For instance, television broadcasters and digital media companies with strong video supply embrace scarcity, eschewing the ubiquitous impressions and integrations that marked programmatic display growth, he said.
In programmatic display, the open marketplace is the primary revenue source, with alternatives like programmatic guaranteed or private marketplace deals springing up. In TV and video, the dynamic is inverted, Richter said, with private trading as the primary trading mechanism and true open programmatic marketplaces are relatively small.
“One might predict (programmatic video) would go the way of display, but I don’t think so,” he said. “Unfortunately, what we’ve seen previously is commodification, and that when every impression is available in every platform or channel it introduces security and quality risks.”
TV buyers are used to having more control and transparency over their campaigns, like knowing exactly when and where commercials run, he said. So security and display innovations that lift display media, like Ads.txt or Ads.cert, are even more important to video advertisers.
“There aren’t many independent solutions left on the sell side when it comes to video,” Richter said, because of the higher standards and the retreat into private marketplaces.
SpotX was acquired by RTL Group, the largest European broadcast station owner, and major US players like Verizon, Comcast and AT&T, after its acquisition of AppNexus, have consolidated the market.
“The bones of most supply-side systems are common,” he said. “But (transitioning to TV) will be difficult because the last mile of delivery is challenging when you’re serving an ad to TV screens and when you’re using new identifiers.”