NSPs Seeking More Control and Flexibility Over Programmatic Advertising Gravitate Toward RDK Solutions
Programmatic advertising has transformed the role of network service providers (NSPs) in determining how space is bought, sold and managed. New technological developments have made it possible to harness automation to replace a wide array of manual processes—such as contract execution and financial resource allocation—to display the right advertisements to the right consumers at the right time.
In so doing, innovative business models are emerging to address new opportunities and changes in the regulatory environment. This raises interesting questions about how much control NSPs need -- or want -- at the application and middleware layer to achieve their monetization objectives.
To explore the strategic, operational and financial implications of this new generation of programmatic advertising for NSPs, we caught up with Dominique Feral, Chief Marketing and Strategic Officer for Wyplay, a global TV professional services and video platform solution provider.
Here is what he had to say:
Q: Thank you for taking the time to chat. Let’s start with discussing how network service providers are responding to today’s advertising and digital marketing environment?
Dominique Feral: Network service providers (NSPs) are showing a growing interest in developing comprehensive advertising strategies. The trend is driven by several important developments—including the end of third-party cookies—and the rise of new regulations designed to protect the integrity and privacy of consumer data.
Both of these developments have put NSPs in an ideal position to connect directly with consumers—leveraging their direct access to first-party data. The advertising opportunity is available to all NSPs—large and small. That is why it will be important to develop comprehensive strategies. Those strategies will be influenced by the technical environment—whether it is Linux RDK or Android TV.
There is a growing sense of urgency in the industry because the opportunity to deploy advertising is manifesting itself rapidly. As a result, NSPs need to establish business and technology models that deliver advertising to the consumer while addressing privacy and data quality concerns.
Q: You mentioned the Linux Reference Design Kit (RDK) and Android TV. What role do these platforms play in how NSPs implement their programmatic advertising strategies?
Feral: The picture is a bit complicated. Worldwide, there are about 60 million Android TV set-top boxes (STBs) deployed by around 100 operators. On the RDK side of the equation, there are 30 million STBs—about half as many as Android TV—deployed by 20 or so operators worldwide.
Android TV has established a strong position and has gained traction since it went to market in 2010. RDK, which launched in 2014, is catching up.The truth, however, is that the two operating systems have pros and cons that may or may not fit with NSP strategies depending on their requirements.
RDK—a byproduct of the open systems community—is a platform designed to provide maximum flexibility and customization through open-source software that standardizes core functions in video, broadband and IoT services. The flexibility provides NSPs with a wider array of options when delivering advertising to consumers across their networks. But the hitch is that there is no off-the-shelf solution, no existing advertising blueprint that is ready to deploy. It requires a significant amount of integration at the middleware level -- which is something that Wyplay does very well.
On the other hand, Android TV is a fully integrated platform for multimedia devices that comes complete with an app store, preloaded apps, voice control, personalized recommendations and a pre-established user interface (UI). While it is easy to deploy, it does not offer the options of RDK in tailoring advertising strategies to the specific needs of NSPs interested in specific features and functions that are not included with Android TV. NSPs select RDK or Android TV based on what level of customization they require to meet their business objectives.
Typically, large tier-1 NSPs prefer RDK because it allows them to have more control on how content—including advertising—is managed. The best way to understand RDK is that it is a toolbox that allows organizations to build solutions, it is not a pre-integrated packaged solution like Android TV.
Q: How is Wyplay working with Hoppr to help NSPs to streamline the integration of advertising into their monetization strategies?
Feral: Wyplay is in fact working quite closely with Hoppr to connect the dots between the overarching advertising community and the technical environments within large NSPs. Hoppr brings to the table an end-to-end offering that connects the audience inventory of network service providers and PayTV operators with tailored messages from brands and advertisers to enable targeted high-impact programmatic Digital TV advertising campaigns.
Wyplay—as a professional services and systems integration company—bridges the gaps and overcomes barriers presented by internal NSP systems. We do that by bringing the high levels of competency at the application level—and strong expertise at the middleware level—to ensure that the underlying UI framework is integrated with the right RDK resources.
This is critical to creating advertising experiences that are seamless and transparent to the end-user. As programmatic advertising is introduced to consumers through STBs, NSPs must ensure that there is no negative impact on the user experience. This is especially important as people move from one content provider to another.
Getting the business model and technical solution right requires close cooperation with the Hoppr team, the operator and the Wyplay systems integrators. It is critical to identify the correct positioning of programmatic advertising within the screen and to optimize the UI environment.
To learn more visit: https://hoppr.com.au/