FOREWORD

Vincent Flood interesting forays into content production. This competition has been wonderful for Editor, Video Ad News consumers, who have been enjoying a golden age of TV whilst the various players compete for their viewership.

At the time of writing, TV’s most popular show In putting together this guide, we decided to is HBO’s Game of Thrones, a story of shifting forgo much of the introduction to TV type alliances, the breakdown of traditional borders, content which has already been covered and old enemies joining forces to fight a greater with numerous reports elsewhere. Instead, threat. In those respects, the script-writers we wanted to partner with a number of the might well have been inspired by what has been companies leading the way in the industry to happening in the TV advertising industry over focus on how they see it evolving, whilst also the last few years. shining a light on what is happening in Europe

today, with a nod to our friends in the US of Thus far the disruption of TV has mainly come in course where things are progressing quickly. the form of new services like SVOD and social, but regardless of which aspect of TV advertising, A final thanks to our sponsors – IPONWEB, from creative right through to delivery, you’ll Smartclip and Videology – and to our see a revolution of some sort taking place. The independent contributors, both for providing devices are different, there’s an array of new ad such valuable insights as well as being a pleasure formats, and user behaviour seems to change to deal with along the way. A few people also from year to year. took some time out to provide us with some

additional guidance, particularly on the industry But the true game changer will be addressable map. TV advertising. Few would argue that applying data to campaigns will make TV adver sing more For the industry map, I’d particularly like to effective, yet it remains to be seen whether it thank the following for their insights, as well will strengthen the established TV players, or if as their willingness to contribute the names it’s more likely to open the door to new entrants, of close competitors: Rhys McLachlan, Global most notably in the form of the US tech giants. Head of TV Strategy at Videology; Henry Rivero, General Manager, Europe at Clypd; and Jeremy Whilst many commentators were writing the Brandley, Sales Director, WideOrbit. obituaries for the top broadcasters and pay TV operators years ago, the reality is that the future of TV advertising is still very much up for Vincent Flood, Video Ad News; grabs. Broadcasters and pay TV operators are Editor: Irene Palacio, Video Ad News; learning to adapt and to work together to offer Designer: Tim Cross, Video Ad News; data-driven offerings at scale, whilst the tech Writer: Mo Deghayes, Video Ad News; companies are similarly making equally Researcher: : Letizia Cennie, Video Ad News. Researcher

02 The Outlook for European Progressive TV Advertising Solutions

John Tigg, SVP, Enterprise For commercial broadcasters, there is now a strong strategic imperative to invest in the Solutions EMEA, Videology development of progressive TV advertising solutions – data-driven addressability, automation of trading and placement, cross- The TV and video advertising market is media integration, and advanced analytics. experiencing a period of profound change, development and disruption, transitioning Furthermore, a greater number of viewers are towards a more diverse, data-driven and digitally- now moving seamlessly from screen to screen advanced ecosystem. and from device to device, making it ever harder and, perhaps, less relevant, to separate digital In much of Europe, linear TV viewing is under and analogue viewing. This transformation has, pressure, as audiences fragment across a range in turn, created a number of challenges for of platforms and devices, reducing the reach and the broadcast and advertising industry: on the volume of traditional TV spots. Digital businesses advertising side, how do brands take advantage are courting advertisers, with promises of better of the opportunity to engage people with targeting, attribution and pan-regional reach, advertising across all of these new devices and although some of these promises have deflated screens? For broadcasters, how should data in recent months. All the while, TV advertising be collected, managed and used in a way that has been relatively resilient. While there has enhances the viewing experience, complies been neutral or positive revenue growth in most with both local and regional privacy legislation, markets, executives are nonetheless seeing supports the creation of new advertising threats looming on the horizon, and there is a products, while also creating a level playing field widespread consensus that the industry needs to for measurement? invest and evolve, before it is too late. How Ready is Europe for Addressable TV?

Earlier this year, Videology carried out an extensive research initiative in partnership with MTM. Our ambition was to take a Europe- wide view of the state of both programmatic automation techniques and the use of data in progressive television advertising. The results of the research provide fascinating reading.

The report provides detailed insight into three critical areas. Firstly, what are the enablers required for advanced advertising in Europe to be a scaled reality? Specifically, what are the underlying factors required for progressive TV advertising solutions to thrive? Secondly, what are the accelerators that are going to unlock the additional value afforded by advanced

03 television advertising? Finally, what are the driving progressive TV advertising solutions, are working forces that will create compelling commercial on their strategies, and looking to understand opportunities for both broadcasters and more about the opportunity. However, there advertisers? are still barriers to overcome. Most executives feel the biggest barrier to adoption is the need What is clear, is that broadcasters and platform for collaboration around data and inventory, operators across Europe are actively developing especially in terms of commercial agreements solutions for addressable advertising and between TV platforms and broadcasters, and automation on the TV screen, looking to unlock consumer protection. In addition, regulation is significant benefits – chiefly, bringing new perceived to have slowed development in markets advertisers and new kinds of campaign to the TV such as France and Germany, but industry screen, increasing the value of previously under- participants believe this will change over the next monetised inventory, and providing enhanced few years. To realise the opportunity, we believe targeting opportunities. there are five main priorities for the TV industry:

