SANTA MONICA, CA – Marketers and media buyers that are weighing the best ways to reach television audiences most effectively are smart to conduct a cost-benefit analysis of their media plans. This process is especially important when making the transition from traditional insertion orders to automated transactions on programmatic platforms.

“The marketer wants to understand: ‘if I’m going to increase some of the cost and pay a DSP [demand-side platform] tech fee and maybe some additional operational cost, are the efficiencies gained going to outweigh the additional cost?’” Beau Ordemann, vice president and head of advanced television at Yahoo Advertising, said in this interview with Beet.TV contributor Rob Williams at the Beet Retreat Santa Monica.

“We often do exercises with our big advertising partners and agency partners to look at: who are the upfront partners on their plan, what’s the investment level?” Ordemann said, “And start to understand what are the estimated frequency cost savings we can drive by managing everything toward a holistic frequency?”

Yahoo recently conducted case study with a major upfront advertiser that worked with five of its big upfront media partners to move from insertion orders to private marketplaces (PMPs), where advertisers can secure connected television ad inventory programmatically.

“We were able to drive 36% additional household reach in CTV and also 57% less overlap with linear using some of the linear TV data sets in our platform,” Ordemann said. “We know it works, but it’s getting over that mental hurdle of the cost.”

With the growth in CTV audiences, buyers and sellers of media are shifting their ad transactions to programmatic systems.

“A major theme at this year’s Beet Retreat has been adoption of programmatic for activating CTV,” Ordemann said. “We heard from all the major holding companies and also some of the independent agencies about how they’re increasingly adopting DSPs, or for lack of a better word, just technology to better control frequency holistically and to activate against audiences.”

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