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Demystifying Premium SEPTEMBER 2018 #PremiumVideo Demystifying Premium THE KEY ATTRIBUTES OF PREMIUM VIDEO 1 FREEWHEEL COUNCIL / DEMYSTIFYING PREMIUM / #PremiumVideo Executive Summary THE CONCEPT OF THE WORD “PREMIUM” HAS SUFFERED some efficiencies, but it has also created risks. When from a lack of consistent definition since the dawn of considering audiences as “premium”, the viewer digital advertising and has been applied universally (sometimes not actually a human) can no longer be as a sales and marketing tactic to create appeal to considered in a vacuum—the environment is critical, advertisers. It is often said that premium is in the eye not only in terms of brand safety but also transparency, of the beholder, and the price of advertising will often verification and the likelihood to drive business outcomes. come down to what an advertiser is willing to pay for an opportunity to get in front of a target audience. Premium video—which is a TV or TV-like environment, However, the value of the audience is only one element both linear and digital—is a powerful advertising of the premium equation. Whilst important to a brand’s environment, yet buy-side investments are often limited overall strategy, building ongoing brand values and by the perception that TV is challenging to access, or affinity with consumers over the long term is arguably prohibitively expensive. At the same time advertisers are the primary goal in any sustainable engagement lured into quick, easy and apparently low-cost, lower between brands and consumers. If the past couple of quality digital advertising options. It’s only once they look years have taught us anything, it is that the quality of deeper and start to scrutinise results that they begin to environment and ultimately, the results or the return on understand that some of these platforms lack efficiency investment (ROI), are what matter. of long-term brand building or driving positive ROI and worse still, may even present a risk to brand reputation. While there may be some truth in the view that premium Premium is content and context video is more complex than other digital advertising, it that add value in the eyes of the viewer. is ultimately far more effective at driving genuine brand outcomes in both the short- and long-term. It is also So, something that makes it premium is becoming more simple and affordable all the time. something that makes it more valuable. This paper demystifies the term “premium”, taking a deep dive into what it takes to justify its name, how Phil Smith premium video differentiates itself from non-premium Director General, ISBA media and using research from multiple markets to Watch the Interview illustrate how it is more accessible and worthy of greater investment. The past few years have been a jolting experience for many brands as they encountered quality issues among buys, some of which were from exchange- based platforms and some from supposedly trustworthy sources. The shift towards audience-only buying that the digital revolution has facilitated, has created 2 FREEWHEEL COUNCIL / DEMYSTIFYING PREMIUM / #PremiumVideo Key Takeaways • Many claim “premium”, but not everyone offers premium advertising opportunities. “Premium” entails a specific set ofattributes that drive business outcomes. • Five key attributes of “premium” are: 1 2 3 4 5 Brand Safety Transparency Engagement Trust Quality Reach • TV advertising has evolved to enable new transaction models and access to high quality, engaged audiences at scale. • Premium video delivers the largest short- and long-term multiplier of ROI for brands. • Brands should question the ubiquity of the term “premium” and make no compromises when it comes to investing in premium inventory. Redefining Premium: What Makes it Premium? PREMIUM VIDEO IS PROFESSIONALLY-PRODUCED VIDEO CONTENT, DELIVERED VIA CURATED USER EXPERIENCES, IN A BRAND-SAFE CONTEXT TO HIGHLY ENGAGED AUDIENCES. Accessed via any screen, it is often viewed within multiplatform TV including broadcaster video-on- demand (VOD) and over-the-top (OTT) platforms (with limited presence within video aggregators, social networks or long-tail video sites). Many claim, but very few can deliver on the promise of premium: premium video is defined by its quality and the attributes that make it different from other types of video content, including brand safety, transparency, engagement, trust and quality reach. 