Connected TV Media Buying: Programmatic vs Direct

Programmatic buying is the automated process of purchasing digital advertising space using software platforms, rather than through manual negotiations and insertion orders. It relies on algorithms, data, and real-time bidding (RTB) to target the right audience with the right ad at the right time.

Direct publisher buying for Connected TV (CTV) refers to purchasing ad inventory directly from a CTV publisher or platform—like Hulu, Roku, Tubi, Peacock, or Pluto TV—instead of going through a programmatic platform or auction.

The key differences between programmatic buying and direct buying for Connected TV (CTV) lie in how ad inventory is purchased – the level of control, pricing models, and targeting capabilities. Here’s a breakdown:

Programmatic

Programmatic buying is considered to be an automated, real-time bidding system that is focused using software platforms (DSPs). This process utilizes data and algorithms to target audiences across multiple CTV apps and platforms. Most commonly, this strategy involves bidding systems within auctions or private marketplaces.

When it comes to targeting, programmatic allows for advanced audiences utilizing first-, second-, and third-party data. Targeting specific demographics, behaviors, geographies, and devices allow for more precise and embattled campaigns; often achieving campaign goals. Within the programmatic approach, dynamic ad insertion is used based on viewer profiles.

A benefit of programmatic buying is it often gives clients greater access to real-time performance data and insights. The downside of programmatic buying is it allows clients less control over exactly where ads appear unless they use private marketplaces or direct deals with specific publishers.

When it comes to a pricing model for this connected television buying strategy, Real-time bidding (RTB), cost-per-thousand impressions (CPM), or outcome-based models are often used most but note that prices can fluctuate based on demand and inventory.

Direct Buying

When it comes to direct buying, this is a manual, one-to-one process between advertisers and publishers or platforms (e.g., Roku, Hulu, YouTube TV). This process often involves upfront negotiations and fixed pricing.

For targeting purposes, this process is viewed as less than ideal when compared to programmatic because it is limited to the media platform’s programming and channels. This method is less granular and often targets specific content, rather than individuals or audiences.

For pricing purposes, Direct Buying is fixed pricing with flat CPMs or cost-per-spot and rarely negotiated.

Direct Buying allows clients more control over placement, content adjacency and brand safety. Clients also know exactly what content the ad will run next to which aides tremendously in transparency.

What Makes Sense for your campaign?

Knowing when to use each strategy is key to your marketing campaign and overall goals. Modus has developed a chart below that will outline how each use case is best for your campaign:

If you are deciding between the two, consider starting with a hybrid strategy —buying premium placements directly while using programmatic to extend reach and target more granular audiences efficiently. At Modus Direct, whether CTV is bought programmatically or direct – we strive to help you make the right choice for your campaign based off your goals and target audience.