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The MMA Mobile Programmatic Video Guide

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The MMA Mobile Programmatic Video Guide The MMA Mobile ProgrammaticCOVER Video Guide Navigating a Growing, Complex, Media Marketplace MARCH 2019 ©2019 Mobile Marketing Association, Inc. All Rights Reserved. TABLE OF CONTENTS INTRODUCTION: A Growing Marketplace, With Few Adopted Standards ............................3 SECTION 1: WHY MOBILE IS NOT LIKE DESKTOP ............................................................... 7 1. Mobile Has Two Ad Environments: Mobile Web and In-App ...........................................5 2. In-App Inventory Partners Play a Significant Role ..............................................................5 3. Mobile Programmatic Is Still Evolving .................................................................................... 6 SECTION 2: VIDEO FORMATS, PLAYBACK AND TECHNICAL STANDARDS ................... 7 Understanding How the Experience Affects KPIs ............................................................................. 8 VAST, VPAID and MRAID: Pros and Cons of the Three Technical Standards ........................ 8 SECTION 3: UNDERSTANDING AND LEVERAGING CREATIVE OPTIONS ...................... 10 Vertical and Square Video .........................................................................................................................10 Interactive Video ...........................................................................................................................................10 Dynamic/Personalized Video ................................................................................................................... 11 Fully baked dynamic video versioning ................................................................................................ 11 VAST-based personalization .......................................................................................................... 11 VPAID overlays .................................................................................................................................... 11 VAST end-card personalization .................................................................................................... 11 Playables ........................................................................................................................................................... 12 Rewarded (or Opt-In) Video ..................................................................................................................... 12 SECTION 4: BUYING CHALLENGES AND CAVEATS ..........................................................13 Limited VPAID Inventory In-App.............................................................................................................13 Interference from Pre-Bid Verification ..................................................................................................13 Targeting Parameters That Reduce Scale ...........................................................................................14 Building Creative Capabilities That Can Achieve Scale .................................................................14 SECTION 5: LEVERAGING DATA ............................................................................................15 Deterministic vs. Probabilistic Data .......................................................................................................15 Location Data .................................................................................................................................................15 SECTION 6: GETTING A HANDLE ON MEASUREMENT ......................................................16 Getting Viewability for In-App Inventory .............................................................................................16 Measuring Conversions ............................................................................................................................... 17 Measuring Reach and Frequency ...........................................................................................................18 SECTION 7: AVOIDING FRAUD ...............................................................................................18 1. Ads.txt ...........................................................................................................................................................18 2. App-ads.txt .................................................................................................................................................19 3. Ads.cert ........................................................................................................................................................19 CONCLUSION: Making Mobile Video Programmatic Work for Your Brand ..........................20 GLOSSARY .................................................................................................................................21 ACKNOWLEDGEMENTS .........................................................................................................24 ABOUT MMA ............................................................................................................................24 ©2019 Mobile Marketing Association, Inc. All Rights Reserved. 2 INTRODUCTION A Growing Marketplace, With Few Adopted Standards If you’re reading this report, you probably already have an idea what programmatic advertising is. Although it has been defined in many ways, at its core, programmatic is the automation of ad buying and selling, resulting in work efficiencies and ideally, in a better match-up of supply and demand, giving the publisher a better price and the advertiser a more relevant audience. No matter how you look at programmatic, it dominates the digital ad ecosystem. Just as mobile now accounts for the majority of digital ad spending, programmatic buying accounts for the majority of transactions. And one particular segment of mobile – mobile video – is poised to continue growing at a breakneck pace over the next three years, which is why the MMA is publishing this guide. According to eMarketer, it will total $15.93 billion by the end of this year and $24.81 billion in 2022. The digital ad marketplace is moving toward being dominated by mobile and programmatic and video. Some current statistics on mobile, programmatic and video: • Mobile will contribute the most to global ad growth by 2020, at $72.6 billion, far ahead of any other platform. TV comes in second, at only $6.9 billion (Zenith). • The global programmatic ad marketplace was expected to hit $34.1 billion by the end of 2018 (Magna Global). This is an upward revision from an earlier estimate of $31 billion. • Ad spending in mobile programmatic video was anticipated to rise to $11.83 billion by the end of 2018, representing 52.5% of all domestic programmatic video spending (eMarketer). (Part of this total is due to a reclassification by eMarketer of social in-feed video into the digital video category.) • U.S. mobile Internet users spent 88 percent of their time in-app in December 2017. • As the chart below demonstrates, in August 2017, eMarketer predicted that digital video advertising would reach $15.4 billion by the end of 2018, but later upped that estimate to $17.9 billion by year-end 2018 (eMarketer). Programmatic advertising accounts for so much mobile video spend that the marketplace is almost reaching a point where if you’re buying digital video, you’re buying programmatic. But here’s the rub. For such a dominant marketplace, the speed with which it has grown means there are still many extant issues that need to be identified and addressed so that buyers and sellers can fully trust this channel. If the size of the market has reached scale, the solutions haven’t. Some prevailing industry standards are insufficient, while others are being modified, but have yet to achieve scale – and much of the market is a black box, particularly when it comes to mobile inventory providers and their advertising software development kits or SDKs. (All terms in blue are defined in the glossary appending this report that can be viewed here.) The goal of this report is to crack open the black box, bringing some level of understanding and transparency to the marketplace. ©2019 Mobile Marketing Association, Inc. All Rights Reserved. 3 Mainly focused on the U.S. market, it will unpack, explain, and provide order so that brands, and their partners, can better plan and optimize their mobile ad budgets. Mobile inventory providers are fully supportive of this effort to demystify how they operate, since transparency is key to opening the market to more spending by brands. The accompanying Mobile Programmatic Video Buyer’s Guide spreadsheet, which is being crowdsourced by members of the ecosystem, aims to help advertisers understand features and functionality of different SDKs, detailing their scale, supported verification tools, video formats and more. We encourage readers of this guide to contribute. Ultimately, this will help the marketplace move towards standardization, allowing more scale for measurement and standardized ad formats. As a side note, we should mention that eMarketer defines programmatic as anything transacted through automation, which includes the mobile video giants YouTube and Facebook; that definition clearly helps to push the overall programmatic numbers skyward. The majority of this guide will deal with mobile programmatic video transacted through DSPs (demand-side platforms) and trading desks, in other words, inventory that is outside of those two proprietary media silos. This still
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