Connected TV Overview

Connected TV

Auric Bonifacio B. Quintana

The purpose of this document is to review the process involved in executing Connected TV (CTV) in DV360. This document is meant to combine tactical guidelines, implementation process, best practices and recommendations to ensure a successful launch.

Overview This is an overview of h ow to specifically buy inventory on Connected TVs, which is one piece of the larger Programmatic TV pie. CTV is a specific device type that can be used to watch TV content (live or on demand). Programmatic TV is the technology-automated and data-driven method of buying and delivering ads against T V content - regardless of the device used to deliver that content. Advanced TV, CTV, OTT, FEP etc. all form a part of the programmatic TV landscape. The list of terms can be extremely confusing and they are often used interchangeably. The Google Marketing Platform definitions are described in the graphic below.

© 2018 Google Inc. All rights reserved. Google and the Google logo are trademarks of Google Inc. All other company and product names may be trademarks of the respective companies with which they are associated

Connected TV

Table of Contents ● What Is Connected TV and Why Should I Buy It? ● Implementation Process ● Implementation via Device Type ● Implementation via Inventory ● Forecasting Availability ● Connected TV Reporting ● CTV on Youtube/TrV ● Best Practices and Known Limitations

What Is Connected TV and Why Should I Buy It?

Connected TV (CTV) is a TV that is connected to the internet either: 1. Natively (i.e. a Smart TV) or 2. Via an external device (i.e. digital media player, game console, streaming stick).

CTV is a brand new device type in the ecosystem which is different than both desktops and mobile devices.

Why should I run CTV Inventory on DV360?

1. Augment traditional TV buys with digital inventory: a. DV360 has access to the same broadcast networks that we buy today - Fox, CW, Univision, FX, etc. So this can simply extend the traditional buys to capture the cross-screen experience or use tools to find the younger demo that watches TV in this way. b. CTV allows digital buyers to access premium inventory with non-skippable full screen ads utilizing sight, sound, and motion. c. Broadcast & Full Episode Player Inventory. d. Content, with full screen non-skippable placements. 2. Extend reach: a. Two-thirds of Americans own a connected device.1 b. The audiences watching tv on a connected device are younger and (on average) have greater purchasing power than traditional TV viewers.4 c. CTV inventory is available on a wide range of devices - AppleTV, Chromecast, Roku etc. 3. Flexible Buying: a. Reserve inventory upfront from publishers via programmatic guaranteed deals. b. Buy via select auction packages. c. Buy via the open exchange auction and CTV device type targeting. 4. Reach an engaged audience:

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a. With a TV experience, CTV ad viewing is more effective than linear ads at driving brand lift and purchase intent.2 b. Based on Lab Experiments, YouTube ads shown on TV screens had a significant lift in Ad Recall and Purchase Intent, with an average lift of 47% and 35% respectively. 3

1 S ource: TiVo "Q4 2017 Online Video and Pay-TV Trends Report: Consumer Behavior Across Pay-TV, OTT, Connected Devices and Content Discovery." March 2018

2 S ource: go/iwantctv slide 31 (h ttps://www.magnaglobal.com/wp-content/uploads/2018/04/Magna.IPG-Lab-Roku-Under-the-Hood-of-OTT.pdf)

3 Source: Google/Ipsos Lab Experiment, US, March 2018 (32 ads, n=1,600 among US residents M/F 18-64 y/o).

4G oogle Authorized Buyers CTV Signals & Best Practices

I mplementation Process Buying Strategy

Some programmatic targeting capabilities are not yet functional with open exchange CTV inventory in DV360.

If DV360 targeting capabilities (see T argeting Compatibility Matrix) do not satisfy the campaign requirements, scope out publisher capabilities (see Private Deals Implementation Key) to apply settings on their end and send eligible inventory via a deal.

1. Inventory - Due to scarcity of inventory, majority of CTV is transacted via 1:1 deals and private marketplaces. a. Auction package - Access CTV inventory through SSP auction packages. b. Deals - Cut custom deals with publishers to access CTV inventory: i. Programmatic Guaranteed ii. Private Auction/Programmatic Direct 2. Device type - Target CTV by device type in the UI and serve to open exchange inventory.

K PI Considerations

Watching video on a connected TV is a “lean back” viewing experience with little interaction unlike desktop or mobile.

KPIs Engagement KPIs are not relevant. Do not optimize towards CTR, CPC, engagement, vCPM, CPA. Due to high viewability, r elevant KPIs are Completion Rate, CPCV.

Frequency Device ID must be passed to frequency cap. Device IDs are not passed for all CTV inventory (high coverage on Google Ad Manager; low coverage for

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3PE). Therefore using frequency capping will limit reach for inventory with low device ID coverage. Request publisher to implement frequency cap on their end.