More Appetite, More Action 1. Establish common approaches to data protection, privacy and sharing. However, prospects for progressive TV advertising 2. Encourage collaboration through joint solutions vary, market-by-market, depending platforms and standardisation. upon factors such as broadband infrastructure, 3. Support the development of unified improved measurement of multiplatform TV measurement systems that are auditable and consumption, the costs of solutions, and the scale transparent. of the returns that can be generated by industry 4. Drive demand through testing, case studies participants. While participants in each national and ROI analysis. market face unique opportunities and challenges, 5. Develop a compelling set of consumer benefits a shared success factor is the willingness for TV and a clear value exchange. platforms and broadcasters to collaborate and cooperate. Whilst many of the obstacles to progress are recognisable, the positive outlook and ambition Progressive TV advertising is at very different of European broadcasters remains enormously stages of development across Europe and our encouraging. Making progressive TV advertising research suggests there will be greater challenges a reality will require an unprecedented level in some markets. However, appetite for solutions, of cross-industry collaboration. Broadcasters from both the buy-side and sell-side of the and distributors, buyers, sellers and finally market, is strong and growing. Markets that measurement bodies will all need to come have traditionally lagged behind are showing together. The willingness to do so will in many signs of development, and businesses that have ways determine the pace of adoption. lagged behind in investment are now focusing on

Enablers Drivers

TV & Spend € Infraestructure Commercial Regulation Meassurement Competition Demand Commercial structure opportunity UK 4.9bn Good Good Good Fair Fair Good Good

Germany 4.6bn Fair Fair Fair Good Fair Fair Good

Italy 3.8bn Poor Fair Fair Poor Poor Poor Fair

France 3.3bn Good Poor Poor Fair Good Good Fair

Spain 2.1bn Poor Poor Fair Good Poor Poor Fair

Netherlands 1.0bn Good Fair Poor Fair Fair Fair Fair

Sweden 0.5bn Good Fair Good Fair Good Fair Poor

Norway 0.4bn Fair Poor Fair Fair Fair Fair Poor

Denmark 0.3bn Fair Fair Fair Fair Fair Good Poor

Prospects by addressable TV advertising: Good: few barriers Fair: minor barriers Poor: major barriers At the Addressable TV Coalface

Jamie West, Deputy Managing Director Sky Media UK & Group Director of Advanced Advertising Sky PLC

Earlier this year you announced a Most of Sky’s Adtech development is done “in partnership with Liberty Global, Europe’s partnership with…”. We developed AdSmart largest pay TV operator, who will be using with our middle-ware partners, Cisco. There the Sky AdSmart product. Could you were also a number of internal systems we had provide a bit of background on how the to enhance and build ourselves. partnership will work? What would you do differently if you This partnership is the first time that platforms started again today? have truly co-operated for the good of the advertiser, in essence it means that as targeted One of the most important factors facing any TV expands onto new platforms that there are organisation trying to build new products is to consistent capabilities, currencies and targeting, fail fast and learn. One of the main learnings which is hugely beneficial to clients. we have taken from Sky AdSmart is striking a balance between priming the market and By adopting Sky’s approach and operating actually launching the product priming the model, underpinned by in-depth customer product. In more recent product launches we data, the partnership will transform the scale have been careful to make sure the proposition of addressable TV advertising in the UK and is ready in line with warming up our customers. Ireland. Adding Virgin’s 3 million customers grows the targetable audience significantly How are you measuring Sky AdSmart boosting brands ability to reach audiences whilst campaigns and which metrics are utilising the attractive, quality, trusted, and advertisers typically interested in? brand safe environment of TV. Sky AdSmart campaigns are measured on an The partnership covers both targeted linear impression basis with a minimum 75% viewing and video on demand (VOD) TV advertising, to be counted, giving advertiser faith that with Virgin Media making use of technology that ads are being seen. Frequency is key for developed by parent company, Liberty Global, advertisers and this can be easily tracked and as well as Sky’s ground-breaking and award capped with Sky AdSmart analytics. What winning Sky AdSmart. advertisers are interested in is the ability to so closely define their audience and the ability to Platform operators face the decision to use their own data to create custom segments build, buy or borrow ad technology. What relevant to them. One important metric to us is was your approach in putting together the the number of ‘new to tv’ advertisers we’re able Sky AdSmart product? to bring to the market – and this continue to grow significantly meaning TV is no longer just the preserve of the big brand.

05 HbbTV: Building on the Shoulders of the Broadcast Giants

Sebastian Busse, Director The HbbTV Story Addressable TV International, Smartclip HbbTV is a standard that forms part of the European broadcast standard known as DVB. By definition this standard is available in all

TV devices provided in Europe and allows TV Whilst our industry’s attention is fixated stations to merge the traditional broadcast on the seemingly infinite opportunities in signal with digital technology. This gives digital advertising, good old-fashioned linear broadcasters new opportunities and full control TV advertising still offers a unique value over any solution that allows the combination of proposition to marketers, which explains broadcast and internet back channeling. TV’s ongoing strength as a distribution and advertising platform today. Linear TV broadcast The value of HbbTV becomes clearer when taking into account that HbbTV is utilizing the continues to tick the most important boxes massive reach of broadcast TV that already for brand advertisers, offering unrivalled reach exists today. This is a major difference from the combined with premium content in a brand fragmented market of OTT solutions which for safe environment. Most of the recent industry the most part cannot compete with broadcast in discussions about “TV vs digital” acknowledge terms of reach. that in many respects digital advertising has yet to prove its worth, and that it will not simply wipe out TV advertising overnight. Enormous potential, enormous reach However, digital advertising’s strengths have also shone a light on the limitations of For most of the largest European TV markets traditional TV advertising. For instance, one- HbbTV already provides significant reach and to-one ad delivery combined with real time consequently massive potential for addressable data and addressability has not been part of TV advertising. In Germany, a market of 38 the à la carte menu of the typical TV station’s million TV households, more than 16 million advertising portfolio. This is rapidly changing, unique devices are addressable via the smartclip however, and technologies and broadcasters addressable TV platform (ssource for the 16 have put addressable TV high on their strategy million devices: smartclip Addressable TV roadmaps. Platform). Other European markets in which we are already seeing significant HbbTV reach are France and Spain (ca. 25 percent of HbbTV is one of the key technologies in Europe households) with UK and Italy recently having for enabling next generation TV advertising adopted HbbTV and expected to have a relevant opportunities, which is why smartclip launched footprint very soon. TV stations in Netherlands its addressable TV advertising platform in 2015. and the Nordic markets have conducted And it is growing rapidly. Just two years on, first trials utilizing HbbTV for addressable TV smartclip provides services to more than 40 Tier advertising which again underlines the Pan- 1 TV stations in several European markets. european opportunities. According to the HbbTV consortium (HbbTV.org) the HbbTV potential for the UK is 50 percent of households and for

