Broadcasters Must Look Beyond Programmatic to ‘Econometrics’ to Monetise Cross-Screen Video


Randy CookeAs video advertising grows, the true value of a video ad has become increasingly unclear. While it’s convenient for the industry to bundle all video as cross-screen video the reality is that the impact of different types of video ad is far more nuanced than that. For example, how to you compare the value of ad on Snapchat with an outstream ad, or is an ad shown on an on-demand service any different to one served into a linear TV stream? A new report by RTL-backed SpotX, suggests that broadcasters – many of whom distribute content across as many as 30 delivery points – may have yet to realise the true value of ad placements within many of these opportunities.

SpotX’s VP of Programmatic TV, Randy Cooke, said he believes that most media companies are only positioned to monetise the ad opportunities within a handful of delivery points to a value befitting their true worth, according to

“A consumer may record a show on a DVR, but end up streaming the content on a mobile device during transit,” Cooke explained. “This represents three ways of watching the same content – live, streaming and playback – but in many cases all of these are not being monetised to their full value.”

“Age and gender are no longer the primary basis of media value, with advertisers looking to leverage data to deliver video ads with maximum impact. Media companies must offer the opportunity to do this, as well as capitalise on ad opportunities across all delivery points, in order to maximise yield.”

The answer, says Cooke, lies beyond programmatic technologies. “Broadcasters are thinking beyond programmatic to econometrics – the concept of leveraging relationships between audience datasets that are significant to pricing and ad campaign fulfillment,” he said.

“Understanding these relationships in the data, like correlations between ad exposures and consumer outcomes, provides insight into channel efficacy, which can be leveraged over time to establish better pricing rules for each channel.

“Programmatic infrastructures will be a tactical underpinning of next-generation ad models, but strategically, the economics of TV and video necessitate an incorporation of data and insight that go beyond the various working definitions of ‘programmatic’.”

“The ability to manage inventory and optimise for yield across each of these transactional frameworks is a discipline SpotX and its strategic partners are committed to developing alongside media owners around the globe.”

 


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