Such availability of content has been created by a democratisation of the TV landscape, where broadcast-quality channels can be spun up efficiently and cost-effectively like never before. Setting up, operating, and monetising a high-quality streaming service is more affordable than ever – mainly because it is now possible to create high quality content and launch streaming apps more efficiently and with fewer vendors.

In this article, I will spotlight how any organisation with good content can get involved in this exciting era for digital distribution.

Maturing technology

The streaming market is fierce and demanding to compete in. Huge investment in vast content libraries has created access to thousands and thousands of films, shows, and other content. Despite such access at the tip of their fingers, audiences often report that they struggle with searching for content and getting relevant recommendations. There is a huge opportunity for niche streaming services to get a slice of the pie as a result, as they can cater better to specific interests. Maturing streaming technology has levelled the playing field by providing such niche content owners a more affordable route to market by going direct-to-consumer (D2C), while also guaranteeing a high-quality viewer experience.

Now, there is an exciting opportunity for niche content providers to meet the needs of an under-served audience in the simplest way. Whether it is content for older audiences, people who like art, independent films, education, fitness or health and wellness, or live streaming faith-based services, there is now the possibility of providing a dedicated service to suit a viewer’s specific interests that the big platforms don’t provide.

The streaming technology market has been evolving rapidly for over a decade now and it has given vendors a lot of streaming experience. There are now genuine end-to-end solutions available – from content ingestion and management through to app development – that deliver great quality experiences.

Such technology has levelled the playing field for content owners with high-quality video content, and its potential is giving them the power to ingest, organise, distribute, and monetise that content to any digital destination.

More monetisation options

D2C also provides a fantastic opportunity for content owners to build first-party data sets and monetise them. What these organisations are doing, ultimately, is getting control.

They can leverage the potential of FAST channels and distribution to grow audiences. They can also embrace subscriptions, advertising, or a hybrid of SVOD/ AVOD to maximise revenues across all bases. For brands, D2C providers can offer an appealing proposition: brand-safe, contextually safe ad placements for a highly dedicated audience.

Securing your future today

The digital media paradigm has changed forever and has set the pace for a new ecosystem. By providing consumer access to all kinds of high-quality content, the opportunities have never been greater for audiences to find the content they want via D2C services. The playing field has been levelled and, while the big streaming companies may continue to occupy viewers’ top one or two subscriptions, there is a fantastic opportunity for niche services to take the next spot.

We are all in the media business now, and it looks like it will stay that way.

To maximise monetisation, operators and video service providers need to be strategic with the FAST channels they add to their portfolio and leverage enhanced discoverability tools. They need to cater to the specific preferences of end users to enhance viewer engagement while boosting their ad opportunities. This article will explore some of the key elements to successfully launching a FAST channel offering.

How to implement a user-driven FAST channels offering

The proliferation of FAST (Free Ad-Supported TV) channels is undeniable. However, merely presenting hundreds of these channels to users can lead to a paradox of choice. This often results in viewers feeling overwhelmed, potentially not watching any channels, or even worse, turning off the TV or watching something on another service. Therefore, it’s crucial for service providers to curate a FAST offering that aligns with audience preferences, bolstered by effective discoverability tools. Moreover, considerations around distribution, advertising, and content alignment are paramount when launching a FAST channel.

For a distinctive experience, leveraging the niche content typically found in FAST is essential. It’s logical to assume that a viewer who watched Formula 1 content via a Pay TV channel might be interested in a motorsport-themed FAST channel. Similarly, a fan of ‘MasterChef’ would likely gravitate towards cooking channels. By tapping into viewer preferences, service providers can craft a compelling value proposition, target a specific audience segment, and subsequently boost advertising revenues. After all, tailored content often commands higher cost per mille (CPM) rates.

Advertising plays a pivotal role in the FAST ecosystem. With the surge in FAST channels, there’s an expansion in content inventory. Both service providers and advertisers need a streamlined strategy to match ads with appropriate audience segments, ensuring expansive reach. Advertisers aim to engage the majority of their target audience, making this a critical factor in their investment decisions. Furthermore, the relevance of ads to the audience is essential. To truly maximise revenue, a solution that consolidates demand from various sources and offers a broad audience reach is vital. This approach can package available ad slots to achieve optimal monetisation. However, service providers must tread carefully to ensure their audience data isn’t exploited by digital advertising behemoths. In today’s age, where addressable advertising is mainstream, there are numerous TV-centric solutions tailored to addressing this concern for service providers.

