The Implications of Programmatic Advertising on the Business Model of TV Broadcasters

Abstract

Technological changes produced by the digital convergence are driving a paradigm shift in advertising and mass communication, and resulting in the emergence of a new market. Programmatic advertising is, in this context, an emergent technology that has the potential to disrupt and change the business model of incumbent media companies, such as television broadcasters. As the technology is new, we know little about the effects it will have on actors in the sector, and the definition of the programmatic TV construct is still evolving. We present the results of a predictive study of the business model implications of this new technology. Based on a combination of interviews, documentary content analysis, and the Delphi method, involving a range of industry executives, we identify 13 implications for the business model of TV broadcasters. Our findings offer a way for academia and actors in the media industry to understand the coming disruption from programmatic TV.