Video Essentials

The 6 Barriers Holding Back Programmatic Advertising: Ooyala

After interviewing over 100 advertising and publishing execs, online video platform Ooyala has released a report card on programmatic video advertising. Working with MTM Research, Ooyala has learned that 25 percent of all online video advertising is traded programmatically in the U.S, while the U.K. follows at 23 percent, France at 19 percent, Sweden at 12 percent, and Germany at 9 percent. The percentages are growing fast.

OoyalaProgrammaticBesides just looking at numbers, the report examines what’s driving growth. Programmatic’s first phase was all about remnant inventory and audience-buying, with buyer’s holding more power and publishers often feeling pushed into a programmatic corner. That’s changing in some markets, as publishers use constrained ad supplies to take back power. More generally, though, the industry is moving to a phase driven by deep partnerships between buyers and sellers.

“The overall theme is clear: Across agencies, intermediaries, and publishers there is a sense that the industry is moving into a new phase, in which the emphasis will shift towards quality, transparency, control, flexibility, and collaboration—creating a new equilibrium that delivers both for premium publishers and for advertisers and agencies,” the report says.

Before that can happen, some problems need to be solved. Here are the six barriers currently holding back programmatic video advertising:

  1. Measurement: It’s a fragmented video ecosystem, and the ad industry needs new metrics to measure and optimize campaigns.
  1. Innovation: To make the most out of programmatic sales, the industry needs a tight integration between creative, planning, and distribution.
  1. Buyers: Agencies have to accurately forecast campaign performance, so they’ll need publisher-led products that combine premium inventory and quality audience data.
  1. Publishers: For their part, publishers need platforms that offer control and flexibility so they can monetize views across sources, including direct and indirect, guaranteed and bidded.
  1. Training: Buyers and publishers need impartial partners that can provide support and training.
  1. Collaboration: Both sides want to work together to create stronger partnership and build a workable programmatic balance.

For much more, download the 51-page “Towards A New Balance in Programmatic Video” for free (registration required).


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