An overwhelming majority (87.4%) of network service provider executives agree that programmatic advertising delivered through smart/connected TVs and/or customer premises equipment (such as set-top boxes) will be an important source of revenue for network service providers and pay-TV operators in Europe, according to research from Hoppr, an innovative startup that is introducing new interactive, programmatic technologies and business models to advertisers, brands and network service providers.
The study from the programmatic technologies provider surveyed the opinion of 103 senior executives with European communications service providers across an array of delivery mediums.
An overwhelming majority (85.4%) of respondents believe that new developments in ad-tech solutions were making it easier for network service providers in Europe to deploy programmatic advertising initiatives. Nearly three-fifths (58.3%) of executives surveyed say generating revenues from programmatic advertising initiatives is a complicated business model to develop.
Also, nearly three quarters (74.8%) indicated that their NSPs are already generating programmatic advertising revenues in one form or another, while two-thirds reported their organisations generated more programmatic advertising revenues in 2020 compared to 2019.
Looking forward, around three-quarters (75.7%) of respondents indicated that their company would generate more programmatic advertising revenues in 2021 than in 2020. As a result, 72.8% of firms were planning to invest more resources into developing programmatic advertising programmes over the course of 2021.
Interactive advertising (63.1%), Video advertising (58.3%) and banner advertising (36.9%) were the top three priorities for NSPs in Europe as they rolled out programmatic advertising initiatives.
Commenting on the research, Cyril Daoud, CEO of Hoppr, said: “The uptake of connected TVs by consumers across Europe through the pandemic year of 2020 has created an intelligent infrastructure that allows pay-TV operators and network service providers to deliver highly targeted messages to connected-home audiences in an automated manner.
“Our first annual survey of European operators reveals a thriving new business model that is creating much more intimate ties between consumers and brands. European service providers are in an ideal position to tailor engaging advertising content with a level of precision and transparency that is already revolutionising the industry.”
Overall, the research revealed that European pay-TV operators and network service providers planned to expand investments in programmatic advertising initiatives to generate high-margin revenue streams from brand managers and marketing agencies over the course of 2021. In so doing, executives were found to be exploring new business models and advertising technology solutions to monetise access to connected home audiences across the region without disrupting end-user entertainment experiences. Broadcast Prome