How to maximise TV ad revenues using programmatic sales
With programmatic TV poised to enter the Asia Pacific market this year, programmatic video advertising platform, SpotXchange, has released a guide to help broadcasters maximise ad revenues using programmatic sales.
The sale of TV programmatically represents a quantum shift for TV, a medium that has been sold in a simple, pre-packaged model for decades. It will be several years before the industry evolves to take full advantage of the real-time efficiencies of programmatic but early movers stand to gain significant advantage, according to Matt Von der Muhll, Managing Director, Asia Pacific, at SpotXchange.
“As an easy first step, broadcasters can benefit from using programmatic technology to bring efficiencies to the booking process,” Mr Von der Muhll said.
Applying the real-time, auction-based element of full programmatic ad sales to TV will require a huge amount of market education, buy-in from all parties in the supply chain and a test and learn mentality, Mr Von der Muhll stated.
Transforming from an in-advance, pre-packaged sales model to real-time, auction-based programmatic sales will be a huge challenge for the industry. It will be difficult to apply to the scheduled environment of linear TV, but savvy players who open TV inventory up to programmatic stand to gain the jump on their competitors.
It is about complementing the current process, not replacing it. As views move towards an on-demand world, advertisers cannot rely on the old process where viewers were guaranteed on the couch at a given timeslot. It’s now a very different world – an instantaneous world. This can only be addressed effectively through the use of programmatic tools.
“A fully realised programmatic TV, or ‘audience everywhere’ solution, has the power to give TV sellers operational efficiencies, better yield management, data-driven transactions, real-time optimisation and household addressability,” Mr Von der Muhll added.
With players like Netflix, Presto and Stan entering the market in Australia, and audiences splintering across devices and on-demand content access across the region, traditional TV networks will face increasing competition for advertising dollars.
Simply put, programmatic TV is the technology-based empowerment of the planning, buying, selling, measurement and optimisation disciplines of traditional television. While programmatic
TV is still very much in its infancy, for many, it represents an inevitable future.
“Our hope is that this paper will spark a lively discussion around the pain points facing broadcasters and content owners, and the potential for programmatic to increase revenue and improve transactional efficiencies for both sellers and buyers,” said Mr Von der Muhll.
This is the first in a series of papers from SpotXchange that will examine programmatic TV and how industry stakeholders can position themselves to reap the benefits of this emerging technology.
