- SpotX releases new white paper as programmatic TV reaches important juncture
- Industry must unify ‘broadcast’ and ‘unicast’ business models to monetize all inventory at rates reflecting its true value
- Unifying fragmented audiences with cross-channel horizontal yield management will help media owners drive rates across every distribution channel
DENVER – September 21, 2015 – The TV industry must focus on the unification of two distinct content business models – broadcast and unicast – to capture the shifting ad dollar, according to a new white paper from video inventory management platform, SpotX.
Instead of debating the merits of TV versus video, or linear versus on-demand, the industry must unify the business models that monetize inventory at the point of content distribution and inventory at the point of content consumption, the ‘Programmatic TV Guide For Sellers: A Focus on Holistic Audience Monetization’ whitepaper found.
“The distinction between these business models isn’t exclusive to the device a consumer is using,” VP of programmatic TV for SpotX, Randy Cooke, explained. “Rather, the distinction lies in whether the value of audience at the moment of content consumption is transparent.”
“Broadcast lacks real-time audience discovery, instead monetizing ad units whose value is inferred from sample-based estimations of audience,” Cooke said.
“As more content distribution points that were traditionally delivered through broadcasting technologies move to IP-based infrastructure, media owners need smarter, better-integrated tools to holistically manage inventory.”
“To realize the value of all content distribution points, the industry must optimize yield through a horizontal inventory management approach that can only exist in a confederation of broadcast and unicast business models.”
With measurement services that combine TV and digital audience measurement, like comScore’s recently released Xmedia product, already entering the market, currency-based media transactions are set to be replaced by a horizontal yield management approach.
“Gone are the days of valuing digital video as an audience extension of TV inventory,” Cooke said.
“As media owners and distributors extend greater amounts of content to desktop, smartphones, SVOD platforms and connected devices, the value of audiences contained within these streams must be realized.”
Industry leaders have also weighed in on the unification of audience debate:
“I don’t care where you watch our shows — just watch them,” President and CEO of CBS Les Moonves said earlier this year. “We just want it to get counted and we want to get paid appropriately.”
“Monday Night Football will be sold alongside an upfront sponsorship model and an impressions-based audience,” CEO of Operative, Lorne Brown, wrote recently.
“Television 2.0 will be just like television 1.0, except it will be powered by granular data,” GroupM Chairman Irwin Gotlieb said at this year’s Cannes festival. “Not only will it be driven through dynamic ad insertion and addressability, but it will also have synchronized second-screen addressability.”
SpotX’s latest white paper is the third in a series that examines programmatic TV and how industry stakeholders can position themselves to reap the benefits of this emerging technology. It can be downloaded here.
SpotX is a video inventory management platform for premium publishers and broadcasters, helping them manage all of their demand sources from one place, and monetize content across all screens. The SpotX platform offers publishers unprecedented transparency and insight, creating a safe, controlled environment that allows them to connect with advertisers, and achieve the highest revenue possible. Premium publishers and mobile app developers trust SpotX as the independent solution that helps them better understand the buying behavior of today’s leading brands and maximize inventory yield across private marketplace, programmatic direct and open marketplace deals. SpotX’s ad serving, leading programmatic technology, and open and extensible architecture help simplify the complex digital video ecosystem for global publishers. Headquartered in Denver, Colorado, SpotX also has offices in New York, San Francisco, London, Sydney, Amsterdam, Hamburg, Belfast and Singapore. In July 2014, leading European entertainment network RTL Group acquired a 65% stake in SpotX, which was founded by CEO Mike Shehan and CFO and COO, Steven Swoboda, in 2007. For updates, please follow SpotX @SpotXchange or visit www.spotxchange.com.
Tammy Blythe Goodman