This document provides an overview of online video advertising. It discusses where ads come from including ad serving platforms, ad networks, and ad exchanges. It then covers the sales process including campaigns, placements, and targeting. It also reviews ad server decisioning and how ads are selected and paced. Finally, it discusses ad standards/formats and integrating ads into the Brightcove video cloud workflow. The document is meant to educate about the online video advertising ecosystem and process.

1. Advertising 101
Josef Nguyen, North America Solutions Engineer

2. AGENDA
! Where Ads Come From
! Sales Process & Campaigns and Placements
! Ad Server Decisioning
! Ad Standards and Formats
! Integrating Ads into Video Cloud Workflow
! Demo of Ad Network & Brightcove Ad Module
! Q&A
2 | Confidential © 2013 Brightcove Inc.

3. Where Ads Come From?

4. WHERE ADS COME FROM
! Ad Serving Platforms
! An ad serving platform is for companies that sell their
own ads through their own sales team.
! Benefits:
Features to help you optimize your yield across
multiple ad sources and viewer platforms, manage
your revenue opportunities, and report on your
advertising business.
! Disadvantages: Additional cost (own ad server,
someone to traffic campaigns).
! Examples: Doubleclick, OpenX, Freewheel, Auditude,
AdapTV, YuMe, VideoPlaza
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5. WHERE ADS COME FROM
! Ad Networks
! An ad network is a company that aggregates ad space
across multiple publishers, and then sells this inventory
to advertisers.
! Benefits:
Making the online video ad market accessible to smaller
publishers, this spares them the headcount they’d need
to hire for their own sales and ad operations teams.
Better inventory, guarantee to sell inventory.
Disadvantages:
A considerable cut of ad revenue - usually 30 to 40%
(negotiable).
! Examples: YuMe, Tremor
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6. WHERE ADS COME FROM
! Ad Exchanges
! A variation on the ad network concept that is growing in
popularity for video, an ad exchange is a platform that
connects buyers and sellers of online ad inventory.
! Benefits:
A publisher can list some or all of their video ad inventory in
the exchange, along with critical information like details
about the content, their audience, and their minimum desired
CPM.
! Disadvantages:
A considerable cut of ad revenue - usually 30 – 40%; may
not always guarantee.
! Examples: AdapTV, Google AdEx, 24/7 Real Media RTB
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7. Glossary

8. GLOSSARY
! Reach (cume)
! The total number of different people or households
exposed, at least once, to a medium during a given
period.
! Impression
! Each time an ad displays, it is counted as one
impression.
! Remnant
! The advertising space that a media company has
been unable to sell.
! Frequency
! Average number of times the same person will view/
hear an ad.
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9. GLOSSARY
! Avail
! Available inventory.
! Coverage
! The number of times out of 100 that an ad server
should respond with that ad.
! Flight
! The duration of an ad campaign.
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10. Sales Channels

11. SALES CHANNELS
! All Direct
! All Rep
! Direct + Rep (unusual)
! Direct + Network
- Highest CPM
! Direct + Network + Exchange
! Direct + Exchange
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12. Campaigns and Placements

13. QUESTIONS AN ADVERTISER (OR AGENCY)
WILL ASK A PUBLISHER OR NETWORK
! What are your video views (people watching videos) aka
avails / impressions?
! What is your reach/cume (number of different people or
households)?
! What are your uniques – the number of unique individuals
watching video, usually per month?
! What is your demo breakdown – e.g. Female 25-34, Male
18-24…?
! What is your category breakdown? IAB defined (loosely) –
sports, music, short form entertainment, etc?
! What are the geographic markets you reach? Countries,
states, Metropolitan Standard Areas (MSAs), zip codes.
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14. WHAT IS SOLD?
! Campaigns (Orders) are the shell and typically
only contain schedule and budget info.
! Placements (Line Items) are held inside
the campaign shell
! 1 or more
! Placement variables
Impression goal
!
Target
!
Advertisements (1 or more creative)
!
Schedule (start/stop and/or time of day)
!
Budget
!
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15. CAMPAIGN COST BASIS
! CPM / CPC / CPA / CPE
! CPM – cost per thousand, most common method for video.
! CPC – cost per click, used mostly in display, can be used in video.
! CPA – cost per action, can be used in video but mostly used in
display. An action could be completing a sign-up form.
! CPE – cost per engagement, not common in video.
Engagement could be defined as viewing a video through to 50%
mark, but varies.
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16. TARGETING
! A set of filters to apply which can include:
! Geography
! Demographics
- gender, age
! Content category (or site/zone)
! Remarketing
- saw ad A before, show ad B
! Behavioural
- visited car site last week, show
same brand car ad
! Page placement
- above the fold, below the fold
! Slot
- pre, mid, post, in-stream
! Device / OS
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17. Ad Network Server Decisioning