06 Italy it is 80 percent of households, fuelling the devices. Targeting features like time and expectations for the 5 largest TV markets. regional targeting have been combined with sophisticated data points allowing defined Research underlines the fact that the internet audience segments that have been generated connectivity of TV devices will not be a limiting via a dedicated TV DMP to be addressed. factor. In 2017 57% of households already own a Smart TV and with this in 2018 advertising Marketers and advertisers can control and budgets for addressable TV are estimated with monitor efficiency as they can now use €100-150 million (source: Enders Analysis, technology to control the contact class of their Programmatic TV’s European Evolution). campaigns and combine this with data and targeting. These opportunities, together with HbbTV: Misunderstood and real-time monitoring and reporting through digital KPI’s, are highly appreciated by marketers Undervalued and advertisers, and are valued higher than talks about the newest formats available. In more Despite the fact that HbbTV has achieved a than 90 percent of these campaigns a special significant footprint in major TV markets in ad format was used, which was introduced into Europe, it is still lacking credibility in the industry a brand safe environment within truly premium regarding its potential for providing addressable and effective content. TV advertising products. This is surprising as marketers always strive to provide scalability in Broadcasters Just Have to Flick combination with standardization and features the Switch that make it possible to reach the target audience in the most efficient way. It is clear, however, that static image formats

will not be the end of the road. In fact, we HbbTV is creating what can be described as have already run dynamic video ad insertion the ‘missing link’ for broadcast technology as campaigns. Mediengruppe RTL Deutschland it enables the fusion of broadcast and digital and smartclip recently carried out a video ad technology. For interactive content, HbbTV campaign for their client Ferrero, which proved allows viewers to use the ‘red button’ to access that HbbTV 2.0 can handle the complexity of catch-up video libraries or content-related seamlessly inserting a video ad format into the features via the remote control. linear broadcast stream. Now it is just a matter

of time before HbbTV 2.0 gains a significant For advertising, HbbTV opens up a world of footprint and broadcasters flick the switch to new possibilities. Thus far, broadcast advertising open up more of their inventory to addressable has not been able to deliver ads on a 1:1 basis TV and video campaigns. and make use of real-time data for enhanced targeting. With HbbTV all of this is possible. Now that the pipes have been laid for the linear

TV advertising market, the next step is sketched HbbTV allows broadcasters to generate real- out: TV channels will connect their inventory to time data, which lets them create detailed the automated booking process and will be able insights of their viewers and based on that, to deliver data-driven TV ads in real-time via create audience segments building the basis programmatic platforms. Showing, addressable for enhanced targeting.. Several hundred TV has by far matured from being in a test campaigns have been executed on TV stations and trial phase. HbbTV provides a technology throughout Europe which were delivered via standard which will become the basis for a our ad server into the linear broadcast stream significant revenue generator for TV channels and were specifically targeted to individual across Europe.

07 The Rise of the TV Alliances

Over the last year or so we’ve seen a number of interesting TV advertising alliances spring up in the US and Europe. These sell-side partnerships are primarily designed to enable broadcasters and pay TV operators to offer even more reach to advertisers, which is key to making data-driven advertising more effective. But they’re also designed to tap into ad budgets that are being managed by centralised programmatic buying units who are running pan-regional campaigns. Finally, it’s also important for broadcasters and pay TV operators to make addressable TV and video advertising easier to buy at scale by providing a single point of access. Below are three of the most interesting initiatives to have sprung up in Europe and the US over the last year or so.

Sky and Liberty Global

Members: Sky and Liberty Global $800 million last year, and revenues will be split Markets: UK & Ireland between the partners on a pro-rata basis, based Type of Inventory: TV and Video on impressions. Number of Households: 15 Million While expanding the reach of AdSmart, the Sky and Liberty Global’s partnership, announced partnership will also help standardise the in June this year, saw Liberty Global-owned purchasing process for addressable advertising, Virgin Media sign up to Sky’s AdSmart service. with a Virgin press release stating that AdSmart, launched in 2014, allows targeted consistent capabilities, targeting and currencies advertising to be delivered to set top boxes via will be “hugely beneficial” to clients. Given the a broadband connection, which are then played international ambitions of the two companies, during commercial breaks for live broadcasts. shown by AdSmart rolling out across the Initially limited to Sky’s own products, AdSmart continent and Liberty Global’s plans to launch now delivers addressable advertising to around addressable advertising across the EU and in 100 channels in the UK and Ireland. Latin America, these two players could have serious clout in setting standards across the The deal, which covers both broadcast and Western world. VOD, will see the channels already signed up to AdSmart, plus Virgin Media-owned TV3 in The deal remains limited to the UK for now, and Ireland, become targetable with addressable the two companies will still compete in other advertising on Virgin Media set top boxes. This forms of advertising. Nonetheless, it is clear that will increase the reach of AdSmart in the UK and necessity brought these two rivals together. Sky Ireland from the 11.4 million Sky subscribers COO Andrew Griffith said the deal came about to 15 million households in total, or roughly as he wants to compete “with the Facebooks 30 million individuals. All sales will be handled and Googles of this world”. by Sky’s media sales house, which hopes to boost sales to £1 billion by 2020, from under

