Collective has launched a private marketplace that will offer media buying agencies and advertisers real-time bidding (RTB) access to its premium video platform. The exchange will combine Adap.tv’s RTB technology with Collective’s audience data and the exchange will offer pre-roll ads across premium video inventory provided by IPC, WWE, The Independent, Sony Music and iVillage.
Collective say that they are the first in the UK to launch an RTB private ad marketplace for premium video content. “Our marketplace gives advertisers and agency partners a new way to access premium VoD inventory, but with this inventory being in such demand, we don’t see it as a low cost entry to buy video in the UK,” said Jamie Estrin, Director of Collective Video. “RTB pricing is controlled by supply and demand, and high quality premium video is always in high demand in the UK.”
Adap.tv’s technology will provide the infrastructure for the exchange that enables connects buyers with Collective’s pre-roll inventory. “Our unique partnership with Collective, will see the launch of the UK’s first RTB private marketplace for video” said Brian Fitzpatrick, MD for EMEA at Adap.tv. “Real-time bidding is relatively new in the video space – our technology will offer Collective Video’s clients a new way to trade VoD directly.”
What is a Private Exchange?
Private exchanges – also known as private marketplaces – were big news in the display advertising industry in 2011, where they were pushed heavily by the supply side platforms (SSPs) like Admeld (acquired by Google) Rubicon Project and Pubmatic. An SSP has technology that helps publishers maximize yield by making that inventory available on ad exchanges.
Private exchanges came about as some premium publishers were concerned that putting inventory on ad exchanges could cannibalise the value of their premium inventory, as advertisers realise they can access premium inventory at lower prices via RTB. However, as more and more advertiser budget started to flow through demand side platforms (DSPs – which enable you to buy inventory on several ad exchanges from one UI) and the large agencies started building their own ‘agency trading desks’, publishers either embraced RTB with open arms or accepted the fact they had no option but to follow the money.
The most simple version of a private exchange would be one that opens bidding to fixed number of invited/approved advertisers who the publisher knows are willing to pay the floor price (the minimum amount the publisher is willing to accept from anyone). However, private exchanges can become a little more nuanced so priority is given to advertisers the publisher has a particularly strong relationship with. It’s also possible to open up the auction to the public if nobody in the private exchange is willing to pay the floor price, in which case you have a kind of private-public hybrid exchange.
It’s still very early days for private video exchanges, but at this early stage it appears the main proponents will be Adap.TV, Collective, SpotXchange and Tubemogul, although it would be surprising if the display SSPs haven’t been preparing to also enter the video market.