For decades, TV advertising has been dominated by manual processes—negotiating individual spot placements, tracking inventory availability, and adjusting prices in real time. While this hands-on approach works well for the top-tier 20% of premium inventory, such as live sports and marquee programming, the remaining 80% of ad inventory is ripe for automation.
In this blog, we outline how broadcasters can leverage audience-based trading models and advanced ad tech to dramatically reduce costs, enhance operational efficiency, and maximize ad revenue.
The high cost of manual spot trading
For large broadcasters, traditional spot-based trading requires an extensive workforce dedicated to pricing negotiations, campaign management, and inventory adjustments. The inefficiencies include:
- High labor costs
Hundreds, even thousands, of staff members are required to manage spot sales across networks. - Suboptimal inventory utilization
Non-premium slots are often undervalued or go unsold due to inefficient allocation. - Time-intensive negotiations
Each deal requires multiple rounds of discussions, leading to delayed transactions and lost revenue opportunities.
As margins tighten and competition grows, broadcasters need a smarter, more scalable approach to managing their ad inventory.
Automating the 80%: a game-changer for efficiency
Audience-based trading introduces automation to eliminate the need for manual spot management. Instead of selling individual ad slots, broadcasters can offer audience guarantees—ensuring impressions are delivered to the right viewers at optimized price points. Here’s how automation transforms the ad sales process:
Optimizes inventory management
Real-time demand forecasting ensures that all ad slots, including non-premium inventory, are fully monetized.
Eliminates manual pricing adjustments
Automated trading models allow for dynamic rate setting, optimizing CPMs based on supply and demand without manual intervention.
Reduces staffing costs
By automating up to 80% of the trading process, broadcasters can significantly cut operational overhead, reallocating resources to strategic initiatives rather than administrative tasks.
Business benefits: lower costs, higher revenue
The shift to automation and audience-based trading creates substantial advantages for both broadcasters and advertisers:
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For Broadcasters:
Lower operational costs
Automation reduces the need for large ad sales teams, driving efficiency.
Higher CPMs
Non-premium inventory can be packaged dynamically, increasing its value.
Market competitiveness
Automated systems enable rapid campaign execution, keeping pace with digital advertising innovations.
For Advertisers:
Targeted, efficient buying
Audience-based models eliminate waste by ensuring ads reach the right viewers.
Transparent, data-driven campaigns
Automated tracking and reporting provide clear insights into ad performance.
Scalable, always-on trading
Programmatic workflows ensure campaigns run seamlessly across multiple platforms.
Implementing audience-based trading: key considerations
Transitioning to an automated trading model requires the right technology and strategic alignment. Key focus areas include:
- Seamless system integration
Platforms must work with existing traffic and agency systems. - Accurate audience measurement
Reliable data is crucial for precise targeting and pricing. - Training and change management
Teams must adapt to automated workflows, requiring structured onboarding and support.
Despite these considerations, the long-term benefits far outweigh the challenges. The ability to automate the bulk of ad sales while maintaining direct negotiations for premium inventory ensures both efficiency and revenue optimization.
The future of TV ad sales
As digital and linear advertising continue to converge, automation is no longer just nice-to-have —it’s a necessity. Combining audience-based trading with automation allows broadcasters to maximize revenue across all inventory types while reducing operational burdens.
For media companies looking to lead in the next era of TV advertising, the message is clear: premium inventory justifies manual ad sales – but automate the rest.
Maximize profits with automated, audience-based ad trading
Discover a more efficient and flexible way to trade non-premium linear ad inventory.
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