08 European Broadcaster Exchange (EBX)

Members: TF1 (France), Mediaset (Italy and further collaboration. Spain), ProSiebenSat.1 (Germany) Markets: France, Spain, Italy and Germany EBX follows a previous joint venture of the Type of Inventory: Online Video three companies, an investment earlier this Total Market Population: 250 Million year in Studio 71, a multichannel network that produces online content and conducts analytics. European Broadcaster Exchange, launched last Now, by collaborating and providing advertisers June, is a joint venture of ProsiebenSat.1, TF1, with access to an area with a population of over MediaSet, media companies based in Germany, 250 million, they hope to tap into advertising France and Italy respectively. EBX, based in budgets previously inaccessible on a national London, will be a joint trading platform for digital level and fully exploit a programmatic video video advertising, designed to accommodate advertising market which is growing by 45 media agencies planning Europe-wide percent in Western Europe annually. advertising campaigns. Shared data and unified technologies could Initially, the three creators will make digital video ease the process of planning pan-European advertising inventory from within their own advertising campaigns for advertisers. The EBX countries available on the platform, but they founders have emphasised too the premium hope in the future for other European media nature of their product, asserting that EBX will companies to join, expanding the inventory guarantee access to high quality, brand safe available. The focus will be on programmatic content, a clear attempt to capitalise on worries video advertising to start with, but statements over brand safety of advertising on online announcing the project also mentioned plans for competitors like YouTube.

OpenAP

Members: Turner, Fox, Viacom OpenAP is operated and audited by Accenture, Markets: USA and will allow advertisers to use a standardised Type of Inventory: TV and Video set of data when targeting certain audiences Number of Households: 110 Million across the three broadcasters, eliminating the inefficiency brought on by constantly OpenAP, when it was launched by Turner, Fox redefining audiences when buying from different and Viacom last April, was billed as a response publishers. The companies involved will pool to concerns from advertisers over the difficulty and share data on viewership across devices, of buying the narrower audiences that were and will also receive set-top box data from being offered in TV advertising. The platform will comScore and ratings and consumer information seek to bring standardisation and transparency from Nielsen. to audience definitions and measurements by Alongside standardisation, the platform aims to enabling cross-publisher audience targeting and increase the accuracy of audience ratings for TV independent measurement. shows, which has fallen as viewing has become more fragmented, split between multiple devices and apps.

09 The New Video: A Holistic View of TV & Video Inventory

Shane Shevlin, General Similar to digital video, the shift to addressable TV provides an advertiser the ability to deliver Manger, EMEA, IPONWEB household-level targeted TV advertising against a defined audience, achieved through existing, verified supplier data assets (1st, 2nd or 3rd At the recent VAN TV Rise event in San party), with enhanced frequency management, Sebastian, Spain, there were many great creative management and tracking, and ROI insights into the continuing evolution of the measurement. With the help of addressable programmatic TV market - whether addressable advertising, advertisers can move beyond or linear - but I was struck by one comment traditional TV demos to focus on relevance, in particular from John-Paul Major, Head of impact, and precision. Programmatic Futures at Mediacom: “We don’t think in terms of online video and TV anymore; At the same time, programmers, operators we just think about video - that’s how we and broadcasters can take advantage of the want to plan it, that’s how we want to buy it, fact that bringing automated demand across regardless of where it happens.” video delivery channels is not a straight line; this fragmentation and complexity is (for now) This comment was striking because it offered an opportunity to define the terms by which a concise summary of where we need to be trading occurs. Advertisers need to have a in order to grow the programmatic TV market holistic, audience based view of the ecosystem over the coming quarters and years. The time in order to reach their target consumers as the for lamenting the user’s fragmented attention video market continues to splinter. is over - there is no going back and the trend is not just among a cross-section of younger audiences, it’s across the board. Regional Challenges

Channel Agnostic Ecosystem With competing media companies and Perspective broadcasters, multiple languages, evolving regulatory and privacy frameworks, complexity Advertisers and content providers who embrace around carriage rights, region-specific census & this shift to a channel-agnostic video focus, audience tracking standards as well as provider reaching the desired audience across many requirements, further fragmentation of the screens and devices, including addressable market is occurring, particularly in Europe. TV, will be able to take advantage of the fragmentation in the market and make it work To help navigate this and reduce some of the for them. Through this shift marketers will be complexity for large-scale buyers, initiatives able to achieve greater impact and engagement such as the European Broadcaster Exchange with video audiences and programmers will be (EBX) have sprung up to “compete more able to build data assets, understand the true efficiently with global competitors and to design value of their audiences and extract greater yield [joint innovation strategies] to create new ways for every impression through “one-to-one and for advertisers to reach their consumers” (EBX one-to-a few (household)” targeted, audience- Press Release). Other providers are teaming up based marketing. together under Sky’s AdSmart initiative. These

10 developments are aimed at maintaining and quickly tap into the growing pool of automated, building audience assets while maintaining the programmatic demand. scale and reach, as well as some of the ease of buying that TV has historically enjoyed. They Bridging the Gap between TV also are a start to counterbalance the proven successful tools, strategies and market offerings and Digital that the dominant digital players have employed. Without competitive market offerings from the To address these technical and market challenges video ecosystem, market share will continue to as well as increased opportunities, broadcasters accrue to those companies that best address and media companies need advanced and advertiser needs. proven solutions that are designed with them in mind and built to satisfy their unique needs and business requirements. By employing a TV’s Current Scale customised TV solution, broadcasters and media companies can bring forward the features Even with the advent of collective groups, and functionality required specifically for the scale will be a concern for many advertisers performance of their media business and focus considering the switch from traditional ad buys on unique ways to differentiate and evolve their to more personal audience-based advertising. market offering. Importantly, adopting a proven, This is due in part to limits regulatory bodies put modular approach to building out programmatic on the amount of addressable inventory available TV solutions offers the ability respond, adapt and for sale, and equally, constraints like Contract evolve as the opportunities shift over time. Rights Renewal (CRR) in the UK hamstring specific broadcasters and need to be updated in This allows for the creation of holistic systems the context of an evolving industry. that work cross-channel to understand and utilise all of your data to maximise monetisation, The implication of operating in an ever increasing reduce complexity around vendor management, fragmented and complex ecosystem is that there cost inefficiencies and similar challenges. are many more moving parts and considerations that require: greater flexibility, automation, Without taking a flexible and tailored approach machine intelligence, bespoke integrations for to programmatic TV solutions, broadcasters and audience definition & measurement, tracking media companies run the risk of losing market of return path data, and much more. At share, failing to understand the value of their IPONWEB, we have developed a programmatic inventory and accelerate the transfer of audience TV solution that offers a unique opportunity for and proprietary data to 3rd parties whose media owners to build out solutions that can interests are not aligned with theirs.

