VIDEO AD TECHNOLOGY 101

Advertising 101 Josef Nguyen, North America Solutions Engineer

© 2013 Brightcove Inc.

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

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Where Ads Come From?

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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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WHERE ADS COME FROM

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!   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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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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Glossary

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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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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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Sales Channels

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SALES CHANNELS

!   All Direct

!   All Rep

!   Direct + Rep (unusual)

!   Direct + Network - Highest CPM

!   Direct + Network + Exchange

!   Direct + Exchange

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Campaigns and Placements

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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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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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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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© 2013 Brightcove Inc.

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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Ad Network Server Decisioning

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WHAT DO I SERVE?

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Ad Request: targets

Content ID

Content Category

Pub Ad Rules

Publishers Perms Priorities

Advertisers

Ad Response: creatives, pixels

Advertisements

Campaigns (Placements)

Targets

Creatives

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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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© 2013 Brightcove Inc.

AD SERVER DECISIONING – PACING EVENLY IS A CHALLENGE

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0%

20%

40%

60%

80%

100%

120%

0

20000

40000

60000

80000

100000

120000

Time A Time B Time C Time D

Avails

Even Delivery

Coverage

Pacing  a  campaign  evenly  is  tough  as  mul3ple  campaigns  can  fight  For  avails  (inventory)  and  eyeballs  are  never  guaranteed  to  be  there.

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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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Ad Standards & Formats

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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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CREATIVES (FORMATS)

!   Linear Video Ads !   Pre-roll, mid-roll and post roll videos

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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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© 2013 Brightcove Inc.

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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© 2013 Brightcove Inc.

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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Integrating Ads into Video Cloud Workflow

© 2013 Brightcove Inc. 29 | Confidential

Demo of Ad Network & Brightcove Ad Module

© 2013 Brightcove Inc.

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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Thank you