Commentary

Magna's Big Step Toward Local TV Programmatic

There is a lot of talk about programmatic moving into television, but there are few industry experts on programmatic and local TV. Magna’s Janice Finkel-Greene is one of those experts. Her collaboration with Wide Orbit in this area has led to a transformative new initiative called Wide Orbit Central, which was announced this week.

I sat down with Finkel-Greene, who filled me in on the details in this video.

She explains, “What we are trying to address with this new application is to improve the local buying process as we introduce elements of programmatic buying to it… It puts the buying process into an automated framework.”

Currently, buying local broadcast is time-consuming. It is bought by individual market and often focuses on low-value inventory. There is also the issue of local television measurement, which is challenged by low samples, large relative error and therefore performance bounce.

advertisement

advertisement

This new application, available to all agencies and broadcast stations and affiliates, is considered “programmatic in spirit” because it’s console-to-console with near real-time buying and reporting. It is connected directly to a traffic system (Wide Orbit) as opposed to connected to a source of inventory like other local sellers in the space. Finkel-Greene describes the application as “local TV programmatic on a national scale offering the ability to buy all broadcast across the U.S.” While it does not include cable at this time, there are plans to expand into cable as a next step.

The stations decide which inventory they want to sell by DMA. Finkel-Greene says that the system is transparent in that it surfaces “markets, stations, times and dayparts. Currently, programmatic TV is a dark pool arena for local TV -- there is not a lot of disclosure.”

Wide Orbit Central offers a data-driven solution, notes Finkel-Greene, adding: “We overlay qualitative data and if a station offer meets our criteria, we can buy it. It is data-driven, not whimsical.”

Finkel-Greene concludes: “The transparency and speed of the Wide Orbit Central platform creates the feedback loop we need for continuous optimization. It makes insights actionable by providing the opportunity to place buys nationally while targeting to the local market specifics. It’s the best of both worlds.”

2 comments about "Magna's Big Step Toward Local TV Programmatic".
Check to receive email when comments are posted.
  1. Ed Papazian from Media Dynamics, October 14, 2014 at 8:24 a.m.

    Another tidy report, Charlene. Thanks. This makes it clear that the agency is trying to adapt elements of the programmatic idea into its existing spot buying system, not completely upend it. In other words, it's up to the sellers---the stations----to decide what parts of their "inventory" are offered in this manner----presumably with a fixed price per package--- rather than lumping everything in----premium and low rated---- which I believe is a long way off. One question. Did Ms Finkel-Greene have anything to say about how the national sales reps fit into this picture-----or is the agency dealing "direct" with the stations?

  2. Janice Finkel-Greene from Magna Global, October 15, 2014 at 2:39 p.m.

    Ed Papazian raises a really interesting question about the future role of rep firms in the programmatic buying arena. Although it appears initially that the WideOrbit model could exclude the rep firms from participation, I think it could just as easily open up a whole new service area. Creating, pricing and selling selected TV inventory based on qualitative and behavior targeting is an emerging function that needs exploration. Although algorithms can be built to place media based on specific criteria, the best rules will be produced by people who understand the nature of local TV research and sales. I’d welcome the help of seasoned professionals to help further develop the concepts.

Next story loading loading..