Personalising the FAST channel experience

The media domain is in a state of flux, ushering in a heightened demand for top-tier, user-centric TV experiences. Generative AI for content discovery, and increasingly, content creation, appears to be the solution the industry is leaning towards. Such AI-driven recommendations empower service providers to suggest FAST channels that resonate with viewer inclinations.

Looking ahead, the vision is for AI-powered personalised FAST channels. These channels would offer a bespoke experience, where each viewer, upon tuning in, encounters content curated to their individual tastes. This evolution promises a future where content aligns seamlessly with each viewer’s unique preferences.

Conclusion

Research shows that Europeans engaged in 50% more FAST content hours in Q3 2022 than the same quarter the previous year. The rise in FAST channel consumption has resulted in an explosion of new channels. To stand out in today’s highly competitive FAST market, content providers must deliver a compelling, user-driven experience to viewers.

By adopting AI-driven content discovery, AI-based personalised FAST channels, and targeted TV advertising solutions, service providers can drive viewers to the content they want to watch, segment audience data, and offer targeted ads.

With FAST, content providers and aggregators have an opportunity to fuse the best of linear and digital – delivering bundled products that provide reach, interactivity and performance. However, they need a calculated strategy to avoid some of the complexities of FAST in order to reap the rewards of this exciting media format.

What’s so appealing about FAST

For publishers looking for a new outlet for their content that will provide net-new audiences, FAST is a big opportunity. Analyst firm Omdia foresees FAST channel revenues to reach $12 billion by 2027. However, the FAST market is not uniform. In the U.S., FAST has caught on much more quickly, where cable TV prices are very high and TV ad loads take up a large percentage of view time. Many people have embraced all forms of digital TV as an alternative to cable.

In Europe, viewers have been slower to drop linear TV, partly because it has taken more time for the market to offer enough content on FAST channels to give viewers the selection they want. This means that most TV ad spending is still on linear, but change is inevitable. Variety predicts that Western Europe will lose about 7 million more Pay TV subscribers by 2027.

FAST – a mix of linear and digital 

For advertisers, FAST offers many benefits. FAST delivers a combination of long-form content programming and in-stream commercials that is similar to linear TV. Viewers can choose from on-demand content and live-streaming, which can refer to actual live events like professional sports, or content that is streaming in real-time that’s the same as what is being broadcast on a linear channel at the same time.

Along with that comes a number of elements that will be familiar to linear advertisers. First is the reach – particularly in the U.S. today. Many viewers of FAST TV have “cut the cord” or are light linear TV viewers, so advertisers can get a valuable and big audience on the channel. Scheduling, dynamic ad insertion and programming all work similarly on FAST as on regular linear, often because the top channels are managed by traditional TV broadcasters. What’s more, advertisers can use third-party currencies, which is a major plus.

There are also a number of key digital elements to FAST that will remind advertisers of AVOD. It’s addressable, which allows advertisers to target audiences using first and third-party data. FAST is also interactive. Viewers can use their remote control to click on ads and even purchase products.

Get the most from FAST advertising 

For publishers to profit from FAST content, they must have a strategy in place that helps advertisers make the most of this exciting channel. That means FAST must be part of the cohesive whole of a publisher’s offering, not a separate channel off to the side. Additionally, advertisers need a clear understanding of the different audiences, content availability and ad experiences on FAST vs. other content so they don’t think of FAST as a one-for-one replacement for linear TV.

Publishers should also encourage advertisers to test the unique elements of FAST advertising including interactivity and targeting. When advertisers see that they can get more engagement from their key audiences they will be willing to pay higher CPMs for the inventory.

To make all of this work, it’s important to have insight and control across the entire product portfolio. With a unified product catalogue, publishers can provide advertisers with smarter proposals that help them reach audiences across channels with products that make the most sense for each impression.

Publishers with a centralised order management workflow can also ensure that they are optimising ad delivery across FAST and other channels, incorporating elements like universal frequency capping and yield maximization.

