Roku examines dynamic linear ad insertion; Why Netflix shouldn’t (should … should

Here’s today’s news round-up … Want it by email? Register Here.

Roku on a roll

Roku has announced a beta program for Dynamic Linear Add Insertion (DLA).

Dynamic Ad Insertion (DAI) was a part of Roku Acquisition of Nielsen’s advanced video advertising business Last year.

Roku’s pitch for DLA is to increase linear addressability by targeting ads on live TV pods, so that people who watch the same linear channel may see different ads while watching the same programming. The goal is to “marry the best TV with the best digital TV,” says Roku VP Lukman Parampath of Product Management. Adweek.

The DLA pilot launch follows a calm Announcement Monday, when Roku renewed a streaming distribution partnership with Amazon to keep Prime Video and IMDB TV apps on Roku devices. The deal contrasts with recent and controversial disputes between Roku and Google over YouTube and YouTube TV.

With one-sentence confirmation of the “multi-year extension” of the agreement, it is not clear what terms Amazon (or Roku) will have. Roku had previously lagged behind Google for competitive claims – Roku had no sales rights to the YouTube app on the Roku device, an agreement enjoyed by any other CTV app. Although YouTube probably still has that agreement, since we don’t even know the terms of the Roku-Google agreement.

Get the net

Earlier this week, Stretcher’s Ben Thompson sued Netflix for launching an advertising business. This sounds like a no-brainer: a way to convince viewers that they can’t afford easy subscriptions and subscriptions.

Ordinary current US Netflix subscribers will be ad-free anyway. There will only be one additional discount level.

But there are compelling reasons not to, Thompson admits in a follow-up – Why Netflix ads should not be sold.

For one, not every response is reasonable. People love Netflix and pay a premium for it, because it’s ad-free. With an ad-supported level, dynamic flip – you’re not paying For Premium content but avoid advertising.

Most people who say they need Netflix ads actually need Netflix to access their ads, because it’s an invisible viewer.

What Netflix needs is an increase in revenue beyond subscriptions. Not many possibilities remain because people have already chosen to subscribe or not.

But Netflix could borrow another TV strategy: syndication. NBCUniversal distributes the show at Disney’s Hulu. Why not a Netflix original?

Netflix’s current bet is gaming. Games also reinforce ad-free promise. One week ago, Netflix Bought a game studio – This is the third time since September – and developers have cited the ad-free model as an opportunity to focus on gameplay, not marketers’ priorities.

Not so farfaced now?

As retailers launch ecommerce media businesses, they settle with one or more partners, including exclusive access. This is a different approach than large digital media publishers, which integrates many SSPs and vendors but rarely offers exclusive benefits.

Walmart has set up its setup with The Trade Desk. Kroger launched its online platform in third-party advertising technology last week, starting with three ecommerce agencies: Pacvue, Skai and Flywheel Digital. Massey started a media business a year ago and told investors last month that it uses the ecommerce marketing company Miracle.

These flagship deals are valuable but dangerous. These are actually less profitable, because the retailer knows that it brings legitimacy and expects service at almost no cost. And exclusive transactions may and will be drawn in-house at some point.

Farfetch, an ecommerce marketplace and technology company, has reduced the risk of a large partnership by leading a 200 million investment in Neiman Marcus, which is also owned by Bergdorf Goodman. Neiman brands will become exclusive clients of Farfetch platform solutions, as it is called.

“This is a significant digital transformation opportunity that will allow us to unlock huge value for the Neiman Marcus Group,” said Kelly Kowal, Farfetch’s chief platform officer. Release.

But wait, there’s more!

Canada is the latest government to introduce a law that would force online platforms to share revenue with news publishers. [NYT]

Agencies are raising prices and blaming inflation. [Digiday]

Microsoft takes further steps in search advertising. [Search Engine Land]

The merger of Discovery and WarnerMedia may close this Friday. [Variety]

You got hired!

NBCUniversal Netflix and Hulu Vets hire Shannon Willett and Brian Henderson for Peacock’s executive team. [Variety]

EX.CO has named Maya Sutan-Azule as its Chief Operating Officer [release]

Oceanwing, an ecommerce company owned by Anchor, hires Steven Fish as head of growth. [release]

Leave a Reply

Your email address will not be published.