www.pixability.com | [email protected] 888-PIX-VIDEO (888-749-8433) Introduction 3 Why YouTube? 5 The Top 100 Global Brands on YouTube 8 YouTube Advertising Inventory 10 Ad Targeting on YouTube 14 Engineering Effective YouTube Campaigns 16 1. Plan 18 2. Run 19 3. Report 20 4. Results 21 About Pixability 22 Get Started 23

2 3 YouTube is the world’s most effective marketing platform. YouTube lets agencies and media professionals target specific demographics for their clients with a level of precision that no television buy or ad network can match.

As an experienced entrepreneur, however, I know firsthand how difficult it can be to convince others of the viability of a new format, idea, or platform when numerous established alternatives already exist.

Pixability’s YouTube Media Guidebook is designed to equip your organization with facts about YouTube’s advertising offerings and the software tools available that make planning, running, and reporting on YouTube advertising campaigns easy.

You may perceive YouTube as a platform where it is difficult to target the right audience, or as a property that doesn’t deliver strong performance against key KPIs based on a negative experience you’ve had in the past.

Over the following pages, Pixability’s YouTube Media Guidebook will explain: • The advantages of advertising on YouTube

• The 10 types of advertising available on YouTube

• The extensive variety of ad targeting that is possible

• How the top 100 global brands have increased their year-over-year (YoY) YouTube advertising spend

• The benefits software provides when buying and executing YouTube ad campaigns

• The specific KPIs which can be exceeded for clients by leveraging Pixability-run YouTube ad campaigns

Just as in the entrepreneurial world, those that innovate early and often frequently reap the greatest rewards.

Bettina Hein, Founder and CEO of Pixability

4 5 YouTube is an effective alternative and/or supplement to television, display, radio, and other traditional forms of media for agencies and the brands they serve.

6 YouTube receives the most visitors and views per month of any online video platform.1 Yahoo

Facebook

Vevo

Viacom

Microsoft

AOL

Amazon

Turner

Vimeo

Eight consecutive quarters that TV viewing among 18-24 year olds has dropped 2

Percentage of TV budgets Nielsen + the IAB recommend moving to online video to increase reach at a lower cost

1. comScore July 2014 U.S. Online Video Rankings 2. Nielsen 7

The Top 100 Global The Top Brands on YouTube

8 The YouTube advertising spend of the top 100 global brands has increased dramatically since 2013. In 2013, Pixability released a comprehensive study titled The Top 100 Global Brands: Key Lessons for Sucess on YouTube, based on Interbrand’s list of Best Global 100 Brands. One year later, Pixability revisted the data to track year-over-year changes in the brands’ YouTube performance, publishing schedules, and ad promotion.

The top 100 global brands are cumulatively collecting over 800 million YouTube views every month, primarily as a result of paid YouTube ad spend. The chart below depicts the year-over-year (YoY) increase in total views compared with the increase in total new videos produced.

The Top 100 Global Brands on YouTube - Total Videos vs. Total Views (Per Month) 900 M 900 K

800 M Increase in views due 800 K to rise in YouTube 700 M ad spend 700 K

600 M 600 K

500 M 500 K Total views per month across top 400 M 100 brands 400 K 300 M Total videos per 300 K month across top 100 brands 200 M 200 K

100 M 100 K

0

20 11 2012 2008 2006 2007 2009 2010 2013 2014

Why are view numbers skyrocketing even though video production is

becoming more focused? The answer is YouTube advertising.

Brands may be produing fewer videos overall, but are promoting those videos more heavily than ever via paid YouTube spend to attract audience

views and engagement.

Top 100 Global Annual %

As of May 2013 As of Sep 2014 Brands Combined Change

Total Videos 258,613 360,585 +39% Total Views 9,579,066,684 19,129,473,788 +100%

9 10 There are 10 different varieties of YouTube advertising currently available to buyers. Options for advertising on YouTube vary in cost and complexity. However, TrueView In-Stream and TrueView In-Display Ads have the highest return on investment for agencies and their clients, according to Pixability’s database of campaign metrics.

