The rush to capture viewers over this past decade of relentless video delivery innovation has not always prioritized new revenue opportunities. This is changing, and cloud-based automation is helping to lead the way in the form of new tools that are powering the shift from spot-based sales to impression- or audience-based selling. The bottom line? More efficient use of existing inventory and significant reduction in operational costs.
Imagine’s senior director of product management, Graham Heap, is helping to lead the company’s work on this front. During a critical time when the ad industry is seeking a much-needed recovery, any boost to productivity and any path to more streamlined revenue generation is being welcomed by broadcasters, MVPDs and OTT players globally.
Just recently, Graham weighed in on these opportunities over at Videonet:
Moving monetisation mountains with automated ad trading
Although TV tune-ins rose amidst #safeathome-driven viewing marathons, the surge in eyeballs did not result in a rosy picture for broadcasters. With traditional advertising revenues already under fire from the shift to digital, the broadcast industry is dealing with challenges on multiple fronts as persistent uncertainty takes its toll on ad businesses that were thriving just months ago.
Multiple factors – most notably mandated shutdowns of commercial activities, a lessening of purchasing power as unemployment rises, and the postponement of the Tokyo Olympics – have all impacted anticipated revenue expectations. Interpublic Group’s widely respected MAGNA unit recently predicted that the effects of the pandemic could slash traditional linear media revenues by 12%, while it predicts that digital revenues could rise by 4%.
Although the current crisis is temporary, it could accelerate linear advertising business trends that gained steam long before 2020. Nothing beats broadcast television’s reach, of course, but the reality is that time-shifted viewing, the rise of digital and increased competition for eyeballs have steadily eroded traditional ad revenues. Equally challenging has been the reliance of broadcasters on legacy constructs – systems that have been stitched together as needs have evolved, and sales and support models that rely heavily on platform-specific sales and traffic teams.
It’s true that broadcasters have recognised the need to create new platforms to reach viewers where they are by making content available via OTT and on-demand platforms. It’s also true, however, that the rush to capture viewers has not always been matched by the creation of new revenue opportunities. In some cases, broadcasters don’t take full advantage of linear opportunities; that becomes increasingly risky as traditional viewership declines. In others, avails sold on linear channels are given away or sold at a fraction of the price on digital counterparts. In both situations, money is left on the table.
To read the full article, head over to Videonet now.
Looking for more information on ways to automate your ad ecosystem? Watch Buy & Sell-Side Automation 101: How to Knock Down Integration Barriers.