From Disney+ to dynamic ads: The evolution of programmatic TV in Europe
Opinion
A fragmented marketplace, divergent trading models and tension around data and pricing are limiting long-term growth in programmatic TV. Collaboration is key here.
Happy Birthday, Disney+!
As the streaming giant celebrates its fifth year in the UK, I’m reminded of how much the TV landscape has changed in recent years. Streaming platforms have completely reshaped viewing habits, with digital services increasingly gaining audience attention.
We saw this in January with Netflix surpassing BBC viewership in the UK with an audience of 43.2m. And it doesn’t stop there: Barb’s recent decision to include TV set viewing of YouTube channels shows that the industry is starting to recognise the convergence of traditional and digital TV.
Europe’s commercial broadcasters face a critical challenge as we transition to a more unified programmatic marketplace. Programmatic TV’s adoption across the continent has been uneven.
A fragmented marketplace, divergent trading models and tension around data and pricing continue to create obstacles, limiting long-term growth in this area. Broadcasters, agencies and technology providers must collaborate effectively to overcome these challenges.
If we commit to creating a more standardised marketplace, programmatic TV won’t just survive, but can thrive in Europe.
Promise versus reality
For broadcasters, programmatic TV promises increased demand, better yield and enhanced audience targeting through data-driven insights.
Advertisers benefit from more efficient campaign execution, improved targeting and the ability to deliver dynamic, cross-platform campaigns at scale.
However, unlike digital advertising, where real-time bidding and open marketplaces are the norm, TV operates in a premium, controlled environment where broadcasters are cautious about adopting full-scale programmatic models.
This caution has led to significant fragmentation across platforms, trading models and data strategies.
Some broadcasters restrict inventory access, limiting advertisers’ ability to optimise spending across multiple providers. Pricing models remain inconsistent, with many broadcasters favouring fixed structures while advertisers seek dynamic, real-time optimisation.
Broadcasters also possess rich first-party data, yet they often restrict its use, limiting the potential for advanced audience targeting.
As a result, buyers and sellers operate in silos, creating a fractured ecosystem where seamless, scalable, cross-platform campaigns remain difficult to execute.
Pricing is a delicate balancing act
Pricing remains one of the most contentious issues in the evolution of programmatic TV. Programmatic introduces dynamic pricing, which can enhance flexibility but also raises concerns about price erosion and commoditisation.
Broadcasters are understandably wary that increased transparency could drive costs down, undermining the premium value of TV inventory. Consequently, they’ve favoured private marketplaces and programmatic-guaranteed deals that provide automation while maintaining control over pricing.
However, advertisers argue that rigid pricing models limit the value of programmatic TV by preventing real-time optimisation. Without the ability to adjust spending dynamically across inventory pools, efficiency and effectiveness cannot be maximised.
The challenge is to find a balance that preserves premium inventory value and gives buyers the flexibility they need to optimise investments.
Hybrid pricing models can introduce controlled dynamic pricing and preserving minimum price floors can bridge this gap. Sky’s AdSmart offers a promising example of how this balance can be achieved, giving advertisers more flexible buying options while maintaining premium positioning.
Bridging the divide with data and identity
Broadcasters are understandably cautious about sharing vast amounts of first-party viewing data, as they see it as a competitive advantage that must be protected.
However, agencies argue that, without standardising interoperable data strategies, the potential of programmatic TV can never be realised.
Clean rooms and privacy-safe solutions offer a promising path forward, but adoption has been inconsistent across markets. Some broadcasters have made significant strides in deploying privacy-compliant data-sharing models.
For example, RTL and AdAlliance are expanding their programmatic offering to provide greater interoperability. In the UK, Channel 4, ITV and Sky’s CFlight initiative provides advertisers with a unified cross-platform measurement tool.
Standardising these approaches in Europe is essential if programmatic TV is to reach its full potential. Without greater alignment on data practices, advertisers will continue to face unnecessary complexity, limiting the effectiveness of programmatic campaigns.
Road to a unified programmatic marketplace
Europe’s programmatic TV marketplace is at a pivotal moment. The path forward requires greater collaboration and standardisation.
Broadcasters, agencies and technology providers need to align on common protocols that enable automation while preserving TV’s premium value. This means developing interoperable systems and hybrid pricing models, and implementing privacy-safe data solutions to foster trust between buyers and sellers.
If these challenges are addressed, programmatic TV has the potential to meet the needs of all parties in a rapidly evolving media landscape. To unlock its full potential, the industry must focus on concrete, scalable solutions. The future of television and advertising depends on it.
Jon Watts is executive director at The Project X Initiative