2020 preview: As ad dollars shift from TV to OTT, ad tech advances become more important

The OTT advertising space will inevitably take share away from traditional linear TV as more people flock to AVOD and other ad-supported services and more publishers seek to monetize their content through streaming ads.

However, according to Charlie Betcher, senior manager of programmatic partnerships at Vevo, the demands of marketers will be difficult to meet if ad tech in the CTV/OTT space remains convoluted with an imbalance of standards and capabilities.

“Data usage, targeting, measurement, and privacy will need to evolve in the coming year, along with capabilities around ad delivery, yield, and optimization. There are many things that publishers like Vevo must consider as we look to distribute and syndicate our content across various platforms, especially given the presence of walled gardens,” said Betcher, according to a SpotX survey. “Each distribution partner has their own nuances when it comes to content delivery and ad serving, and this variation complicates our process for engaging with marketers. As the landscape continues to evolve, we will lean heavily on our ad tech partners to help us navigate the space.”

One way to address the challenges of OTT advertising is through collaboration, something that programmers like Discovery are planning to lean into next year.

“The biggest opportunity ahead for us in 2020 is the notion of collaboration among media owners like Discovery, device manufacturers, and technology and buying platforms. It’s the coming of age in our commitment to drive innovation and addressability, and to partner to create a unified solution that meets the measurement and targeting needs of advertisers,” said Alex Rauchman, senior manager of programmatic yield at Discovery, according to SpotX.

Expect more programmers, OEMs and vendors to work together in 2020 to make sure the right tools are available to continue building the OTT ad market.