Monetizing Unsold Advertising Inventory is the Revenue Opportunity Television Needs

Over the last decade, the television advertising industry has faced a steady decline in revenue and new business that is largely associated with the competition of online digital advertising. However, the decline has rapidly accelerated as a result of the COVID-19 pandemic. Economic recession has advertisers reluctant to spend cash reserves on campaigns. According to a report by Advertiser Perceptions, 89% of advertisers have taken action with their budgets. As a result, TV providers are facing an unprecedented amount of unsold and underutilized ad inventory.

Magid, a research and consulting firm guiding broadcasters through economic disruption, recently reported hard-hitting statistics. Despite a surge in viewership from home-bound audiences, Magid claims TV stations are seeing a 40% to 60% loss in advertising revenue for April and May. The report also points out that most advertising sales teams will not easily adjust. The teams are built to respond to inbound requests from advertisers, and do not have the resources necessary to seek out enough new business to keep them afloat. Broadcast isn’t the only platform effected, Conviva’s Quarterly State of Streaming Report found 46.3% of all streaming ads represented missed opportunities due to unfilled ads or ad failures.

Growing amounts of unsold ad slots reduces the value of a TV provider’s advertising inventory.  SeaChange is addressing this issue head-on with its unsold advertising solution. It works by using a Demand Side Platform (DSP) to source ad buyers, using a Supply Side Platform (SSP) to define ad placement and then programmatically filling unsold advertising slots in real-time. The TV provider now has access to a vast, new pool of potential ad buyers.

Introducing the Sale of Unsold Ad Inventory to Television

The model of auctioning unsold ad slots has existed for years but used exclusively online. Now SeaChange is making it available to its TV provider customer base. This workflow eliminates the need for sales teams to seek out the ad buyers themselves. An unsold slot that is auctioned at a portion of its original value minutes before airing is better than alternatively allowing the slot to generate no revenue at all. As a result, a lucrative new revenue stream is opened up and the value of a TV provider’s ad inventory increases.

In a strained economy, brands will prioritize ad spend on platforms that can result in direct sales. Combined with a robust ad management infrastructure, the SeaChange Framework includes an analytics tool that harnesses information on viewer preferences and asset value. Powered by machine learning, the Framework analytics tool generates reports used to improve the accuracy of ad placement. As most linear TV providers move towards OTT video, it opens up the opportunity for personalized streams. These streams leverage data to target content and advertising assets to individual viewers. Ad buyers rely on this data to ensure their advertisements are reaching the correct demographics. Not only will buyers pay more for accurate placements, they may seek to place more ads in the future.

“Monetizing unsold ad inventory during this difficult time is a tremendous value-add of the SeaChange Framework,” said Yossi Aloni, CEO of SeaChange. “SeaChange has unique technology to offer TV providers a digital-like workflow for all platforms including Linear, VOD and OTT at a time where additional revenue is more important than ever.”

By: Walid Hamri, Chief Product Officer of SeaChange

About SeaChange International, Inc.

SeaChange International (NASDAQ: SEAC) powers hundreds of cloud and on-premises platforms with live TV and video on demand (VOD) for more than 50 million subscribers worldwide. SeaChange’s end-to-end solution, the Framework, enables operators and content owners to cost-effectively launch a direct-to-consumer video service. This includes back-office, media asset management, ad management, analytics and a client application for set-top boxes (STB), Smart-TVs and mobile devices. Framework is available as a product, Software-as-a-Service (SaaS) or managed service, and can be deployed on-premises, in the cloud or as a hybrid. For more information, please visit www.seachange.com.

SeaChange Contact:

Catie Algiere

Marketing Communications Manager

catie.algiere@schange.com