AT&T Inc. (NYSE: T) plans to sell linear TV programmatically through a partnership with the ad technology company Videology. A “private marketplace” will be introduced for a select group of advertisers who can buy ads on linear TV in 26 million homes using Web-like software and data targeting. Advertisers who buy ads in the “private marketplace” will be able to use data from their own, various third parties and web interface, which could help them to reach specific target audiences.
The new program will boost the development of “programmatic TV”, making TV advertising work more like digital advertising. The highlight of this advertising model is the promise of transparency.
“What we’ve heard in the marketplace is that you don’t know where your ads are going to run and there is limited access to quality ad inventory,” Jason Brown, vice president of national advertising sales at AT&T AdWorks, said, “This solves for both of these things.”
The concept of “private marketplace” is not only focused on linear TV. Mr. Brown said that AT&T will explore expanding this capability to the company’s just announced mobile-focused DIRECTV satellite TV service through internet in the near future.
Shares of AT&T rose to a 52-week high of $38.1 in today`s trading. Yet the price fluctuation is not big. Analysts pointed out that the frequent recent activities, including the announcement of its DIRECTV satellite TV service and the “private marketplace” service, the completion of build out of fiber to 1 million additional customer locations, and the field testing of next-gen 5G technology, are main drivers of T shares` good performance.