3 FREEWHEEL COUNCIL / DEMYSTIFYING PREMIUM / #PremiumVideo ATTRIBUTE 1 Brand Safety BRAND SAFETY CAN BE A CHALLENGE IN DIGITAL ADVERTISING WHERE AUDIENCE-ONLY OR audience-first models mean advertisers and agencies often have no idea of environment, opening up the possibility of ads appearing next to inappropriate content. Premium video is different because content is expertly curated and only features in high-quality, sought-after environments that are complementary to brands and their values. When discussing VOD at an event in May 2018, Matt Hill, Research & Planning Director of Thinkbox1, explained: On-demand TV content is 100% brand-safe because it is regulated by the same broadcasting code that applies to linear TV, applying strict rules around harmful or offensive content, impartiality, and accuracy of information. Matt Hill Research & Planning Director, Thinkbox These rules are designed to protect consumers, but simultaneously protect advertisers, ensuring a brand-safe environment. The exponential growth of the digital ecosystem has brought with it the need for control and safety measures. Fraud, driven by poor quality inventory, is extracting significant value from the industry and is badly damaging performance. It is time to focus energy away from risk mitigation and towards quality media environments that will drive campaign success. In an interview with Beet.TV in June 20182, John Montgomery, GroupM’s Global EVP of Brand Safety, explained: By buying better quality, the CPM may be higher but it will be worth it. We’ve done a lot of studies proving that brand safety not only limits risks, but it works better. Buying quality actually sells, and this is where we think we should take the conversation to, after brand safety becomes table stakes. John Montgomery Global EVP of Brand Safety, GroupM Watch the Interview 1. https://www.thinkbox.tv/News-and-opinion/Events/Watch-Broadcaster-VOD-The-Bigger-Picture 2. https://www.beet.tv/2018/06/john-montgomery.html 4 FREEWHEEL COUNCIL / DEMYSTIFYING PREMIUM / #PremiumVideo ATTRIBUTE 2 Transparency THE NEED FOR TRANSPARENCY HAS PERMEATED THROUGH The need for transparency goes the other way as the entire advertising industry, with brands demanding a well, with premium publishers and broadcasters clear understanding of where and how their advertising standards requiring ad creative clearance to ensure the budgets are being spent. An Ebiquity report3 illustrates consumer experience is of the highest quality. This has that, in some cases, only 15 cents of every euro spent ramifications on the transaction itself, with premium in programmatic digital media trading reaches the video players transacting the majority of their inventory intended audience. The majority goes to intermediaries, via direct sales and private marketplaces, as opposed and in some cases, further value is eroded by non- to open auctions and exchanges where controls and viewable inventory or fraud. Without transparency there transparency levels are lower. This also creates more is diminished accountability, and without accountability predictability for delivery on both sides. there is an inevitable loss of trust and confidence. With premium video, buyers know exactly who they are dealing with and precisely where their budget is One thing that brands should never being spent. The need for control over supply and compromise on is transparency. There is compliance means that premium video is mostly transacted via private marketplaces, and often served no trust, no campaign monitoring, no within the closed environments of OTT and VOD. optimisation, if there is no transparency. Philippe Boscher Head of Digital Marketing & Innovation, TF1 Publicité Watch the Interview Premium Video & Transparency: The Inverted Transactional Pyramid PREMIUM VIDEO MANUAL DIRECT DEALS PROGRAMMATIC TRANSPARENCY GUARANTEED SEMI-AUTOMATED CONTROL PREFERRED PREDICTABILITY DEALS PRIVATE AUCTIONS AUTOMATED OPEN AUCTIONS 3. The new marketing landscape: How TV can take advantage of change, EbiquityEbiquity, 2017 5 FREEWHEEL COUNCIL / DEMYSTIFYING PREMIUM / #PremiumVideo ATTRIBUTE 3 Engagement WHILE THE QUALITY OF LINEAR TV HAS ALWAYS DRIVEN Premium video also drives more attention than other engagement, on-demand premium video capabilities types of digital video, which is vital for consumers to add a new dimension. Viewers are in control, choosing engage with advertising messages. A 2017 report from the shows they want to watch, at a time that suits them, Think TV6 reveals the attention an average second of making them further engaged with the content and active video content commands on various platforms. receptive to the ads associated with it. TV content captures 58% attention, while video sharing or social platforms only command 31% and 4% attention The highly engaging nature of premium video is illustrated respectively. Channel 4 research5 also describes the by the outstanding completion rates it achieves. The UK’s distracted attention state as “the enemy of advertising,” recent “Bigger Picture” research4 (involving Sky, Channel revealing the level of distraction time for online platforms 4, ITV and Thinkbox)
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