As you may have noticed it has been quite a while since we last shared a discussion on our blog. On our end, we have been working hard to expand our platform to handle some of the fundamental differences required to facilitate the trading of television inventory.
The fundamental difference is that TV can be transacted in both linear units and addressable units. From a system’s perspective, those are apples and oranges. You could just transact on impressions across both, but doing that in the context of inventory management, yield optimization, and pricing along with the transaction make the impression based approach untenable. That means systems need to be designed so that the way buyers and sellers transact is abstracted from how the actual inventory management, yield optimization, and pricing happen. For example, in linear TV, yield optimization happens at the insertion level, while in display media it happens at the impression level.
What presents additional complication is that many linear buyers do not buy units one at a time. Buyer price is generally a function of the size of the spend. The more you spend the bigger your unit-rate discount. That means that packages. No matter how you slice it, by unit or by impression.
In short, there are three fundamental transactional units, instead of one, that all represent the same inventory; the critical difference from digital media. Buyers are interested in measuring their units of trade in impressions, insertions, or packages. This critical difference is just the starting point.
All three types of transactional units need to live side by side in a centralized platform capable of unified inventory management, yield optimization, and pricing. From day one, our platform was designed in anticipation of this functionality. So, when we expanded to supporting TV clients, our product road map quickly accelerated this development. Also, we have been working on all of those things in the guts of our product that are designed to make our product so “it just works.”
Now, back to our blog…
So, much of the work that inspired our previous blog posts has been overtaken by the unglamerous work of making trains run on time. We are now at a stage where the work we have done yields learning from its application. Our core functionality was based on innovating functionality and creating new ways of solving old problems. Much of our recent unglamerous work has focused on problems of operationalizing our innovation, which is not necessarily innovative in and of itself. For example, QA automation or the automation of scaling instances and spinning up environments.
Moving forward, our topics will be shifting from explaining how media could be transacted more efficiently and the problems with existing technologies. We will be focusing on how media companies and agencies are leveraging our platform to transform their media trading practices, to usher in audience-based and addressable buying, while still having one foot in the linear unit-based and upfront world.