Programmatic TV: Is This the Best of All Possible Worlds?

Looking Ahead to Programmatic in Local TV in 2016 March 2016

Looking Ahead to Programmatic in Local TV in 2016

Contents Executive Summary ...... 1 Introduction ...... 2 Programmatic TV: Is this the Best of All Possible Worlds? ...... 3 The Local Conundrum: Cable versus Broadcast ...... 4 Contextual Audience Networks (CANs) ...... 6 Current State of Programmatic TV ...... 7 Programmatic Experts – An Industry Panel ...... 9 Question 1: Describe your company and your role in programmatic TV? ...... 9 Question 2: Do you have any key partnerships or initiatives in the programmatic TV realm that you could share? ...... 12 Question 3: Have you been involved in the purchase of programmatic TV campaigns for your clients: local and/or national? If so, what clients or marketing verticals were involved? ...... 13 Question 4: Have you been involved in utilizing programmatic TV technology to sell TV inventory. If so, why? If not, why not? ...... 13 Question 5: What are the opportunities you are seeing in the programmatic TV realm for companies that manage workflow? ...... 13 Question 6: How do you view programmatic TV sales in terms of its compatibility to the existing approaches of traditional buying and selling? ...... 14 Question 7: What is your opinion on programmatic TV’s acceptance at advertising agencies? ...... 15 Question 8: What motivated you to include programmatic TV strategies as part of your media campaigns? ...... 16 Question 9: How soon do you think programmatic TV buying will have an impact on TV commercial inventory purchasing? ...... 17 Question 10: How do you view the usage of your tools in terms of complementing your existing business with advertising agencies, distribution platforms and content providers? . 18 Question 11: What are the opportunities you are seeing in the programmatic TV realm for data companies? ...... 19 Question 12: What do you think could be done to improve the programmatic TV deliverable in the future? ...... 19 About the Participants ...... 20 About BIA/Kelsey ...... 25

Looking Ahead to Programmatic in Local TV in 2016

Executive Summary conflicts; concerns about effective reach and frequency unduplicated across . In this report we focus on the area of channels; and data and universe programmatic advertising in local TV. definition incompatibilities. This is still a relatively new part of the . After a brief historical perspective of programmatic marketplace. Our method programmatic TV, we highlight some of is to pose key questions to a panel of the current platforms including: industry experts representing agencies, Placemedia, Videology, Clypd, Turn, station groups, data and platforms. TubeMogul, One by AOL (formerly . The local TV industry is developing a new AdapTV), AudienceXpress, AdMore, personality based on an emerging set of Media Ocean, Rocket Fuel, Cadent solutions and initiatives around data- Networks, Videa, WideOrbit, comScore- driven audience targeting advertising. Rentrak, TiVo/TRA, Experian, Epsilon, 4C, This includes programmatic TV, Nielsen, 4C, Epsilon, Acxiom, Sinclair, addressable and ad-supported video on- Experian, The Trade Desk, and NCC’s demand television platforms. Audience Plus.

. The core value proposition of . Russell Zingale, part of our panel of programmatic TV is that it can add industry experts and president of the efficiency and accuracy to the buying and Eastern division of USIM, MediaPost’s selling of TV inventory. Programmatic TV “programmatic agency of the year,” supports more precise audience summed up the state of programmatic targeting beyond the traditional age and TV very well. gender. “Programmatic, while still in its early stages, is . We analyze four impediments to the a step forward for traditional media to success of local programmatic TV: lack of delivery more accountability and ROI metrics transparency; potential for sales channel that are similar to digital executions. For me