C reative & Placement

Due to the nature of this new device type, creative specs and targeting must be adjusted for Connected TV buys.

Size Screen size will be large, use an HD video creative (1080p, 1920x1080).

Format Use a general VAST tag with a high resolution MP4 video file. No VPAID accepted*

Skippable There is typically no click-thru possible on CTV. Set creative as non-skippable.

Placement Most inventory is pre-roll or mid-roll, 15-30sec.

*VPAID Only Creative UI Warning ● During line item creative assignment, if you only assign VPAID creatives, there is a warning in the UI. The intent of this lightweight notification is to educate users, at the time of creative assignment, that VPAID creatives are ineligible to serve in Connected TV and mobile app environments. The message prompts our users to assign backup VAST creatives to enhance their line item eligibility. ● The notification shows in the DV360 Creative assignment widget within line item setup once a user has assigned: ○ At least one video creative ○ AND All video creatives assigned are VPAID ● The warning appears, explaining the incompatible setup and prompting users to assign a VAST creative ● Clicking the link will jump users to the creative assignment dialog filtered to their VAST type creatives

T argeting

If a targeting feature is listed as incompatible it means that DV360 will not b e eligible to bid on CTV inventory bid requests with that setting applied.

Let's take frequency cap for example - if we have a frequency cap applied in DV360 but the publisher does not pass device IDs, we will not bid on the requests because we cannot verify if we'd violate the frequency cap or not.

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Only set compatible targeting parameters in DV360 for all activation types - C TV device type and inventory buying strategies.

T argeting Compatibility Matrix

● This info is specifically for the Video RTB Line Item (not TrueView). ● Targeting on CTV is based on DV360 capabilities on AdX, X-exchange varies / case by case. ● If targeting is not available, it is likely not available across any exchange since DV360 does not ingest the signal OR the signal does not exist.

Feature Feature Details DV360 CTV Compatibility

Brand Safety Digital Content Labels No coverage (make sure to select not yet labeled)

Sensitive Category Exclusions No coverage

Other Verification Services No coverage

Category Targeting Keyword targeting/exclusions No coverage

Categories No coverage

App/URL App/URL or channel targeting Channel targeting O K

Viewability Active view viewability targeting OK (presumed viewability for verified apps). C TV targeting exemption

Active view optimizations (ToS, CIVA) Not supported

3P viewability measurement (VPAID) Not supported

Ad Position - above the fold Not supported

Ad Position - below the fold Not supported

Video Targeting Pre-roll OK

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Mid-roll OK

Post-roll Limited Volume

Player Size HD/Large OK

Medium Limited Volume

Small Limited Volume

Audiences Google Audiences (Demo, Affinity, In-market) Not supported

First/third party data Not supported

Lookalike Not supported

Demo Parental status, HHI Not supported

Age & Gender ~55% coverage for AdX (US)

Geo Geo including DMA and zip code OK

Country OK

Creative Format VAST OK

VPAID HTML5 Not supported

MRAID Not supported

Creative Length >30s non skip Limited volume

30s non skip OK

15s non skip OK

30s/15s Skippable Limited Volume

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6s. Varies by PUB

Frequency Can apply frequency capping in DV360 Ok for Google Ad manager, improving for 3PE

I mplementation Keys

Use the information in the following implementation keys for quick reference of key components of various buying strategies. The inventory-based implementation keys are to give a sense of prominent inventory sources and publishers quickly. The information in all the tables is for directional guidance, as CTV is an evolving space, always reconfirm availability in UI or with publishers directly.

Device Implementation Key

Type Audience Geo Frequency Deal Types Workflow

CTV device No Zip, DMA or Ok for Google Ad N/A Only use compatible type Country manager, targeting in DV360; improving for 3PE target CTV device type

Sub Exchange Inventory Implementation Key

The information in the table is for directional guidance, as CTV is an evolving space, always reconfirm availability in UI. Reach out to your account team to activate these deals in DV360.

Type Audience Geo Frequency Deal Types Price Workflow

Open Yes Zip, DMA, Limited Open $5-$30 Use device Exchange (limited) Country coverage Exchange targeting to Targeting Inventory target Connected TV devices

Google No Zip, DMA, Ok Public N/A (set a Exclusively target Top Video Country Inventory > competitive inventory source Picks - All Google Ad video bid) in DV360 under Manager Public Inventory;

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Google Sub-exchange only use Top Video compatible Picks - TV targeting in Only DV360; Add CTV device targeting AO - AOL No Zip, DMA, limited Public $22 O&O CTV - Country coverage on Inventory > $22 3P exchange ONE by AOL Sub-exchange

AO - CTV No Zip, DMA, limited Public $5 Entertainm Country coverage on Inventory > ent - $5 3P exchange SpotX Sub-exchange

DBM - M&E No Zip, DMA, limited Public N/A (set a - CTV - Country coverage on Inventory > competitive Always On 3P exchange SpotX video bid) Sub-exchange

Always-On Implementation Key

The information in the table is for directional guidance, as CTV is an evolving space, always reconfirm Always-On availability in UI. Reach out to your account team to activate these deals in DV360.

