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NextTV Content Series

How is the media advertising landscape changing with proliferation of new FAST channels?

Slide Number 1		1
Broadcasters Shifting to Support New Ad-based Services Declining linear TV viewership and increasing use of mobile devices for on-demand content viewing have put pressure on the revenue streams of many broadcasters. The pandemic has greatly accelerated this long-term trend, by simultaneously increasing viewer demand while reducing the ability of media companies to produce new content. As audiences shift to viewing media in new ways, advertisers are redeploying their spending to follow. Success in this evolving market requires a multi-pronged approach to help advertisers better reach their target audiences. In response, media companies are taking a number of steps:		2
Ad Decisions Driven by Better Data Today’s advertisers have more options than ever before.  Choices for television viewers are expanding due to an ever-growing array of FAST (Free, Ad-Supported Television) linear channels and on-demand OTT services that offer an astonishing variety of fully or partially ad-supported tiers. Broadcasters also have a range of other ad-supported products to sell, including advertising on their websites and other public-facing properties such as social media accounts and sponsored content outlets. Making decisions about where to place ads has become more complicated for advertisers. Long gone are the days when simple CPM/GRP (cost per thousand/gross rating point) analysis drove ad buying decisions. Instead, advertisers are looking for actionable data to use when developing RFPs for ad placements. Measuring CPI (cost per impression) is increasingly possible on new technology platforms, particularly for OTT and on-demand content.  Click-through rates can also be measured in many instances, particularly for viewers using CTV (connected TV) devices. Note that a growing number of consumers use devices such as a Roku, Amazon Fire Stick, Apple TV, or Google Chromecast for older displays that do not have built-in CTV capabilities.		3
Automation is Transforming TV Ad Buying Television advertising is a high-volume, transaction-oriented business.  Every hour that a linear channel is on the air, new inventory is generated in the form of ad “avails,” each of which can be sold individually or as part of a larger campaign. In many cases, purchases require a series of back-and-forth communication steps between buyers and sellers, including RFPs, proposals, orders, confirmations, log reports and invoices. Each of these steps must be executed accurately and properly documented for tracking and accounting purposes. These processes are made even more complex due to inventories and prices that can change rapidly, and a growing trend among advertisers of making ad buys closer to airtime.  Manual processes based on spreadsheets or paper logs are virtually impossible to scale, and their preparation consumes valuable sales resources that can be better utilized for other tasks. For example, one of the more tedious steps is reconciling an actual ad placement confirmation (or log, which is generated by the broadcaster) with the corresponding insertion order (generated by the advertiser). If done manually, matching can be time consuming, particularly if any changes have been made to the scheduled ad run times. This process may need to be repeated several times for a long-running ad campaign with multiple insertions. This activity can be even more overwhelming for a national advertiser who is placing ads in multiple local markets, as the number of transactions that need to be reconciled can become quite large.		4
Matrix Solutions is a forward-thinking technology company that empowers the media ad sales world with intelligence, technology, and expertise. It provides the technology back bone for the end-to-end workflow for sales organizations, transacting in the media marketplace. Its flagship solution, Monarch, is the only global ad sales platform built specifically for media, delivering the CRM and business intelligence necessary to optimize inventory, while the Matrix Sales Gateway, serving as a sell-side dedicated platform allows for the ingestion and dissemination of data from all providers in the ecosystem that participate in the negotiation and execution process. Matrix manages more than $13 billion annually in media ad revenue, has over 10K users, maintains over 95% renewal rate, and has founded the annual Media Ad Sales Summit and Media Ad Sales Council (MASC) – both of which bring together industry leaders to advance the future of media ad sales. For more information, please visit matrixformedia.com.		5

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