Network Ten is the latest broadcaster to implement programmatic trading and has set up a private video exchange, enabling it to sell video ad inventory to brands that want to control the environment in which their ads appear.
The market is bullish, and technology providers have suggested it is only a matter of time before all publishers are trading programmatically.
However, MCN has warned that take-up might be hampered by the notion that efficiency equals lowest price.
Ten launched a private exchange in June after licensing TVN's sell-side platform. Ikon and Starcom are involved in the exchange and Ian Swindells, Ten head of commercial operations, digital media, has urged other publishers to "get stuck in now or risk being left behind". Private exchanges allow publishers to control who they are trading with and to set a price floor on inventory as well as manage demand spikes.
Peter Ostick, managing director at TVN, said he would be "very surprised if all of the major publishers and broadcasters are not trading video programmatically in some shape or form by the year end" and equally surprised if all the major trading directors "were not out discussing deals – it's a matter of when not if".
Ostick was speaking after a roundtable discussion with parties from MCN, Cadreon, TubeMogul, Videology, Channel Ten and PPTV. His firm has launched a whitepaper including perspectives from those companies and learnings from setting up their video exchanges.
While those firms believe it to be the future of TV advertising to a greater or lesser extent, MCN, which has set up several private exchanges with agencies, said that the amount of inventory traded that way remained minimal.
Sales boss Mark Frain told AdNews that one of the problems was around price. "For programmatic to achieve the critical mass it requires to begin to add greater efficiency to both buyer and seller, there needs to be a shift from this laser-like focus on price alone," he said.
"Cost-efficiency has become a term that is used to scientifically define one thing: a cheaper buy. Programmatic is being pitched as a premium video extension to the power of TV. As such, an industry acceptance that this costs more needs to be realised if the combination of TV and online video is to deliver branding outcomes for clients."
Frain said that would give publishers more confidence to put more premium content through those platforms.
"Outside of that, significant levels of demand continue to outstrip supply of premium video content, so without changes in perception of what programmatic truly brings, take-up will be slower than many technology suppliers would like."
The company also warned that many agencies were unprepared for the amount of inventory management work involved in video private exchanges.
Meanwhile TubeMogul, which partners with TVN, warned that publishers entering the market should be aware of the 'real estate agent' model where technology partners were making money both from the buyer and the seller.
"You have to ask, 'Whose interests do you serve?'," said Australia MD Stephen Hunt. "As the market matures publishers should demand that partners are aligned with their business."
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.
Have something to say? Send us your comments using the form below or contact the writer at adnews@yaffa.com.au
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.