Type Audience Geo Frequency Deal Types Price Workflow

CTV No Zip, limited Private $18 floor Exclusively target Entertainment DMA, coverage on auction Deal ID Country 3P exchange (INV-17714-00004); only use compatible targeting in DV360

Political - No Zip, limited Preferred $15 fixed Exclusively target OTT/CTV DMA, coverage on deal Deal ID Country 3P exchange (NV-17686-00019); only use compatible targeting in DV360

CTV Sports No Zip, limited Private $18 floor Exclusively target Inventory DMA, coverage on auction Deal ID Country 3P exchange (INV-14988-00037);

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only use compatible targeting in DV360

CTV News No Zip, limited Private $15 floor Exclusively target Inventory DMA, coverage on auction Deal ID Country 3P exchange (INV-17686-00004); only use compatible targeting in DV360

G_AP_Video_ No Zip, Ok on Google Private $6 floor Exclusively target ConnectedTV DMA, Ad Manager auction Deal ID Country (5496443938465194 97); only use compatible targeting in DV360

P rivate Deals Implementation Key

The information in the table is for directional guidance, as CTV is an evolving space, always reconfirm targeting capabilities with publishers.

Type Audience Geo Frequency Deal Types Workflow

Hulu Yes via Hulu’s Zip codes Publisher can PD 1P data frequency cap

CNN Yes via Roku National only Publisher can PA, PD, PG audiences (layer in frequency cap and 1P data compatible DV360 geo) Send targeting to pub CBS Yes via CBS’ Zip codes Publisher can PG first for specific geo(s) 1P data frequency cap or audience targeting; Pub will send Deal ID

Vevo Yes via Zip codes Publisher can PG on VEVO’s 1P frequency cap YouTube data

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Newsy Yes via Zip codes Publisher can PA,PD, PG Newsy’s 1P frequency cap data

Sling TV Yes via Sling’s Zip codes Publisher can PA,PD, PG 1P data frequency cap

CW No Zip codes Publisher can PA (no zip (PG & PD) frequency cap codes), PD, PG

P rivate Deals discovery

1. Discover CTV publishers by navigating Inventory > Marketplace 2. Use Device filter to specify CTV device type and strike deals with CTV providers.

I mplementation steps via Device Type

If DV360 targeting capabilities satisfy the campaign requirements, set up CTV campaign using CTV device type targeting and purchase inventory via the open exchange.

1. Traffic video line items in DV360. 2. Assign general VAST tags with a high resolution MP4 video file as the creative units.

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3. Only use compatible targeting parameters in DV360 (see T argeting Compatibility Matrix) . 4. Target CTV device type - Environment filter will be revamped in 2019. Until then, recommendation is do not target both Device and Environment

I mplementation steps via Inventory

1. Traffic video line items in DV360 according to deal type. 2. Under Inventory Targeting, navigate to: a. Public Inventory and exclusively target sub-exchange inventory sources. Make sure to opt out of other public inventory.

b. Private Deals and exclusively target the intended AO, Private Deal or Programmatic Guaranteed deal. Make sure to opt out of public inventory.

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3. Assign general VAST tags with a high resolution MP4 video file as the creative units. 4. Only set compatible targeting parameters in DV360 (see Targeting Compatibility Matrix) and rely on the publisher to pass eligible inventory via the deal for the remaining targeting parameters.

Forecasting Availability Use Inventory Availability Reports to verify avails with the inventory source selected, CTV device type, and any other settings in DV360 that are not yet taken into account on the pub side (i.e. geo, creative duration, etc.)

C onnected TV Reporting Standard Reporting Select “Connected TV” as a device type in Reporting to: 1. Understand available CTV inventory via the Inventory Availability Report.

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2. Measure campaign performance on CTV via post campaign reports.

Y ouTube on TV Screens: CTV Buying for TrueView Line Items Value proposition:

1. On average, users now watch over 250 million hours of YouTube on TV screens every day. 2. With this launch, DV360 can specifically target ads to the TV Screen, manage bids for the platform, and receive full reporting metrics for ads that ran on Connected TV devices. 3. Based on Ipsos Lab Experiments in the US, YouTube ads shown on TV screens drove a significant lift in Ad Recall and Purchase Intent, with an average lift of 47% and 35% respectively.

