Broadcasters are shy to adopt programmatic [Report]
Tuesday, March 7, 2017
Like all good trends, programmatic advertising is on the rise. However, in Ooyala’s new Video Index Extra report, “Broadcasters Shy to Adopt Programmatic: Challenges and Solutions," we find that while report, after report, after report paints an up-and-to-the-right trajectory for programmatic video, programmatic adoption among traditional TV providers is far less.
But why? The programmatic promise is easy enough to follow. As video consumption continues to skyrocket, and audiences’ viewing fragments across new devices and platforms, buyers want to streamline the challenge of reaching elusive, online audiences, across all devices, reaching as many and as efficiently as possible. Enter programmatic.
Programmatic saw quicker adoption among publishers and media companies with large inventories of short-form content, blending between premium and non-premium video. For them it’s a simple win as they have so much inventory it’s a challenge to sell every last impression. However, for broadcasters with a finite amount of premium, long-form content it comes down to one word: predictability.
If there’s no predictability to the prices broadcasters will receive by selling programmatic, and if buyers aren’t putting the pressure on them to change, why change? There’s very little incentive for broadcasters to fully adopt programmatic. So while programmatic gains momentum across the digital video industry, direct deals continue to be king for broadcasters.
In the report we handpicked prominent European broadcasters using Ooyala for both direct and programmatic sales, evaluating how much inventory was sold programmatically versus directly over the course of 2016. Spoiler: it’s not a high number. But it will get better.
Download the new Video Index Extra to learn more about the challenges broadcasters face with programmatic advertising as well as specific solutions, such as automated guaranteed and holistic advertising platforms, that can help that change.