Looking Ahead to Programmatic in Local TV in 2016

programmatic TV has been either a inventory valuation from both the buyer supplement to a traditional media buy or an and seller perspectives. Supply Side addition where TV was not previously part of Platforms and Demand Side Platforms the media mix.” bring their first-party (e.g., publisher audience data) and second-party data (data . Placemedia’s Chris Raleigh on the state from publisher partners) to the of programmatic TV. programmatic TV marketplace. Data Management Platforms add literally tens of “Agencies acceptance varies dramatically by thousands of audience targeting signals agency and holding company. Most large from a variety of third party databases to clients spend the bulk of their media dollars in support the development of consumer linear TV. With clients increasingly pushing graphs mapping the purchase journey. them towards the targeting, optimization, reporting and attribution models that In this report, we focus on the area of digital/mobile advertising provides, agencies programmatic TV advertising in the local need to evolve their legacy TV media buying.” DMA. This is still a relatively new part of the programmatic marketplace. Programmatic . And finally, how soon will programmatic TV builds on the earlier developments TV come to local? Our panel estimates it we’ve seen in “advanced television.” The will impact buying sometime in the next local TV industry is developing a new 18-24 months. Sinclair’s Weisbord personality based on an emerging set of believes, solutions and initiatives around data-driven audience targeting advertising. This “From a local perspective, I believe it will start includes programmatic TV, addressable and with addressable delivery to TV stations ad-supported video on-demand television sometime in 2016 and we are at least 18-24 platforms. months away from a full-blown solution. In addition, the transformation will begin with The buy-side is organizing around national advertisers prior to it reaching the advanced television’s benefits while local level.” recognizing and acting on the challenges. According to some recent research by Introduction STRATA, Modi Media (part of WPP’s Group Rick Ducey M unit), Starcom, Dentsu and Horizon Media are among the growing number of At BIA/Kelsey, we’ve launched a coverage agencies looking to address video area for local programmatic TV advertising fragmentation with integrated offers for to deliver strategic insights and consulting. their clients. On the media side, the game is Programmatic TV’s promise is the virtue of going to have to rise to a new level to be richness in data-driven marketing and competitive. As Dentsu Aegis’ Patrick audience targeting that programmatic Rubin puts it, platforms bring to the process. This “I was for some time managing TV, online richness in data provides apparent video and display all in one, and it created an precision in audience targeting and opportunity here [at Dentsu] to shape a

Looking Ahead to Programmatic in Local TV in 2016

greater role for advanced TV. “We saw the now as an omnichannel approach – stitching market was moving toward a structure which it all together and measuring not just for favored data and technology that drove better completion and click-through, but did a business results for clients.” person show up in store?”

Christina Beaumier at WPP’s Xaxis Beaumier really sets the stage for what’s programmatic group concluded that, next in media and marketing. Our question is, “are local TV groups and their buyers “Today, you can buy across broadcast ready for this?” BIA/Kelsey is launching our television, connected TV and video, but new practice area in programmatic TV and sometimes those things are separate and addressable TV so that that our clients can siloed. We’re focused on making the value of develop a more confident affirmation of Xaxis a reality in the connected TV strategy and roadmap and say, “yes, we are environment, but we’re really looking at this ready.”

Programmatic TV: Is this the end onto itself, whether or not programmatic is “necessarily created for Best of All Possible Worlds? the best end” remains to be seen. We hope Mitch Oscar so. The core value proposition of programmatic TV is that it can add There was a philosophy espoused by efficiency and accuracy to the buying and Voltaire’s fictitious personality in his 1759 selling of TV inventory. Programmatic TV Candide, Dr. Peter Pangloss. Around the supports more precise audience targeting time of the devastating Lisbon earthquake beyond the traditional age and gender of 1755, Pangloss stressed that “things targeting in the traditional TV marketplace. cannot be otherwise than they are; for as all things have been created for some end, Let’s move on to consider three stages of they must necessarily be created for the programmatic TV: best end.” 1. The Local Conundrum: Cable vs. Take programmatic TV for example. Broadcast 2. Contextual Audience Networks (CANs) We see programmatic TV as evolutionary and inevitable. In Panglossian terms, it is an 3. Current State of Programmatic TV

Looking Ahead to Programmatic in Local TV in 2016

The Local Conundrum: Cable versus audience would be more competitive Broadcast than a rival broadcast station’s equally delivered 5.0 household rating. One of the monumental issues facing the cable industry at the turn of the century . The price would be comparable – even was how to persuade TV buyers, local in more efficient in many instances, but the this instance, that local cable was as effective CPM would be...well…more valuable in delivering an audience as local effective. broadcast. . One campaign post analysis, one invoice The impediment: a TV station in a major and affidavits (network and program) market could offer a one stop, one would be proffered at the conclusion of commercial delivery of, for example, a 5.0 the campaign. household rating but local cable operators were only able to offer, on average, a 0.5 At that moment in time, there were at least household rating by network. This is a four significant impediments expressed by disproportionate comparison. the TV buying and selling community:

