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

1. How Ad Video is Converging
into the Digital Channel
Understanding Online Advertising Today...and Tomorrow
© 2012 DG | All rights reserved

2. INSPIRE. INNOVATE. INCUBATE.
LAB

3. What we’ll cover
๏ History + evolution of online advertising
๏ Online technologies
๏ Video’s emergence
๏ Cross channel

5. BUZZWORDS

6. Ask questions.

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. Standards + Research + Legal

12. IAB Universal Ad Package
728x90
160x600
300x250
180x150

13. Click to continue...
interstitial

14. pop-up

15. Standard banner

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. Expandable

19. Floating

20. Video banner

23. 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.

25. just because they click
doesn’t mean it
sticks

26. 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

27. 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

28. Why use a 3rd 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. 84%

32. Video Revenue by Channel
Publisher’s Anticipate
59% VIDEO
to be highest revenue generator
InPage
InStream
Paid Viral
29% Mobile
Overlays
2%
3%
7%

33. 50%

34. 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

35. Video Landscape

36. Video Landscape

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. Pre/Mid/Post-roll

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. Digital Video Rising Stars

44. Quality & Engaging

45. 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

46. Success stories
๏ How have you been managing videos online?
๏ Success, challenges?
๏ Limitations?

47. 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

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 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

52. VIDEO
revolution

53. 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

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 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

57. Single Solution Stack
cross channel
video in hours
TV Online

58. benchmarks + trends

59. verification

60. cross-platform analytics

61. 60%
use SmartPhone or Tablet 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 FULL 4 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
ryan.manchee@mediamind.com
@rmanchee | +1 972.800.0737
© 2012 DG | All rights reserved