FAST offers advertisers an opportunity to reach a valuable audience with ads that combine the best of both linear and digital. Publishers must take advantage of this window with a strategy that makes the most of FAST so that it commands the right price and brings in demand. FAST is likely the “future of TV” so publishers set the tone for their future advertising business with the way they sell and deliver FAST today.

With the right data that provides a view into who people are in both their personal and professional lives, sports brands can garner insights, sharpen targeting, refine strategies, and most importantly, improve the fan experience.

Fan-alytics: A data-driven approach to truly understanding fans

Data that provides a thorough understanding of a fanbase’s demographic makeup is vital to drive fan engagement through the TV medium. Gen-Z, for instance, is more likely to consume TV content on mobile devices and align with brands that share their beliefs. Millennials are likely to watch local news and exhibit a more casual TV viewing approach. Understanding such nuances can guide the tailoring of sports content to cater to these demographic preferences.

However, traditional demographics are just one part of the equation. Insights into fan interests, preferences and behaviors are instrumental in crafting personalised engagement strategies as well. Fans’ TV viewership habits offer valuable cues for increased TV engagement. For instance, fans of live sports, particularly those who watch multiple major sports regularly, are also likely to engage with Sci-Fi programming. Advertisers can use this type of understanding to target these fans effectively with the right content on the right channels at the right time.

By understanding fan motivations and decision-drivers, sports organisations can align their TV marketing efforts even more effectively. For instance, knowing that golf fans are more likely to be environmentally conscious and purchase green products can inform the choice of sponsors and partners. Such an audience would likely resonate with advertisers promoting eco-friendly initiatives, resulting in a win-win situation.

It’s also worth considering the influence of digital behaviours on fan engagement. Basketball fans, for example, are more likely to subscribe to on-demand streaming services and make mobile investments, and soccer fans are more likely to adopt new technologies early. Understanding these trends can help sports brands tap into the digital tendencies of their fans, perhaps through app-based interactions or personalised digital ads related to TV broadcasts.

Insights into the professional lives of fans can support the development of customised offerings with B2B fans. Sports brands could communicate group business outing offers through TV broadcasting.

Scoring big on fan engagement through television

The key for sports brands looking to drive TV engagement amongst their fans is to understand their audience deeply and find innovative ways to resonate with unique preferences and behaviours. Here are just a few ways sports brands could tailor their TV presence to increase fan engagement.

Targeted advertising: Leveraging predictive data, sports brands can deploy targeted advertising tactics to make the most of TV viewership and drive engagement. This can involve airing commercials around specific times when certain audiences are most likely to be watching. By strategically aligning ad content with the interests, preferences, behaviors, and even the demographic makeup of different fan segments, sports brands can significantly boost engagement levels and enhance the overall fan experience.

Brand alliances with specific products: Given that some fans may be environmentally conscious ‘green’ shoppers while others may be value-seekers looking for a deal, sports brands could partner with companies that offer products that align to those preferences for commercials during specific games or events.

Multilingual broadcasts: To cater to diverse linguistic demographics, sports brands could offer broadcasts in multiple languages. Not only does this improve accessibility, but it also helps fans feel seen and valued.

Technology early adopters engagement: Considering some fans are more likely to be early adopters of new technologies, sports brands could explore collaborations with tech companies for innovative TV experiences, such as virtual reality or augmented reality broadcasts.

The final whistle

Predictive audience data and a keen understanding of fan behaviours can empower sports brands to personalise their outreach. By gaining a comprehensive, 360-degree view of their fanbase, brands can unlock endless opportunities to improve engagement on the screen and beyond.

So it’s no wonder that publishers are turning to FAST as a solution to the need to keep revenues growing. But is FAST a long-term solution? It’s certainly the shiny new thing, but is it the best strategic play?

With FAST channels earning over $12bn globally by 2027, doubling today’s levels (Omdia data), it’s clear that there is gold in those mountains. As with AVOD, FAST channels inventory can be sold directly or programmatically.  But unlike AVOD, with FAST the media owner doesn’t bear the technology, stream delivery and marketing costs. On paper it is all upside if you own content that audiences crave.

But because FAST is offsite, it can struggle to reach the CPMs of more addressable forms of advertising – where first-party data is involved, for example.