11 The Case for a Custom Solution

Maria Mryasova, Sales Engineer, Emerging Technologies, IPONWEB

IPONWEB Modular TV SSP Solution: Features and Benefits of a Custom Platform

Avails, API API Show Data API Inventory Creative UI UI Internal Management UI Approval Demand

Inventory/ Auction Deals Host Comscore/Nielsen; API Packaging RTB Pipes STB Data; Advertiser Data; Audience Ad Delivery Demand Other 3rd Party Data Management Scheduling Partners API Trafficking Ad Run Systems Processing API As Runs

API Analytics/Reporting UI

To bring together the key aspects of both TV Analytics and reporting are available to both and digital, a purpose-built TV SSP solution is supply and demand partners for transactional required to satisfy the specific programmatic and transparency. automation needs of television’s supply side. Each TV SSP is tailored to support a client’s Functionally, the TV SSP solves various specific business cases, unique data formats ecosystem challenges by leveraging nine distinct and workflows. Using a bespoke solution modules that can be configured according to an broadcasters are able to create targeted individual company’s requirements and goals. inventory based on a variety of audience data while gaining access to new advertising budgets Those include: and buyers.

• Inventory management controls, processing, As the addressable TV ecosystem continues to and transformation into programmatic slots mature, broadcasters who take a proactive and • Audience modules to manage audience data tailored approach will be able to bring to market uploads and matching from various sources a supply platform that can truly transform their to create a unified pool of users business; setting themselves up for the rapid and • Creative approval and ad delivery modules inevitable advertising evolution and growth with • Audience Analytics for planning and a foundation that is built specifically around their measurement needs and is agile enough to quickly adapt to the changing market landscape.

12 The Case for a Custom Solution View from the US

60 Seconds with Brian Wieser, Senior Analyst, Pivotal Research

Brian Wieser is Senior Analyst at Pivotal Do investors ‘get’ ad tech do you think? Research and has become one of the most respected commentators on the prospects of No. It’s too fragmented and too complicated for the TV industry. Here gives some quick insights most to justify the time to try and understand it. into what he thinks is coming further down the line. Which companies stand out to you as over-valued? And, more interestingly, What poses the single greatest threat to which do you think are under-valued? the TV industry today? At this point in time (August 24th) I have sell If we are referring to advertising revenues ratings on Disney, Adobe, Snap and Facebook, on TV in particular, the biggest threat is that which would mean those are the ones which are the advertisers and kinds of advertisers who most over-valued in my valuation framework. As dominate TV (large brands who differentiate on for under-valued, I only have a few buy ratings the basis of awareness of brand attributes, exist as well, on IPG, Discovery and Fox. in oligopolistic categories then budget for share of voice and look to optimize for reach and Will see another wave of venture capital frequency) diminish in importance within the (VC) investment coming into ad tech do economy. you think?

Which ‘traditional’ TV companies are No. VC in ad tech is done. At this point they all coping best with digital disruption? want exits without losing much money, which means more of a focus on recapitalizations and By traditional TV companies I assume you mean consolidation. owners of businesses which are packagers of content, like today’s networks? On that basis, We’ve seen some recent declines in the and solely looking at the US, I’d say Fox and value of some of the large agency holding CBS. Fox is continuously investing in building groups. Are the agencies well positioned to up its businesses to a degree that I don’t survive over the long haul? think others do. CBS is best positioned both because it’s positioned well as a broadcast Paraphrasing Rishad Tobaccowala, agencies are network (which maintains its reach advantage cockroaches not dinosaurs. Yes, I think they over cable, especially as cord-cutting / shaving will outlast us all, just in a continuously evolving expands) and because of its ability to capture form. retransmission consent revenues.

13 EMERGING AD TECH SOLUTIONS TO GDPR

The EU’s General Data Protection Regulation • Right to portability: users must be able to (GDPR) will standardise privacy laws across obtain a copy of their data and copy or the EU, while also bolstering the privacy and transfer it safely between services. security of personal data. For consumers, the new rules will give them a number of new rights • Right to be forgotten: users have the right when it comes to controlling how their data is to demand of any data controller that they used online, but in doing so the EU has created erase all information they hold about that a number of technical and legal challenges for individual. the media and ad tech industry. • Built from ground up privacy: systems Included among the new provisions are: must be built with consumer privacy as a fundamental concern, rather than an • Right to access: users must be able to access afterthought. data that is collected about them, and see who has access to it and how it’s being used. In response to GDPR, multiple companies are working on systems and platforms to help • Right to consent: users must consent the publishers and ad tech companies to ensure collection and use of their data, and must be compliance with the new rules. able to withdraw that consent at any time.

