Broadcasters need to simplify their structures and become more like the platforms they’re competing against if they are to secure future ad money. That was one of the views at the Connected TV World Summit this week in a session that examined the ways the TV market can be opened up for ‘advanced advertising’.
Until now, advanced advertising – which includes programmatic, connected TV and addressable – has been the work of pioneers and early-adopters in Europe, but as its impact is seen in revenue and profits, the whole TV industry is expected to play catch up.
“I think there’s a nice window right now, and some nice tailwinds – simply because of what is happening with Google and Facebook,” said Lorne Brown, CEO of Operative. “But there are also a lot of headwinds because TV companies are so fragmented.”
Brown said Facebook and Google dominate the digital ad market because they operate as just one platform with one inventory source.
“TV companies have it sitting in silos,” Brown said. “I believe TV itself therefore has to become more of a platform…TV companies need to unify what they’re doing. Just one on its own does not have the power to unlock those dollars.”
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Brown added that media agencies – tasked with planning and buying the advertising – are also keen for “the simplicity” of a single buying point.
One example of how broadcasters across Europe are beginning to think differently is the launch of the European Broadcaster Exchange (EBX).
EBX will allow advertisers to book pan-European campaigns across Channel 4’s on-demand service in the UK, and the equivalent services offered by Germany’s ProSiebenSat.1, France’s TF1 and Italy and Spain’s Mediaset.
Although it is early days, broadcasters see big potential in EBX, which consolidates their respective tech, giving them the scale they need to deliver digital advertising with a single buying point.
Crucially, it also gives advertisers access to TV’s premium VOD content and comes with brand safety built in due to the high standards broadcasters must operate to.
“It’s a very exciting and unique offer,” Jana Eisenstein, executive VP advertising platform solutions for Germany’s ProSiebenSat.1 told Mediatel. “It’s the first time we’ve been able to offer pan-regional TV advertising, in the truest sense.”
Meanwhile, Jon Block, Videology’s EMEA VP of product & platform, said of the wider issues holding broadcasters back: “The long-term aim for broadcasters is to offer a holistic system in planning and targeting across digital and linear – but pragmatically there are still many hurdles yet to jump.”