Enter: Invidi Media 1. Lack of transparency in the rolled up offering. The platforms primarily By mid-decade, Invidi, which was in the pre- provide breakdowns of networks and throes of challenging Visible World for the total schedule dayparts. Only after the mantle of leading purveyor of addressable campaign is complete will there be a technology in the U.S., began possibility of individual spot affidavits experimenting with the concept of Invidi shared. This occurred even though Media. sometimes the platforms would share information about the networks and . Today, Invidi remains the leading dayparts during the negotiation and/or technology backbone for addressable TV prior to campaign airing. advertising, deployed with Dish, DirecTV, Verizon, and Cox, and with a deal in 2. Concerns about effective reach and place for deployment with Comcast frequency. If opaqueness did allow systems. partial visibility, then would the rolled up local/national inventory replicate . The premise of the Invidi platform was to what the TV buyer was already aggregate local cable inventory in a purchasing from the pay TV operators market to roll up into a highly (currently referred to as MVPDs), concentrated audience (age and gender) national cable networks, and/or rating that would be competitive with a broadcast station sales team and standard broadcast TV spot delivery. therefore, create a redundancy that minimized reach and over extended . A 5.0 rolled-up household rating from a frequency? plethora of local cable networks that had a high concentration of a desired

Looking Ahead to Programmatic in Local TV in 2016

3. Sales channel conflict. Programmatic . Not only would Navic aggregate cable buyers could have access to similar inventory in a local market to build a inventory replicating the plug-and-play competitive, robust, highly targeted concept propagated by the broadband audience delivery comparable to a ad networks and their publishers. From broadcast household delivery – a the point of view of the MVPDs, TV horizontal build-out across multiple networks and TV stations, the issue is networks. emphatically sales channel conflict i.e., “if a TV buyer could purchase my . It would also provide analysis of the inventory from you at a more efficient cable operator’s programming to price then wouldn’t I be negotiating ascertain what programs might target a against myself and/or taking particular audience in what might be commission out of the pockets of my considered a non-intuitive approach. valued salespeople to populate the . As an example: a marketer is only coffers of others.” interested in purchasing programming 4. Platform universes. The universe of that relates to ice hockey. Easy enough each platform was not universal making to find via Tribune’s Zap2it program campaign planning, buying, guide. However, upon Navic’s analysis, optimization and evaluation difficult. many of those devoted hockey fans also watch knitting programming – a Arise: Navic discovery that led to a vertical view across multiple networks. Navic would On the heels of the Invidi offering arose build out a plan to accommodate both Navic, a purveyor of interactive banner horizontal and vertical delivery of a addressability accessible through a cable marketer’s targeted audience. operator’s set-top-box. Today, Navic is no more. The company was . Navic’s platform built upon Invidi’s purchased by Microsoft for a reported accumulation concept in what is referred $200+ million, transmogrified into Admira, to as the horizontical (see MediaPost and after a short while, laid to rest. article, “TV Programmatic: A Horizontical Transmutation” published on August 22, 2014).

Looking Ahead to Programmatic in Local TV in 2016

Contextual Audience Networks (CANs) mechanism to sell the TV spots it acquired via a TV upfront. Building upon the conceptual audience aggregation platforms that Invidi and Navic . Admira, formerly known as Navic and promulgated, three companies arose within foster-parented by Microsoft, only the next couple of years to expand the offered inventory (when available) from category referred to as contextual audience national networks – claiming priority networks: Google TV Ads, Admira and partnerships. Simulmedia. . Simulmedia developed relationships with . The premise: the utilization of set-top- local and national inventory providers box viewership (Rentrak, TRA, Kantar’s (e.g., cablers, satcasters and telcos) DirectView, AT&T U-verse, Charter, claiming the largest inventory universe FourthWall) coupled with third party data (when available) across 106 million TV (Epsilon, Experian, Prizm segments, homes. Simulmedia’s initial approach Equifax, P$ycle, Acxiom, custom was to focus on the marketing vertical of segmentation, Nielsen) to inform the “content promoters” or TV networks, to acquisition of local cable TV and national make its bones and improve its product cable networks inventory. prior to expanding its sales efforts to other marketing verticals. . Essentially, these platforms took the shift away from buying TV inventory based . Simulmedia was founded on the heritage upon program content and most of Tacoda, a behavioral targeted online popularly rated TV programs to advertising service delivering ads to concentrate on audience delivery in less consumers based on their web surfing popular dayparts and less highly rated habits and now algorithmically focused programming. on TV surfing habits via set top box reportage. . Although the media community was enthralled at the time – and still is, Similar to Invidi and Navic, the CANs rolled rightfully so – by the promise of up inventory to create a nationally addressable targeted TV ads, the CANs delivered schedule and provided one offered something less than campaign post analysis, one invoice and addressability but more than the affidavits (network and program) to be standard traditional approach utilized by proffered at the conclusion of the the buying community. CANs added campaign. To their credit, these platforms value by delivering higher concentration added some unique twists to their of the audience target (demographic predecessors’ value proposition. viewer per set). Each CAN offered a unique twist to the model. . Excluding RTB by Google, both Google and Admira offered delivery guarantees . Google TV actually purchased inventory based upon a minimal viewing of the to re-sell to the TV buying community commercial, which translated to less and utilized a Real Time Bidding (RTB) than 5 seconds for Google and less 10

