In an aim to combat global players like Google, Facebook and Amazon, Germany’s two major commercial TV broadcasters Mediengruppe RTL Deutschland and ProSiebenSat.1 have entered into a 50/50 partnership for addressable TV and online video advertising.
The strategic alliance will allow RTL and ProSiebenSat.1 to control a platform for the automated booking of addressable TV and online video. It will also drive long-term growth in these areas and strengthen the technological independence from global tech platforms, according to the broadcasters.
By 2022, the market for addressable TV and online video in Germany is expected to be in the single-digit Euro billions. Currently, around 18 million TV devices in German-speaking territories are reachable by addressable TV, providing the opportunity for individualised advertising.
Commenting on the development, Matthias Dang, managing director of Ad Alliance and managging director of sales, technology, and data at Mediengruppe RTL Deutschland, said: “Strong partnerships are crucial for success in the world of digital advertising. After having expanded Ad Alliance, this joint venture completes our ad tech stack on the demand side and is therefore a logical next step. Our core strength is our own content and we now work in a world where TV stands for ‘Total Video’. The fact that we can now make these high-quality and 100% brand-safe environments bookable via a uniform technology offers the market a strong solution and a real alternative to international tech platforms.”
Thomas Wagner, chairman of the management board of SevenOne Media, added: “This joint venture is a milestone in the German advertising industry. We are creating a new standard for addressable TV and opening the way for intelligent and addressable reach. At the same time, we are simplifying the booking of combined addressable TV and video campaigns. Our advertisers have clearly signaled their need for approach. The joint venture will create a win-win situation: We offer advertisers a one-stop shop which will boost addressable TV. It also demonstrates the importance of our investments into relevant advertising technologies. This provides us with the technological basis for our joint venture with Mediengruppe RTL Deutschland.”
The technological basis of the new partnership is the demand-side platform ‘Active Agent’, which is part of Virtual Minds, the ad stack of ProSiebenSat.1. Using this platform, advertisers and agencies will be able to programmatically book digital ‘Total Video’ campaigns. Both sales houses are experiencing a significant and steady increase in the demand for addressable, high-reach campaigns and thus efficient targeting.
The partners want to technologically fill this demand with their respective inventories from a single source and with an offer that is independent of whether viewers and users are reached via TV or online. The goal is cross-inventory and cross-device campaign presentation. At the same time, the joint venture ensures advertiser and agency support for bookings and further develops the product portfolio, according to the broadcasters.
The partnership is subject to approval by the Federal German Cartel Office.