But consolidation is underway. For some, it meant buying into the video marketplace. For instance, Yahoo acquired BrightRoll and AOL bought Adap.tv, which Verizon now owns. Meanwhile, digital exchanges are investing in video – consider Rubicon Project, which struck a video inventory deal with video ad platform Virool.
And others, like video DSP TubeMogul, still focus squarely on the buy side but have expanded their capabilities by recently rolling out display, citing marketer demand for greater bundling and streamlining of inventory. And while Tremor Video initially focused on the buy side, it rolled out an SSP last year.
“It would not surprise me if, in a few years, there is not a video DSP or a digital DSP – there is just an omni DSP,” Nail said. “In TV, there are certain dayparts that are primary brand-building opportunities, and there are others that are reminder opportunities. Banners are a classic ‘reminder’ opportunity … so being able to have in one platform that ability to control messaging around exposure down to the individual level will [help] marketers.”
As the video ecosystem matures, ad spend might decline, Nail predicted, due to the technology advancements allowing marketers to achieve greater effectiveness and waste less by consolidating their buys or improving analysis cross-screen.
Forrester predicts that media companies will offset reduced ad loads with higher pricing, unique customization and better targeting. So, while there could be a reduction in the overall ad load, the ads that consumers do see could benefit from improved relevancy.
Another prediction? Expect disruption from another important constituent in the digital video ecosystem – the trusty workflow, billing and trafficking tool, such as systems like Mediaocean, Operative and STRATA, which often cut deals directly with media agencies or publishers.
Particularly with the shift to “programmatic TV,” these tools are becoming more prevalent as players such as Mediaocean now integrate directly with ad servers like Facebook’s Atlas and buying platforms like Videology, as well as comScore for audience data.
Nail said the battle of the next few years could be between traditional DSPs, which historically have owned the execution layer, and the workflow provider, which maintains the role of systems integrator, in addition to a reporting and ad-serving tool.
If the video DSPs master cross-platform/device reach and frequency analysis, which “Mediaocean has done for TV for decades,” Nail said, “they’ll be in the pole position.”