Video: Where Are the Emerging Opportunities for OTT Advertising?
Learn more about OTT advertising at Streaming Media's next event.
Read the complete transcript of this clip:
Sarah Foss: What we see is a lot of people are trying to actually share their inventory or sell their inventory, which is actually creating a lot of complexity for advertisers who are trying to reach those demographics because not only are there aggregation platforms, like a Roku, you also have some of the folks that are actually selling direct. You know, CBS with their OTT apps. That's another good example of one where you can buy directly from them. Or some of the set top, or the CTV manufacturers themselves, Samsung, Vizio, they're actually now looking and trying to represent the inventory across all of the different native digital apps that are actually physically on their devices, right? So if you are an agency trying to get to those younger audiences or trying to find people on the go, whatever it might be, it's really complicated to go try and find all of the different ways that you can reach those people because there isn't a common set of sales channels yet. It's still a very new one, which is why I think there are folks like Roku who aggregate and then actually say this is a simpler way of doing it. And what we're trying to see now is how many of the publishers themselves want to actually take that back and own it themselves and go straight to the holding companies and the advertisers.
Youssef Ben Youssef: You mentioned, sorry just one second. You mentioned the word aggregation twice. That's not what we do at all.
Sarah Foss: I know.
Youssef Ben Youssef: So what actually, first of all, how do our company resell products, et cetera, and then we provide the platform to publishers so that they can monetize their inventory on our platform. So like you mentioned, an NBC, you should know that, on Roku does not have any economics. With Roku, they sell their inventory directly to agencies. So obviously, our role is to provide them with these channels that you mentioned so that they can reach to the agencies and be able to, you know, have capabilities, for example, Nielsen Native Integration. If NBC wants to sell their inventory in an addressable fashion, and make it measurable, they can do that natively just by building their app on Roku and automatically the agency will be able, for example, to measure thanks to Nielsen metrics.
Jason Bolles: Yeah, when we talk about what is available out there, I mean it's just growing leaps and bounds. I think the metrics I have in front of me from February 15th, I mean February of 2015, we had 16% of the households that had enabled smart TVs. And now February of 2019, we have 45%. And total households with a device that is internet capable of delivering this content is 71%. So 71% of households in the United States have a device capable of streaming into their household. So you know, as these platforms get fully enabled throughout the United States through different platforms, there is just an amazing amount of advertising space available in the industry. Things have to change, measurement has to change. You know, some of these things have to come together, some things need to consolidate. There are challenges ahead of us. But there is a lot of potential in that space.
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