SAN JUAN, PR \u2013 Today, addressable TV inventory is a limited commodity that fetches a high price, and programmers and distributors tend to sell as much of it as they possibly can. But this approach won\u2019t always increase the value of a linear TV portfolio and may even cause the value of spot inventory to take a hit.<\/p>\n

\u201cThe cannibalization of your traditional spot business as a result of cherry-picking impressions or addressable units means you\u2019ve increased your effective CPM, but you haven\u2019t increased your top-line revenue at the end of the quarter or fiscal period,\u201d says Ashley J. Swartz, CEO of Furious Corp.<\/p>\n

To optimize the value of their entire portfolio, traditional TV sellers need to develop a better suite of tools and applications to drive ad-decisioning instead of relying on new products to fuel revenue growth. This is especially important when new offerings like addressable are rolled out; sellers need to be aware of the pricing implications for their existing inventory.<\/p>\n

Ad-decisioning is gradually becoming more data-driven, though the \u201cif greater than\u201d rule often still prevails, meaning the available inventory that can fetch the highest price is served by default. (That\u2019s how sellers can end up over-indexing on addressable and depress the value of high-performing spot inventory.)<\/p>\n

\u201cWe see this arc of maturation in how we\u2019re packaging linear inventory, where today it\u2019s really about leveraging data to drive better pricing decisions and automate existing processes like rate cards,\u201d Swartz says. \u201cEventually we\u2019ll get to a place where we\u2019re dynamically pricing and dynamically building plans and campaigns.\u201d<\/p>\n

But though demand for addressability and impression-based TV buying is increasing, it\u2019s important to remember that advertisers still also want reach and frequency.<\/p>\n

\u201cWe all know that a spot-driven, Nielsen-guaranteed business isn\u2019t going away,\u201d she says.<\/p>\n

This video was produced\u00a0 at the Beet Retreat San Juan 2020 sponsored by 605, DISH Media, NBCU, Roundel & Tubi.\u00a0 \u00a0For more videos from the series,\u00a0please visit this landing page<\/a>.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

SAN JUAN, PR \u2013 Today, addressable TV inventory is a limited commodity that fetches a high price, and programmers and distributors tend to sell as much of it as they possibly can. But this approach won\u2019t always increase the value of a linear TV portfolio and may even cause the value of spot inventory to […]<\/p>\n","protected":false},"author":18,"featured_media":65014,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"mc4wp_mailchimp_campaign":[]},"categories":[8235],"tags":[3269,5088,5891],"_links":{"self":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/posts\/65011"}],"collection":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/comments?post=65011"}],"version-history":[{"count":0,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/posts\/65011\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/media\/65014"}],"wp:attachment":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/media?parent=65011"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/categories?post=65011"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/tags?post=65011"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}