“Beyond tentpole sporting events, audiences haven’t been large enough to justify buys from large brands for episodic TV and film content,” noted Foster. “Outside of maybe Hulu and Yahoo, those audiences haven’t been [scaled enough] to measure.”
Episodic television and film content, as well as live events such as sports, are typically defined as premium TV formats. In Foster’s view, that’s the inventory Adobe’s system will help broadcasters monetize, not necessarily user-generated content or short-form or lower-quality video.
Buyers are sometimes reluctant to invest in OTT ads, naming scarcity, lack of audience scale/targetability and sky-high CPMs as barriers.
Sellers fear audience duplication, waste and insufficient data control. In other words, how does a broadcaster ensure audiences aren’t being unknowingly cookied or trafficked by a third party, which could contribute to data leakage?
As a result, OTT and episodic TV content is often undervalued and undermonetized.
Measurement, however, remains the biggest hurdle.
“If OTT views don’t count against a Nielsen rating, there’s little incentive for programmers to invest,” Foster later explained. “That’s just starting to change as OTT views are included in Nielsen’s new Total Audience Measurement system. CPMs are high because it’s premium inventory. Addressable at the individual level – that’s valuable.”
Adobe and Videology are in negotiations with “a handful” of large, global broadcasters and expect to disclose more customer wins for the new platform in early 2016, Foster said.
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