How Ad Video is Converging
 into the Digital Channel
Understanding Online Advertising Today...and Tomorrow




                                           © 2012 DG | All rights reserved
INSPIRE. INNOVATE. INCUBATE.



      LAB
What we’ll cover
๏ History + evolution of online advertising
๏ Online technologies
๏ Video’s emergence
๏ Cross channel
BUZZWORDS
Ask questions.
In the beginning...
  •   Bill Clinton is president
  •   Tonya Harding is stripped of her skating title
  •   MLB strikes and the season is cancelled
  •   Forrest Gump, Lion King, Dumb & Dumber are in theaters
  •   NAFTA is established
  •   Kurt Cobain dies
  •   Justin Bieber is born (coincidence?)
  •   Netscape becomes the market leader for web browsing
  •   And...
Why Online Advertising
๏ Emotional impact of video + interactivity
๏ Near limitless creative freedom
๏ Measurability/reporting on engagement
๏ Mass audiences spending more time online
๏ US broadband penetration growth
๏ Big brands shifting major ad dollars online
Standards + Research + Legal
IAB Universal Ad Package

                              728x90

160x600
              300x250



                           180x150
Click to continue...




interstitial
pop-up
Standard banner
MEASURING BANNERS
 Impressions
    a measure of the number of times an ad is
    displayed, whether it is clicked on or not.
Clicks
    a metric which measures the reaction of a
    user to an Internet ad
CTR
    Clicks/Impressions
Online Display Revenue (billions)

                                                                                                         31.7


                                                                                                  26.0
                                                                                    23.4 22.7
                                                                             21.2

                                                                      16.9

                                                               12.5
                                                        9.6
                            8.1                  7.3
                                   7.1
                                          6.0
                     4.6
              1.9
 .3     .9
1996   1997   1998   1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011
Expandable
Floating
Video banner
rich me·di·a [rich mee-dee-uh] noun
an advertising banner format with increased file
size (k or mb) over standard ads allowing for
increased interactivity and tracking capabilities.

May include video, audio, dynamic functionality
and/or elements that cover or interact with
webpage content.

Examples include video banner, expandable,
floating, and pushdowns.
just because they   click
     doesn’t mean it

 sticks
Next wave of measurement
๏ Interactions
    ‣ number of times a user interacts with a rich media ad; includes
        when a user mouses over an ad for one continuous second,
        clicks through, makes the ad display into full-screen mode or
        expands the ad.

๏ ITR
    ‣ Interactions/Impressions

๏ Dwell
    ‣ average number of seconds intentionally spent engaging with
        an online ad
What is an ad server?



                          st                                    Ad
                      qu
                        e          ct                                R
                               ire                                    eq




                                        Ad Request
                  Re        ed                                           ue




                                                     Redirect
                                                                Ad
             ge            R                                               st
         Pa           Ad
                  +
          a ge
         P




  Web Server                     Pub Ad Server                             3rd Party
Why use a 3rd party ad server?
๏ Verification + Auditing
๏ Rotation, Frequency Capping, Sequencing
๏ Targeting
๏ Optimization
๏ Rich Media
Other Technologies
๏ DCO
๏ DSP / SSP
๏ Ad Networks / Exchanges
๏ Flash vs HTML5
๏ Cookies
๏ Targeting - contextual, behavioral, geo, demo
Challenges
๏ Fragmented consumers
๏ Siloed planning/buying + trafficking + analysis
84%
Video Revenue by Channel

                           Publisher’s Anticipate

        59%              VIDEO
                           to be highest revenue generator



                                   InPage
                                   InStream
                                   Paid Viral
                   29%             Mobile
                                   Overlays
   2%
        3%
              7%
50%
Focus on
In-Stream
“Video advertising continues to
  attract new ad spending from
   brands because it generates
greater audience attention than
      other digital ad formats,”
                  David Hallerman,
              eMarketer principal analyst
Video Landscape
Video Landscape
VAST vs VPAID
๏ Video Ad-Serving Template (VAST)
    ‣ universal protocol for serving in-stream video ads, permitting
     ad servers to use a single ad response format across multiple
     compliant publishers/video players

๏ Video Player-Ad Interface Definition (VPAID)
    ‣ common communication protocol between ad units and video
     players that enables rich ad experiences and detailed event
     reporting back to advertisers

๏ VAST = Standard
๏ VPAID = Interactive
Pre/Mid/Post-roll
InStream Video
      200%

