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Canadian TV debuted on September 6th, 1952, when CBC launched CBFT in Montreal and CBLT in Toronto. Some of the first advertisers were Ford, Campbell’s Soup, Westinghouse and Imperial Tobacco. Less than 10 years later, census data showed that 82.5% of Canadian households had TVs – more than had flush toilets. Even in 1996, 76% of Canadians lived in houses that could receive cable, the highest penetration in the world.

To say that Canadians love TV is an understatement. But in September 2014, IAB Canada reported that for the first time ever, Canadian brands were poised to spend more on digital advertising than on TV. Why?

Despite the rapid pace of internet adoption amongst Canadians in the last 20 years, the fact remains that the way that TV advertising has been bought and sold remains largely unchanged since those first ads were shown over 60 years ago. Canadian advertisers still must negotiate deals manually, secure the best rates, and stay top-of-mind among their target audience. On the other side of the fence, broadcasters have to successfully forecast market demand while simultaneously maximizing yield.

Meanwhile, what’s flying below the radar is the fact that this is the best time in history to be a viewer. There is more content available on more screens than ever and it is both easily accessible as well as affordable. Programmatic advertising has empowered marketers to fully capitalize on this trend and more marketers are waking up to the benefits of data-driven automation.

That’s beginning to include TV buyers. And with the recent launch of several programmatic TV platforms, Canadian marketers have a lot to be excited about:

• Flexibility. Instead of adjusting strategy months into a campaign, do it in days.
• Better targeting. Seventy-two percent of Canada’s population is concentrated in the top 10 TV markets. Programmatic allows advertisers to move beyond basic age and gender or network ratings for the first time and spend more effectively to reach more granular audiences.
• Operational efficiency. Planning and buying TV across national, regional and local markets is logistically challenging. Automating that process will liberate planners to focus on what matters.
• Eliminate silos. Buying TV and video through the same software platform enables true cross-screen planning, buying and optimization — all fueled by data.

It’s important to note that programmatic TV won’t look like anything like its digital counterpart. All we mean when we say “programmatic TV” is that advertisers can use software to layer audience data to amplify targeting and automate previously manual processes, increasing operational efficiency.

The Canadian TV market consists of 34.1 million people spread across 42 separate TV markets and 13.9 million TV households. And because of the significant population concentration, programmatic gives advertisers the flexibility and agility they need to quickly execute buys in a matter of days, not weeks or months. Automated reporting allows them to see what’s working, what’s not, and shift budget proactively instead of waiting until after the fact.

And brands are buying in. Mondelez International became the first advertiser to buy a broadcast TV Super Bowl ad programmatically. DigitasLBi programmatically secured ad time during the Oscars across eight different markets only three days before the event aired. Not only do these buys counter the notion that primetime TV inventory won’t be available programmatically, but they also show how brands that traditionally favor a certain medium are using software to approach media holistically.

It’s a tall order to try and disrupt an institution as deeply entrenched as TV is in Canada. But we believe brands, broadcasters, and everyone in between will drive change that delivers value and helps make programmatic TV a reality.

Grant Le Riche

Grant le Riche previously launched SAY Media in Toronto, and is currently Managing Director, Canada at TubeMogul. He is responsible for continuing TubeMogul’s rapid revenue growth, and expanding the footprint of its programmatic brand marketing platform among the world’s top brands. As a leader in the programmatic space, Grant has served on multiple AdClub & IAB Boards, and is a regular columnist for Marketing Magazine. Tweet him at @grantleriche.