is added complexity compared to , say , programmatic digital video .” INCREASE . “ The increase in unsold units available for advertising will likely have some effect on the cost per thousand , but not as much as some industry professionals might fear ,” suggests Gailis . “ Whilst ad avails have been a sure-fire method of securing advertising for broadcasters and media providers for a long time , evolved methods of ad tech and ad insertion are changing the way advertising is considered in many scenarios . Possibilities surrounding contextual advertising and invideo ad insertion provide an approach that no longer wholeheartedly relies on ad avails for consumer reach , but actually presents a more efficient and imaginative way of meeting consumer demand .”
“ The price in the advertising market , as with any market , is determined by the intersection of supply and demand ,” advises Mangel . “ However , due to the complexity of advertising , this principle does not always lead to a straightforward decrease in CPMs . Several factors can mitigate the simple supply-demand dynamics .”
“ High-quality , well-graded content or platforms can command higher CPMs despite an increase in ad avails . For example , advertising slots during major sports events can retain high prices due to their significant viewer engagement and the unique value they offer to advertisers . Similarly , when major streaming platforms choose to show ads , they could command higher CPMs due to the premium nature of their content . Likewise , highly segmented , and targeted audiences can also defy the general trend of declining CPMs .”
“ You can ’ t measure the success of CTV advertising by CPM rates alone ,” suggests Davies . “ CPM rates must be measured against fill-rates . Providers must get the balance right between the two if they are to succeed .” INVENTORY , “ Not necessarily ,” says Motti . “ In the USA and many other countries around the world , FAST channels ’ fill rate is not 100 per cent and therefore already a lot of unsold inventory . An increase in ad avails does not inevitably lead to a decline in CPM , especially if the platforms can offer targeted ad formats that improve performance and with the increase in editorial quality of the FAST channels . Enhanced targeting and ad technology improvements can help maintain or even increase the value of CPM . However , as FAST channels proliferate faster than the ad spend , individual channel earnings may stay the same or decline due to diluted ad spend .”
Is the answer in the reduced cost of provision ? Where are we with targeting , automated insertion , inventory management ?
“ Reduced cost of provision can be part of the answer ,” agrees Smith . “ In fact , the cost of provision has been reduced significantly through advancements in cloud-based technologies . Nevertheless , targeting has become more refined , with better data analytics leading to more precise audience segmentation . Automated ad insertion and programmatic selling have streamlined the process , making it more efficient and reducing waste . Inventory management systems are now more sophisticated , allowing for real-time optimisation of ad slots . These advancements allow for more efficient use of ad inventory and can help maintain or even increase the value of ad avails .”
“ Targeting and automated insertion , using technologies such as server-side ad insertion ( SSAI ) and video stitching , are now widespread ,” notes Guille . “ Nevertheless , not all the solutions support a way to track the ads from the client , which impacts the advertisers ’ trust regarding invalid traffic and viewability metrics . The industry needs to use hybrid solutions to stitch the ads in the video feeds from the server while tracking the ads from the client .” SHARING . “ Solutions such as inventory sharing can help . Inventory sharing enables multiple parties , such as content providers , streaming platforms , and distributors , to share the ad inventory sales available within a particular content or channel . Multiple ad servers and SSPs can be utilised , ensuring the unsold inventory has new opportunities to find an advertiser . We may see more deals like the one between TF1PUB and Samsung TV Ads in France on Samsung TV Plus , where FAST pure player platforms and channels leverage mature customer relationships between local TV sales houses and brand advertisers and their agencies to sell their inventory instead of working from scratch .”
“ While the aim is often to cut expenses , FAST and AVoD operators are exploring inventive ways to manage costs ,” notes Nicholson . “ For instance , some content owners have shifted content transcoding from the cloud to an on-premises or datacentre approach . They maintain more technologically complex functions or high-visibility functions , such as geo-redundancy , in the cloud . The use of multi-purpose GPUs in the cloud offers potential cost benefits for FAST and AVoD platforms as we move forward in 2024 .”
“ When it comes to measuring FAST and AVoD , there is potential and there is reality ,” states Dembowski . “ The promise is to have these channels behave similarly to digital advertising , where every impression is measured across a
“ You can ’ t measure the success of CTV advertising by
CPM rates alone .” – Paul Davies ,
Yospace number of upper , middle and lower funnel metrics . Established streaming providers offer programmatic and direct media buying with a range of different measurement options , including integrations with viewability and other technologies . However , smaller or less established players provide relatively little in terms of measurement other than reach and impression metrics . Advertisers pay more when they can measure against their KPIs , which will push more media companies to get better at delivering measurement options .” PROGRESSION . “ The development progression in targeting and automated insertion made by the industry has been astounding in recent months – with many providers now harbouring some method of automating their workflows ,” notes Gailis . “ Ad tech is becoming increasingly automationdriven , with insertion methods such as in-video ad insertion rocketing in popularity and efficiency over recent months . Contextual advertising is becoming all the more successful , with changes to data protection and GDPR laws and the use of third party cookies becoming more difficult for advertisers . Targeting in the world of advertising is becoming context-centric , with a progressive focus on the nature of content and first party data integral to a successful advertising strategy .”
“ Server-side ad insertion and in-video advertising are great examples of how automated insertion is beginning to transform the advertising industry , especially in broadcast and media , and provides just a peak of what might be to come . Inventory management is another challenge that is being addressed , and often solved , by the implementation of AI and automation in broadcasting workflows . With provision costs at an all-time low due to the efficiency of
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