Video Convergence Powered by Extreme Reach
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Extreme Reach is the only industry platform offering true video convergence for broadcast and digital advertisers. Take a few minutes to go through our presentation to learn more, and see how you can benefit from converging broadcast and digital video advertising. Each slide contains notes to help clarify slide content. To view this notes while accessing the presentation through slideshare, please scroll down and click "Show Notes for Slide #" which is located below. Otherwise, please save/download the presentation and open it in PowerPoint to view associated notes. For more information, please contact sales at ExtremeReach dot com.
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Video Convergence Powered by Extreme Reach
- 1. The Convergence of TV and Digital Video Advertising Avi Brown Chief Digital Officer
- 2. About Extreme Reach TV Ad Technology Digital Video Ad Technology The Path to Video Convergence
- 4. Television 91 Ad Age 100 Brands
- 5. Talent $150 Million Paid in 2013
- 6. Digital Video Holistic Measurement
- 7. Video Advertising History in the Making $80 $60 $40 $20 $0 -$20 1945 1950 1953 1956 1959 1962 1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 MEDIA SPEND (US$ BILLIONS) Source: Business Insider, August, 2013 TV Media Spend (US) Digital Video Media Spend (US) Birth of Cable TV First Soap Opera Birth of the Internet Convergence
- 8. Daily Time Spent with Major Media by US Adults 6 5 3 2 Source: eMarketer 2010 2013 6 5 3 2 0 DIGITAL TV HOURS 1 0 DIGITAL TV HOURS 1
- 9. The Future of Television: Cross-Platform Content Wearable 125% 100% 75% 50% 25% 0% TV Mobile PC IPTV Tablet 2004 2007 2010 2013 2016 2018 2021 2024 Sources: PewResearch, Nielsen, IHS PERCENTAGE OF HOUSEHOLDS WITH DEVICE
- 10. TV Ad Technology
- 11. TV Ad Distribution Through the Years Film Satellite Cloud (Extreme Reach) Tape
- 13. • Panel Based • Programming as Proxy • Gross Rating Points
- 14. Digital Video Ad Technology
- 15. The Emergence of Digital Video Advertising Custom Interactive Overlays Whatever Worked! Experiments with XML and Flash
- 16. • IAB Digital Video Committee • VAST • VPAID • Site Served vs. Ad Served
- 18. • Impression Level • Broader Panel • Campaign Based GRP • Cross Referencing Data • More Metrics
- 20. “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” John Wanamaker
- 21. Viewable Video Impression: • 50% of the ad’s pixels on an in-focus browser tab in the viewable space of the browser page • 2 continuous seconds (any unduplicated content of the ad comprising 2 continuous seconds qualifies in this regard)
- 22. Non-Viewable In-Stream Impressions: 18.2%
- 23. Non-Viewable Impressions by Media Vendor Type 50% 38% 25% 13% 0% 2.9% 40.6% PERCENT NON-VIEWABLE Direct Publishers Inventory Aggregators
- 24. Inventory aggregators serve non-viewable video impressions 1,300% more than direct publishers. 1,300%
- 26. Fraud a: DECEIT, TRICKERY: specifically: intentional perversion of truth in order to induce another to part with something of value or to surrender a legal right b: an act of deceiving or misrepresenting: TRICK a: a person who is not what he or she pretends to be: IMPOSTER; also: one who defrauds: CHEAT b: one that is not what it seems or is represented to be 1 2
- 28. “36% of Web traffic is fake.” - Wall Street Journal
- 29. In-Stream THE FOLD THE FOLD
- 30. In-Banner THE FOLD THE FOLD
- 31. Video Player Size Standard Size — 853 x 480 IAB Minimum Recommended Size — 400 x 300 In-Banner Size — 300 x 250
- 32. In-Stream Impressions Delivered In-Banner: 23.6%
- 33. In-Banner Delivery by Media Vendor Type 40% 30% 20% 10% 0% 5.1% 31.8% PERCENT IN-BANNER Direct Publishers Inventory Aggregators
- 34. Inventory aggregators serve in-stream video ads as in-banner 524% more often than direct publishers. 524%
- 35. Non-Viewable Impressions In-Banner Robotic Traffic Unsafe Environments
- 37. • Transparency • Accountability • Automation
- 38. Similarities & Differences TV and Digital Video Advertising
- 39. Broadcast Meaningful Audience Size Dynamic Ad Support Internet Connected Measurable in Realtime Video On Demand (VOD) Over-the-top (OTT) Desktop & Mobile
- 40. THE PATH TO Video Convergence
- 41. 1 Transparency & Accountability 2 Fully Integrated Programmatic Ecosystem 3 Data & Optimization Loop THE PATH TO Video Convergence
- 42. 1 Transparency & Accountability 2 Fully Integrated Programmatic Ecosystem 3 Data & Optimization Loop THE PATH TO Video Convergence
- 43. 1 Transparency & Accountability 2 Fully Integrated Programmatic Ecosystem 3 Data & Optimization Loop THE PATH TO Video Convergence
- 44. Planning Creative Activation Data
- 45. The Two Keys to Video Convergence
- 46. Streamlined Workflow Unified Insights
- 47. BUDGET Brands Media INSIGHTS
- 48. Thank You! Avi Brown Chief Digital Officer, Extreme Reach @avistrange
Hinweis der Redaktion
- Welcome! Through this presentation, Avi Brown – CDO of Extreme Reach – covers what the convergence of TV and Digital advertising means for the industry. The presentation will go through challenges for TV, digital, and both.
