Is Programmatic BVOD always better? What our testing revealed

Programmatic buying has transformed digital advertising.

Greater flexibility, sophisticated audience targeting, faster optimisation and increased transparency have made it the preferred buying method for many advertisers. Combined with the ability to centralise campaign data and often achieve lower CPMs, it’s easy to understand why programmatic investment continues to grow.

But does that automatically make it the best approach for every media channel?

At Seed, we recently set out to answer that question for Broadcast Video on Demand (BVOD).

The Question

As more advertisers move media investment into programmatic platforms, we wanted to understand whether buying BVOD programmatically genuinely delivered greater value than booking directly with publishers.

The assumption seemed logical.

Programmatic should provide:

·       Greater audience control

·       Centralised reporting and data ownership

·       More flexible optimisation

·       Lower media costs

To test this, we replicated one of our client’s direct BVOD campaigns as closely as possible within their Demand Side Platform (DSP). To keep the comparison fair, the activity ran exclusively through the Open Exchange, as Private Marketplace (PMP) and Programmatic Guaranteed (PG) deals delivered CPMs comparable to direct bookings.

The results challenged some common assumptions.

What We Learned

1. Targeting wasn’t as flexible as expected

While programmatic is often associated with sophisticated audience targeting, much of the targeting available through direct publisher relationships simply wasn’t available via the Open Exchange.

Beyond age and gender, many audience options couldn’t be replicated, limiting our ability to mirror the direct campaign.

Takeaway: More technology doesn’t always mean more targeting options.

2. Publisher access was limited

Not every BVOD publisher made sufficient inventory available through the Open Exchange.

Some generated so few impressions they became impractical to include, reducing campaign reach and limiting publisher choice.

Takeaway: Direct buying still provides broader access to premium BVOD inventory.

3. Delivery shifted towards live streaming

Because Open Exchange inventory typically receives lower priority than direct bookings, a greater proportion of impressions were served during live streaming rather than on demand content.

This isn’t necessarily negative, but it does change where and how audiences are reached.

Takeaway: Buying method can influence inventory quality, not just price.

4. Inventory became less predictable

Securing sufficient inventory proved more difficult through programmatic, particularly during high demand periods such as EOFY and Christmas.

This increased the likelihood of under delivery compared with direct publisher commitments.

Takeaway: When guaranteed delivery matters, direct bookings continue to offer greater certainty.

5. Operational costs increased

Although headline CPMs appeared similar, they didn’t tell the full story.

Programmatic buying introduced additional technology fees while also increasing campaign management requirements. More ad operations support was needed throughout the campaign, creating additional agency time and operational costs.

Once these factors were considered, direct buying delivered stronger overall efficiency.

Takeaway: Always assess total campaign cost, not just media cost.

6. The additional data had limited value

One of programmatic’s biggest advantages is centralising campaign data within a DSP.

However, BVOD behaves differently from many other digital channels.

Most impressions are served on Connected TV, where click through rates and trackable user actions are naturally low. While reporting became more centralised, it generated relatively few additional insights that changed optimisation decisions.

Takeaway: More data isn’t necessarily more useful data.

So, Which Buying Method Is Better?

The answer depends on what success looks like.

If your priority is centralised buying, platform consistency and greater control across digital channels, programmatic remains a compelling option.

However, if your objectives are premium inventory access, delivery certainty, operational efficiency and overall campaign value, our testing suggests direct publisher bookings still have a meaningful advantage for BVOD.

Importantly, this isn’t a criticism of programmatic. It’s a reminder that different buying methods solve different problems.

Looking Ahead

The programmatic landscape continues to evolve, and BVOD publishers are investing heavily in improving their programmatic offerings.

As inventory access expands and buying models mature, today’s limitations may become tomorrow’s strengths.

That’s why agencies shouldn’t rely on assumptions or industry trends alone. The best buying strategy comes from understanding how each approach performs against your objectives.

At Seed, we continually test media buying approaches across channels to ensure our recommendations are driven by evidence, not convention.

Because sometimes the newest solution isn’t automatically the best one.