Why is this special? This launch enables Display & Video 360 users to:

1. Explicitly target YouTube ads on the TV Screen. 2. Advance TV audiences by applying G oogle Audiences to Connected TV TrueView line items a. Google demographics b. Use affinity, in-market and other Google Audiences on the TV Screen 3. Use unique YouTube audiences for CTV device types a. Looking for Light TV audiences? Target “Light TV Viewers” on the biggest YouTube surface 4. This is a differentiator for DV360 and is not available with any other platform. 5. TV Screens are YouTube’s fastest growing surface for organic watch time. 6. Unlike other CTV buying strategies, v iewability measurement & brand safety Third-party solutions are available.

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Compatibility:

1. All video formats, except TrueView for Action, TrueView for Shopping, and In-feed Discovery are not supported.

Implementation:

1. To run a TrueView line item that only runs on Connected TVs, enter “-100%” as the bid adjustment for “Mobile”, “Desktop”, and “Tablet”. Do not set a Connected TV bid adjustment. 2. To bid 50% higher for Connected TV impressions, set a Bid adjustment to “+50%” for Connected TV. 3. To exclude Connected TV inventory from this line item, set the Connected TV bid adjustment to “-100%”.

B est Practices & Known Limitations

1. Known limitations: a. For the time being, CTV device type includes Set Top Box (STB) inventory. Later on, there are plans to launch a separate ‘Set Top Box’ device type b. Inventory Forecasting Widget does not yet include CTV inventory since forecasts will be inaccurate (long term, will include widget with accurate forecasts) a. Connected TV Viewability Targeting Exemption (launched Aug 2, 2018) i. Goal: Prevent buyers from unintentionally blocking programmatic CTV bid requests because of lack of viewability measurement. Currently, if a buyer has a viewability target set for a line item, that line item will not buy any CTV inventory because CTV inventory is not measurable with current technology. The exemption feature is meant to enable these line items to buy

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CTV while also still keeping the viewability targeting restrictions in place for all other device types. ii. Details: At time of launch, DV360 opts all buyers into a viewability targeting exemption for CTV inventory. Buyers will be able to use viewability targeting for line items across devices without blocking CTV bid requests. At any time, buyers can opt out of this exemption by going into the advertiser level settings.

b. Pre-bid tracking services such as IAS are unable to track CTV inventory. c. Viewability measurement is not available but CTV inventory has a high presumed viewability due to the nature of the device type. d. There are numerous limitations with targeting compatibility, refer to the Targeting Compatibility Matrix. e. Google doesn't utilize IP targeting primarily due to privacy concerns. i. Accuracy: IP based targeting risks being highly inaccurate due to cycling IP addresses, use of VPNs, but mainly the fact that many exchanges truncate IP addresses when passing them to DSPs. Therefore, IP address matching covers many more than a single device or household. Even when combined with additional signals such as user_agent - accuracy will still be an issue. ii. Privacy and Solution Sustainability: In the new world of informed consent - it's extremely difficult to establish this with IP based targeting. Additionally, many publishers (Roku O&O being the prime example) are beginning to remove IP address from bid requests to DSPs for privacy concerns. As well, The FTC has increasingly stated it considers IP to be PII - so solutions based on IP are likely limited in sustainability.

2. Summary of some general best practices:

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3. Deals best practices:

Get Creative One of the leading causes of under-delivery is delayed creatives. This leads to a delayed Early launch of the campaign. Please request creatives be sent at least 72 hours ahead of the flight start to ensure enough time for creative approvals in both DV360 and AdX.

Always Rerun Forecasts become obsolete very quickly, especially with premium publishers. Request the forecast publishers to re-run their forecast before booking inventory, especially if it has been over a week since the last forecast. Seasonality becomes especially important, specifically in Q4.

Avoid booking Whenever possible avoid booking 100% of publisher’s forecasted impressions. 100% of avails Establishing a buffer of 10% of more can provide a much-needed wiggle room for if the campaign launches late or if traffic is lighter than expected.

Target one deal This gives users more control over the bid, targeting, creatives, and other parameters. It per line item further allows for increased delivery between deals, and assists in the troubleshooting process if a deal isn’t spending.

Bid above the It is suggested to bid $1 over the pre-negotiated floor. Lower bids according to scale but floor with fixed remember to keep it above the floor price. bid For LIs targeting multiple deals (not recommended), set the LI bid > the max floor price amongst the targeted deals.

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Include floor Include the floor price of the deal in the naming convention to be referenced when setting price in deal up line items without having to go to the Inventory tab. name

4. Best practices for performance evaluation: a. Review 30-day historical performance for Connected TVs, and continue monitoring for 1-2 weeks. b. Review key metrics by platform, and measure CTV impact. c. With these insights, develop budget allocation and bid modification guidance for in-flight optimizations and future campaign setup.