- The agenda for this presentation is: 1. Brief introduction to Extreme Reach. 2. TV advertising technology as it relates to convergence. 3. Digital video ad tech: challenges and how it relates to convergence. 4. The presentation will cover what it takes to achieve video convergence.
- Extreme Reach is the industry standard when it comes to broadcast distribution of video advertising. We serve over 9000 advertisers and agencies, including 91 of the Ad Age 100 top brands. Video masters are uploaded directly from over 3,000 post houses to the Extreme Reach platform, which automatically transcodes video files into station specific, ready-to-air formats delivered directly into the broadcast workflows of more than 7000 TV media destinations.
- Extreme Reach also handles talent payment and rights management. We are the fastest growing talent payment, rights management, and business affairs provider. In 2013 alone we paid out over $150M to 22,000 actors and rights holders on behalf of our clients.
- Extreme Reach provides a holistic measurement solution with MRC accreditation, and the ability to serve VAST and VPAID tags. Our platform more actionable metrics than any other, including brand lift, brand safety, viewability, fraud, and more!
- This is the history of video advertising with two lines representing media dollars spent on video. TV began with the first soap opera in 1946, and was a format driven by soap companies as a form of advertising. In the 50s, Nielsen began measuring the demographics of audiences. To ensure measurement standards existed, the Media Rating Council was formed in the 60’s to ensure that media ratings were valid, reliable and effective. The 80s saw the birth of cable TV with smaller audience segments and more precise media buying that gravitated to more specific content. The consumer internet began in the mid-90s, and creating more fragmentation in addition to more opportunities. Then, in 2008 the IAB (which Avi Brown is a founding member of) standardized VAST so that video advertising online could be scalable. Fast-forward to where we are today and you arrive at Video Convergence. And there’s a good reason for that.
- Back in 2010, consumers were still spending most of their time consuming media through traditional TV than they were with digital media. However, just last year the scales have tipped. As of 2013, consumers now spend more time consuming digital media than TV. Although, as we saw on the previous slide, media spending has not caught up with this fact. That is why convergence is a must.
- Extreme Reach believes the future of TV is not a device, but a cross-platform content format. Today when you have Emmy winning shows being exclusive released on platforms such as Netflix, it’s not about TV as a device. It’s about TV as content. What we have here are devices proliferating through US households. In the advertising industry, convergence is about delivering video advertising with the content on any connected device or screen.
- TV video ad tech has changed dramatically through the years. We went from splicing film reels to a disruptive technology called video tape. This became the standard way of getting spots to media destinations. In the 90s, satellite models appeared. Post-production houses could beam content up to satellites and down to servers located at TV media destinations. Then, in 2008, Extreme Reach entered the market with another disruptive technology: cloud-based video ad delivery. Extreme Reach cloud-based ad delivery is more efficient, faster, provides better quality video files and is more comprehensive: 99.5% of all TV ads delivered via Extreme Reach are distributed digitally via the cloud. 85% of North American TV advertising is managed and delivered via the Extreme Reach cloud-based platform. Cloud delivery has clearly become the standard for TV advertising.
- TV measurement is all panel based, and it’s a small sample of information. Demographic compositions are created by proxy based on these panels, which is how assumptions are made regarding the makeup of the audience as well as how many people saw the ads. Of course, GRPs are the currency. GRPs take reach, frequency, and the makeup of the audience into account.
- Digital video ad tech is a bit different. Historically, everything was custom and no one knew what they were doing. We all had to just “figure it out,” and really, that’s what we did. Then there was an experiment that kind of scaled for a minute in the mid 2000s with interactive overlays. This has since come and gone. Then we moved to pre-HTML5 experiments using XML and flash. This was all in an effort to figure it out and do whatever worked. Then…
- In 2008, as previously mentioned, the IAB came along and began instituting standards for digital advertising and measurement. We standardized VAST, VPAID – which, very simply, are consistent ways for web site video players to communicate with ads – and now we live in a world that is Site Served vs. Ad Served. That basically means that some publishers and media companies want complete control of where the asset lives, and how it’s served and measured. Conversely, we have 3rd-party ad servers, which is really where advertising distribution is heading – and not just on the digital side, but also for TV – because with 3rd-party ad serving, everything and anything can be measured and centrally measured across all ad placements on all sites in the buy. With platforms like Extreme Reach, you can also protect the quality of the ad wherever its seen.
