Much of the debate about the convergence of digital video and TV advertising has centered on budget and measurement.
Members of the advertising industry have wondered whether digital video would cannibalize TV ad dollars and to what extent the right metrics are in place to effectively execute cross-platform video buys.
A report from Nielsen and Simulmedia, which polled 40 media, agency and analyst sources, found that as digital video proliferates, there will be growing demand for programmatic access to television inventory.
But television network executives are apprehensive about this shift toward automation and addressable, data-driven targeting, which some view as a threat to traditional TV ad-buying necessities like GRP ratings and established advertiser relationships.
“Silicon Valley doesn’t understand TV,” claimed one marketer close to the network world, who spoke to Nielsen and Simulmedia for the "Data-Driven Future of Video Advertising" report. “They only understand digital. And, until they begin to understand both, there will be a disconnect.”
If this marketer’s view reflects that of his peers, it would explain why, according to data shared by video ad platform FreeWheel during last Thursday’s Advanced Advertising forum in New York, only 4.5% of programmer/multichannel video programming distributor (MVPD) premium ads were sold programmatically through resellers.
“Looking at what percentage of volume comes through ad networks and exchanges, it was only about 5%, which indicates programmers owning premium content are still opting to sell direct to the agency and advertiser because they want control over pricing, which was surprising,” said Brian Dutt, director of advisory services at FreeWheel.
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