The programmatic technology behind ad pods and pod bidding
When streaming TV first took off, the programmatic ecosystem had to move quickly and adapt standards like OpenRTB 2.5—which was built for the web—to TV, which led to issues with duplication, competitive separation, and frequency capping.
Fast forward to today. With version 2.6, we finally have the standardized tools to make streaming TV transactable at scale—notably with the advancement of ad pods.
In streaming TV, we refer to ad breaks as ad pods. Pod bidding is the process of filling those slots programmatically.
Introducing flexible podding
OpenRTB 2.6 introduces the concept of flexible podding, which allows media owners to define the geometry of their ad pods.
Media owners all have different monetization needs and preferences for how many ads they show to viewers. Flexible podding allows them to dynamically construct ad breaks to maximize revenue while also maintaining a good viewer experience.
There are three types of ad pods:
- Structured ad pods contain a fixed number of ads, all with set lengths. The media owner sends a request with a precise definition of exactly how they want the pod returned.
- Dynamic ad pods have a flexible number and length of ad slots. The media owner communicates the total pod duration, for example 90 seconds, and buyers can return a slate of 10-, 15-, 30-, or 60-second ads, or even a 90-second ad, to fill this break. The media owner then constructs the pod in real time depending on the demand they get back.
- Hybrid ad pods combine structured and dynamic pod features. For example, a pod may include a flexible number of ad slots for the first 60 seconds, while the final 30-second slot is fixed. A media owner could offer a programmatic guarantee for one ad slot, while allowing for flexibility in the remainder of the pod.
At first, adoption leaned toward structured pods, but the market has largely shifted to dynamic pods. For media owners, this shift is critical because it increases competition for inventory, boosts yield potential, and still gives them the levers to balance monetization with a smoother viewing experience.
Pod bidding
Media owners can now dictate a clear podding structure in the bid request so that buyers can send back a slate of well-informed bids without duplicates or competitive clashes.
Let’s look at the OpenRTB fields that enable pod bidding.
- The poddur field defines the total amount of time in seconds that buyers may fill for the dynamic portion of an ad pod.
- The minduration and maxduration fields specify the allowable time range in seconds for buyer bids on a given ad slot.
- Or, sellers can use the rqddurs array to specify the precise allowable durations for each ad position. This is useful for live TV scenarios where non-exact ad durations result either in dead air or truncated ads.
- The maxseq field indicates the maximum number of ads that can be served within a dynamic ad pod.
- Finally, dynamic podding calls for dynamic pricing. The mincpmpersec field allows media owners to specify dynamic bid floors based on CPM per second so that the floor price scales linearly with the duration of creatives. Alternatively, the durfloor field allows media owners to specify pricing for creative durations in many ranges rather than on a linear scale.
Positional transparency
Version 2.6 also introduces positional transparency. In linear TV, everyone knows that the first and last ads in a break—or the first and last break in a show—are premium positions.
Until recently, buyers could not target those spots programmatically, and media owners could not monetize them properly. OpenRTB 2.6 changes that with optional fields that delineate between multiple pods and slot positions:
- Podid allows media owners to assign an ID to each pod so that multiple pods can be sold with a single bid request.
- Podseq indicates whether a given pod is the first, last, or in the middle of a program.
- Slotinpod indicates the position of an ad slot within a pod.
On the flip side, media buyers can choose which pods to bid on and use the slotinpod field in their bid responses to target specific positions within those pods.
Pod bidding means media owners can dynamically construct each of their ad pods on the fly based on buyer demand, their individual monetization needs, and ad load preferences. This creates more options around balancing ad revenue with ad volume and the viewer experience, while introducing more control around yield optimization.
For example, if a media owner has a target revenue for a full show or stream and manages to make that target revenue within the first few pods, they could decide to omit or shorten the remaining ad breaks.
How ad podding improves sustainability
What’s more, ad podding makes programmatic more efficient and sustainable. A study we conducted with Publica and The Trade Desk found this efficiency reduces ad-selection carbon emissions by 84%.
That’s because before ad podding, an ad server might have sent eight bid requests for an ad break to three SSPs, creating 24 calls for that single break. With pod bidding, that flattens to just three calls. So, it’s not only about revenue and experience—it’s also about reducing waste and making streaming TV more sustainable at scale.
Adopt industry standards for a stronger, scaled future
Standards like OpenRTB 2.6 are instrumental in helping the streaming TV industry realize the full benefit of programmatic advertising. Media owners can maximize yield, buyers can make the most of their media investment, and viewers benefit from a better experience.
Standards and protocols continuously evolve along with the industry’s needs. For example, we’re now working with other leaders in our industry to enhance standardization around live events in streaming.
It’s important for everyone to adopt the latest guidance and features, so that we can continue to scale programmatic streaming TV.
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