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Advanced TV Matrix: a Market Snapshot

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Advanced TV Matrix: a Market Snapshot Advanced TV Matrix: A Market Snapshot JUNE 2019 ACKNOWLEDGEMENTS LIST OF WORKING GROUP COMPANIES A&E Networks Essence Nielsen ABC Experian Marketing Services Philo AccuWeather Extreme Reach Placed Ad-ID Flashtalking PlaceIQ Adobe FreeWheel Premion AMC Networks Gamut Simulmedia Amobee GfK North America Sizmek Beachfront Media Google Sony Pictures Television Cadent Hulu Spectrum Reach CBS Interactive Integral Ad Science SpotX Cheddar IRI SundaySky Comcast Spotlight KERV Interactive Telaria Crackle Kochava The Media Trust Company Cuebiq Liquidus Marketing Verizon Media Group Dataxu LiveRamp WarnerMedia Dentsu Aegis MediaMath Xandr Digitas LBI Medicx Media Solutions ZypMedia Discovery Communications Modi Media Dish Network NBCUniversal Epsilon NCC Media ADVANCED TV MATRIX 2 EXECUTIVE SUMMARY Planning and executing a TV campaign used to be simple. Regardless of what inventory you bought, the mechanics were generally the same. Deals were guaranteed on a demo CPM and they would be measured and reported by Nielsen. Creative trafficking was usually pain-free. Time-shifting disrupted things a bit, but Commercial ratings and VOD helped buyers cope with the diminishing supply of live rating points. But now, as a confluence of factors have brought upon us Advanced TV, we are faced with a TV industry that’s more complex than ever. Addressable TV has been around for a number of years now, but with the advent of OTT devices and new streaming services popping up all the time, we as an industry are starting to view this opportunity in a new light—as part of a bigger push to eliminate wasted impressions, garner insights into TV campaigns, and finally tie exposures to outcomes for true attribution. Fueled by data, this new landscape goes beyond the age/sex demographic and into targetability and granularity in a very digital-like manner. However, despite the obvious benefits there is still confusion in the marketplace as to how each are transacted, measured, and trafficked differently. The goal of this reference guide is to bring clarity to this space so that when there are conversations between the buy and sell side (and everyone in between) everyone is starting with the same basic level of understanding. We have attempted to collect “just the facts” and organized this chart so that it starts with Traditional Linear TV and becomes increasingly ‘advanced’ along the way. The chart becomes more addressable, more data-infused, more on-demand, and more digital as you move from left to right. This guide will aid you in determining which avenues make the most sense for your brand. Grouped into five sections, you will gain an understanding into the transactional nature of each, the state of measurement, and even how the ads themselves are trafficked. Given today’s rapid pace of change, we expect to be making updates to this document as the Advanced TV space continues to evolve. Please read this as an invitation to join the conversation with us. For more information on digital video, please visit video-guide.iab.com. To get involved, please email [email protected] or [email protected]. Enjoy! ADVANCED TV MATRIX 3 BROADCAST/SET TOP BOX AD DELIVERY DEFINITIONS TRADITIONALTRADITIONAL LINEAR LINEAR TV TV DATA-DRIVENDATA-DRIVEN LINEAR LINEAR TV TV SETSET TOPTOP BO BOXX VIDE VIDEOO ON DEMAND DEMAND Demo-Based Targeting Audience-Based Targeting Demo-Based Targeting Ex. A18-49 Ex. Auto Intenders Ex. A18-49 TV programming that follows Same programming as traditional On demand content offered by a schedule, which includes linear TV, but uses an audience- individual networks or MVPDs via both live as well as time-shifted based buying approach that the set top box VOD menu. This (via DVR or VOD) viewing, in incorporates different data sets refers to the inventory opportunity which ads are not delivered via including demographics, interests, outside the (3 or 7) day window Dynamic Ad Insertion. and viewing behavior to optimize where the live telecast ad loads a linear TV schedule against are dynamically replaced by specific networks, programs, and new ads. dayparts to better reach a higher concentration of an advertiser’s strategic audience. ADDRESSABLE STB LINEAR/VOD ADDRESSABLE LINEAR/VIDEO ON DEMAND (VOD) The ability to dynamically serve an ad within either a live, linear TV or VOD environment specifically to an individual household based on predetermined *Auto Intenders*Fast Food Lovers targeting criteria. *Examples of strategic targets ADVANCED TV MATRIX 4 STREAMING AD DELIVERY DEFINITIONS VIRTUAL MULTICHANNELvMVPD VIDEO TV EVERYWHERE (Virtual multichannel video TV EVERYWHERE PROGRAMMINGprogramming DISTRIBUTOR distributors) (vMVPD) A streaming pay-TV subscription, which An online