SpotX is looking to launch addressable programmatic TV in the APAC region for the very first time, after partnering with a Korean-based TV specialist.
The deal between SpotX and Anypoint Media allows advertisers to by ad space on a household-by-household basis across Internet Protocol television (IPTV) and Community antenna television (CATV) operators who use Anypoint’s infrastructure.
Anypoint’s system will allow linear TV feeds to switch to digital feeds within a set top box, in order to play the targeted ads.
It means that for the first time, programmatic TV can be bought on specific targeting rather than broad audience estimates.
At the moment the service is only available in Korea with plans to expand across Asia.
While there are no specific plans to launch in Australia yet, regional expansion could point to a similar service being adopted locally. SpotX senior director of supply across JAPAC, Daniel Rowlands, says this marks a first for the APAC region.
“The promise of programmatic TV has been top of mind for much of the industry, but has yet to come to Asia,” Rowlands says.
“Our partnership with Anypoint will enable true programmatic TV to be executed in Asia for the first time.”
SpotX recently launched dynamic ad insertion products for Apple TV, and in April with Yospace.
Applicable here?
On the subject of what the consumer would need to do or buy and how targeted advertisers could really get, speaking to AdNews, Rowlands says this is only being done in Korea at this point - where AnyPoint Media has access to households with a STB.
He says the process is done without the consumer having to do anything and for the advertisers, it is not to dissimilar to the existing digital transaction.
“To begin with it will be slightly more manual to ensure the creative type and blocking is correct, but in the not too distant future advertisers will be able to access this inventory like booking a normal digital campaign, but in a linear TV environment,” Rowlands says.
“From a targeting perspective the sky is the limit because the STB has an IP connection so it has the potential to operate like a digital channel. Data can be housed in a server-side environment and as long as each device has a unique identifier, it can be tied to offline data for that household.”
He says it is important to note this is for the offering between AnyPoint and SpotX, and while he's not sure how applicable it is to the Australian market, this technology certainly opens up a range of opportunities because they have developed technology to integrate with existing STB and OTT platforms - not creating a device or hardware that has this functionality.
Breaking it down
In layman's terms the set top box (STB) collects, stores, and analyses data about household viewing history. This is used to create custom segments e.g. a toddler pack – aimed at households with viewing history for cartoon channels in the daytime.
Then, 24 hours in advance, an ad call is sent to SpotX from each household, with viewing data, channel information and zip code IP. The opportunity is distributed to all demand sources/advertiser's to be evaluated and actioned. Then, the bid response and creative is returned to SpotX – which then evaluates the most suitable ads, pending creative/brand control and yield, for each household.
SpotX passes ads to Anypoint Media which transcodes the ads to each households STB via satellite. During the commercial break, the feed switched from linear television to play the ad hosted within the STB. After the commercial is played, the feed switches back to linear television programming.
When the ad is played, beacons are fired by the back-end system, not by a set-top box to show completion of ad. This is done mostly within two minutes after the ad is played.
What do you make of the move? And does Australia need this? Comment below and share your views.
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