DG - Digital 101

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

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DG - Digital 101

  1. 1. How Ad Video is Converging into the Digital ChannelUnderstanding Online Advertising Today...and Tomorrow © 2012 DG | All rights reserved
  2. 2. INSPIRE. INNOVATE. INCUBATE. LAB
  3. 3. What we’ll cover๏ History + evolution of online advertising๏ Online technologies๏ Video’s emergence๏ Cross channel
  4. 4. BUZZWORDS
  5. 5. Ask questions.
  6. 6. 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...
  7. 7. 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
  8. 8. Standards + Research + Legal
  9. 9. IAB Universal Ad Package 728x90160x600 300x250 180x150
  10. 10. Click to continue...interstitial
  11. 11. pop-up
  12. 12. Standard banner
  13. 13. 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 adCTR Clicks/Impressions
  14. 14. 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 .91996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
  15. 15. Expandable
  16. 16. Floating
  17. 17. Video banner
  18. 18. rich me·di·a [rich mee-dee-uh] nounan advertising banner format with increased filesize (k or mb) over standard ads allowing forincreased interactivity and tracking capabilities.May include video, audio, dynamic functionalityand/or elements that cover or interact withwebpage content.Examples include video banner, expandable,floating, and pushdowns.
  19. 19. just because they click doesn’t mean it sticks
  20. 20. 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
  21. 21. 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
  22. 22. Why use a 3rd party ad server?๏ Verification + Auditing๏ Rotation, Frequency Capping, Sequencing๏ Targeting๏ Optimization๏ Rich Media
  23. 23. Other Technologies๏ DCO๏ DSP / SSP๏ Ad Networks / Exchanges๏ Flash vs HTML5๏ Cookies๏ Targeting - contextual, behavioral, geo, demo
  24. 24. Challenges๏ Fragmented consumers๏ Siloed planning/buying + trafficking + analysis
  25. 25. 84%
  26. 26. Video Revenue by Channel Publisher’s Anticipate 59% VIDEO to be highest revenue generator InPage InStream Paid Viral 29% Mobile Overlays 2% 3% 7%
  27. 27. 50%
  28. 28. Focus onIn-Stream“Video advertising continues to attract new ad spending from brands because it generatesgreater audience attention than other digital ad formats,” David Hallerman, eMarketer principal analyst
  29. 29. Video Landscape
  30. 30. Video Landscape
  31. 31. 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
  32. 32. Pre/Mid/Post-roll
  33. 33. InStream Video 200% 1.74% 150% 100% 50% 0% 0.009% Standard In-StreamQ4 2011 MediaMind
  34. 34. InStream Video 200% 200x 1.74% 150% 100% 50% 0% 0.009% Standard In-StreamQ4 2011 MediaMind
  35. 35. InStream Video 200% 73% 1.74% 150% 100% 50% 0% 0.009% Standard In-Stream• Longer InStream Ads are MORE effectiveQ4 2011 MediaMind
  36. 36. Digital Video Rising Stars
  37. 37. Quality & Engaging
  38. 38. 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
  39. 39. Success stories๏ How have you been managing videos online?๏ Success, challenges?๏ Limitations?
  40. 40. 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
  41. 41. Measurement should occur when the ad itself begins to appear IAB Digital Video Ad Impression Measurement Guidelines Ad Called Ad Buffered Ad ViewedPub Server Call IAB Impression ~25% Gap = $$ Site Serving is Costing Client’s Money
  42. 42. Separate Publisher Processes = Time Waste Multiple Video Multiple Separate Separate Assets Publishers Serving ReportsAd Agency Separate Workflow for Display Campaigns
  43. 43. Separate Publisher Processes = Time Waste One One Ad Multiple One Video Server Publishers ReportAd Agency Workflow Syncs Across Campaigns
  44. 44. 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
  45. 45. VIDEOrevolution
  46. 46. 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
  47. 47. 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 narrowingZenithOptiMedia
  48. 48. Complete Video Solution Linear Content Interactive Content Any Spot Any Screen TV Media Online Media Broadcast Cable Satellite In-banner In-stream Mobile
  49. 49. I would use this service again in a heartbeat. It definitely saved time having DGand MediaMind both encode the spots and upload them – and having thatprocess in place also reduced the potential for errors.Jessica BlancovichBroadcast & Digital Traffic ManagerThe Richards Group
  50. 50. Single Solution Stack cross channel video in hours TV Online
  51. 51. benchmarks + trends
  52. 52. verification
  53. 53. cross-platform analytics
  54. 54. 60%use SmartPhone or Tablet while watching TV
  55. 55. 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%
  56. 56. Dual Screen Activities 25% Consumers go online after seeing TV adYahoo / Razonrfish Q4 2011© 2012 Digital Generation Inc. All rights reserved.
  57. 57. 115k17+% WATCHED FULL 4 MIN VIDEO 2.34% CTR
  58. 58. Cross-Channel Platform All Campaign Channels One DG Servers Optimization Display Report TVAd Agency In-Stream Deliver, Engage, and Measure a complete Digital Story Mobile Search
  59. 59. 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 ‣
  60. 60. [ ]ENGAGEMENTEVERYWHERE
  61. 61. 12,000 advertisers 5,000 agencies40,000 media outletsGlobal Deployment
  62. 62. Thank youAny questions? Ryan K Manchee ryan.manchee@mediamind.com @rmanchee | +1 972.800.0737 © 2012 DG | All rights reserved

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