Digital
Programmatic TV is the future of advertising
As we move towards a digitally-driven world at a high pace, it is essential for brands to stay ahead of the curve and discover/develop newer and effective ways to reach the consumers ensuring impact. Now in the ever-evolving digital world, advertising has bypassed the traditional approach. With affordable internet prices across the country, digital advertising has evolved into a global marketplace at large. This new and evolved sector requires many relationships that extend further than the typical publisher/advertiser bond that brands and agencies were familiar with. Although new platforms for advertising have emerged but the value for television advertising is still growing. Television is of paramount importance for brands as they know TV ads work in reaching a larger set of audience who either has limited access to the internet or no access at all. Over the last decade, television has undergone major technological development which has enabled marketers to direct commercial messages in a focused manner on an individual level.
With the invention of Smart TV’s, traditional ways of TV ad buying are being challenged by the programmatic approach. Programmatic TV largely refers to the TV inventory that could be bought via a programmatic platform. As simple as it may sound but it is rather a complex mechanism which has many broad categories with several types to choose from. They consist of video on demand (VOD), digital linear TV, video and terrestrial linear. One can always purchase the programmatic inventory of the TV by either open exchange or via a private market place. Open exchange can be accessed by anyone by using real-time bidding to auction inventory to the highest bidder and private market place, on the other hand, is more direct and based on impressions rather than the traditional guarantees of time and place. This digitization has overall enabled marketers to apply data segment to leverage big screen and create high impact on the audience. Programmatic TV is a one-stop solution for brands as well as advertisers as it largely applies digital advertising’s efficiency model to traditional TV advertising with the automation of buying process with connected devices.
While programmatic TV as an option has an exceptional potential but it’s still quite new. Hence, programmatic TV is not living up to its true potential given that we’re still in the very early stages. Going by the pace of the adoption, the industry is likely to adopt it in phases. The first phase will induce buyers and sellers to use programmatic tech to transact digital video buys. This phase is actually underway and making notable strides across platforms. As per a report by Google Data, a 4x growth in impressions for videos was visible in 2014 itself. The second phase will ensure the overall development of the programmatic infrastructure, making it easier for buyers and sellers to place ads in streaming and video-on-demand TV content across connected devices efficiently. Both these phases will create pathways for the third and most important phase i.e. Linear TV. Support for Linear TV in programmatic is the most complex phase as it will take some significant work to integrate digital platforms with traditional systems and data vendors across the TV ecosystem. If done right, programmatic TV will help the sector in overcoming several ideological and technical challenges. The sector needs to get programmers and broadcasters along with advertisers to help understand what programmatic TV can do instead of what people think it does. This will then result in brands focusing on the things that really matter such as universal measurement across all advertising platforms for better ROI, the ability to reach viewers across screens, access to inventory devoid of rights issues along with programmatic buying support for set-top boxes and so on.
As per e-marketers research, programmatic TV would be a multi-billion dollar industry by 2022. Though it accounts for less than 1 per cent of all TV ad spends for now. As brand advertisers, programmers, distributors and ad tech providers work their way through the real-world challenges, programmatic TV will begin to live up to its true potential making it the future of advertising on TV.
(The author is co-founder and managing director, Makani Creatives. The views expressed are his own and Indiantelevision.com may not subscribe to them.)
Digital
GUEST COLUMN: How AI is restructuring distributor and retailer motivation models
From incentives to intelligence, AI is redefining how brands engage channel partners
MUMBAI: Artificial intelligence is rapidly transforming how brands engage with their most critical yet often overlooked stakeholders: distributors, retailers, and last-mile influencers. For Abhinav Jain, co-founder and CEO of Almonds Ai, this shift marks a fundamental departure from traditional, transaction-led incentive models toward behaviour-driven, data-intelligent ecosystems. In this piece, Jain examines how AI is enabling brands to decode partner motivations, predict engagement patterns, and deliver personalised, scalable experiences—ultimately redefining channel relationships from transactional exchanges to long-term growth partnerships.
Across many sectors, there is increasing recognition that motivating those who bring products to market (distributors, retailers, last-mile influencers) poses a growing challenge.
Brands continue to invest significant marketing and digital resources to consumers, yet in many countries and the vast majority of emerging economies, these types of consumer-focused investment areas have had little impact on ultimate product delivery. Rather, it is still the case that traditional retail continues to make up most products sold.
So why is it that the systems built around motivating these channels have yet to evolve?
For decades, distributor and retailer engagement revolved around static schemes – quarterly targets, volume-based rewards, and occasional trade promotions. These programs were designed around transactions, not behaviour. The assumption was simple: if incentives increase, performance will follow.
Now, with the advent of artificial intelligence, the definition of performance is being challenged.
With the development of artificial intelligence, businesses can move beyond simply creating loyalty based on transactional-based models and toward models built on behaviours, the behaviours of channel partners that are intrinsic to their motivations in engaging with particular brands. As a result, the means by which businesses develop relationships within their distribution network are starting to evolve; thus, ultimately changing how brands interact with those within their distribution network.
Assessing engagement: Transitioning from transactional- to behavioural intelligence
Traditional loyalty systems refer to transactional activity (sales data). Although this data is valuable and important, it only provides a partial view of engagement across the channel partner.
