Fixing the Programmatic Chain in FAST & AVOD

In the intricate world of programmatic advertising, the journey from advertiser to viewer is often a complex one, involving multiple intermediaries, each taking a slice of the revenue pie. This layered approach can lead to a significant portion of advertising dollars being absorbed before reaching the content creators. However, innovations in the industry are streamlining these processes, with platforms like Kapang leading the charge.

The Programmatic Puzzle: A Chain of Revenue Splits

Programmatic advertising is a method that automates the buying and selling of ad inventory in real-time through an algorithmic auction. This process involves various suppliers, including ad exchanges, networks, demand-side platforms (DSPs), supply-side platforms (SSP), and data management platforms (DMPs). Each link in this chain typically takes a percentage of the ad spend, which can compound and diminish the final revenue for content channels.

Kapang’s Approach: Streamlining for Efficiency

Kapang has addressed this issue by consolidating several steps in the programmatic chain within their single platform. By doing so, they have effectively halved the number of intermediaries involved in the process. This consolidation not only simplifies the ad sales journey but also significantly increases the revenue share for content channels—reportedly providing up to five times more revenue compared to traditional programmatic routes.

Adding Efficiency, Not Overhauling the System

Kapang’s solution doesn’t reinvent the wheel; instead, it adds efficiency to the existing programmatic advertising framework. By reducing the complexity and the number of entities taking a cut, more ad spend directly reaches the content providers. This approach enhances the viability of content creation and distribution, particularly for FAST (Free Ad-Supported Streaming TV) channels and AVOD (Advertising-Based Video On Demand) content channels, which often operate on tighter budgets.

Beyond Programmatic: The Role of Direct Sales and Sponsorships

While Kapang’s platform addresses a significant portion of the issues faced by FAST and AVOD channels, it’s worth noting that other efficiencies can be achieved through direct ad sales and sponsorships. These methods allow for more control over the advertising process and can lead to higher revenue shares for content channels, as they bypass the programmatic chain altogether.

Conclusion: Breathing Life into Content Creation

The advancements made by platforms like Kapang are vital for the health of the content industry. By ensuring a fairer distribution of ad revenue, content creators can continue to produce diverse and engaging material for audiences worldwide. As the media landscape evolves, it will be crucial for other players in the ecosystem to adopt similar efficiencies to sustain the creative lifeblood of the industry.

Check out our previous article on Kapang adX

, Rathergood TV
Revenues in CTV are falling for the wrong reasons

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