Looking Ahead to Programmatic in Local TV in 2016

for Admira before the audience could be Current State of Programmatic TV counted towards their guaranteed In 2006, the broadband video community delivery. announced the death of TV. By 2011 the . Also, a program title and content digital video community adopted the notion keyword search was injected into the of “if you can’t deplete them join them” and offering across all three platforms to developed broadband video TV reach help determine, as one of the criteria, extension products that would add reach to the best schedule programming mix. a marketer’s traditional TV campaign by utilizing set-top-box data coupled with third . Google covered a realm of 30+ million party data and first party data appendages homes with 9 national networks coupled plus, of course, broadband video inventory. with local inventory from pay TV operators. By 2013, these entities were looking to enhance their public media personas. . Admira, 100 million homes through Whether contemplating IPOs or becoming coverage on 22 national networks. attractive acquisition targets, they began the early stage development of . Simulmedia, the largest of the footprints, programmatic TV platforms. covered nearly the entire swath of TV households in the U.S representing . Some, such as Placemedia, Videology, national TV networks and local inventory and Clypd, hope to become pipes from pay TV operators (cable, satcaster helping TV buyers and TV sellers to and telco). commercially communicate.

Status: R.I.P. Google TV Ads and Admira . Others, such as Turn, arrived with a (2012) while Simulmedia endeavors to valued DMP secret sauce to manage data expand to other verticals. across digital (social, display, video) and

Looking Ahead to Programmatic in Local TV in 2016

television inventory – and as quickly . Other of their programmatic disappeared. compatriots, such as Rubicon, The Trade Desk, and DataXu, have crossed Caesar’s . Still others, such as TubeMogul and One Rubicon and are currently in the by AOL (formerly AdapTV), evolve with marketplace providing TV inventory – not the “if you can’t deplete them join them” just “connected TV inventory – in their approach. programmatic cross media platforms.

. Some others still, born out of the TV side Of course, any discussion about of the marketing equation, such as programmatic TV would be incomplete AudienceXpress, AdMore and Cadent without mentioning the dataists, such as Networks (formerly TelAmerica), hope to comScore-Rentrak, TiVo/TRA, Experian, use their infinite knowledge and Epsilon, 4C, Nielsen, 4C, Epsilon, Acxiom relationships in the TV space (local and who are infusing their TV viewing audience national TV supply side personages as intelligence beyond age and gender to help well as the TV buying/planning TV inventory owners to glean better value community) to their advantage. for their content, and concurrently assist the buying community in their endeavor to . Entities such as Videa, Audience Plus and provide their clients with better return on WideOrbit hope to exploit their existing marketing investment. foothold in the local DMAs through existing partnerships. Again as Dr. Pangloss would have us believe, “For it is impossible for things not . Some perceive that other companies, to be as they are, for everything is for the who may have been slow to the market, best.” such as Collective, Tremor, and YuMe whose roots are planted in the It remains to be seen whether or not broadband realm, are in stealth mode programmatic TV is for the best. but rumored to be approaching visibility.

Looking Ahead to Programmatic in Local TV in 2016

Programmatic Experts – An . Platform Firms: Bridging the buying and selling communities are platform Industry Panel companies providing the software stacks to support required business workflows. To develop some deep learning into what Videa and Placemedia and STRATA are is, or may, be going in local programmatic three such companies. For this report, television we recruited a panel of industry we’ve been able to include Chris Raleigh, experts to help us. The panel represents Chief Commercial Officer at Placemedia; the major roles in the programmatic TV Judd Rubin, VP Revenue Development at space including buy and sell sides, data and STRATA and Brett Adamczyk, VP Business platform players. Development and Strategy, Videa.

