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VideoNuze Dvir Doron
Cedato’s Dvir Doron at VideoNuze Shift panel

“One of the key takeaways from this year’s summit was the consensus around how complex the programmatic video landscape has become. Making the best of it requires a multi-tier approach, combining direct deals, smart use of private marketplaces, open RTB where appropriate, and new programmatic strategies such as video header bidding,” Will Richmond, Publisher, Editor, VideoNuze. 

Cedato took part in a lively VideoNuze Shift event last week in New York, where a mass of industry leaders addressed the rise of Programmatic Video and TV. According to Will Richmond, Editor, Publisher, VideoNuze, some 400 industry executives participated, demonstrating strong market support and an overall leap in faith in the Programmatic Video process.

To provide some perspective on the full potential of these markets eMarketer is forecasting that Programmatic Video will rise from $6.2 billion this year to $10.6 billion in 2018 while Programmatic TV is predicted to grow from $710 million this year to a whopping $4.4 billion in 2018. According to Zenith, Programmatic Video buying gives “advertisers more control and better value.” Publishers on the other hand are able to leverage data for better inventory optimization and extend audience reach.

The questions on everyone’s minds were; how will Programmatic Video and TV evolve over the coming year, and what are the best ways to harness the upcoming opportunities they offer?

Within two years alone Programmatic Video has come a long way
Publishers, who were initially skeptical about unleashing their valuable video inventory to programmatic, turned to it for display alone, but as data science and automation enabled more efficiency, Programmatic Video edged its way into the mainstream. In an exciting turn of events, Programmatic TV also evolved at a high pace this year and is on the verge of its own remarkable growth curve.

One of the insights from the summit is that Programmatic Video is not just about placing inventory on the open exchange; some buyers and sellers want premium video sold through first-bid auctions in a Private Market Place (PMP), while others want to take advantage of the programmatic process including Video Header Bidding, to transact, scale and optimize yield in real time.

Will Richmond, VideoNuze, Editor, Publisher, Shift November 30 2016, Programmatic Video
Will Richmond, VideoNuze Publisher, Editor, discusses Programmatic video post Shift 2016

“One of the key takeaways from this year’s summit was the consensus around how complex the programmatic video landscape has become. Making the best of it requires a multi-tier approach, combining direct deals, smart use of private marketplaces, open RTB where appropriate, and new programmatic strategies such as video header bidding,” Will Richmond, Publisher, Editor, VideoNuze. 

The multi-tiered strategy, combining the best of the programmatic buying processes was therefore an important takeaway from the event.

Adoption rate of Programmatic Video transacted privately is on the rise
Over two years ago publishers were skeptical about automating premium video inventory.  Increasingly, publishers shifted from direct manual deals in favor of trading privately in a Programmatic Video environment. Brands keen to access premium placement at more competitive fees are also opening up to private trading but through a programmatic process. A Programmatic Private Market Place makes it possible for a publisher to invite a select number of buyers to bid on their inventory automatically, saving tedious manual processes. CedatoX PMP for instance opened up a wealth of opportunities for publishers and marketers demanding private transactions, through an automatic process that can generate more effective yield and fill-rate. Programmatic direct will increase more quickly and grow to 54.0% of all programmatic spend next year according to eMarketer.

Video Header Bidding for more competitive transactions
For publishers and marketers seeking more competitive options in real time, the programmatic process of Video Header Bidding is the preferred option.  Video Header Bidding provides the best of both worlds; the ability to trade in real time on one hand while substantially increasing yield and fill rate on the other.  The process of Video Header Bidding also upholds the viewing experience, avoiding adding latency to page loading times. Here at Cedato, we are witnessing how Video Header Bidding is supercharging demand for programmatic inventory in Outstream, Native Video and other formats, and contributing to a fluent viewing experience.

The OTT market is transitioning
Programmatic TV is also rapidly evolving and its future was at the forefront of technology conversations at the VideoNuze Shift event. 2017 is predicted to be a pivotal year for programmatic TV; eMarketer predicted a significant jump in programmatic TV spending.

The bottom line
In the past, video was the last piece of inventory publishers considered for programmatic transactions; the race to the bottom mentality of RTB kept video inventory in the direct sales route. But fast forwarding to 2016, the market is demanding more transaction choices. With more video advertising revenue flowing through programmatic whether; PMP, RTB or Video Header Bidding, the case for Programmatic Video is gathering momentum.

Here at Cedato we help our partners build the right mix of Programmatic Video in a bid to capitalize over the best opportunities. For more information: info@cedato.com

View the complete VideoNuze Shift panel discussion here.