The second challenge FAST faces is that of demographic. While audiences are growing in size, they tend to consist of older age groups. That’s fine in itself, but it does provide a limitation for brands looking to reach other demos, or extend reach beyond that older group.

Viewing behaviour also poses a challenge. Linear FAST channels are ideal for long streaming sessions – the TV equivalent of background music. This means they’re not likely to fare well on attention, and will quickly meet frequency caps.

Another question to ask is how the FAST channels will work alongside existing channels, and if there is a danger of audience cannibalisation.

Then come the technological limitations. Whilst third-party FAST vendors’ tech is admirable in how easy it makes the process, it means an extra partner and all the complications that come with that. For data-driven businesses it causes a lot of headaches. Often these third-parties are black boxes, with little in the way of actionable analytics.

With these considerations in place, let us revisit the first question – does FAST offer a revenue solution?

Naturally, the FAST format is designed to provide an easy access point for viewers. And simplicity is at the heart of the FAST proposition. Spinning up FAST channels is theoretically easy; most often they consist of just one IP, and of content that is already ready-to-go, likely sitting dormant. So, it’s a no-brainer way to make money from content that’s gathering dust.

Yet content owners might be just as well served spending their time and energy looking more closely at their existing channel and advertising set up. There are always efficiencies to be made on O&O channels which could make a significant impact on the bottom line.

Ad errors alone account for a huge hole in revenue. These can mostly be avoided, if you know what caused them. Dedicating resource to spotting, and fixing ad errors quickly, could be just as rewarding as standing up a new channel.

There’s also the ongoing job of cleaning the programmatic pipes, and supply/demand path optimisation to undertake. This can’t be done without clear sight of how the whole chain is performing – which again comes down to data. These close-to-home existing issues are easy to overlook, and tricky to dig down into. But they’re crucial when every penny counts.

Perhaps it’s worth considering whether to focus on the massive savings that could be made in the existing set-up rather than investing resources in a whole new set-up.

Where FAST channels are a part of a broader strategy, make sure that the emphasis is not just on establishing the channels. Once they’re live, they must be hawkishly watched, data must be scrutinised, opportunities to tweak ad campaigns, content delivery and QoE must be found.

FAST channels alone are not the answer to revenue woes. But an overall scrutiny of all streaming data, on Owned and Offsite properties, is.

The transition from linear TV to streaming is applauded by consumers, who want more viewing choices. Streaming enables viewers to watch any and everything, including niche sports like bowling, frisbee, and paddleboarding.

This article will explore the current live sports streaming trends and the key enabling technologies that are empowering outstanding live sports streaming experiences.

Interactivity, personalisation, and low latency are trending for live sports streaming

One of the top live sports streaming trends is the move from linear scheduling towards a live events interface where viewers can select whatever match is on, enabling more choice. In addition, there is a strong desire in the industry to reduce the latency of live sports streaming. Service providers want to match the five second latency of broadcast delivery. Lower latency means viewers can see the action happen in close to real-time, making the streaming experience much more enjoyable. While streaming standards and video platforms support low latency, it can take time for service providers to adopt new systems and redevelop their applications.

The viewer experience is also becoming more interactive. There is a trend towards sports data enabling more interactive streaming experiences. Data can be synchronised with video: for example, stats following a horse on the racing field. Advertising is also changing, with new options such as double-box displays where viewers can continue to watch the game while an ad is being displayed. This creates new ad inventory for video service providers and is less disruptive for fans, improving the streaming experience.

The number of FAST (free ad-supported streaming TV) channels in the U.S. has increased 81% in the last year, according to Whip Media. A growing number of sports leagues are setting up their own streaming service to serve markets where they were previously unable to sell media rights, or to engage directly with fans with exclusive content they own outside of their media rights contracts. In some cases, it’s an opportunity for leagues to develop their sport in foreign markets. Sports leagues are creating their own linear streaming channels to distribute content to FAST platforms to boost monetisation.

Latest live sports streaming innovations

One of the biggest challenges when streaming live sports is scaling the service for high volumes of consumers. A premium sports event can attract millions of fans. Service providers need to be able to scale on-the-fly to meet the demand.