- Digital Audience Measurement with Extreme Reach provides impression level granularity. Every time an impression appears on a device, we can measure that. Digital also has a broader panel than TV. GRPs are campaign based, not content based as in TV. In digital we can also cross-reference a ton of data. Brands can bring all there data in and cross-reference that against other datapoints. When managed holistically, there is certainly no shortage of metrics in the digital space.
- There are some big challenges in the digital space. They’re not insurmountable, and we feel we can handle these collectively. John Wanamaker was the first post-master general of the U.S., and the father of modern marketing and advertising. This quote summarizes the challenges in digital and TV advertising.
- Finally, however, there is a new standard for digital video advertising. The Viewable Video Impression. Finally we can get a sense of what half of advertising is seen. 50% of an ad’s pixels that are viewable for two continuous seconds or longer constitutes a viewable impression.
- One of the challenges that we have is that almost 20% of the video ad impressions being bought and sold are not actually being seen.
- When you break this out, 40% of media purchased from an aggregator (Ad Network, DSP, SSP, Exchange, etc.) vs. directly from the media company that owns and operates their own media, you have…
- 1300% difference in non-viewable impressions. So anyone buying media, you need to have total transparency into this issue with Viewability metrics that enable you to measure, and respond to, what’s what’s really happening with the impressions you’ve purchased.
- Let’s be clear though, non-viewable impressions are not the same as Fraud. Fraud is also a rampant issue in the digital space.
- Let’s focus on 2.b here for a second. Think about who your audience is. If your an agency or advertiser, who is the consumer you’re trying to reach?
- Our guess is, it’s not this guy. Robotic traffic is a major problem in the digital world. When your ad is served to “bots” instead of real people, the impression is counted like any other. You pay for it in both dollars and lost opportunity.
- In fact, 36% of all digital traffic is fake. Bots (Terminators) account for a great number of impressions online. This is a huge issue that needs to be solved.
- There’s another form of fraud that’s very specific to digital video. When you purchase, or intend to purchase, in-stream video (a TV-like experience online), but you end up getting something that looks like…
- This. In-banner, below the fold (non-viewable) video advertising. This is not what was purchased and is considered to be fraudulent. Some media vendors are actually taking the VAST tags intended for in-stream and stuffing them into in-banner, smaller size video players.
- The IAB actually recommends a minimum player size of 400x300 pixels, so what you’re getting with in-banner is even less than what the IAB recommends. Not to mention that a in-banner video doesn’t play within or before the content the audience is more interested in viewing (than a banner ad). So, the experience and effectiveness is significantly reduced.
- To put things in perspective; worse than the viewability issue, almost 24% of in-stream video impressions are actually delivered in-banner. That’s pure fraud.
- And if you break it out by media vendor type (Direct Publisher vs. Media Aggregator) you see that big difference, again.
- A 524% difference.
- So non-viewable ads are an issue, and it’s great that we’ve standardized this; however, there are many more issues we need to work out in digital. That said, digital video advertising is one of the most effective ad formats and represents the future of TV advertising. So, we really have to clean up some of these messy areas.
- Defining the solution isn’t all that complex. It’s fairly straightforward. Transparency can be established by partnering with companies like Extreme Reach. Once you’ve been able to attain a level of transparency that allows you to see actual metrics and details about your campaigns, hold media vendors accountable. Ensure your ads are running where they’re supposed to. Finally, to make the metrics actionable and adjustments scalable, automate this. Automate the steps and reporting, so you can continuously measure and hold offending media vendors accountable.
- Here are a few similarities and differences between TV and digital video advertising. As you can see, digital advertising is leading the way in regard to the ability to provide the most metrics. Traditional broadcast and VOD are not IP-based, nor measurable in realtime. But that doesn’t mean we should move away from traditional methods. In fact, the reality is that the various advertising mediums should be combined. And that’s exactly where the industry is heading.
- So we’ve covered some of the problems with digital, TV and convergence. But how do we get there? What’s the path to convergence. Well…first we need to establish transparency and accountability across both.
- After you have transparency and accountability, you must fully integrate programmatic buying into your ecosystem (not just with digital, but with TV too). Create an efficient marketplace using technology. Eliminate outdated faxes, emails, etc.
- Create a data and optimization loop based on holistic (TV and digital) measurements.
- Once we get there, you’ll have a simple, streamlined workflow that starts with the creative. With Extreme Reach, the creative is all housed in a digital asset management system. Next, plan and understand where you’re buying media, what your spending, where ads are being trafficked. Then, activate your video creative across broadcast media, websites, mobile, etc. together. Finally, you need to measure it. Once you have the data, you can optimize in flight and create a loop back to activating or optimizing creative.
- As complicated as all of this sounds, there are really only two things we need to achieve as an industry. That is to streamline the TV/digital workflow and unify insights.
- Ultimately the end result should look like this. Brands/agencies send budget and creative into a cloud-based platform such as Extreme Reach, deliver the creative to any/all video media, and get audience insights back. It’s that simple.
- Thank you. For more information, please contact sales@extremereach.com