“The sellers and the buyers in that ecosystem have really specific requirements around how they want to transact,” said Sean Buckley, Magnite’s chief revenue officer. “And so, you need to have the depth of technology and capabilities, and you also need to be flexible.”
“Buyers want to include the dollars that they’re transacting programmatically in their upfront commitments,” Buckley said.
Data also is a crucial part of the mix in the upfront negotiations, and the ad tech platforms help facilitate cooperation around data, Buckley said.
While advertisers are making demands of the publishers, the publishers also have demands, according to another ad buyer from a major brand. The buyer said that the media companies are making upfront deals contingent on spreading more money with the streaming channels. The buyer said the tactic was like how many retailers have been nudging advertisers to push more spend into retail media networks.
“With these deal structures you’re going to start to see some of these players adding that as a component,” the ad buyer said. “So, say you want to buy March Madness with CBS, there also is going to be a component that says you have to spend ‘X’ amount with Paramount+.”
“It’s really to get the dollars flowing to the streaming arms in some of these places, where they haven’t really necessarily been.”