For example, a retailer may have a high frequency of sales of a product, but their lack of engagement with the manufacturer would not reflect that they have true loyalty toward that brand. Conversely, a retailer who actively participates in training programmes, acts as brand advocates, and is engaged in learning with the supplier would exhibit more profound levels of loyalty but would have been invisible based on historical incentive programmes.
Artificial intelligence allows for the identification of behaviours that help to address this gap. Brands are able to use a variety of engagement data points, participate in learning programs, respond to communications, redeem behaviour and track platform use behaviour in order to identify motivation through behaviour.
McKinsey has stated that companies that leverage advanced analytics for their sales and distribution functions can achieve as much as a 15-20 per cent increase in productivity due to increased awareness of their behavioural trends throughout their networks.
This visibility of behavioural patterns within channel ecosystems can be transformational to brands as they can now view how partners engage on their path to purchasing products, instead of just measuring the sales revenue generated by those purchases.
Predicting motivations, not just measuring performance
Possibly, the largest contribution of Artificial Intelligence (AI) to helping brands engage with partners via channel ecosystems is its ability to predict future engagement versus simply measuring past performance.
Traditionally, brands only realised that a partner was disengaged (not likely to purchase products) once their sales performance had already declined. By then, the brand would have to use significant amounts of incentives or aggressive promotional activities to recovery their partner’s engagement level.
AI models can help organisations to detect early signs that a partner is becoming disengaged, such as declining participation in learning modules, declining interaction via the platform, or slower reward redemption rates. These indicators can help organisations to proactively engage with their partners before their sales performance begins to decline.
The practical application of AI and predictive analytics gives brands the ability to re-engage with their partners prior to their sales performance declines. For example, instead of developing and implementing broad-reaching incentive programs that provide a “one size fits all” incentive to all partners in an ecosystem, brands are able to develop targeted, engaging re-engagement programmes. This is how personalisation can be done on a large scale, such as across global distribution and retail networks.
The vast majority of distributor and retailer channels have thousands, if not millions, of individual channel partners. Historically, providing personalisation to such a large number of businesses has not been feasible.
However, with the advent of AI, personalisation at scale is becoming a reality.
Brands can now create tailored engagement journeys for all their partners, based on their partner profiles, through some combination of machine learning models and behavioural segmentation. For example, high-performing distributors might receive higher levels of leadership-based recognition and greater incentives to continue to grow. Emerging retailers, on the other hand, might be supported with training, onboarding rewards, and measurable performance milestones.
The shift towards personalisation of partner engagement echoes the direction that consumer marketing is already moving towards.
According to Salesforce’s report, over 70 per cent of customers expect personalisation in the way that brands engage with them. As such, there is a growing expectation for B2B ecosystems to have these same types of expectations from their channel partners.
Gamification and continuous engagement
AI is also radically changing how brands will engage with their channel partners through the use of gamification.
Many traditional incentive-based contests and leaderboards would spark temporary engagement among their participants, but they struggled to sustain engagement over time. With the use of AI, gamification mechanics are evolving dynamically based on historical and evolving participation patterns by their channel partners.
Challenges, rewards, and recognition structures can be modified continuously in order to sustain engagement with all of a brand’s partner segments. This will provide a greater opportunity to move away from episodic campaigns towards ongoing, continuous engagement experiences.
When channel partners receive motivation as part of their daily business activities through recognition, learning, and tracking their performance, long-term loyalty will be achieved.
Aligning motivation to broader impact
There is a growing trend within the channel ecosystem to integrate sustainability and socially responsible behaviours into the channel partner programmes of brands.
Increasingly, brands are motivating their partners to use sustainable practices in their operations, participate in sustainable practices like sustainability-related knowledge programmes, or promote products that are in line with their sustainability objectives.
Brands can use AI to monitor and measure these types of behaviours and incorporate them into their incentive frameworks so that brands can align their commercial objectives with broader social and environmental outcomes.
A shift in the way brands view their channel partners
AI is having the most significant impact on the way that brands are now viewing their channel partners, as it relates to the underlying philosophy of those fundamental relationships.
For the past several decades, many brands have viewed their channel partners as intermediaries in the supply chain. More and more brands are now beginning to view their channel partners as key ‘partners-in-growth,’ and their actions can have a direct impact on market performance.
In fact, all the channel ecosystems are using behavioural engagement platforms to design new models that reward not just transactional behaviour, but also create continuous engagement journeys for their partners, where their partners can receive recognition for their participation, learning, and continued engagement, thereby reinforcing long-term loyalty to the brand.
The future: Intelligent channel ecosystems
As we consider what the next phase of channel engagement may look like, many believe that it will be based on intelligent ecosystems, using AI to continuously monitor and adjust the engagement strategies used to engage their channel partners, in real time and based on the behaviours of those partners.
For brands operating in complex distribution networks, the ability to perform well will be determined both by whether products are available to their customers, as well as by the enthusiasm, expertise, and loyalty shown from each channel partner that represents the brand each and every day that they are working on behalf of the brand.
While AI clearly does not eliminate the human aspect of a brand’s relationship with its channel partners, it does allow brands to better understand and nurture that relationship.
In markets where the last mile will determine whether a sale is made, how one leverages the intelligence gained by using AI will ultimately be the difference between gaining a new, sustainable competitive advantage versus losing one.
