Gaps between supply and demand side platforms stall RTB

Transparency and brand safety are the top two concerns when it comes to real time bidding (RTB) in video, according to a SpotXChange commissioned study.

The study, which was completed by Forrester Consulting, also found that supply side platforms (SSPs) and demand side platforms (DSPs) need to work more closely together.

Australia is the most developed market for video RTB in Asia Pacific, according to the study, with 34% of online video ads traded programmatically.

This is an increase from 28% in 2013, ‘The State of Online Video Programmatic and Real-Time Bidding in Australia and Southeast Asia’ survey found.

However, the transparency and brand safety concerns, couples with a gap between DSPs and SSPs could slow the growth of programmatic trading.

Just under 42% of DSPs believe the price of video RTB cost per mille (CPM) will increase but 46% of SSPs believe the price will stay the same.

“At the moment, publishers are still focused on selling volume and closing the deals quickly. This behaviour stems from trading in the days of programmatic display, where it was all about driving down the price of display inventory in an open marketplace,” Matt Von der Muhll, managing director of SpotXchange Asia Pacific, said.

“However, this is not the case with programmatic video as it has a higher barrier of entry for publishers, greater controls and functionality.

“From the demand side, they are specifying more parameters around their video buys and this further diminishes the volume of inventory available and their willingness to pay a higher price for the inventory they desire.”

Von der Muhll believes the industry needs to work together to close the gaps and move beyond pricing.

“We need to look at industry definitions, guidelines and best practices. We are already seeing momentum from industry bodies and players who are coming together to make these changes.”

The study saw Forrester Consulting conduct 100 phone interviews with publishers, ad trading desks, DSPs, brand marketers and ad-tech professionals in Australia (50) and South East Asia (50) between January and March 2014.

Get down to MAD Week to learn more about programmatic buying. MAD Week is the biggest media and marketing event in the southern hemisphere and it’s teaming up with ADMA’s Global Forum for a huge variety of social, networking and educational events for marketers, agencies and anyone else focused on delivering great customer experience.

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