7 Trends Shaping The Future of Programmatic Advertising for Streaming Media

1. Programmatic TV: Countless Ad Inventory Alternatives

The rise in programmatic ad sales on television has been slow but notable; according to eMarketer, the US market expects 5% of all TV ad spend to be programmatic by 2019. Sound insignificant? It isn’t: 5% equates to $3.8 billion.

2. Programmatic Radio: Integrating New Players to the Market

While traditional AM/FM radio still holds a footing in the industry — 90% of US consumers still listen on a weekly basis — internet and streaming radio are growing rapidly.

3. Programmatic Guaranteed

The ad sales world is notoriously complex. However, programmatic guaranteed aims to simplify things. This concept takes the guesswork out of sales. For instance, it enables a buyer to cookie match or device ID an audience with a publisher to create a pre-agreement to buy at a pre-specified price so long as the publisher provides a correct ID on the supply-side program or exchange.

4. VAST’s Evolved Video Advertising Standards

VAST, or Video Ad Serving Template, is essentially a script that dictates what ads to play, for how long and if they should be skipped along with the target audience. This standard, set by the Interactive Advertising Bureau (IAB), creates a shared language between video players and ad servers, which in turn increases the volume at which ad publishers can sell content.

5. Dynamic Pricing

Selling the entire ad inventory at the best possible price is always a challenge for broadcast media. For the International News Media Association (INMA), the goal is to sell as much inventory as the company can and, unlike traditional media, every day you go with unsold impressions you are losing revenue. It’s virtually impossible to assign the exact same value to different radio or television shows.

  • Dynamic pricing is the best of both worlds, creating a situation in which pricing is based on results as opposed to predicted outcomes.
  • It’s hard to match supply and demand. The content of the show changes and so do the likings of prospects and leads.
  • It’s far easier to place ads on exchange portals, where the pricing structure follows the dynamic rules of the market and moves with supply and demand.
  • Cost per thousand impressions (CPM)
  • Cost per click (CPC)
  • Cost per acquisition (CPA)

6. Blending Programmatic and Direct Sales

Today, we have integrated sales channels for programmatic transactions, taking them to the next level, combining inventory, regardless of the product or platform. This offers one streamlined alternative to even standard ad sales, allowing advertisers to purchase ad space over a company’s entire portfolio of products, regardless of the ad server or exchange system they work out of.

  • They’re using the same team of representatives for direct and programmatic advertising.
  • Instead of working with two points of contact, advertisers can enjoy one streamlined process that facilitates a smoother sale.

7. Artificial Intelligence-Powered Ad Sales Management

Artificial intelligence (AI) is playing a role in many tech-centered industries with a dynamic market structure, such as the airline business and retail companies, so it’s no surprise that ad sales management is next.

  • Build separate custom inventory management and ad selling algorithms to use with each client.
  • Provide personalized recommendations, options, and rules depending on location and industry.
  • Ultimately improve fill rates, increasing ROI and ad revenue when used effectively.

Streaming Media Ad Sales Future: What Lies Ahead?

In many ways, streaming media has become a key driver in technology advancement for ad sales, whether it’s on television or radio. However, it’s still an industry where ad ops professionals require ways to optimize their ad management. These include:

  • Bridging the gap between programmatic and direct ad sales.
  • Aligning their different ad inventory suppliers into the same strategy.
  • Promoting attractive ad placement opportunities whilst aligning with security, quality, and privacy standards.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
ADvendio

ADvendio

Publisher’s all-in-one business software solution for efficient ad sales management built on Salesforce with customers in 25+ countries. http://advendio.com/