We developed a series of questions that we . In the next section, move on to the posed to our panel and in this report we specific questions we posed to the panel provided a summary of the insights they and summaries of their answers. shared with us. Question 1: Our panel comprised: Describe your company and your role . Agencies: U.S. International Media is an in programmatic TV? independent agency recognized by MediaPost as its “2015 Programmatic Agency of the Year” for its pioneering initiatives. We’re fortunate to include on our panel, Russell Zingale, President, Eastern Region, USIM who’s been doing programmatic TV buying at the national level and Dot DiLorenzo, USIM’s EVP and Director of Planning who specializes in local TV planning and strategy. Chris Raleigh, Placemedia: TV Group: Sinclair is one of the largest I hold the title of Chief Commercial Officer television groups in the U.S. and often at whose responsibilities include oversight of the forefront of new technology and the aggregation of inventory from media business initiatives. Rob Weisbord serves company partners and managing the as COO of Sinclair’s Digital Group. companywide revenue generation from advertisers, agencies and demand side . Data Firms: We’ve included partners. I also manage the national representatives from two of the leading distribution and advertiser sales teams. data firms, Steve Walsh, EVP Local Placemedia, a wholly owned subsidiary of Markets, comScore who previously was Viamedia, is a fully automated supply side with Rentrak, acquired by comScore in platform for linear and video on demand TV January 2016 and Brad Danaher from commercial inventory. Experian.

Looking Ahead to Programmatic in Local TV in 2016

Dot DiLorenzo, USIM (Local): Rob Weisbord, Sinclair: My title is EVP, Director of Planning and my My function at the company is Chief responsibilities include strategy and Operating Officer of the Digital Group and I research at USIM.U.S. International Media is oversee all things digital at the Sinclair an independent, full-service media agency Broadcast Group, which is the owner of that provides innovative media strategies television stations in 80 U.S. markets, 4 and executions to maximize advertising radio stations in the Seattle DMA, American spend return on investment. In 2015, USIM Sports Network, Comet TV as well as the was awarded MediaPost’s first ever recently announced acquisition of The Programmatic Agency of the Year. Tennis Channel.

Russell Zingale, USIM (National): Judd Rubin, STRATA: U.S. International Media is an independent, As Vice President Revenue Development at full-service media agency that provides Strata I am responsible for revenue innovative media strategies and executions development and marketing. STRATA is the to maximize advertising spend return on industry leading provider of media buying investment. In 2015, USIM was awarded and sales systems. On the buy side, we MediaPost’s first ever Programmatic Agency power over 1,000 media buying agencies of the Year. My title is President Eastern with a platform that delivers complete Division. As my title suggests, I am agency stewardship system for all media, responsible for oversight of all USIM East including Spot Cable, TV and Radio, Coast business that includes client National Cable and TV, Digital (Display / retention, new business development and Mobile / Search / Social), Streaming / Online staff management. Also, I am an active Video and Audio, Print, OOH. Through a participant in our company’s development scalable, modular solution, with open APIs, of new media technology and innovation.

Looking Ahead to Programmatic in Local TV in 2016

STRATA offers a flexible system to support a rapidly changing landscape.

Brad Danaher, Experian: My function at the company is to develop business partnerships with media partners in the TV ecosystem that enables targeted Steve Walsh, comScore: TV advertising to be deployed, connected My role is EVP, Local Television. I run and measured. If a media seller is in the TV comScore’s Local Market division. Rentrak world and wants to make their media more and comScore have merged to create the targeted, I am their guy. Experian Marketing new comScore, a cross-platform Services has the world’s largest consumer measurement company built on a precise, database and is a one of the largest original innovation-led understanding of audiences, compilers of consumer demographics, brands and consumer behavior at massive lifestyle, transaction and automotive data. scale and across all screens, from TV to Our company has been actively engaged in Movies to PC’s, Laptops, Tablets and Mobile the addressable TV realm since its devices. It brings together two great inception. We have licensing agreements entrepreneurial companies that invented with all of the major addressable TV their respective fields and their respective operators. Currently, our data is being trusted currencies. Both companies have utilized to drive multichannel campaigns unmatched expertise in unifying billions of across a variety of platforms including pieces of proprietary “census” data, programmatic TV. encompassing digital, TV set-top box, movie screens and demographic information with the behavior of millions of individual consumers. In the United States, comScore will now be measuring behavior on more than 260 million desktop screens, 160 million mobile phone screens, 95 million tablet screens, 40 million television screens, 120 million video-on-demand screens, and Brett Adamczyk, Videa: 40,000 movie theater screens representing well over 100,000,000 movie-goers. My title is VP Business Development and I am responsible for supply and demand side integrations, data partnerships and overall business strategy. Videa is a supply- side platform that brings automation and data-driven targeting to the buying and