                                           1.74%
        150%


         100%


             50%


                    0%
                             0.009%

                         Standard

                                      In-Stream


Q4 2011 MediaMind
InStream Video
      200%




                         200x
                                           1.74%
        150%


         100%


             50%


                    0%
                             0.009%

                         Standard

                                      In-Stream


Q4 2011 MediaMind
InStream Video
      200%




                         73%
                                                1.74%
        150%


         100%


             50%


                    0%
                             0.009%

                         Standard

                                           In-Stream
• Longer InStream Ads are MORE effective
Q4 2011 MediaMind
Digital Video Rising Stars
Quality & Engaging
Telling a story with video

              AWARENESS                         High Impact Video


              INTEREST                       Pre-Roll

                                         Rich Media
              ADVOCACY
                                     Interactive In-Stream

               DESIRE
                                 Mobile Video


               ACTION         DCO


                          Pre-Roll
Success stories
๏ How have you been managing videos online?
๏ Success, challenges?
๏ Limitations?
Why use a 3rd party ad server for In-Stream?
๏ Same workflow/features as the online buy
    ‣ Verification + Auditing
    ‣ Rotation, Frequency Capping, Sequencing
    ‣ Targeting
    ‣ Optimization

๏ Combined view for online analytics
๏ Cross-channel
Measurement should occur
    when the ad itself begins to appear
        IAB Digital Video Ad Impression Measurement Guidelines



 Ad Called         Ad Buffered                   Ad Viewed



Pub Server Call                                      IAB Impression
                       ~25% Gap = $$


      Site Serving is Costing Client’s Money
Separate Publisher Processes = Time Waste

            Multiple Video       Multiple       Separate   Separate
               Assets           Publishers       Serving   Reports




Ad Agency




       Separate Workflow for Display Campaigns
Separate Publisher Processes = Time Waste

             One    One Ad             Multiple          One
            Video   Server            Publishers        Report




Ad Agency




                             Workflow Syncs Across Campaigns
Insightful Video Specific Metrics


                                          Custom
   Impressions         Clicks                               Video Started        25% Played
                                        Interactions




     Pause             Replay         Video Completed        75% Played          50% Played




      Mute            Unmute          Full Screen Start    Full Screen End     Full Screen Pause




  Cross Channel                       Adjusted Unique
                  Publisher Overlap                       Video within video      Expansion
    Attribution                           Reach
VIDEO
revolution
US Major Ad Spending, by Media

                TV         Online




  32     40          47    53         58     62




   61     65
                     66
                           68
                                     69
                                            72
  2011
         2012
                 2013
                          2014
                                    2015
                                           2016
Global Ad Economy

                                                                     500
                         TV      Online          Mobile

                                                          26
                                                          156       375

                                           35%




                                                                           Billions
                                5
                                72                                  250
                         17%
                  27                                      240
                  160           184
                         83%
                                          65%
                                                                125


                  2006
                               2011                             0
      Mobile = online & online = TV               2017

      Difference between online + TV is narrowing
ZenithOptiMedia
Complete Video Solution




 Linear Content                                                      Interactive Content

                                          Any Spot
                                         Any Screen




                  TV Media                                  Online Media




   Broadcast      Cable      Satellite                In-banner    In-stream    Mobile
I would use this service again in a heartbeat. It definitely saved time having DG
and MediaMind both encode the spots and upload them – and having that
process in place also reduced the potential for errors.
Jessica Blancovich
Broadcast & Digital Traffic Manager
The Richards Group
Single Solution Stack


                        cross channel
                        video in hours




             TV            Online
benchmarks + trends
verification
cross-platform analytics
60%
use SmartPhone or Tablet while watching TV
Dual Screen Activities
           What are Tablet and SmartPhone Users doing while watching TV?

                                        0%     15%         30%         45%   60%

                 Checking Email
                                                                              60%

        Surfing for unrelated info
                                                                       46%

    Visiting Social Networking site

                                                                 42%
           Checking sports scores
                                                         30%
 Looking up info related to content
                                                         29%
    Looking up content related to Ad
                                                   19%
Looking for coupon/deal related to Ad
                                             13%
Dual Screen Activities




              25%
          Consumers go online after seeing TV ad
Yahoo / Razonrfish Q4 2011

© 2012 Digital Generation Inc. All rights reserved.
115k
17+% WATCHED FULL 4 MIN VIDEO



 2.34% CTR
Cross-Channel Platform

            All Campaign Channels


                                                                     One
                                    DG Servers    Optimization
                   Display                                          Report



                     TV
Ad Agency


                  In-Stream
                                            Deliver, Engage, and Measure
                                              a complete Digital Story

                   Mobile



                   Search
Media migration

๏Analogue
                                          1980s

 ‣ Centralized, passive, limited choice
 ‣ Single location viewing


๏Digital
 ‣ TV set as display device
 ‣ High Definition architecture


๏Web
 ‣ Computer as interactive TV set
 ‣ User generated content


๏Personal
 ‣VOD across multiple devices
 ‣Locations tailored to individual
                                          2010s



 ‣
[        ]
ENGAGEMENT
EVERYWHERE
12,000 advertisers
   5,000 agencies
40,000 media outlets

Global Deployment
Thank you
Any questions?