MadHive

New York-based MadHive uses blockchain as process. Given that all transactions are recorded the basis for its solution, using open-source permanently on the blockchain, it would also blockchain infrastructure Hyperledger to allow consumers to track where and when their manage permissions and privacy across ad personal information had been used. campaigns. MadHive’s solution would see a blockchain layer called up during the ad-buying Currently MadHive is is unable to handle open process. Consumers would have access to a programmatic situations and still experiences trigger by which they could block the use of some latency issues, but it is hoped these their data, which would be instantly relayed problems will be solved by the time GDPR to the blockchain. The blockchain would then comes into force. block the use of that consumer’s data every time it was called up during the ad-buying

14 Faktor

New York-based MadHive uses blockchain as can link a set top box to their mobile via a QR a platform for identity management, giving code scan, allowing their consent preferences to consumers easy access to, and control over, then be applied to addressable TV advertising. their data. Users will be able to view and adjust their permissions via Faktor’s platform, which Faktor will further encourage user provision of will have four different access points, including data via a cryptocurrency, FKTR, to be launched a browser extension and a Faktor app. Users at the end of the year. Users will accumulate the will therefore be able to micromanage consent currency by sharing content or engaging with of which data can be collected and who is able products or brands, which can then be spent on to track it, and access to content will then be access to content or ad-free experiences. adjusted based on how much data the user is willing to provide. There will also be a dedicated entry point for TV advertising, where customers

PageFair

PageFair, for example, is building a data data obtained without permission, and enable protection platform designed to protect the management of mixed states of user consent, entire ad supply chain, blocking data access ensuring all parties can apply the correct data when consent isn’t given while also protecting mode for each individual. PageFair will also against data leakage. PageFair’s tech will convert build ‘interest groups’, allowing programmatic ad ad formats which leak data, block third party targeting without the need for personal data.

Evidon

Evidon’s offering is its Universal Consent and making it appropriate for the user in terms Platform which, similar to Faktor, is geared of language and content of the agreement, towards managing user consent. Based on based on their location. Evidon’s monitoring Evidon’s existing technology, the Universal platform will then alert the publisher to any non- Consent Platform will tailor consent forms to compliant activity which takes place on their each user and website, populating it with all the digital platform. tracking technologies any given website uses,

15 The European Addressable TV Advertising Landscape Buy-Side TV Ad Tech Sell-Side Ad TV Tech Pay TV Operators Agency Groups DSPS Marketplaces, Optimsation & Allocation

Sales Houses

Media Agencies HbbTV

Optimisation OTT OTT Apps

Custom Solutions DAI OTT Platforms

Measurement, Data & Analytics Consumer Data Verification

16 17 Addressable TV Directory

AGENCY GROUPS WEBSITE Telephone

AKQA www.akqa.com Tel: +44 (0)207 780 4786

Dentsu www.dentsuaegisnetwork.co.uk Tel: +44 (0) 207 070 7700

Havas www.havasmedia.co.uk Tel: +44 (0)20 3196 9000

Interpublic Group www.ipg.uk.com Tel: +44 (0) 20 7082 0120

Omnicom Group www.omnicomgroup.com Tel:+44 (0) 20 7298 7007

Publicis Groupe www.publicisgroupe.com Tel:+44 (0) 20 7935 4426

WPP www.wpp.com Tel: +44 (0)20 7408 2204

DAI WEBSITE TELEPHONE

Arris www.arris.com Tel: +353 21 7305800

Ericsson www.ericsson.com "Tel: +46 10 719 00 00

Invidi www.invidi.com Tel: (917) 676-3590

Seachange www.schange.com Tel: +48 (22) 213 1665

YoSpace www.yospace.com Tel: +44 1784 466 388

DSP’s WEBSITE TELEPHONE

Adobe www.adobe.com Tel: +44 1628 590 000

Appnexus www.appnexus.com Tel: +1 (646) 825-6460

18 AGENCY GROUPS WEBSITE Telephone

BrightRoll/Yahoo www.brightroll.com

Rubicon Project www.rubiconproject.com Tel: + 44 (0) 20 3206 2400

The Trade Desk www.thetradedesk.com Tel:+44 (0)203 868 8100

Tremor Video www.tremorvideo.com Tel: +44 (0) 20 7379 5544

Videology www.videologygroup.com Tel: +44 (0) 203 608 8700

HBBTV Ad Tech WEBSITE TELEPHONE

Smartclip www.smartclip.com Tel: +49-40-68 87 68 70

TeraVolt GmbH www.teravolt.tv Tel: +49-40-298 677-0 Marketplaces, Optimsation & WEBSITE TELEPHONE Allocation

1 x AOL www.onebyaol.com Tel: +44 (0)20 7492 1000

Cadent www.cadentnetwork.tv Tel: +1 212 796 1960

Clypd www.clypd.com Tel: +1 (844) 302-5973

IPONWEB www.iponweb.com Tel: +44 (0) 207 420 0670

Sorenson Media www.sorensonmedia.com Tel: +44 (0) 2920 198 092

TV Squared www.tvsquared.com Tel: +44 (0) 131 290 2333

Videa www.videa.tv Tel: +1 678-645-6550

Videology www.videologygroup.com Tel: +44 (0) 203 608 8700

Wideorbit www.wideorbit.com Tel: +1.720.228.2140

Measurements and Analytics WEBSITE TELEPHONE

1 x AOL www.onebyaol.com Tel: +44 (0)20 7492 1000

BARB www.barb.co.uk Tel: +44 (0) 20 7024 8100

19 AGENCY GROUPS WEBSITE Telephone

Bluefin solutions www.bluefinsolutions.com Tel: +44 (0)870 233 0404

Broadcasters' Audience www.barb.co.uk Tel: +44 (0) 20 7024 8100 Research Board Ltd