Looking Ahead to Programmatic in Local TV in 2016

selling of television advertising. We enable involved in their own way whether it’s local broadcasters to monetize their through their own trade desk or a inventory while opening new demand platform or DSP. channels to enhance the value of spot television at scale. . Judd Rubin, STRATA: Our main business is providing media workflow, research Question 2: analytics and campaign management tools to media agencies. We have several Do you have any key partnerships or types of partnerships that we have initiatives in the programmatic TV established in order to permit our realm that you could share? customers to have access to their . Chris Raleigh, Placemedia: We have inventory. We’re are working with Videa relationships with 98+ cable networks and AudienceExpress as well as many and other supply partners for national others in what we think of internally as and local cable inventory as well as ad linear automation - but others certainly supported video on demand platforms. call Programmatic. Step 1 is integrating Moreover, we have agreements and systems and making inventory available technical integrations with 11 of the to buyers. Step 2, and more interesting, leading DSPs including (alphabetically) will be how do we make it easier (thus AOL, Collective, Rocket Fuel, The Trade scalable) to consider and buy the Desk, Tremor, TubeMogul, and burgeoning cross media video offerings. Videology. . Brad Danaher, Experian: We work with . Rob Weisbord, Sinclair: The company all the significant players in the TV has a joint venture with Visible World ecosystem. However, it has been our through its programmatic TV platform company policy to keep our PR to a AudienceXpress to build out our minimum so I guess I will continue that programmatic TV capabilities. Also, we trend here. have a deal with Sorenson Media to utilize their ACR technology for . Brett Adamczk, Videa: Videa is building addressable delivery of TV commercials. partnerships across the advertising ecosystem both with supply partners . Dot DiLorenzo, USIM (Local): USIM is a and demand partners. As a supply-side charter participant in NCC’s Audience platform our most important Plus local cable programmatic TV relationships are with the inventory initiative. holders, but we view our direct integrations with Media Ocean and . Steve Walsh, comScore: We are working Strata as extremely important. We are with Clypd, AudienceXpress, Team AOL, one of the only platforms with this form The Trade Desk, Videology and of integration into arguably the two PlaceMedia. There really aren’t any largest traditional planning and buying programmatic-only agencies at this platforms that provide us access to point, just existing shops that are thousands of agency buyers. We also

Looking Ahead to Programmatic in Local TV in 2016

have many partnerships with DSP . Russell Zingale, USIM (National): USIM platforms to help drive new demand to is very active in both the programmatic television, including a key partnership and addressable TV arena. Our media with Videology. We are also working placements have been local, regional, by diligently on a data management state and national. We have placed buys platform that will provide our inventory in the Travel, Automotive, Education, holders a similar level of tools and Public Service, and CPG/Dairy categories. analytics that can be applied at the program level to better inform their Question 4: pricing and selling strategies. Have you been involved in utilizing programmatic TV technology to sell TV Question 3: inventory. If so, why? If not, why not? Have you been involved in the . Rob Weisbord, Sinclair: In my opinion, purchase of programmatic TV the pure definition of programmatic does campaigns for your clients: local not exist in broadcast television. We will and/or national? If so, what clients or soon be launching addressable television marketing verticals were involved? ads and have carved out TV inventory to . Dot DiLorenzo, USIM (Local): We plan build a baseline for programmatic ads in and buy commercial TV inventory for the the broadcast space. Local Dealer Associations of major auto brand. As you may be aware, the local Question 5: and regional big auto brands are heavy What are the opportunities you are local TV advertisers. We do a lot of seeing in the programmatic TV realm business with NCC. NCC is an advertising for companies that manage workflow? sales, marketing and technology company owned by the major cable operators. Last . Judd Rubin, STRATA: There are a host of year, NCC approached USIM with their interesting programmatic companies. new local programmatic TV platform They are all unique. Different data Audience Plus, which is available in 30 sources, inventory sources, user million pay TV households: 20 million interfaces and workflow. Our customers Comcast subscribers plus an additional are interested in these programmatic 10 million Interconnect households. offerings. But, if it is not connected to Audience Plus provided an opportunity to their normal workflow, they cannot use aggregate more targeted – beyond age them at scale. That is the critical role and gender – impressions across dozens Strata plays. We are almost like the of cable networks and dayparts. At Rosetta stone of the industry – launch, there were 14 pre-arranged translating each of these unique NetworkPAKs that were customized to offerings into standard workflows so that deliver a higher concentration of our nearly 1,000 agencies can take desirable audiences. In our first campaign advantage of their offerings. we selected those that targeted potential new truck and car purchasers.

