The alliance will also promise the streaming platform’s clients secure content for their brands
Additionally, advertisers are being promised full transparency and analytics in the inventory purchase process.
Pluto TV and Xandr, like HBO Max, are part of the WarnerMedia unit of telecom giant AT&T
The Video-On-Demand (VoD) streaming market, despite having a global reach, is fighting its biggest battles in key markets. The spotlights are usually concentrated in the United States (USA), but in regions like Latin America there is a huge opportunity for expansion. In this sense, leaders such as Netflix, Amazon and Disney must not only be aware of the needs of consumers. Also of the arrival of new rivals.
This entire introduction is relevant to the announcement that two AT&T units in Latin America have just made. Xandr and Pluto TV, the telecom’s advertising platform and free streaming site respectively, have just announced their official arrival in the region. Not only that, but they will also work together to promote a business model that has hardly been seen in the area. Specifically, access to VoD with the ad-supported system.
The idea is that Xandr helps Pluto TV to monetize its content in an automated way. Being a free streaming platform, brands can buy advertising space to position themselves among audiences. The idea is that through its platform, any advertiser can maximize their return on investment, placing their messages at the time and in the content they want. This, with the goal of reaching precisely the most valuable population.
A threat to streaming leaders
In an interview with Merca2.0, Vanessa Marcuzzo, Xandr’s senior account director for Latin America, says that Pluto TV was born in the region hand in hand with the advertising platform. The idea is to offer two systems for purchasing spaces to brands. The first is a standard bidding, where several brands can enter auctions for the spaces they want within the content. But apart there will be a private marketplace to reach specialized deals.
Together, Xandr and Pluto TV want to add value to a whole market of audience data that advertisers and brands can take advantage of for their strategies. And we will also ensure that the streaming platform receives the best price in real time for its inventory. This will help it to grow in Latin America in a richer and more accelerated way. Additionally, users will be given a premium content library, refined.
Although Pluto TV and Xander seem to position themselves as a new great competitor in Latin America in the ad-supported streaming environment, it is not a new market. At the end of last year it was said that Netflix would have, sooner or later, to abandon its subscription model and adopt this model. Quibi, for his part, adopted a mixed format since he arrived in the United States. Also Peacock, from NBCUniversal, is betting on this different format.
The advantages and disadvantages of ad-supported
Admittedly, the Xandr and Pluto TV proposal is attractive and could threaten streaming leaders in the area. With advertising, you can deal with the multi-million dollar investments that are borrowing Netflix-like agents. It should be noted that ad-supported is a popular format on mobile, so users accept it. In addition, there are already several agents using this strategy to increase their initial reach at launch.
At the same time, it must be recognized that ad-supported streaming is not universally better than subscription services. As the Seattle Times points out, many paid and ad-free platforms tend to have a larger library of original content. According to Harmonic, for some consumers it is too similar to the TV experience they are fleeing from. And Chron points out that, for producers, there is no guarantee of income.
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