The cloud enables video service providers to scale quickly and assure an exceptional quality of experience for a fluctuating number of viewers. Bally’s Interactive, the digital arm of one of the world’s leading entertainment providers, is an excellent example of a content provider delivering next-gen live sports streaming experiences via the cloud. Bally’s is leveraging the cloud to simplify all stages of media processing and delivery, including playout, branding, media processing, streaming and more.

Video compression is another technology that is key for live sports streaming. Through advanced video compression technology, video service providers can reduce bandwidth to keep delivery costs down while maintaining outstanding video quality.

In addition, server-side ad insertion (SSAI) technology is a necessity to deliver targeted advertising, whether it’s to complement a subscription-based model or support an entirely new service. Using an SSAI SaaS that is fully cloud-based, service providers can deliver targeted addressable advertising to millions of concurrent viewers for live sports streaming. By choosing a targeted ad solution with manifest manipulation capabilities, service providers can also deliver different variants to users in real-time based on delivery rights.

Furthermore, working closely with content management and application vendors is critical to delivering the most innovative streaming experience to sports fans.

Conclusion

The live sports streaming market is growing and evolving. To deliver an exceptional-quality, low-latency, interactive streaming experience, video service providers must stay ahead of the latest technology innovations. Service providers must be able to stream live sports reliably and at scale with pristine quality up to UHD HDR, with low latency and targeted advertising, for millions of concurrent viewers.

The power of reaching consumers via the largest screen in the house is already well established. What marketers now need to know, in order to truly take advantage of ad-driven CTV, is how to achieve cost-effective scale.

Currently, most CTV ad slots are purchased in a similar fashion to traditional linear TV – via direct insertion order (IO). This ‘white glove service’ has proved effective for many years, and relies upon marketers contacting broadcasters and platforms directly, and agreeing the predetermined details of a campaign – such as cost, run-time, creative – in advance.

However, as CTV has grown, so has the need for a purchasing method that grants marketers the ability to achieve optimal ROI on CTV. Programmatic purchasing has evolved alongside CTV and now meets this need to provide marketers with a buying experience similar to that of digital, to more effectively maximise the potential of their ad budgets.

The evolution of programmatic CTV

In its early usage, the auction-based programmatic purchasing method was mostly utilised in order to sell unused ad inventory in digital environments. But as CTV publishers and platforms continue to permeate audiences, and buyers take to the increased control of the purchasing process that programmatic enables, the amount of spend in programmatic CTV has grown – spend increased by 97% in EMEA between 2020 and 2021 alone. As demand from buyers has increased, CTV publishers have responded by making more of their inventory available for programmatic trading.

Where programmatic CTV has differed from its digital counterpart is in its increased use of private marketplace deals. At its core, programmatic buying is an automated auction that allows buyers and sellers to be connected rapidly. Deals can be achieved via an open auction, where any number of parties can take part in the process, or via private auctions, where a publisher invites trusted advertising partners to participate. Additionally, there are preferred and guaranteed deals, offering priority access and pricing on pre-negotiated terms.

Private market auctions have flourished in CTV due to the nuances of the channel. TV ads are the most trusted among UK consumers, and it is therefore no surprise that CTV publishers want to keep a close watch on which brands are advertising on their platforms to ensure high quality ad experiences. For marketers, CTV is also unique in that data activation is often coming from the supply side of the programmatic chain, enabling marketers to access the rich first-party data of media owners and device manufacturers.

Tailoring your buying

While increasing amounts of spend is moving to programmatic, direct purchasing via an IO  also allows an effective way to transact for both buyers and sellers, and in many ways provides a similar offering. Buyers are guaranteed a quality ad slot while having clarity over delivery, while also able to harness CTV publishers’ premium inventory for a set price.

However, for buyers and sellers looking for flexibility in their transactions, programmatic purchasing can offer some additional perks. Guaranteed programmatic deals, for example, act in a similar way to direct IO — selling for a fixed price with a specific amount of inventory. But, additionally, doing so programmatically enables buyers to retain the benefits of utilising a DSP, giving users increased control — easing workflow and allowing for optimisation mid-flight — and  more holistic reporting.

But, while programmatic purchasing may technically be able to offer these benefits, advertisers might currently find their programmatic choices restricted by publisher capabilities and offerings. Buyside appetite for programmatic executions shows no signs of slowing, so ultimately CTV publishers and broadcasters who are amenable to programmatic routes stand to benefit.