TrueView: In-Stream Video Ads TrueView: In-Display Video Ads (Skippable Pre-Roll) and Companion Banner

skip ad

Highly targeted video ads that appear alongside other YouTube Highly targeted video ads inserted videos as sidebar banners and text. before a YouTube video that can be skipped after five seconds. Video Ads Includes In-Stream Companion Banner next to ad. • Achieves high view to completion (audience retention rate). Video Ads • Achieves strong engagement • Called “TrueView” because and earned views (organic although video begins to play views following paid views). automatically and forces the • Runs with TrueView In-Search viewer to watch the first five (In-Display) Video Ads. seconds, the advertiser only • Based on Cost Per View (CPV). pays if viewer watches 30 seconds or the entire video, Call To Action (CTA) Overlay whichever comes first. • Free display format that appears • Video offers direct links to brand over video only when viewer or external websites. hovers over collapsible arrow. • Can rapidly achieve high • CTAs offer direct, context-related level of penetration/awareness. links to the advertiser’s website (i.e. “Buy Now” link when product • Based on Cost Per View (CPV). is visible). Companion Banner • Video annotations help drive • In-stream video ads may also additional organic views. include a graphic display ad that shows up above any suggested videos. • This ad clicks through to a website and is free with every in-stream ad. • This banner remains post-ad view, for the duration of video. 11 TrueView: In-Search In-Stream Video Ads (In-Display) Video Ads (Non-Skippable)

Targeted video ads that appear above other relevant videos in YouTube search results. Non-skippable video ads that run in YouTube players appearing on Video Ad watch pages and channel pages • Achieve high view to completion with featured videos. (audience retention rate). • In-Stream ads typically are • Runs with TrueView In-Display 15-20 seconds (max 30). Video Ads. • Companion banners are optional. • Achieves strong engagement and earned views (organic • Based on Cost Per Impression. views following paid views). In-Stream Supplement: Call to Action (CTA) Overlay Brand Lift Survey • Free display format that appears over video only when viewer hovers over collapsible arrow.

• CTAs often increase earned Have you heard of views (organic views following brand XYZ? __ Yes paid views). __ No • CTAs offer direct, context-related links to the advertiser’s website (i.e. “Buy Now” link when product is visible). Single-question surveys shown directly after a video ad is viewed. Display: Video Mastheads Brand recall and other metrics are included.

Promoted Channel Ads (Non-TrueView)

Video ad unit that runs at the top of YouTube’s homepage for 24 consecutive hours. Promoted channel ads managed • Can be expandable. from AdWords Display interface • Masthead can be closed by which include the YouTube viewer clicking on the unit. channel avatar image. 12 Display: Standard Banner Ads Animated In-Video Overlays

Non-expandable, non-rich media Video ads with an overlay that ads running across all sections of appears when viewer initiates play. YouTube except the homepage. • Display is not expandable. • 300x250 sidebar ad. • Companion banners • Based on CPM or PPC. are optional. • Pop-up ads, floating ads, and • Based on CPM or PPC. ads with un-initiated audio are not permitted. Multi-Channel Network Dedicated Ad Buys Preferred

Video ads run directly on Multi-Channel Networks (groups of topic-related YouTube A pre-determined line up of channels organized under an video advertising slots (based on umbrella company that assists with Google’s assessment of the top management, monetization/sales, 1% and 5% channels across partner management, rights, etc.). 18 different categories.

• Very significant minimum spend. Beta: Video Interactivity Templates • Cost of the buy depends on spend, targeting (and which of the 14 categories chosen to advertise on). • Example Google Preferred YouTube channels include MLB, BeFiT, The New York Times, and Geek & Sundry. An upcoming feature currently in beta. Five interactive branded overlay cards featuring text, imagery, and buttons that appear in the upper-lefthand corner of a playing video. Users can click on the cards to expand them. 13 14 Sophisticated hyper-targeting is the key to YouTube campaign success. Most YouTube campaigns place ads based on multiple targeting methods. However, to manually target campaigns at the level of specificity that ad tech can achieve would be prohibitively labor-intensive.

Example: One campaign executed recently via Pixability’s platform would have required 1,376 targeting groups to be set up manually to achieve the same level of targeting without software.

Ads on YouTube can be targeted in several ways: • Demographics • Keywords • Topics • Placements • Interests • Remarketing Lists

Ad Targeting Descriptions

Demographics Demographic targeting can segment by age and gender based on Google or website profiles.

Topics Targeting by topic is based on the content of the video.

Interests Interest targeting is based on a user’s search history and browsing behavior.

Keywords Keyword targeting works based on search queries in YouTube.

Placements Placements dictate which specific videos and channels the advertiser wants ads to appear on.

Remarketing Lists Works extremely well to get users who are already familiar with the brand. View rate and earned view rate is typically higher for remarketing campaigns. These views are worth more and ad buyers may have to bid higher to reach this valuable audience.

Remarketing serves ads to users who have interacted with a brand by:

• Visiting a website • Viewing or engaging with YouTube videos • Subscribing to a channel • Viewing in-stream ads • Visiting a channel

15 16 Accurately measuring and reporting on ad performance is a key component of any YouTube media buy.