                 Ryan K Manchee
                 ryan.manchee@mediamind.com
                  @rmanchee | +1 972.800.0737




                              © 2012 DG | All rights reserved

DG - Digital 101

  • 1.
    How Ad Videois Converging into the Digital Channel Understanding Online Advertising Today...and Tomorrow © 2012 DG | All rights reserved
  • 2.
  • 3.
    What we’ll cover ๏History + evolution of online advertising ๏ Online technologies ๏ Video’s emergence ๏ Cross channel
  • 5.
  • 6.
  • 7.
    In the beginning... • Bill Clinton is president • Tonya Harding is stripped of her skating title • MLB strikes and the season is cancelled • Forrest Gump, Lion King, Dumb & Dumber are in theaters • NAFTA is established • Kurt Cobain dies • Justin Bieber is born (coincidence?) • Netscape becomes the market leader for web browsing • And...
  • 9.
    Why Online Advertising ๏Emotional impact of video + interactivity ๏ Near limitless creative freedom ๏ Measurability/reporting on engagement ๏ Mass audiences spending more time online ๏ US broadband penetration growth ๏ Big brands shifting major ad dollars online
  • 11.
  • 12.
    IAB Universal AdPackage 728x90 160x600 300x250 180x150
  • 13.
  • 14.
  • 15.
  • 16.
    MEASURING BANNERS Impressions a measure of the number of times an ad is displayed, whether it is clicked on or not. Clicks a metric which measures the reaction of a user to an Internet ad CTR Clicks/Impressions
  • 17.
    Online Display Revenue(billions) 31.7 26.0 23.4 22.7 21.2 16.9 12.5 9.6 8.1 7.3 7.1 6.0 4.6 1.9 .3 .9 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
  • 18.
  • 19.
  • 20.
  • 23.
    rich me·di·a [richmee-dee-uh] noun an advertising banner format with increased file size (k or mb) over standard ads allowing for increased interactivity and tracking capabilities. May include video, audio, dynamic functionality and/or elements that cover or interact with webpage content. Examples include video banner, expandable, floating, and pushdowns.
  • 25.
    just because they click doesn’t mean it sticks
  • 26.
    Next wave ofmeasurement ๏ Interactions ‣ number of times a user interacts with a rich media ad; includes when a user mouses over an ad for one continuous second, clicks through, makes the ad display into full-screen mode or expands the ad. ๏ ITR ‣ Interactions/Impressions ๏ Dwell ‣ average number of seconds intentionally spent engaging with an online ad
  • 27.
    What is anad server? st Ad qu e ct R ire eq Ad Request Re ed ue Redirect Ad ge R st Pa Ad + a ge P Web Server Pub Ad Server 3rd Party
  • 28.
    Why use a3rd party ad server? ๏ Verification + Auditing ๏ Rotation, Frequency Capping, Sequencing ๏ Targeting ๏ Optimization ๏ Rich Media
  • 29.
    Other Technologies ๏ DCO ๏DSP / SSP ๏ Ad Networks / Exchanges ๏ Flash vs HTML5 ๏ Cookies ๏ Targeting - contextual, behavioral, geo, demo
  • 30.
    Challenges ๏ Fragmented consumers ๏Siloed planning/buying + trafficking + analysis
  • 31.
  • 32.
    Video Revenue byChannel Publisher’s Anticipate 59% VIDEO to be highest revenue generator InPage InStream Paid Viral 29% Mobile Overlays 2% 3% 7%
  • 33.
  • 34.
    Focus on In-Stream “Video advertisingcontinues to attract new ad spending from brands because it generates greater audience attention than other digital ad formats,” David Hallerman, eMarketer principal analyst
  • 35.
  • 36.
  • 37.
    VAST vs VPAID ๏Video Ad-Serving Template (VAST) ‣ universal protocol for serving in-stream video ads, permitting ad servers to use a single ad response format across multiple compliant publishers/video players ๏ Video Player-Ad Interface Definition (VPAID) ‣ common communication protocol between ad units and video players that enables rich ad experiences and detailed event reporting back to advertisers ๏ VAST = Standard ๏ VPAID = Interactive
  • 38.
  • 39.
    InStream Video 200% 1.74% 150% 100% 50% 0% 0.009% Standard In-Stream Q4 2011 MediaMind