Taking buying to the next level

Programmatic ad buying in digital environments is at a crossroads. With third-party identifiers set to be phased out, there is an increasing importance being placed on first party data — and as a result, on the owners of this data, such as publishers and device manufacturers — to ensure effective targeting and measurement.

Traditional measures such as Barb have provided advertisers with a base level of insights in order to effectively run campaigns. However, the emergence of technology like automated content recognition (ACR) – a privacy-first, anonymised alternative content identification technology – and first party data from platforms and device manufacturers gives buyers more granular insights to drive their campaigns at scale and speed.

These insights can then be fed back into a marketer’s buying strategy, allowing for fine-tuning of campaigns in-flight. Furthermore, utilising programmatic CTV can turn the medium into the cornerstone of an omnichannel campaign. This approach – which gives marketers the ability to run a cohesive, holistic campaign across multiple devices – allows for optimal targeting and retargeting throughout the sales funnel. By identifying and retargeting exposed audiences across devices, with differing creative, marketers can better tell the story of their campaign and grab consumer attention.

For marketers looking to generate the best ROI, and gain maximum reach and impressions via CTV in a cost effective way, finding a balance between direct and programmatic deals is vital. While there are currently similarities in both purchasing methods, as publishers compete for ad spend investments, the additional flexibility of programmatic and offer of tailored purchasing options will become a differentiator. In turn, the greater autonomy, transparency, measurement, and targeting capabilities will become central to every campaign on the channel, and buyers will increasingly be looking towards programmatic CTV.

Operators understand that they will need to offer more value on top of their existing services to keep customers on board, especially at a time when home budgets are being scrutinised and stretched.

We believe there’s a once-in-a-generation opportunity for telco and pay TV providers to diversify their retail offer, by moving beyond quad-play to ‘omni-play’ and beyond super-aggregation of video content, to the aggregation of our increasingly smart lives.

By ‘aggregating more’ operators will be able to increase customer loyalty and raise ARPU, from services as diverse as multiplayer live gaming and home security, to smart domestic energy management.

Leverage existing technology

The technology exists for providers to deliver a single gateway to services, a unified UX with single billing and customer care, and in so doing they can move from discounted bundles to ‘mega-bundles’.

This is the golden opportunity to take control of the emerging Intelligent Edge – the future brain of the connected home.

The Intelligent Edge, hosted on operator CPE such as the video set-tops, connected TVs and broadband gateways, can be harnessed to improve existing TV/streaming services and launch new entertainment offers, including gaming which is more likely to appeal to younger demographics.

The same technology can be used to take a leadership position in smart home services.  The Intelligent Edge gives operators a flexible, dynamic and elegant means to introduce new services without the overhead that is often associated with software deployment to devices in the field.

‘Aggregate More’ is already in play

The innovative bundling of new services with smart home tech like video doorbells, indoor cameras, motion/contact sensors and environmental sensors, exemplifies the new possibilities when we look beyond entertainment and connectivity and ‘aggregate more’. Sky for instance recently launched an innovative smart home protection service, Sky Protect, offering customers comprehensive home insurance and smart home monitoring devices, bundled in one app.

The recent market introduction of connected TV platforms such as Sky Glass and Comcast Xumo are additional examples of aggregated consumer offers. Sky Glass bundles premium hardware, that includes a 4K display, 5.1 channel sound and camera, with financing that is attractive to both consumer and operator. This is before adding a compelling bundle of apps and OTT services, delivered via a sophisticated, unified user experience, featuring universal search and far-field voice control.

Leading operators are clearly looking for the most efficient, cost-effective and attractive way of providing as wide a range of services and applications to their consumer base as they can. Through existing managed CPE devices, telcos and pay TV operators already have an edge in the emerging ‘Aggregate More’ market. But perhaps not for long with Big Tech snapping at their heels.

Containerisation is a key technological enabler

The power of the operator Intelligent Edge is underpinned by Downloadable Application Containers (DACs) – via an application platform with a common backend and authoring that spans the cloud and CPE.

Containerisation further supports agile product development for a community of third-party application providers that operators could then roll out under their service and provide additional value.