Looking Ahead to Programmatic in Local TV in 2016

Question 6: response, video on demand and addressable campaign endeavors. How do you view programmatic TV sales in terms of its compatibility to . Russell Zingale, USIM (Local): the existing approaches of traditional Programmatic, while still in its early buying and selling? stages, is a step forward for traditional media to delivery more accountability . Chris Raleigh, Placemedia: We see our platform as an opportunity for and ROI metrics that are similar to digital advertisers to more effectively reach executions. For me programmatic TV has secondary targets beyond Nielsen or been either a supplement to a traditional Rentrak age/gender metrics without the media buy or an addition where TV was restraints often associated with not previously part of the media mix. traditional selling. We also see . Steve Walsh, comScore: comScore’s programmatic as an opportunity that programmatic services complement allows advertisers to extend their reach more traditional selling and buying in these challenging times of declining approaches by enabling our clients to ratings and fragmented audiences. In take advantage of the increased these early days, we are seeing many efficiencies and effectiveness advertisers using our platform as empowered by supplemental to their traditional TV programmatic. Marketers today are no buying. It allows for improved targeting longer satisfied with only using and greater automation than their legacy traditional age/sex demographics as the buying process. yardstick for a buy’s presumed “effectiveness.” Instead, they are turning . Dot DiLorenzo, USIM (Local): At present, we look at programmatic TV as to programmatic as a way to efficiently another buying tactic that is target what we call “advanced complementary to our branding, direct demographics” that describe far more effectively the true target of a

Looking Ahead to Programmatic in Local TV in 2016

campaign. comScore’s massive, passive secured in the limited inventory of the audience databases – extending across major TV programmers. Utilizing DSPs all of TV (including VOD) and digital – are or open marketplaces removes those ideally suited to address the needs of advantages. It’s a big challenge to pivot both traditional and programmatic the process to maintain their value and sellers and buyers. yet provide their clients the metrics that digital provides. As a result, we feel that . Brett Adamczyk, Videa: What makes private marketplaces, essentially Videa unique in the programmatic TV yesterday’s “Upfronts,” will continue to landscape is that our approach closely have a large role in the marketplace. replicates how TV has traditionally been bought, with a forward-reserve pricing . Rob Weisbord, Sinclair: With margins model and ability to plan campaigns getting smaller and smaller the pressure months in advance, but brings will be for the “traditional” media buyers efficiencies to that process through the and planners to match efficacy of the use of technology and data. The auction digital arms of the agency and go with models and arbitrage models that are automated buying that is infused with prevalent in digital and now qualitative and quantitative data. Also, programmatic TV are not very the future is warehousing all inventory compatible with how traditional TV has by broadband video and linear TV so historically been bought and sold. advertising agencies can make a market buy across all screens as television Question 7: companies become platform agnostic. What is your opinion on programmatic . Judd Rubin, STRATA: Lack of TV’s acceptance at advertising transparency is the major impediment to agencies? programmatic TV’s acceptance by . Chris Raleigh, Placemedia: Agencies advertising agencies. Strata workflow acceptance varies dramatically by agency solution provides that trusted and holding company. Most large clients transparency. spend the bulk of their media dollars in linear TV. With clients increasingly . Steve Walsh, comScore: I think there is pushing them towards the targeting, a thirst for extracting more efficiency out optimization, reporting and attribution of the transaction process for which models that digital/mobile advertising Programmatic is ideally suited. I also provides, they need to evolve their believe that agencies are highly legacy TV media buying. The challenge, motivated to move past simple age/sex particularly in national TV, is that the and in addition begin buying AUDIENCES, ecosystem historically benefits the not just those legacy demographics. buying clout of the large holding Marketers are pressuring agencies to companies and the value they have in move more product with the same or their legacy pricing and the inventory fewer dollars as last year, and the best positions/sponsorships that they have way to accomplish that is to reach the