18. WHAT DO I SERVE?
Publishers Perms Advertisers
Priorities
Pub Ad Targets
Rules
Campaigns
(Placements)
Content
Category
Advertisements
Content ID Creatives
Ad Request:
Ad Response:
targets
creatives, pixels
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19. WHAT DO I SERVE - CAMPAIGNS?
! Delivery algorithms (campaign goal)
! Fast as possible
! Sponsorship
! Evenly delivered (majority of campaigns)
! Front loaded
! Tail loaded
! Margin – applies to networks and exchanges
! Deliver based on TAC (traffic acquisition cost)/
publisher price
! Priorities
(can override delivery algorithm)
! Favored advertiser(s)
! Secondary way to bucket campaigns beyond price
(can be democratic, autocratic, or partially democratic)
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20. AD SERVER DECISIONING – PACING EVENLY IS A CHALLENGE
120000 120%
100000 100%
80000 80%
Avails
60000 60%
Even Delivery
Coverage
40000 40%
20000 20%
Pacing
a
campaign
evenly
is
tough
as
mul3ple
campaigns
can
fight
For
avails
(inventory)
and
eyeballs
are
never
guaranteed
to
be
there.
0 0%
Time A Time B Time C Time D
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21. WHAT DO I SERVE - WATERFALL?
! Waterfalling refers to intelligently calling/redirecting to 3rd party
ad networks
.
! This can be done client-side by the ad integration or server-
side (ad server to ad server).
! Is used to ensure no avail goes unfilled.
! Can cause delays in the user experience.
! In
VAST, this is a VAST wrapper. First response contains a
pointer to another VAST tag, basically saying “I don’t have an
ad, but go check with this other provider”.
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22. Ad Standards & Formats

23. AD XML – DELIVERED VIA VAST / VPAID / OTHER
! No standards early on
! IAB came out with “standards” late
! VAST – video ad serving template
! VPAID – video player ad interface definition
! VMAP – Ad instructions for long-form insertion
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24. CREATIVES (FORMATS)
! Linear Video Ads
! Pre-roll, mid-roll and post roll videos
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25. CREATIVES (FORMATS)
! Linear Video Ads
! Pre-roll, mid-roll and post roll videos
! Non-Linear Video Ads
! Overlay, lower third graphic
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26. CREATIVES (FORMATS)
! Linear Video Ads
! Pre-roll, mid-roll and post roll videos
! Non-Linear Video Ads
! Overlay, lower third graphic
! Companion Ads
! Video ad and banner images
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27. CREATIVES (FORMATS)
! Linear Video Ads
! Pre-roll, mid-roll and post roll videos
! Non-Linear Video Ads
! Overlay, lower third graphic
! Companion Ads
! Video ad and banner images
! Sponsorships
! Skinned player, video ad and banner images
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28. Integrating Ads into Video Cloud Workflow

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30. Demo of Ad Network & Brightcove Ad Module

31. RESOURCES
! Ad Integrations Documentation
! http://support.brightcove.com/en/video-cloud/docs/ad-integrations
! Supported Ad Formats and Codes
! http://support.brightcove.com/en/video-cloud/docs/supported-ad-formats-and-
format-codes
! Integrating Ad Videos
! http://support.brightcove.com/en/video-cloud/training-videos/topics/3333
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32. Thank you