The same approach not only enables providers to stand up and nimbly deploy these new services but breathes new life into legacy devices as well. Since operators have invested significantly in their existing infrastructure and devices, they want to make sure they maintain their longevity. With DACs, they can. Containerisation brings cloud-like power to the home and full capability for flexible, cost-effective deployment.

The opportunity is not all about new customer-facing services. There are underlying operational benefits to be tapped as well. Operators can use the Intelligent Edge to ensure QoS and QoE across all services and applications to ensure operational effectiveness. They can deploy applications to monitor the performance of their network and key services, and proactively identify issues before customers notice and raise calls to the call centre. The net result is higher customer satisfaction, fewer truck rolls, and lower operating cost.

Find out more at IBC 2023

At IBC 2023, we invite you to meet with us and explore how we can turn that head start into clear (and unassailable) leadership, and how a next-generation service strategy can be implemented in practice. Contact us to arrange a meeting.

Learn about Consult Red in Media, Technology and Telecommunications.

As a result, there is more pressure on sports rights holders to maximise the value of their investment. The industry strives to offer more personalised entertainment experiences, meaning rights-holders face essential decisions that will make or break their investment when devising the best go-to-market strategies to overcome today’s challenges.

In parallel with the increasing competition for rights is the lowering of the barriers to entry for our entrants into the market. Streaming has opened the door to direct-to-consumer (D2C) streaming operations – look at how Amazon Prime has disrupted the market using the D2C model. Also, for less valuable sports than the UEFA Champions League football, there is an opportunity for sports organisations to cut out the middleman and go D2C.

Adopting a D2C strategy is possible because of the high quality and affordability of streaming technology. However, delivering the content at a premium quality and at scale is a complex process. This is partly due to the increased demands on monetisation in the digital arena, especially where advertising is concerned.

The current advertising landscape

Many ad experiences remain poor for viewers, with excessive repetition and poor execution. In many cases, rights-holders miss out on achieving the highest CPM through a lack of personalisation and measurement.

With a cohesive D2C strategy, sports organisations can create a 360º view of their fans by collecting data on their interactions and spending behaviours. They can then use this data to target customers with relevant adverts promoting specific products, an essential revenue generation tool in today’s market.

Adopting a D2C approach is already finding success, particularly in the U.S. live sports market with the NFL, NBA, and MLB. These sports organisations are offering a strategy that hits the mark with fans. They provide them with greater freedom, choice, and flexibility with their desired content, including access to archived content, real-time stat overlays, social media integration, and live in-game chats. This move has created a fan ecosystem and maximises revenues through personalised experiences.

Market complexities 

However, despite the signs of success, the challenge of complexity looms large. There is a fantastic opportunity for companies to build D2C offerings that deliver high-quality advertising, but factoring in a mix of first-party and third-party sold creates enormous complexity. Third-party require integrations with (often multiple) ad networks. Plus, media companies must consider how to prepare ad content, brand safety, and real-time measurement – as effectively and efficiently as possible.

In addition, to effectively execute a D2C strategy, brands must have the proper technical infrastructure in place to allow them to meet demands. This means a platform enabling them to manage content and digital assets, incorporate broadcast level resilience, and integrate analytics. This infrastructure needs to be flexible enough to allow them to adjust to changes and be able to integrate new technologies in the future.

With the right tech stack, sports brands can embrace the changes in today’s market. By adopting this future-proof infrastructure, brands can improve the digital experience for their customers rather than be limited by legacy monolith systems that have become outdated, expensive to maintain and slow down progress.

Build, buy or partner? 

Scalability, resilience and flexibility are essential in managing such complexity at a mass scale in a live environment where all ad calls happen simultaneously. Identifying the right approach to technology is essential if sports rights owners are to maximise the value of their inventory in an era when the cost of sports rights only increases.

It has been common practice for organisations to have their tech in-house to capitalise. Still, we are now at a stage where media companies are turning increasingly towards third-party vendors as they seek best-of-breed solutions that will allow variation in revenue strategy over the long term.

Competition is increasing, and it’s being matched by complexity. But with the right strategy and the flexibility to deliver it, there is every reason for D2C providers to find long-term success on and off the field.

This may come as a surprise given CTV’s similarities to mobile, where data flows in abundance, even with Apple’s restrictions to ID-level targeting. Both operate through devices and apps, but where they diverge is in the availability and accessibility of data. Equipment manufacturers and, to a lesser extent, streaming providers are holding their assets close to their chest, perhaps seeking to avoid the commodification which devalued data on mobile and the open web.

