Channel 4 is to launch an eBay-style digital marketplace for advertisers to buy commercials on its video-on-demand service.
The broadcaster claims it is the first in Europe to introduce programmatic buying – the term for the automation of the buying and placement of ads, replacing human-based methods like phonecalls – which will allow advertisers to better target specific audiences on its All 4 service.
All 4 is the new online hub for its TV channels and video on demand, or cloud TV, which will launch next year, replacing the eight-year-old 4oD platform.
The TV industry is starting to see the rewards of video-on-demand ads on services such as 4oD, ITV Player and Demand Five, with the Advertising Association forecasting growth of almost a third next year to £210m.
Channel 4 has also built up a database of 11.5 million viewers who have registered their information, which the broadcaster will use to help advertisers better target their ad campaigns.
“Our data strategy has enabled Channel 4 to lead the global digital TV ad market,” said Jonathan Lewis, head of digital and partnership innovation. “Channel 4 offers superior targeting against our engaged, young, upmarket audience on our growing video-on-demand platform.”
Channel 4 says viewing of 4oD has grown 28% year-on-year so far in 2014.
The first brands to try the targeted advertising service, which allows advertisers to target specific Channel 4 audiences based on interests such as gadgets or food, include Rightmove, Baileys and Proctor & Gamble.