business model in which television provides access to traditional linear TV networks and MVPDs allow their paying networks as well as on demand content customers to access live and/or on demand delivered over the Internet without the video content from their networks through traditional set top box infrastructure. Internet-based applications. DIRECT TO CONSUMER SERVICES DIRECT TO CONSUMER STREAMING SERVICES Ad-supported digitally native services that offer up TV like content directly over the Internet and completely outside of the traditional set top box infrastructure, including via Over the Top (OTT) devices*. *OTT (Over the Top) Device - A device that can connect to a TV (or functionality within the TV itself) to facilitate the delivery of Internet-based video content (i.e., streaming boxes, media streaming devices, Smart TV’s and gaming consoles). ADVANCED TV MATRIX 5 BROADCAST/STB AD DELIVERY STREAMING AD DELIVERY Direct to Characteristics Traditional Data-Driven STB VOD Addressable vMVPD TV Consumer Linear TV Linear TV Linear/VOD Everywhere Services How are ads Ad Delivery to delivered to the 1:Many 1:Many 1:1 HH 1:1 HH 1:1 1:1 1:1 Consumer viewer? (+co-viewing) (+co-viewing) (+co-viewing) 119.9MM TV HHs (Broadcast Only 89% of US 1 Adults use the + Pay-TV, Nielsen ) Internet (Pew7) 64 MM HHs Total Multi- 98.3 MM 305.4MM Individuals (Broadcast Channel Broadband HHs Only + Pay-TV, Nielsen1) subscribers in US (Leichtman (Traditional Research8) MVPD and vMVPD) - 74% of HH What do we 94.8MM HHs (224 MM Total Pay-TV subscribers (Traditional 2 individuals) have know about the 72.4MM HHs 7.7MM (Nielsen ) Scale size or reach MVPD and vMVPD) - 94.8MM 3 subscribers a connected potential of HHs (Nielsen2) (Nielsen ) (BTIG5) TV device each? (Leichtman 9 IAB Advanced Research ) TV Targeting Examples - Hulu Guide 38MM HHs (28 million HH Individual cable networks HH reach accessed a subscribers), varies depending on distribution Network-based Pluto TV (12 (the top cable network is in 89MM TV Everywhere million active HHs) (Nielsen2) application in users), Xumo 4Q’18 (Adobe6) (5.5 million active users) Median Age for Broadcast Networks - 59 (Nielsen10) Median Age on Median Age for Connected TV viewership - 42 STB VOD - 45 12 12 (Nielsen ) Median Age for Cable Networks - (Nielsen ) 54 (Nielsen10) N/A since What do we this method of Consumer Profile know about buying reflects the consumer Each Network's profiles of each? M/F Skew for Broadcast Networks individually - 55/45 (Nielsen11 ) VOD median selected HHs age skews younger than 60/40 M/F (IAB13) M/F Skew for Cable Networks - that Network's 53/47 (Nielsen11 ) median age on Linear TV All varieties of content available depending on Cable TV streaming service Networks - Live Broadcast and Cable TV - New and Old Feed and Time Networks - Live Feed and On Original and Broadcast, Shifted via DVR Demand access to network content BASIC OVERVIEW BASIC (Linear) Syndicated, What type Broadcast and Cable TV Networks Cable, and Live and On Content Type of content is - Live Feed and Time Shifted via VOD-Only TV Demand, Long Networks - On and Short Form available? DVR/VOD Demand access to their content Broadcast, Cable, and VOD-Only TV Content Format Composition for 2018 - 11% Clips, Networks - On 14 Demand access 56% Full Episodes, 33% Live Content (FreeWheel ) to their content (VOD) Household Level targeted; 1st Content-Based- Behavioral Mostly by party or 3rd By network, characteristics, network (run party segments Audience-Based - IFA, Device ID, Device Type, IP What type of program, 1st or 3rd of schedule). are matched to Address, Operating System, User Agent, Daypart, Targeting targeting is daypart, party segments Some providers MVPD subscriber Network as well as 1st and 3rd party audience used? and Nielsen (syndicated offer targeting information to segments demographics and custom), by program, identify HHs in (age/sex) performance daypart, and an anonymous targeting genre. manner IAB Advanced TV Targeting Guide Yes, some networks offer Does delivery on Day 1, but Dynamic Ad type allow for No No a majority offer Yes Yes Yes Yes Insertion DAI? it a few days after (C3/C7 window) For acronyms and sources view appendix on page 11. ADVANCED TV MATRIX 6 BROADCAST/STB AD DELIVERY STREAMING AD DELIVERY Direct to Characteristics Traditional Data-Driven STB VOD Addressable vMVPD TV Consumer Linear TV Linear TV Linear/VOD Everywhere Services Viewer experiences same number Varies by service, but typically of ad breaks and length as in each ad pod is between 60-120 Traditional Linear seconds long MVPDs are Broadcast Primetime avg = 14:52 allotted two vMVPDs are minutes of ad time per hour, 25% minutes per generally of time (Kantar15) hour for each allotted two What do we On average, 1 cable network- minutes per Ad Pod know about pre-roll ad and -this
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