While this guardedness is understandable, it is impeding cross-platform measurement and targeting capabilities, making it challenging for buyers to deliver consistent ROI while driving up CPMs for sellers.

To solve this problem, brands need to explore how adtech can bring life to this parched ecosystem, allowing data to flow to those who need it without compromising its value or its safety.

Lack of identity spine weakens CTV’s cross-platform capabilities

ID solutions are perhaps the most essential adtech solution for delivering effective targeted CTV campaigns, as they allow brands to identify users across different platforms and devices. With ID solutions, brands can deliver relevant ads to consumers no matter where they are, ensuring they reach the right audience at the right time.

For example, an ID solution can help advertisers pseudonymously recognise a user who watches a show on a connected TV and then clicks on a social media ad on their phone by linking the user’s CTV device ID with their mobile advertising ID. Being able to consistently recognise users is also vital for universal frequency capping and limiting ad exposure across platforms to maximise incremental reach. The advertiser can also deliver relevant ads on other connected devices that the user interacts with, providing a personalised and sticky experience across devices.

Unfortunately, with so many Original Equipment Manufacturers (OEM) in the market offering their own variation of device IDs and strictly controlling access to them, CTV lacks the identity spine needed to deliver accurate frequency control and measurement. The static nature of big-screen TVs has seen IP addresses stand in as identifiers, but this falls apart the moment a brand wants to measure outside of the CTV ecosystem (for example, in a cross-channel campaign that also targets mobile and web) or target an individual rather than a household.

Data exchanges are a bustling market of consumer insights

Data exchanges are marketplaces that act as intermediaries between data owners and buyers, making it easier for brands to access the information they need for effective targeting. Data exchanges can offer a range of data types, including demographic, behavioural, and location data.

For the media owners that set the boundaries of what is possible in CTV campaigns, data exchanges offer an opportunity to apply data targeting to campaigns — à la programmatic deals. This, in turn, increases the value of their inventory to a wider range of advertisers.

Brands, meanwhile, can use data exchanges to overcome limitations within their own data. This is particularly useful for brands that have been unable to use first-party data to make up for the shortfall of data availability in the post-GDPR era, as is the case for many CPG brands, for whom TV is a key touchpoint.

Most of all, CTV needs technology to empower data collaboration

The best way to help brands quench their thirst for data in the CTV ecosystem is to open the floodgates of data collaboration. If all siloed pockets of data (whether first, second, or third-party) along with all identifiers and ID-enriching signals can be unified and appropriately pseudonymised, the limitations of each component part can be overcome. Overlapping audiences between brands and platforms can be segmented and targeted not just within CTV, but across the wider advertising ecosystem.

Clean rooms are one of the ad tech solutions built to facilitate data collaboration. These are secure environments that allow brands to share and analyse data without accessing it directly, with cryptographic scrambling preserving user privacy and data ownership while still delivering valuable insights. In the UK, CTV broadcaster Channel 4 and retail media network Nectar used a clean room to discover shared audiences.

However, clean rooms are far from plug and play. Both parties must have their data organised to be compatible with the clean room they are using, which does not guarantee compatibility with any other clean rooms the brand may want to use. It is a significant investment of time, resources, and money to set up a clean room, and data sets must be regularly re-matched to ensure insights are up to date. Then, after all of that, there is no guarantee that anything actionable can be taken out of them.

Data collaboration, then, must not be limited to certain tools but be embraced at a cross-platform, cross-solution level. ID resolution and data exchanges can make more data available on CTV, while data collaboration tools can facilitate the smooth exchange of first and second-party data between the supply and demand side. A dedication to interoperability and an acknowledgement that no single approach can solve the ecosystem-level data drought will be necessary for CTV to thrive.

As CTV continues to grow and evolve, the role of adtech solutions in unlocking the full programmatic potential of the ecosystem will become increasingly important. With the right adtech tools, the promise of a CTV ecosystem that delivers the best of both linear TV and digital advertising can be realised. It will take collaboration, a more open attitude to data sharing, and perhaps some consolidation for us to bring life to CTV’s data desert.