Video Convergence Powered by Extreme Reach

The Convergence of TV and Digital Video Advertising

Avi BrownChief Digital Officer

About Extreme Reach

TV Ad Technology

Digital Video Ad Technology

The Path to Video Convergence

About Extreme Reach

Television91 Ad Age 100 Brands

Talent$150 Million Paid in 2013

Digital VideoHolistic Measurement

Source: Business Insider, August, 2013

Video Advertising History in the Making

-$20

$0

$20

$40

$60

$80

1945 1950 1953 1956 1959 1962 1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016

ME

DIA

SP

EN

D (

US

$ B

ILL

ION

S)

TV Media Spend (US) Digital Video Media Spend (US)

Birth of Cable TV

FirstSoap Opera

Birth of the Internet

Convergence

Daily Time Spent with Major Media by US Adults

Source: eMarketer

2010 2013

0

2

3

5

6

DIGITAL TV

HO

UR

S

1

0

2

3

5

6

DIGITAL TV

HO

UR

S

1

The Future of Television: Cross-Platform Content

Wearable

0%

25%

50%

75%

100%

125%

2004 2007 2010 2013 2016 2018 2021 2024

TabletIPTVPCMobileTV

Sources: PewResearch, Nielsen, IHS

PE

RC

EN

TA

GE

OF

HO

US

EH

OLD

S W

ITH

DE

VIC

E

TV Ad Technology

Film Satellite Cloud(Extreme Reach)

Tape

TV Ad Distribution Through the Years

TV Audience Measurement

• Panel Based

• Programming as Proxy

• Gross Rating Points

Digital Video Ad Technology

Custom Interactive

Overlays

Whatever

Worked!

Experiments with

XML and Flash

The Emergence of Digital Video Advertising

• IAB Digital Video Committee

• VAST

• VPAID

• Site Served vs. Ad Served

Digital Audience Measurement

• Impression Level

• Broader Panel

• Campaign Based GRP

• Cross Referencing Data

• More Metrics

Digital Challenges

“Half the money I spend

on advertising is wasted;

the trouble is I don’t know

which half.”

John Wanamaker

Viewable Video Impression:

• 50% of the ad’s pixels on an in-focus browser

tab in the viewable space of the browser page

• 2 continuous seconds (any unduplicated content of the ad

comprising 2 continuous seconds qualifies in this regard)

Non-Viewable In-Stream Impressions: 18.2%

Non-Viewable Impressions by Media Vendor Type

0%

13%

25%

38%

50%

2.9%

40.6%

PE

RC

EN

T N

ON

-VIE

WA

BLE

Direct Publishers Inventory Aggregators

1,300%

Inventory aggregators serve non-viewable video

impressions 1,300% more than direct publishers.

Non-Viewable Fraud

Frauda: DECEIT, TRICKERY: specifically: intentional perversion of

truth in order to induce another to part with something

of value or to surrender a legal right

b: an act of deceiving or misrepresenting: TRICK

a: a person who is not what he or she pretends to be:

IMPOSTER; also: one who defrauds: CHEAT

b: one that is not what it seems or is represented to be

1

2

“36% of Web traffic is fake.”- Wall Street Journal

In-Stream

THE FOLDTHE FOLD

In-Banner

THE FOLDTHE FOLD

Video Player Size

IAB Minimum Recommended Size — 400 x 300

Standard Size — 853 x 480

In-Banner Size — 300 x 250

In-Stream Impressions Delivered In-Banner: 23.6%

In-Banner Delivery by Media Vendor Type

0%

10%

20%

30%

40%

5.1%

31.8%

PE

RC

EN

T IN

-BA

NN

ER

Direct Publishers Inventory Aggregators

Inventory aggregators serve in-stream video ads

as in-banner 524% more often than direct publishers.

524%

Non-Viewable Impressions

In-Banner

Robotic Traffic

Unsafe Environments

What’s the solution?

• Transparency

• Accountability

• Automation

Similarities & DifferencesTV and Digital Video Advertising

Broadcast

MeaningfulAudience Size

DynamicAd Support

InternetConnected

Measurablein Realtime

Video On Demand(VOD)

Desktop & Mobile

Over-the-top(OTT)

THE PATH TO

Video Convergence

Transparency &

Accountability

1

Fully Integrated

Programmatic

Ecosystem

2

Data &

Optimization

Loop

3

THE PATH TO

Video Convergence

Transparency &

Accountability

1

Fully Integrated

Programmatic

Ecosystem

2

Data &

Optimization

Loop

3

THE PATH TO

Video Convergence

Transparency &

Accountability

1

Fully Integrated

Programmatic

Ecosystem

2

Data &

Optimization

Loop

3

THE PATH TO

Video Convergence

Planning Activation DataCreative

The Two Keys to

Video Convergence

Streamlined Workflow

Unified Insights

Brands Media

BUDGET

INSIGHTS

Avi BrownChief Digital Officer, Extreme Reach

Thank You!

@avistrange