DataXu www.dataxu.com Tel: +44 (0) 20 7636 8010

GfK www.gfk.com Tel: +44 (0) 20 7890 9000

IBM Coremetrics www.welcome.coremetrics.com Tel: +44 (0)2392 282340

Kantar www.kantarmedia.com Tel: +44 (0)20 7160 5505

Mediametrie www.mediametrie.com Tel: +33 1 47 58 97 58

Nielsen www.nielsen.com Tel: +44 020 7014 0590

Realytics www.realytics.io Tel: +44 (0) 20 3445 6532

Rentrak/Comscore www.comscore.com Tel: +44 (0) 20 3195 7800

SKO www.kijkonderzoek.nl Tel: 020-6414333

Tivo Analytics www.business.tivo.com Tel: +441628677300

TV Squared www.tvsquared.com Tel: +44 (0) 131 290 2333

TVbeat www.tvbeat.com

Webtrends www.webtrends.com Tel: +44 (0) 1784 415 700

Media Agencies WEBSITE TELEPHONE

360i Europe www.360i.co.uk Tel: +44 (0) 2070237600

Acceleration Partners www.accelerationpartners.com Tel: +44 (0)20 3318 4922

Adjust Your Set www.adjustyourset.com Tel: +44 (0)20 7580 5933

Carat www.carat.com/uk Tel:+44 (0) 207 430 6000

DigitasLBi www.digitaslbi.com/en-gb Tel: +44 (0) 20 7063 6000

20 AGENCY GROUPS WEBSITE Telephone

GroupM www.groupm.com Tel:+44 (0)20 7158 5000

Initiative www.initiative.co.uk Tel: +44 (0)20 7073 7333

Maxus www.maxusglobal.co.uk Tel: +44 (0)20 7025 3900

MC&C www.mcand.co.uk Tel: +44 (0) 20 7307 6100

MEC www.mecglobal.co.uk Tel: +44 207 803 2000

Mediacom www.mediacom.com Tel: + 44 (0)207 158 5500

Merkle www.interpublic.com Tel: +44 (0)330 060 6065

Mindshare www.mindshareworld.com Tel: +44 (0)20 7969 4040

OMD UK www.omd.com/uk Tel: +44 (0) 20 3023 4500

Starcom Mediavest (IPA) www.starcomww.com Tel: +44 (0) 20 7235 7020

UM www.umww.co.uk Tel: +44 (0) 20 7833 5858

Xaxis www.xaxis.com Tel: +44 (0) 20 7158 5000

ZenithOptimedia www.zenithmedia.com Tel: +44 (0)20 7961 1000

OTT Ad Tech WEBSITE TELEPHONE

Adobe www.adobe.com Tel: +44 1628 590 000

AppNexus www.appnexus.com Tel: +1 (646) 825-6460

FreeWheel www.freewheel.tv Tel: +44(0)20 7280 4601

Google www.doubleclickbygoogle.com Tel: +44 (0)20 7031 3000

Ooyala www.ooyala.com Tel: +44 (0)20 7494 6200

SpotX www.spotx.tv Tel: +44 (0) 20 8068 2951

21 AGENCY GROUPS WEBSITE Telephone Sales Houses WEBSITE TELEPHONE

Admeira www.admeira.ch Tel: +41 31 298 22 22

Antena 3 () www.intactmediagroup.ro Tel: +40 21 40 91 880

ARD-Werbung SALES & www.ard-werbung.de Tel: +49 69 154 24-218 SERVICES GmbH

AS Eesti Meedia www.kanal2.ee Tel: 372 666 2469

Atmedia CZ www.atmedia.cz Tel: + 420 222 998 714

Atmedia HU www.atmedia.hu Tel: +36 1 799 26 40

AtresMedia www.atresadvertising.es Tel:+ 34 91 6 234 577

Bauer Media Denmark www.bauermedia.dk Tel: +45 33119000

Bauer Media Finland www.bauermedia.fi Tel: +358 9 8848 8757

Bauer Media Group UK www.bauermedia.co.uk Tel: +44 (0)20 7437 9011

Belcom AG www.belcom.ch Tel: +41 44 448 25 25

Bell Media www.bellmedia.ca Tel: 416.924.6664

BTV - CME Group www..bg Tel: +359 888 675464

Bulgarian National Television www.bnt.bg Tel: +359 2 814 26 63

Canal+ Régie www.canalplusregie.fr Tel: +33 1 71 35 35 35

Channel 4 Sales www.channel4sales.com Tel: +44 207 306 6440

Discovery Networks www.discoveryuk.com Tel: +44 208 811 3000 International

Disney Media www.disneymediaplus.de Tel: +49 (0) 89/99340-0.

