Fragmentation, Automation, and Addressable TV: Comcast's FreeWheel Predicts the Future of Premium Video

That39s clearly evidenced in FreeWheel39s latest Video Marketplace Report which shows that as viewer habits are changing advertisers are adapting amp8212 and premium video is at the heart of it all quotPremium video is distinct from usergenerated contentquot Dworin says quotIt39s professionally produced and delivered in a brandsafe environment that is managed by people rather than by softwarequotDworin points out that of the numerous insights from the report which FreeWheel released March 26 three stand out as we look to the future of premium video audience fragmentation addressability and automationAudience Fragmentation Is About to PeakWhile fragmentation across devices has been happening for the better part of a decade Dworin says we started seeing significant viewer fragmentation in 2019 More viewers are watching more niche content across various platforms thanks in no small part to the growth of connected and Smart TV use 65 percent of households have an Internetconnected TV up from 51 percent in 2017Depending on which data source you use Dworin notes Americans are watching about five hours of video a day They39re seldom watching it all from one source and plenty of platforms have ads whether viewed on linear TV or an adsupported streaming serviceThe hard part for marketers is efficiently buying and selling those ads The marketer mindset is still evolving from one that focuses on traditional TV ratings to one that focuses on impressionsThe big difference Dworin explains is that ratings are tethered to a particular time slot whereas impressions are not amp8212 they simply tell you who saw your ad and where they saw it Using impressions rather than ratings offers marketers a higher level of controlThat39s the driver behind consortiums such as OpenAP and Project OAR Both provide advertisers the ability to buy impressions across multiple networks and platforms making it easier to handle audience fragmentation FreeWheel works with both consortiums to streamline transactionsThere39s still a way to go in terms of making impressionbuying efficient as the video ecosystem continues to fragment The era of consumers purchasing content bundles created for them is evolving today many are creating their ownThis is where directtoconsumer DTC brands come in While DTC brings to mind companies such as Dollar Shave Club and Warby Parker Dworin is actually referring to the DTC streaming services offered by the likes of Apple Disney and soon NBCUniversal and WarnerMediaquotThey39re all saying 39Let39s build a relationship with the customer39quot Dworin saysPrivacy Is on Everyone39s MindThose customer relationships are crucial in a world where privacy is an increasing concernThe main challenge for advertisers regarding privacy is another kind of fragmentation the fragmentation of identity Privacy regulations make it difficult to track users from device to device unless each user is logged in to a streaming service across those devicesThe good news is that because most premium video providers have established a relationship with their viewers either via subscription or some other account creation process there is a foundation of trust This is great for advertisers that wish to avoid the bad optics of appearing in brandunsafe environments onlineThe explosion in DTC streaming services then is a huge boon to marketers providing that brand safety in spades Now the question becomes How do brands buy ads efficientlyAutomation and the Addressable FutureAlthough most video advertising is still sold directly ie two people agreeing on a price indirect sales usually completed by an automated process are on the rise While direct sales grew only 6 percent in the past year indirect sales increased 50 percent Dworin notesquotPeople are starting to warm up to indirect sales because the tech is allowing them to do it in a way that39s brand and content safequot he says Whereas buying regular digital video ads via a programmatic marketplace can lead to ads appearing in some possibly unsavory places that gather a lot of possibly fraudulent eyeballs automated premium video marketplaces don39t carry the same riskThis increased automation is also helpful when it comes to addressable advertising the ability to show different households different ads in the same program Its applications are wideranging and the full potential hasn39t been tapped quotWe saw a big increase in the addressable footprint in 2019quot Dworin says adding that more cable operators quotlit upquot their addressable capabilities bringing the entire TV industry closer to achieving scale in targeted advertisingIt makes sense then that addressable spend more than doubled from 2017 to 2019 notably 14 percent of TV ad spend to 37 percentWhen you39re trying to achieve real scale though you need some measure of automation quotAutomation and addressability helps bring in new advertisersquot he saysBut direct sales will never fully disappear amp8212 nor should they Dworin points out Successful marketing requires a deftly balanced mix of national linear TV premium video and addressable to truly capture an audienceDon39t stop now Stay in the know on Comcast Advertising Effectv and FreeWheel with more from Comcast Advertising InSites Click the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillagecomMyersBizNet

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Fragmentation, Automation, and Addressable TV: Comcast's FreeWheel Predicts the Future of Premium Video

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Oriana Schwindt

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