Home TV Is Linear Ad Replacement Finally Here? SpotX Bolsters Its Addressable TV Chops

Is Linear Ad Replacement Finally Here? SpotX Bolsters Its Addressable TV Chops

SHARE:

The video ad server and SSP SpotX boosted its addressable TV capabilities Tuesday by upgrading its platform, which can now replace linear ads on smart TVs in real time.

This function can be enabled by content owners working through Project OAR, an open standard led by TV manufacturer VIZIO and whose founding members include AMC Networks, Disney, NBCUniversal and Comcast’s FreeWheel among others. OAR lets ad decisioning platforms such as SpotX hook in and replace linear ads, based on the programmer’s needs.

Ad replacement can happen in one of two ways, said Matt McLeggon, VP of advanced TV at SpotX. There’s single advertiser slot optimization (SASO) where a national advertiser can insert a different version of an ad to specifically target demos or DMAs.

And there’s multiple advertiser slot optimization (MASO), which replaces a national ad with a spot from a completely different advertiser.


That sounds simple, but it necessitates a lot of back-end work by the programmer to ensure the content schedule accommodates ad replacement within specific breaks and for certain spots.

“It’s a lot of coordinating between scheduling, programming, as well as our business and technology group which manages this for us,” said Evan Adlman, SVP of advanced advertising at AMC, which is using SpotX and is one of the first content producers active on Project OAR.

Besides marking inventory and picking the spots where ad replacement is allowed, there’s also a lot of technical nitty-gritty – like making sure AMC is properly integrated with the Google ad server, which is the connection point that lets AMC put its inventory into the SpotX environment.

AMC has long experimented with dynamic ad insertion. In 2018, it tried out the capability via a partnership with the now-defunct Sorenson Media – purchased by Nielsen in a bankruptcy auction in 2019.

Back then, AMC tested addressability using its own promo inventory, a strategy it’s repeating this go around.

“That’s the safer step into this,” Adlman said. AMC will next try to activate SASO, and finally enable MASO.

The current challenge is that addressability breaks the Nielsen rating. While that’s not a problem for digital buyers, it is for linear buyers, who need to understand what to do without Nielsen, and how to convert GRPs.

“We want to make sure we can provide real results to the advertiser before we take it to the next step,” Adlman said. And the future, he hopes, will be a bunch of non-guaranteed programmatic buyers purchasing non-guaranteed programmatic inventory – basically it’ll be multiple advertiser slot optimization at scale. A MASO fiesta.

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

For SpotX, the ultimate goal is to take different types of addressable formats and avail them in a programmatic marketplace. “We’re making different types of addressable inventory look just like OTT for programmatic buyers and DSPs so key partners like The Trade Desk that buy OTT inventory through SpotX can now buy addressable through SpotX as well,” McLeggon said.

Next step is scaling it out – McLeggon hopes that now that SpotX has the pipes, the budgets will increase and more inventory will become available.

It’s still early days, but he anticipates eventually linear TV will be transacted with digital tools and technology, many of which are programmatic.

“We felt addressable and programmatic made a really good match,” McLeggon said. “If you’re going to a national spot and turn it into 20 million impressions, you’ll want programmatic advertising to do that. And if you’re going to individually target users, you’ll want to use data and programmatic is a great way to leverage data.”

SpotX also said it was powering programmatic set-top box activations for two MVPDs, neither of which it can publicly name.

Must Read

Albert Thompson, Managing Director, Digital at Walton Isaacson

To Cure What Ails Digital Advertising, Marketers And Publishers Must Get Back To Basics

Albert Thompson, a buy-side veteran with 20+ years of experience, weighs in on attention metrics, the value of MFA sites, brand safety backlash and how publishers can improve their inventory.

A comic depiction of Google's ad machine sucking money out of a publisher.

DOJ vs. Google, Day Five Rewind: Prebid Reality Check, Unfair Rev Share And Jedi Blue (Sorta)

Someone will eventually need to make a Netflix-style documentary about the Google ad tech antitrust trial happening in Virginia. (And can we call it “You’ve Been Ad Served?”)

Comic: Alphabet Soup

Buried DOJ Evidence Reveals How Google Dealt With The Trade Desk

In the process of the investigation into Google, the Department of Justice unearthed a vast trove of separate evidence. Some of these findings paint a whole new picture of how Google interacts and competes with its main DSP rival, The Trade Desk.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Comic: The Unified Auction

DOJ vs. Google, Day Four: Behind The Scenes On The Fraught Rollout Of Unified Pricing Rules

On Thursday, the US district court in Alexandria, Virginia boarded a time machine back to April 18, 2019 – the day of a tense meeting between Google and publishers.

Google Ads Will Now Use A Trusted Execution Environment By Default

Confidential matching – which uses a TEE built on Google Cloud infrastructure – will now be the default setting for all uses of advertiser first-party data in Customer Match.

In 2019, Google moved to a first-price auction and also ceded its last look advantage in AdX, in part because it had to. Most exchanges had already moved to first price.

Unraveling The Mystery Of PubMatic’s $5 Million Loss From A “First-Price Auction Switch”

PubMatic’s $5 million loss from DV360’s bidding algorithm fix earlier this year suggests second-price auctions aren’t completely a thing of the past.