Typical YouTube ad campaign key performance indicators (KPIs) include:

• Low CPV (cost per view) • High view numbers • Earned (non-paid) views, likes, shares, and/or comments • High video completion rates (100% of video watched) • Low CPA (cost per customer acquisition) • High CTR (click through rate)

Delivering an effective YouTube campaign for a client requires advanced planning, execution, in-flight optimization, and reporting of results.

Creating and running YouTube campaigns can be tedious without the use of ad buying and video marketing software. Third-party YouTube advertising technology saves time by eliminating manual work, makes optimization easy, and delivers better results.

17 1. Plan First, select the right YouTube videos to advertise against and the right advertising formats to best accomplish the client’s campaign goals. This can be done manually, or YouTube ad buying and video marketing software can be used to improve and automate much of the process.

How YouTube Ad Tech Helps 1) Pixability’s Video Radar software tool, for example, enables media professionals to scan the entire YouTube ecosystem to identify ad placement recommendations and competitive insights.

Pixability’s Share of Voice tool shows the relative size of YouTube brand mentions compared with competitive brands and the overall industry space

2) Pixability’s Keyword Analysis tool identifies the highest impact keywords for YouTube video search campaigns. 3) Media professionals can execute A/B ad testing right within a single easy-to-use software dashboard.

4) Pre-configured workflowsincrease efficiency and accuracy. 5) Pixability’s patent-pending ad buying technology uses predictive analytics to ensure that Pixability buys consistently outperform industry benchmarks by 30%+.

Pixability’s software reveals which YouTube videos attract the largest audiences 18 2. Run Scheduling a client’s YouTube campaign for a specific flight duration is the next step after researching their industry vertical and selecting the appropriate ad formats and placements. In-flight optimization is essential to getting the most out of any YouTube media buy.

How YouTube Ad Tech Helps

• Pre-loaded workflows prevent having to start from scratch for every new campaign and save countless hours of manual work. • Software sends out real-time alerts for performance optimization, benchmarking against industry competitors, and campaign scoring through a simple performance dashboard.

Set up a new YouTube ad campaign easily within Pixability’s software

• Pixability’s software enables real-time optimization of advertising bids, targets, groups, and ad variations. • Clear Key Metrics comparison visuals increase transparency for YouTube campaign spend, paid/earned media, and conversions.

Track views, impressions, and cost per view over the course of any YouTube campaign 19 3. Report Reporting is a key part of any paid YouTube media campaign. To achieve the strongest YouTube performance for clients, reports should be reviewed daily or weekly to ensure all KPIs are progressing as expected. Without additional software, reports take the form of CSV .

Reporting obtained without third-party software exports as CSV files

How YouTube Ad Tech Helps • Campaign Reporting dashboards housed within YouTube ad software such as Pixability’s are visual, customizable, and are easily sharable with agency management and clients. • Third-party solutions provide both high-level and granular campaign insights into CTRs, impressions, and more.

Pixability’s campaign reporting dashboard is visual and easily customizable 20 4. Results At the conclusion of each YouTube media buy, compare the results achieved with the client’s initial KPIs to evaluate campaign success. Ad buying and video management software can be helpful when it comes to tracking flight performance over time and measuring results.

How YouTube Ad Tech Helps

lower CPV (cost per view) than the industry average.

Buying with Pixabilit vs. industry average CPV - In-Stream 50% lower CPV CPV - In-Display 66% lower CPV CTR - In-Stream 5% CTR CPM - In-Display 50% lower CPM CPM - In-Stream 50% lower CPM Engagement 71% higher

21 About Pixability Pixability is a YouTube ad buying and video marketing platform for media professionals.

Our patent-pending technology enables agencies to precisely connect brands to consumers with YouTube campaigns that consistently outperform industry averages.

Pixability leverages data science and predictive analytics to make YouTube ad buying efficient, effective, and transparent. Pixability’s software improves buyer workflow, streamlines YouTube campaign set-up, and enables real-time optimization and reporting.

Used by many of the world’s largest online video advertisers, Pixability is headquartered in Boston with offices in New York, San Francisco, London, and Chicago. For more information, please visit www.pixability.com.

Pixability Customers Include:

22 Ready To Get Started Advertising On YouTube?

Working with Pixability to execute YouTube campaigns is easy. Most importantly of all, it’s effective.

Short-term campaigns, performance deals, repeat campaigns, managed services, software licenses… However you prefer to get started is fine by us.

Pixability’s ad buying and video marketing software helps you achieve YouTube results significantly better than industry benchmarks for your clients with: • Less effort • Less risk • Less waste

You can operate our software yourself, or Pixability’s YouTube-certified experts can run campaigns on your behalf.

Interested in learning more about what Pixability can help you achieve with YouTube advertising?

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