New research from U.K. research firm MTM and commissioned by Ooyala shows that programmatic trading is poised to become ubiquitous for premium video across Western Europe and the U.S.
The research -- based on the perspectives of buy-side and sell-side executives representing major advertisers, agencies, ad-tech intermediaries, publishers and broadcasters -- identifies major market enablers and barriers to the growth of programmatic video.
To supplement its primary research, MTM conducted interviews, forums and surveys to gather insights on the state of programmatic as seen by hundreds of senior industry participants. The findings suggest that the industry is moving into a new growth phase in programmatic in which emphasis will shift toward quality, transparency, control, flexibility and collaboration.
The report also reveals how key markets compare with regard to their place in the transition. Among the report’s findings:
Walled-garden inventories from YouTube and Facebook are seen as a major barrier to the growth of programmatic, especially in the U.S. and U.K., a release stated.
Commenting on Google’s recent opening of AdX to outside
exchanges, Braley said: “Google has trimmed the hedges to let more light through, but the wall remains. Header bidding is a publisher's effort to work around DFP (DoubleClick for Publishers) to
increase demand and ultimately yield, but it compromised Google's ad exchange. It's not an end-all solution, but it is notable to see Google changing their ways due to pressure from publishers,
and this is a step in the right direction,”
Scott Braley, general manager of Ad Tech at Ooyala, told Real-Time Daily via email.
Braley said private marketplaces (PMPs) continue to be a dominant method to trade programmatically, especially from Ooyala’s customers.
A few things surprised Braley about the research findings: For one, “seeing the juxtaposition of programmatic in varying countries: what's holding it back, what's allowing it to flourish, etc., was very interesting,” Braley said. In Germany, for example, a select few hold the key to the majority of premium inventory and don't have the pressure to change their ways. In addition, the notion that the relationship between buyers and sellers is adversarial was completely debunked in this report and process. In conversation after conversation, we saw true collaborative thinking and alignment rather than opposition,” Braley explained.
Braley said he's seeing buy-side and sell-side executives agreeing that programmatic is inevitable. “It's simply being cognizant of and recognizing the different motivations and incentives from various constituents in the industry, and having a transparent and respectful approach to find value for both parties.”