inherent advantages proved too dominant.
While useful for programmatic CTV, Demand-Side Platforms (DSPs) were not designed for the entire TV ecosystem. They can only access about 20% of total available TV inventory, excluding the other 80% which includes crucial linear TV opportunities like live sports and premium broadcasts.
The price disparity isn't about viewership. Legacy TV ad buys are often part of complex, negotiated packages that include talent access and integrations. This "engagement model" is different from YouTube's biddable, auction-based system, keeping TV prices high despite weaker analytics.
When costs on paid social and search platforms rise, instead of bidding higher for the same saturated audience, use TV to generate new demand. This top-of-funnel lift improves the efficiency of lower-funnel channels by increasing branded search, direct traffic, and conversion rates.
Focusing exclusively on programmatic buying for CTV is a critical error, as it represents only 7% of all ad-supported TV inventory. This siloed approach misses the vast scale of linear and direct-publisher streaming, while often incurring higher CPMs and limiting a campaign's total reach and efficiency.
Traditional linear TV still commands about half of all viewership and ad inventory. Crucially, major live cultural moments like the NBA playoffs are sold as linear buys, even when viewed on streaming services like Hulu Live. A streaming-only strategy forfeits this premium inventory.
The goal of platforms like Tatari is to eliminate the complexity of TV ad buying, making it as simple as using a Tesla. By combining workflow automation and AI, a new CMO with no TV experience can key in their goals and have a data-backed media plan generated and executed with a few clicks.
The next major shift in ad tech is performance-based CTV. This merges the attention of linear TV with the accountability of digital media, allowing advertisers to tie ad spend directly to outcomes like sales—a revolutionary change from traditional television's limitations.