How to Improve OTT Ad Revenue
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Read the complete transcript of this video:
Eric Schumacher-Rasmussen: How are OTT service providers and broadcasters changing their operating models in order to maximize their OTT advertising revenue?
Darren Lemke: I think it builds on a little bit of the earlier comments about needing more real-time data. We operate a global content delivery network. We have people, eyes on glass, 24/7, folks who are making sure that the bits and the bytes of these OTT services are moving freely around the world and being delivered out to the end user. We're starting to see almost an equivalent emerge with our customers on the ad operations front. Literally, we see folks who are keeping eyes on glass of their ad results during, during major events and making those changes. So that's definitely one way that we're seeing some of the operational changes being made. Another thing is just the willingness to distribute and publish their content more broadly than ever.
I think in the early days of OTT, the job was to get your linear channel and to move it to your own app. Now we're seeing the emergence of social media as a potential syndication endpoint with implications on their advertising strategy, these FAST services or these virtual MVPDs are now becoming our new partners for capturing revenue, the Roku channel being, another example of that or Samsung TV, or other devices that have endpoints. And even in some cases we're seeing OTT-originated streams being published to cable headends and cable services to be one more channel and a traditional payTV lineup. So from an operational perspective, that means more complexity on their back. And they have to manage the entitlements. They have to manage the rights they have to manage the ad splits with a growing number of partners.
As a service provider, we're doing what we can to make that as simple as possible by doing some of those integrations ahead of time--connecting to Twitch, connecting to Facebook, connecting to Periscope--making the connections with these different device manufacturers so that it can be as easy as one click within our UI to enable these new advertising models.
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