COLOGNE — So far, “programmatic” technology for planning, targeting and trading adverts have revolutionised online display advertising, and has extended far in to digital video.
The opportunity in the multi-billion-dollar TV market is even larger – but don’t expect that to happen easily any time soon, according even to an exec from a programmatic ad tech company.
“There’s still a lot of question marks over how the technology is going to play itself out,” Caspar Schlickum, EMEA CEO of WPP’s Xaxis division, tells Beet.TV in this video interview.
“There are so many different players involved – the hardware manufacturers, the broadcasters, the set-top box manufacturers, the over-the-top providers. They differ in every market as well, which makes it very difficult to create one way of doing it. On the internet, the basic building blocks (of advertising) were more or less the same everywhere. TV is coming from a very different position.”
But the US TV industry alone is worth more than $70 billion. Anyone who gets even minimal access to that will find a sizeable business. So far, some vendors are already bringing “programmatic”-style processes to bear on the planning of linear TV ads.
“It’s going to come,”Schlickum says. “The opportunity for better managed TV spend is too great for it not to come. But there’s going to be a lot more talk before it really becomes widely distributed.”
This video is part of a series about programmatic video presented by SpotX. For more videos from the series, please visit this page.