Dogus Yayin Grubu www.dogusyayingrubu.com Tel: + 90 53 23 86 14 14

DTV Haber Gorsel Yayincilik A.S. www.kanald.com.tr Tel: +90 536 398 55 74

22 AGENCY GROUPS WEBSITE Telephone

EBU-UER www3.ebu.ch Tel: +41 (0) 22 717 28 01

El Cartel Media GmbH & Co. KG www.elcartelmedia.de Tel: +49 (89) 64185 7005

EMG (Europa Media Group) www.emg.fm Tel: +36 1 453 3801

Eurosport SAS www.eurosport.com Tel: +33 1 40 93 83 76

Everest Sales www.everest-sales.ru Tel: +7(495)941-64-00

Fox Networks Group www.foxinternationalchannels.com Tel: + 44 203 426 7271

France Télévisions Publicité www.francetvpub.fr Tel: +33 1 56 22 62 00

Gazprom Media www.gazprom-media.com Tel: +7 (495) 725 54 00

Goldbach Media AG www.goldbachmedia.ch Tel: +41 44 914 92 71

Inter Media Plus www.inter-media.ge Tel: +995 599 60 00 33

IP Belgium S.A. www.ipb.be Tel: +32 2 337 62 11

IP Deutschland www.ip.de Tel: +49 221 456 24000

IP Luxembourg www.ipl.lu Tel: + 352 44 70 70 46 62

IP ÖSTERREICH www.ip-oesterreich.at Tel: +43 1 367 80 40 21

Karnaval Media Group www.karnaval.com Tel: +90 533 202 48 23

LNK www.lnk.lt Tel: +37060000022

M6 Publicité www.m6pub.fr Tel: 33 1 41 92 66 66

Medialaan NV www.medialaan.net Tel: +32 2 255 39 04

MTG Group www.mtg.com Tel: +46 73 699 2717

MTG TV Denmark www.mtgtv.dk Tel: + 45 77 30 57 29

MTG TV Norway www..no Tel:+47 452 68 593

23 AGENCY GROUPS WEBSITE Telephone

MTV Oy www.mtv.fi Tel: +358 40 772 0740

MTVA www.mtv.hu Tel: + 36 1 759 52 53

Nelonen Media - Sanoma www.nelonenmedia.fi Tel: + 358 9 454 5384 Media Finland Ltd.

Next Régie www.nextregie.fr Tel: + 33 1 71 18 53 02

Nova Croatia - CME www.novatv.hr Tel: + 385 1 600 83 10

Nova CZ - CME www.tv.nova.cz Tel: +420 242 464 616

One Media Sales www.oms.fm Tel: +31 35-750 5950

ORF Enterprise GmbH www.enterprise.orf.at Tel: +43 1 87077 14500 & Co KG

Polsat Media Biuro Reklamy www.polsatmedia.pl Tel: +48 22 514 53 95

PRO PLUS - CME Group www.pro-plus.si Tel: +386 1 589 32 21

PRO TV - CME Group www.protv.ro Tel: +40318.250.315

ProSiebenSat.1 TV / www.sevenonemedia.de Tel: +49 89 / 9507-4370 SevenOne Media

Publitalia '80 www.publitalia.it Tel: +39 022 10 23 968

R-Time/Magyar RTL www.r-time.hu Tel: +36 1 382 85 34 Televizio Zrt.

Radio Televisión Española www.rtve.es Tel: +34 91 581 58 40

Rai Pubblicità www.raipubblicita.it Tel: +39 011 744 1533

RTL AdConnect www.rtl-adconnect.com Tel: +352 421 42 47 21

RTL Nederland www.adverterenbijrtl.nl Tel: +31 35 711 38 74

RTP www.rtp.pt Tel: +351 351 217 947 000

RUV www.ruv.is Tel: +354 5153243

SBS Broadcasting www.adverterenbijsbs.nl Tel: +31 654 24 67 68

24 AGENCY GROUPS WEBSITE Telephone

Sky Media DE www.skymedianetwork.de Tel: +49 8999587167

Sky Media Italy www.skypubblicita.it Tel: +39 02 30 80 12 974

Sky Media UK www.skymedia.co.uk Tel: +44 207 705 3000

Sport1 Media GmbH www.sport1media.de Tel: +49 (0) 89 960 66-2554

Starlight Brand Content www.slm.ua Tel: +38 (044) 495 77 88

Telewizja Polska S.A. Biuro www.brtvp.pl Tel: +48 22 547 22 40 Reklamy

TF1 Publicité www.tf1pub.fr Tel: +33 1 41 41 48 45

TURKUVAZ REKLAM www.turkuvazreklam.com Tel: +90 212 354 32 33

Turner www.turner.com Tel: +44 20 7693 1000

TV3 Estonia www.tv3.ee Tel: +372 52 49 892

TV3 Latvia www.tv3.lv Tel: +371 67 479 100

TV3 Lithuania www.tv3.lt Tel: +370 5 203 01 77

TV3 Sweden - MTG Group www.mtgsverige.se Tel: + 46 73 699 2419 (Viasat) TV8 (MNG TV YAYINCILIK www..com.tr Tel: +90 212 304 89 18 A.S.GROUP)

TVN MEDIA www.reklama.tvn.pl Tel: +48 22 856 64 02

TVR - Romanian Public www..ro Tel: +40 21 30 58 9 08 Television Viacom International Media www.viacom.com Tel: +44 (0)20 3580 2000 Networks UK

ZDF Werbefernsehen GmbH www.zdf-werbefernsehen.de Tel: +49 6131 70 14044

25 AGENCY GROUPS WEBSITE Telephone

Measurements and Analytics WEBSITE TELEPHONE

1 x AOL www.onebyaol.com Tel: +44 (0)20 7492 1000

BARB www.barb.co.uk Tel: +44 (0) 20 7024 8100

Bluefin solutions www.bluefinsolutions.com Tel: +44 (0)870 233 0404

Broadcasters' Audience www.barb.co.uk Tel: +44 (0) 20 7024 8100 Research Board Ltd

DataXu www.dataxu.com Tel: +44 (0) 20 7636 8010

GfK www.gfk.com Tel: +44 (0) 20 7890 9000

IBM Coremetrics www.welcome.coremetrics.com Tel: +44 (0)2392 282340

Kantar www.kantarmedia.com Tel: +44 (0)20 7160 5505

Mediametrie www.mediametrie.com Tel: +33 1 47 58 97 58

Nielsen www.nielsen.com Tel: +44 020 7014 0590

Realytics www.realytics.io Tel: +44 (0) 7850 153 604

Rentrak/Comscore www.comscore.com Tel: +44 (0) 20 3195 7800

SKO www.kijkonderzoek.nl Tel: 020-6414333

Tivo Analytics www.business.tivo.com Tel: +441628677300

TV Squared www.tvsquared.com Tel: +44 (0) 131 290 2333

TVbeat www.tvbeat.com

Webtrends www.webtrends.com Tel: +44 (0) 1784 415 700

Verification WEBSITE TELEPHONE

Integral Ad Science www.integralads.com Tel:+44 (0)203 696 5589

Moat www.moat.com Tel: +1 6462487843

26