CANNES — It may only be a point change, but the latest version of the IAB’s real-time ad bidding protocol aims to make streaming TV efficient and help save the planet.

OpenRTB 2.6 enhances the efficiency of streaming TV advertising but also contributes to sustainability.

In this video interview with Beet.TV, Lori Goode, Chief Marketing Officer, Index Exchange, says the upgrade is a powerful tool that’s enabling the ad tech industry to grow while trimming its carbon footprint.

Open RTB 2.6: Rethinking TV Advertising

“Open RTB 2.6 is a communication protocol that defines standards all the way through the supply chain from the media owner all the way through to the exchanges, to intermediaries, and all the way to the marketer,” Goode explains.

The protocol, which Index Exchange worked with IAB Tech Lab to update, has been six years in the making, replacing a version primarily built for display media.

The new protocol takes into account the nuances and intricacies of streaming TV, providing a welcomed update that paves the way for scaling the medium. The effectiveness of Open RTB 2.6 is already apparent, as it was instrumental in achieving an 84% reduction in carbon emissions in a recent case study conducted by Index Exchange, Publica, and the Trade Desk.

Ad Podding: The Breakthrough Feature

A key feature in Open RTB 2.6, Goode says, is “ad podding” – a process analogous to commercial breaks in linear TV. “Ad podding is the break between content and streaming TV. It’s similar to the commercial break in linear TV,” she says.

The update to ad podding allows a single request to be sent out for the entire ad pod, giving media owners more control and providing buyers with greater transparency.

This results in a reduction in the amount of signalling required, leading to efficiency gains and less waste. “Previously, if you had an ad break and you were sending out seven signals for one ad break in an ad pod, now we’re sending out one signal,” Goode elaborates. This reduction in CPU use is seen as a step towards more sustainable ad tech.

Viewer Experience and Competitive Separation

Another benefit of ad podding for OpenRTB is its impact on viewer experience. With ad podding, viewers should no longer be bombarded with duplicated ads, which Goode attributes to the “old standards and the lack of protocols that were in place.”

In addition, ad podding allows for competitive separation, giving brands a clearer understanding of where and who they show up next to within the same ad break.

“Ad podding is just really taking us a huge leap forward in streaming TV from a viewer perspective, but also benefits to the media owner as well to the marketer,” Goode asserts.

‘Efficiency And Sustainability’ Are Driving Forces Of RTB 2.6: IAB Tech Lab’s Katsur

Sustainability at Index Exchange: A Holistic Approach

Index Exchange’s commitment to sustainability extends beyond Open RTB 2.6. As Goode outlines, their approach to sustainability is holistic, considering everything from data centers to product and technology, industry collaboration, operations, and employee support.

When it comes to the future, Goode highlights the company’s obsession with optimizing their exchange on a daily basis.

She believes that through constant improvement and the power of machine learning, Open RTB 2.6 will not only facilitate more efficient and sustainable ad tech but also contribute to increased revenue over time.

You’re watching coverage of the Sustainability & Responsible Marketing Summit at Cannes Lions 2023, presented by Adlook & Sharethrough. For more videos from Beet.TV’s Cannes Lions 2023 coverage, please visit this page.

By Robert Andrews on @robertandrews