Many theaters re-run ads or cycle through generalized house ads, which means lost revenue opportunities for theatre chains, Young said.
In some instances, the average CPM for an on-screen ad is $35.
“What we can do here is offer up those slots at a lesser CPM by aggregating smaller advertisers like app developers who might want to push out mobile app install ads to a connected audience who, for example, went to see ‘The Hobbit’ and there’s a fantasy game these developers want to promote,” he said.
Although some large theatre ad networks such as National CineMedia sell ads against national programming packages like “FirstLook,” there is still a heavy mix of local and regional placements like real estate and physicians’ ads preceding films.
Rev4 sees more opportunity for smaller advertisers – those who wouldn’t necessarily amass the buying clout at a national level or partake in $50 million commitments – to access its private demand channel.
“I know when a brand goes to make an ad buy, they want to target as many quality publishers as possible to get their message out and AOL has established a lot of those relationships already,” Young said. “The difference with cinema is that we have an average of 20 people looking at each ad at a time. We sort of get to show a companion ad on that second screen.”
Regardless of the reason a given publisher establishes a PMP, AOL has been a big beneficiary. PMPs have sprouted across the board for AOL, said Henk van Niekerk, AOL Platforms’ SVP of publishers and ad networks.
The company has powered more than 60 video PMPs this year, including one PMP it built for Australian broadcaster Multi Channel Network, and facilitated more than 100 private deals on the display side, compared to 10 this time last year.
Private marketplaces can be channel-focused (mobile/connected TV), audience-based or content/context-driven (sports/weather), depending on the seller’s needs, van Niekerk said.
For instance, Vevo’s primary distribution point was desktop video via YouTube, but as mobile channels and connected TVs proliferate, it had enough inventory to justify testing programmatic sales through a PMP built with AOL’s Adap.tv.
Other platforms, such as Comcast’s FreeWheel, enable premium sellers such as A+E Networks to bundle mobile and connected TV inventory on a guaranteed, reserve basis in a PMP beyond their direct sales businesses.