engagement everywhere: expanding the ecosystem for a video explosion

© 2011 MediaMind. A division of DG

DEAN DONALDSON

NOW PLAYING WORLDWIDE

ENGAGEMENT EVERYWHERE

Global Director of Innovation

[ ]

© 2012 Digital Generation Inc. All rights reserved.

History of Innovation


15Television | Online70


D-DAY

per month for huge waste =consumers are ‘cord-cutting’$75


50”


50% installed on TV’s by end of 2012


21%bought a new TV in the last year

Leichtman Research Group



30% TVs in US homes are now ‘connected’(either direct, via BluRay or Game Console)

© 2011 MediaMind. A division of DG© 2011 MediaMind. A division of DG

TV is a geography. A place. A function.

It is not just a box in the corner of the room.


Evolution

content + apps + ads

On your television.


Apps.

smart TV


Apps 2011 = 30%2015 = 90%


Power of XBox in the palm of your hand

5 years

10 years



Full HD 1920 H v 1080 V 2.1 million pixels

4K 4096 H v 2160 V 8.8 million pixels

SD (NTSC) 720 H v 480 V 345,600 pixels

HD

HD 4K

4xUltra Definition TV


Connected TV

“ we see an increasing blur between the TV set and the PC, with on-demand content flowing seamlessly between the two”

Charlie Ponsonby, Simplify Digital on why higher speeds would drive changes in the way people use the web.


91% Internet Traffic will be video by 2014

(Today it makes up about 40%!!)

Connected TV


Disk to Digital

• Register your existing DVDs

• Download a digital copy for $1

2xElectronic Sell-Through (EST)

+ rental growth by 2015

“Won’t compensate disc decline”


Free-to-view

International TV Org, 2010

Over-The-Top (OTT)

The delivery of video, via the internet, directly to user(s) connected devices.

ADVERTISING IS THE ONLY ANSWER


14Average 65 year old

Years watching videocontent during lifetime

Nielsen 2011


5:09Average US Consumer


Average Digital Native 18-24

3:300:49 web | 0:20 mobile‘cord-shavers’ vs ‘cord-nevers’


TV


Modern Family Viewing

ABC Q4 2011

• 95% watch DVR content within 3 days to keep in sync

• Online viewing is 3x due to missed not free content



Leichtman Research Group / Deloitte

10%now watch video online weekly



Leichtman Research Group / Deloitte

9% cut their cable subscription


2x5% of all ads served


~40%


MOBILE OPERATOR

NETWORKS

1

2

D I R E C T


MOBILE OPERATOR

NETWORKS

1

2

D I R E C T

Cost Speed

Complexity

Flexibility ALWAYS ON


MOBILE OPERATOR

NETWORKS

1

2

D I R E C T

TRUE Rich MediaExperience

Data Plans


2Mbs


100MbsDownload a HD movie in under 5 mins!!

Faster than most Broadband today...


1

2

Closed Controlled Proprietary

W E B T V

O N L I N E V I D E O

IPTV / TVE

LINEAR BROADCAST MANAGED NETWORK

Terrestrial / Cable Satellite / Internet


1

2

W E B T V

O N L I N E V I D E O

IPTV / TVE

LINEAR BROADCAST MANAGED NETWORK

Terrestrial / Cable Satellite / Internet

Disruptive Original

Programming

$M’s

Unbundle

TVE


1

2

Exceed Existing

Deals

Distribution Rights Money Upfront

Solid User BaseOwn InfrastructureQuad-play Deals


1

2

Exceed Existing

Deals

Distribution Rights Money Upfront

Solid User BaseOwn InfrastructureQuad-play Deals

LOCK via OS

iTV


3 Ways to Watch Video: Live, Free VOD & Paid VOD

TVE

Apps

Content Syndication

Distribution

Content Owners

ContentAggregators

Subscription Service

VOD LibraryTVE

Apps

TVE

Ad RevenueTV Apps

Tablet Apps

Mobile Apps Web

(Direct to Consumer)N/AN/A

Content Syndication

IP EnabledCable/Sat IP EnabledCable/Sat

CE Manufacturer Around the Content Ad Inventory

VOD ConsumptionLive TV Consumption

Around the Content Ad Inventory

N/A


Everyone wants to do Everything

Creation Aggregation Distribution ConsumptionRights Holders

Content CreatorsRights Dealers

Program PackagersNetwork Operators Access Providers

Device Manufacturers End Users


Simplify the Ecosystem: Buyers, Vendors & Sellers


Simplify the Ecosystem: Buyers, Vendors & Sellers

Seller (premium)