  • 40.
    InStream Video 200% 200x 1.74% 150% 100% 50% 0% 0.009% Standard In-Stream Q4 2011 MediaMind
  • 41.
    InStream Video 200% 73% 1.74% 150% 100% 50% 0% 0.009% Standard In-Stream • Longer InStream Ads are MORE effective Q4 2011 MediaMind
  • 42.
  • 44.
  • 45.
    Telling a storywith video AWARENESS High Impact Video INTEREST Pre-Roll Rich Media ADVOCACY Interactive In-Stream DESIRE Mobile Video ACTION DCO Pre-Roll
  • 46.
    Success stories ๏ Howhave you been managing videos online? ๏ Success, challenges? ๏ Limitations?
  • 47.
    Why use a3rd party ad server for In-Stream? ๏ Same workflow/features as the online buy ‣ Verification + Auditing ‣ Rotation, Frequency Capping, Sequencing ‣ Targeting ‣ Optimization ๏ Combined view for online analytics ๏ Cross-channel
  • 48.
    Measurement should occur when the ad itself begins to appear IAB Digital Video Ad Impression Measurement Guidelines Ad Called Ad Buffered Ad Viewed Pub Server Call IAB Impression ~25% Gap = $$ Site Serving is Costing Client’s Money
  • 49.
    Separate Publisher Processes= Time Waste Multiple Video Multiple Separate Separate Assets Publishers Serving Reports Ad Agency Separate Workflow for Display Campaigns
  • 50.
    Separate Publisher Processes= Time Waste One One Ad Multiple One Video Server Publishers Report Ad Agency Workflow Syncs Across Campaigns
  • 51.
    Insightful Video SpecificMetrics Custom Impressions Clicks Video Started 25% Played Interactions Pause Replay Video Completed 75% Played 50% Played Mute Unmute Full Screen Start Full Screen End Full Screen Pause Cross Channel Adjusted Unique Publisher Overlap Video within video Expansion Attribution Reach
  • 52.
  • 53.
    US Major AdSpending, by Media TV Online 32 40 47 53 58 62 61 65 66 68 69 72 2011 2012 2013 2014 2015 2016
  • 54.
    Global Ad Economy 500 TV Online Mobile 26 156 375 35% Billions 5 72 250 17% 27 240 160 184 83% 65% 125 2006 2011 0 Mobile = online & online = TV 2017 Difference between online + TV is narrowing ZenithOptiMedia
  • 55.
    Complete Video Solution Linear Content Interactive Content Any Spot Any Screen TV Media Online Media Broadcast Cable Satellite In-banner In-stream Mobile
  • 56.
    I would usethis service again in a heartbeat. It definitely saved time having DG and MediaMind both encode the spots and upload them – and having that process in place also reduced the potential for errors. Jessica Blancovich Broadcast & Digital Traffic Manager The Richards Group
  • 57.
    Single Solution Stack cross channel video in hours TV Online
  • 58.
  • 59.
  • 60.
  • 61.
    60% use SmartPhone orTablet while watching TV
  • 62.
    Dual Screen Activities What are Tablet and SmartPhone Users doing while watching TV? 0% 15% 30% 45% 60% Checking Email 60% Surfing for unrelated info 46% Visiting Social Networking site 42% Checking sports scores 30% Looking up info related to content 29% Looking up content related to Ad 19% Looking for coupon/deal related to Ad 13%
  • 63.
    Dual Screen Activities 25% Consumers go online after seeing TV ad Yahoo / Razonrfish Q4 2011 © 2012 Digital Generation Inc. All rights reserved.
  • 66.
    115k 17+% WATCHED FULL4 MIN VIDEO 2.34% CTR
  • 67.
    Cross-Channel Platform All Campaign Channels One DG Servers Optimization Display Report TV Ad Agency In-Stream Deliver, Engage, and Measure a complete Digital Story Mobile Search
  • 68.
    Media migration ๏Analogue 1980s ‣ Centralized, passive, limited choice ‣ Single location viewing ๏Digital ‣ TV set as display device ‣ High Definition architecture ๏Web ‣ Computer as interactive TV set ‣ User generated content ๏Personal ‣VOD across multiple devices ‣Locations tailored to individual 2010s ‣
  • 69.
    [ ] ENGAGEMENT EVERYWHERE
  • 73.
    12,000 advertisers 5,000 agencies 40,000 media outlets Global Deployment
  • 74.
    Thank you Any questions? Ryan K Manchee [email protected] @rmanchee | +1 972.800.0737 © 2012 DG | All rights reserved