Ad-Tech in free to view television has become the biggest burden to studios and broadcasters

In the ever-evolving landscape of television and film distribution, the promise of free-to-view, ad-funded content has always been tantalizing. The idea is simple: viewers get to enjoy their favorite shows and movies without paying a dime, while advertisers foot the bill. But behind this seemingly straightforward model lies a labyrinth of ad tech inefficiencies that are draining the lifeblood of content owners.

The problem starts with the sheer volume of ad tech required to distribute linear TV and on-demand episodic content. Each advertisement opportunity involves a dizzying array of stakeholders, from SSPs (Supply-Side Platforms) to DSPs (Demand-Side Platforms), ad exchanges, data management platforms, and more. This complex web of technology is supposed to streamline the process, but in reality, it has become a black hole for revenues.

Content owners are finding themselves spending more and more on inefficient technology. The costs associated with ad tech, including server-side ad insertion (SSAI) fees and various other charges, are eating away at their gross revenues. In some cases, these costs can consume up to half of the revenue generated from ad sales. It’s a vicious cycle where the more content owners invest in ad tech, the less they actually earn.

The inefficiency is so pervasive that ad-funded viewing is becoming increasingly unviable. The promise of free content supported by ads is being undermined by the very technology designed to facilitate it. The multitude of stakeholders involved in selling each ad opportunity means that a significant portion of the revenue is siphoned off before it even reaches the content owners.

Enter View TV Cloud, a platform that is turning this broken model on its head. Instead of burdening broadcasters with ad tech fees, View TV Cloud charges the advertiser for the technology needed to target audiences. This shift means that broadcasters no longer have to pay to earn. The ad tech costs, including SSAI fees, are absorbed in the ad sale, not the ad delivery.

This innovative approach ensures that broadcasters receive the lion’s share of ad revenues without the crippling ad-tech fees. By simplifying the process and eliminating unnecessary intermediaries, View TV Cloud is making ad-funded viewing viable again. Content owners can now focus on what they do best—creating great content—without worrying about the inefficiencies of the ad tech ecosystem.

In conclusion, the current state of ad tech in CTV is a cautionary tale of how complexity and inefficiency can undermine even the most promising business models. But with solutions like View TV Cloud, there is hope for a future where ad-funded viewing can thrive, benefiting both content owners and viewers alike.