Supply and demand imbalance holding back mobile video

James McGrath
By James McGrath | 15 October 2014

There's a voracious appetite for video ad inventory, but the demand is tapered by the availability. The imbalance of supply and demand is holding the market back, according to supply-side platform SpotXchange.

Ad networks can either sit around for publishers to create more mobile video content that ads can be served against, or they can help them along the way. SpotXchange is taking the latter approach, and has been in Australia talking to clients about the push.

“One of the things we've seen in Australia particularly is that there's been a phenomenal growth in users who are using their mobile devices to consume video content and as that grows, the users are shifting into that environment. Australia is a relatively supply-constrained marketplace meaning most of the opportunities which have been created around video are being sold,” SpotXChange's vice president of mobile Allen Klosowski, told AdNews.

“Buyers are really reaching out there and trying to get as much reach as they can. And they're struggling to find that reach.”

On the publishers' side, they're struggling to create more inventory to sell to take advantage of the demand. SpotXchange is seeing an opportunity and is giving publishers a set of tools to help them enable video advertising even if the publisher doesn't have existing video content.

“What we do is provide them a full set of tools that allow them to manage their inventory, but also provide tools that allow them to create experiences inside their properties to enable more video,” Klosowski said.

“For example we have the ability to work with application providers to give them an SDK or tools that can play and render video advertising inside their application so we give them the code to make that happen.”

Klosowski said a key component of this was to get more video inventory from apps, something Dentsu Aegis group investment director of digital Andrew Reid says is appealing to buyers.

He told AdNews that the holy grail would be in-app video served programatically after location data had been laid over it.

“Big advertisers want to be able to target based on geolocation, and that's where the real demand is. The app environment is generally much safer, more targeted and better returns and response,” Reid said.

“There's a lot of appetite for that. Not enough inventory, but that's where everybody wants to go. You've got a level of registration data in there, there is software being developed now which allows people to identify user by type, time of day, location, so a whole variety of data being sourced out of the actual purchase of that app.”

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