MOVE THE NEEDLE WITH DIGITAL VIDEO MONETIZATION

10 JUNE 2015

INTRODUCTIONS

2

Keith Grossman Griffin Hammond

DELIVERING A GOOD VIEWING EXPERIENCE

3

WHAT WE KNOW ABOUT VIDEO

4

People are watching it

Advertisers are demanding it

Publishers can capture significant value

The environment is changing really fast

SHIFTING ATTENTION

5

• More consumers are watching video on tablets and mobile devices.

• Among 18-to-34-year-olds, digital viewing was up 53% in the past year according to Nielsen.

• Among those aged 35 to 49, rates of digital viewing were up 80% over the same 12-month period.

Source: J. O’Neill, “Online video consumption up, TV viewing down among Boomers, too,” Ooyala Video Mind, September 2014. http://www.ooyala.com/videomind/blog/online-video-consumption-tv-viewing-down-among-boomers-too

AVERAGE TIME SPENT PER DAY WITH DIGITAL VIDEO BY US ADULTS, BY DEVICE

6

Tablet0:20

Smartphone0:13

Mobile0:33

60%

Online0:22

40%

DeviceTotal per day = 55 mins

Mobile

Source: eMarketer 2014

AUDIENCE BOOM

7

50MPeople in the US now watch video on their mobile phones.

Source: BI Intelligebce

ADVERTISERS ARE DEMANDING VIDEO

8Source: Bloomberg Industries / Magna Global

$3.0 $4.0 $5.0 $6.0 $8.0 $9.0$2.0 $2.0 $3.0 $4.0$5.0 $6.0

$3.0 $4.0$6.0

$7.0$9.0

$11.01.01.0

2013 2014 2015 2016 2017 2018N. America EMEA APAC LATAM

APAC projected to surpass all

other regions

GLOBAL DIGITAL VIDEO AD SPEND BY REGION

$18

$8 $11$14

$23$28

2013 2014 2015 2016 2017 2018

(IN $

BILL

ION

S)

DIGITAL VIDEO CPMS ARE ON THE RISE…

9

5 to 10 times higher on average than CPMs for traditional display ads

Source: K. Olmstead, A. Mitchell, J. Holcomb, and N. Vogt, “The Digital Video Advertising Market,” Pew Research Journalism Project, March 2014. http://www.journalism.org/2014/03/26/the-digital-video-advertising-market/

MARKETERS PREFER DIGITAL VIDEO ADS

10

Visual StorytellingAudience TargetingMeasurementMore Engagement

FUNDAMENTAL FIRST STEPS

11

Engage Your Audience

Select the Right Technology

Optimize the Viewing Experience

ENGAGE

12

Duration Continuous Play Content Bundles

Snackable

Clips

< 6 min

CHOOSE TECHNOLOGYWISELY

13

Videos should play quickly without buffering.

• Off-the-shelf platforms allow publishers to embed video directly into mobile and web properties.

• Independently built players require more capital, but allow publishers to customize for their specific needs.

OPTIMIZE THE VIEWING EXPERIENCE

14

IAB & MRC Guidelines

Meet Ad Viewability Standards

Companion Ads

Text, Display, Rich Media, Skins

Alignment

Content & Demographic

FINDING THE RIGHT MIXDIRECT AND AUTOMATED SELLING SOLUTIONS

15

16

SUCCESSFUL SELLINGDirect Sales

• CPM• Sponsorships• Content Bundles

Automated Sales

• Ad Networks• Ad Exchanges• Programmatic Reserves

DIRECT SALES

17

Sponsorships Content BundlesCPM• Obligation to

deliver impressions

• Requires a lot of video inventory

• 100% SOV: High effective brand experience

• No impression obligation

• Good for smaller publishers

• Combines video, articles and data ad inventory from an ad category

• Allow advertisers to achieve more views

• Predictable blended CPM

AUTOMATED SALES

18

Ad Exchanges Programmatic Reserves

Ad Networks

• Aggregates inventory from multiple publishers

• Google Advertising Network, BrightRoll, LiveRail, SpotXchange

• Programmatic ad buying

• Gives publishers more control

• Google’s Invite Media, MediaMath, Turn, DataXU, [x+1]

• Advertisers agree to purchase whatever inventory the exchange can find

CHOOSING THE RIGHT MIX IS VITAL

19

DEMONSTRATE PERFORMANCEHOW TO MEASURE RESULTS

20

PROVING PERFORMANCE

21

Find What Works

Quantify Your Performance

Narrow the Focus

FIND WHAT WORKS

22

Test, Test, Test

Formats: Pre-roll vs In-stream

Configurations: Multiple Pre-rolls vs. MultipleMid-rolls

Skippable vs NonSkippable

QUANTIFY

23

Publishers should use a video analytics program to measurethe performance of their own content and attendant ads.

Key Metrics include:• Video page views• Video views• Total hours viewed per visitor• Percentage of visitors watching video• Unique visitors watching video• Average number of clips watched among all site visitors• Average number of clips watched among visitors who

watch video

Video Analytics Programs:comScore, Adobe Marketing Cloud, Ooyala, Brightcove, Anvato, Visible Measures, Google Analytics

NARROW THE FOCUS

24

Publishers should focus on the metrics that matter to clients and build a compelling case for higher CPMs that takes the advertiser’s point of view into account.

Focus on:• Completion Rate: how much of the ad was viewed.

Advertisers want to see at least 50%.

• Click-through Rate: Relevant for ads that are click-through enabled

• Viewability: “Up and Coming” metric because of the IAB and MRC.

• Frequency: How often a viewer sees the same ad.

QUESTIONS?

25

THANK YOU!