Seller (premium &

non-premium)

Seller (premium &

non-premium)

Seller (premium &

non-premium)

Seller (non-premium)




Vendor

Vendor

Vendor

Vendor

Vendor

Buyer

S© 2011 MediaMind. A division of DG

The S-Curve of InventoryDirect Buy

UpfrontPrivate Marketplace, RON

Exchange / Network Buy

Short Form Long Form

Non

-Pre

miu

m

Pr

emiu

m Shortage (Inventory) Surplus

$$$$$$$$$$

TV Online Mobile

26

156


Global Ad Economy (Billions)

240

1/3

5

72

184160

27

• Mobile = online & online = TV

ZenithOptiMedia

TV Online Mobile

26

156


Global Ad Economy (Billions)

240

1/3

5

72

184160

27

• Mobile = online & online = TV

ZenithOptiMedia

• Difference between online + TV is narrowing

65%

35%

83%

17%

Rich Media Online Video Standard Ads


US Online Ad Growth (Billions)

1/3• Rich Media growth is stagnating

• Online video is set to explode!!eMarketer Q3 2011

Rich Media Online Video Standard Ads


US Online Ad Growth (Billions)

1/3

$7.7bn• Rich Media growth is stagnating

• Online video is set to explode!!eMarketer Q3 2011


2012 Online Ad Revenue

Brightroll Q4 2011

Publisher’s Anticipate

VIDEO to be highest revenue generator

• 63% plan a CPM increase

• 33% Agencies cite cost as

factor limiting video growth


2011: $2.6B Online Video MarketDirect Buy




Non

-Pre

miu

m

Pr

emiu


$$$$$$$$ $$

$2.07Bn

$0.60Bn


2014: $7.66B Online Video MarketDirect Buy




Non

-Pre

miu

m

Pr

emiu


$$$$$$$$ $$

$5.95Bn

$1.72Bn


2014: Media Revenues Split (net USD MM)

DistributorsPremium AggregatorsLongtail Content AggregatorsVideo Ad NetworksAd Exchanges / DSPsPremium Content OwnersLongtail Content Owners


Easier to find contentBuilt-in new devicesCheaperExclusively onlineOther


2014: TVE to add $10Bn pa Advertising

NA revenues (content owners)

SUBSCRIPTION$85Bn

ADVERTISING$80Bn

SUBSCRIPTION$1.7Bn

ADVERTISING$10Bn

SUBSCRIPTION$??

ADVERTISING$3.1Bn

Traditional TV TVE Online Video

TV Advertising TV Subscription TVE MultiChannel

11.3

107.4


Effect of TV Everywhere (TVE) in US $BN

140

1/3

5.3

95.5

10480

85

• TV advertising will grow by $12BN annually

Needham

TV Advertising TV Subscription TVE MultiChannel

11.3

107.4


Effect of TV Everywhere (TVE) in US $BN

140

1/3

5.3

95.5

10480

85

• TV advertising will grow by $12BN annually

Needham

• Subscription rises 3-5% pa + additional 1-3% via TVE

54%

46%

48.5%

51.5%


12% Advertisers have a strategy


Connected TV


85% Interested in Ad Opportunities


Connected TV


$¥£€ “AVALANCHE!”


Connected TV


80%VOD via TV buyers


right ad right time

TV combined with online's targeting and measurement capabilities.


clicks


beware


audience measurement

assumed


audience measurement

) ) )$

accurate


Audience Reach


Audience Reach

QualityContent

SchedulingEntertainment



42% use SmartPhone or Tablet whilst watching TV

DAILY


Dual Screen Activities

Nielsen Q2 2011

What are Tablet and SmartPhone Users doing whilst watching TV?


Dual Screen Activities

Yahoo / Razonrfish Q4 2011

25% Consumers go online after seeing TV ad


content recognition

automaticACR


Super Bowl XLVI


fingerprinting

acoustic


watermarking

audio


Super Bowl XLVI

80%OF ALL TV ADS


2.34% CTR

115,28217.4% WATCHED FULL 3 MIN VIDEO


touchpoints


HD Ad

Interact Retarget

5% off

Retarget

10% off

Purchase


Dynamic Video Insertion


ENGAGEMENT EVERYWHERE[ ]


Le Fin


917.640.3095

@deandonaldson

[email protected]

@mediamind @dgitnetwork

thank you!

mailto:[email protected]

engagement everywhere: expanding the ecosystem for a video explosion

Marketing