DMEXCO: a preview to one of the year’s biggest shows

DMEXCO is fast approaching and Videology will be attending once again this year, with our team available for meetings in Hall 6, stand G-050.

With the state of programmatic video and TV guaranteed to be a hot topic among the 32,000+ attendees, key members of the Videology leadership team are preparing for the event by answering vital industry questions on the current state of play:

Jana Eisenstein, EMEA MD at Videology - on EMEA trends:
Q: What are the current programmatic video trends in the EMEA region?

A: Online video revenue across Europe increased to €375 million ($422.8 million) in 2015 from €22 million ($24.8 million) in 2012, a jump of more than 16X over 3 years. Much of that growth has been in the programmatic ad tech space, as an increasing number of advertisers turn to programmatic to help them expand their TV reach whilst delivering their messaging to more detailed targeted audiences.  In a study for SpotX, Researcher IHS forecasts that €2 billion ($2.25 billion), over half of all online video advertising revenue, will be executed programmatically by 2020. Programmatic will gain further ground and drive more efficiencies within the ecosystem via effectively planned and targeted tactics that use automation software. 
Secondly, as the programmatic market is maturing, there has been substantial progress in real time measurement and ad-decisioning to improve brand safety, minimise non-human traffic and maximise viewability. This must continue if the industry is to continue to operate effectively and reach the scale forecasted.
Finally, the opportunities for the application of data to TV advertising will grow through the evolution of new distribution platforms, such as smart TVs and set-top boxes (STBs). This will open up full addressable TV, where cross device measurement will be effective on the main TV screen as well as across its digital cousins.


John Tigg, EMEA SVP of Enterprise & Media Solutions – on TV and Video convergence:
Q:  How is the convergence of TV and video changing the relationship between brands, agencies and media owners?

A: Consumers are no longer just looking at one screen when they watch TV. As TV continues its transformation, content viewing is now available anywhere and viewed in a way that is convenient to consumers’ lifestyles. Diversification of platforms is where the real opportunity for brands, advertisers and media owners will lie, as the increased addressability allows for higher engagement and an improved experience for viewers.
Also, as media consumption habits continue to shift seamlessly between linear TV and digital video channels, broadcasters and TV operators are recognizing the need to offer similar capabilities to customers so that they can purchase advertising across both linear television and the growing number of different streamed on-demand video distribution channels. 
In fact, there’s reason to believe that in the very near future, we will no longer think of there being a difference between television and digital video, in terms of the advertising opportunity. As these two mediums continue to converge, we move a little bit closer to video advertising’s holy grail: The ability to purchase premium inventory, aimed at select audiences, with a single media plan that covers the traditional television screen, mobile and desktop devices.


Jon Block, EMEA VP of Product and Platform Solutions – on Addressable TV:
Q: What are the key ingredients for addressable TV?

A: The TV industry has been talking about the advent of addressable advertising for years. But it’s only now that it’s really beginning to take shape… albeit at different rates in different markets. In my opinion there are four key ingredients to addressable advertising in TV:

1. Addressable planning. The first ingredient is the demand for addressable planning. Agencies have long understood the value of targeting (increased engagement and advertising efficacy) and this has been growing steadily over the last few years. The market need already exists.

2. Data. We live in a world of fragmented data - in addition to the TV measurement companies, there are broadcasters with login data, operators with subscriber data, advertisers with customer data and third parties with all sorts of behavioural, purchase and geolocation-derived data. Data is the connective tissue behind the future of addressable TV.

3. Dynamic ad insertion/replacement. The third ingredient is the ability to insert ads dynamically. This capability is now very common in broadcaster owned and operated VOD, but it is still a work in progress when operators are involved.  

4.Optimisation. The need for it only arises when addressable advertising starts to achieve scale. Addressable advertising is extremely difficult because of the multi-dimensional aspect of audience targeting. Thus accurate forecasting, pricing, allocation and reservation of inventory becomes absolutely key, otherwise it is not possible to optimise yield and improve the effectiveness of advertising across a whole portfolio of inventory.


Rich Astley, UK MD – on the buy side perspective:
Q: How is the buy side of the programmatic advertising industry evolving?

A: The rapid change we’re seeing in the TV space is driven by accelerated fragmentation of consumption.  That’s making it harder for brands to reach audiences at the same scale with the same number of touch points, it’s creating challenges for content owners and broadcasters whose audiences are less predictable and its motivating technology companies to engineer solutions to create order out of the chaos.  This has meant brands and agencies are upskilling their knowledge and understanding of technology and increasingly making longer term alliances with platform solutions that are compatible with their businesses long term.  It also means a redefinition of what success looks like for TV:  the abundance of new data sets for targeting and measurement are creating new frameworks for trading and a broad push for success criteria beyond achievement of audience demographic rating points.

Meet the Videology team at dmexco in Hall 6, stand G050 to learn more about key programmatic TV& video advertising trends. To book a meeting with a member of our team please email dmexco@videologygroup.com

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