Looking Ahead to Programmatic in Local TV in 2016

precise consumers that the marketer is Some agencies are significantly more trying to talk to. Programmatic is an advanced in their deployment of efficient platform for delivering that programmatic TV methods but most capability. agencies are leaning forward in terms of understanding how programmatic TV . Brad Danaher, Experian: Agencies can work for them. There still exists a know that a more automated method of tremendous amount of learned behavior buying and planning TV is inevitable so when it comes to buying TV and they are actively trying to figure out how changing those tendencies takes time they can add value to that process. As and education. targets become more defined – beyond simply age and gender, the data to find Question 8: that audience segment needs to be even What motivated you to include more accurate and concise. If agencies programmatic TV strategies as part of can make recommendations that tweak the programmatic algorithms that result your media campaigns? in more effective TV buys, they can really . Dot DiLorenzo, USIM (Local) One of add value for their clients. Most USIM’s strengths is its local buying advertising agencies see data as the acumen and clout. We have built our onramp to precision recommendations reputation on being able to partner with that can show off their expertise so they local TV entities, whether local broadcast are talking to us about data sources that and/or local cable, to deliver our client’s can identify nuanced audience goal through traditional and advanced segments. They come to Experian TV platforms. Our deal with NCC’s because they know that our goals are Audience Plus platform provided us with aligned, we know television and we are an opportunity to gain insights on the there to help them drive performance advantages and limitations of buying for their clients. programmatic TV, which include understanding and evolving workflow . Brett Adamczyk, Videa: The acceptance processes integral to the convergence of from agency buyers has been mixed, but linear TV, addressable TV, programmatic for the most part they are excited about TV and streaming video. the prospect of buying TV more efficiently.

Looking Ahead to Programmatic in Local TV in 2016

. Russell Zingale, USIM (National): their small scale testing is paying off with Targetability and efficiency on a national good ROAS. TV level. Through the USIM trading desk, Quantum 11, we are able to deliver a . Chris Raleigh, Placemedia: There targeted TV delivery against a select already is a large impact from audience at either a very low CPM when “programmatic TV” today. One has to we are looking for tonnage, or with little consider the large and growing initiatives waste when we utilize addressable of major TV network groups including platforms to deliver our client’s message NBCU, Turner and Viacom in addition to to designated households with higher the separate, yet rapidly growing, “open incomes and propensity for Caribbean marketplace”. The marriage of travel, and even states, when applicable, automation, data, and secondary with customized messages. demographic guarantees beyond age and gender has been a topic much Question 9: discussed and analyzed since last year’s upfront and I guarantee will continue to How soon do you think programmatic be center stage this year and years to TV buying will have an impact on TV come. Also, in this coming upfront the commercial inventory purchasing? media community will be contemplating . Rob Weisbord, Sinclair: From a local more ways to include cross media perspective, I believe it will start with inventory – linear, video on demand, full addressable delivery to TV stations episode players, programmatic, sometime in 2016 and we are at least 18- connected devices and apps - through 24 months away from a full-blown programmatic platforms than in past solution. In addition, the transformation years. will begin with national advertisers prior to it reaching the local level. . Brett Adamczyk, Videa: Programmatic TV is already having an impact on how . Steve Walsh, comScore: I believe a commercial inventory is purchased, visible/measurable industry shift of especially as it relates to the use of data dollars into a programmatic to better inform buying decisions and environment is realistically 12-18 months target audiences. However, this impact is away, given developmental work which still small as both buyers and sellers remains as well as the time it will take to continue to test and refine the change behavior and habit, resulting in a methodologies deployed by shift of meaningful dollars by some Programmatic TV and DSP platforms. advertisers into programmatic. We believe, given the political cycle in 2016, that the real shift in programmatic . Brad Danaher, Experian: Currently, buying and overall acceptance in the there is very little impact but it will be marketplace will happen in 2017. significant in 18-24 months as advertisers get more comfortable with the new process flow and they see that

Looking Ahead to Programmatic in Local TV in 2016

Question 10: TV as very consistent and complementary with our existing How do you view the usage of your business because it allows advertisers to tools in terms of complementing your use the same segment across multiple existing business with advertising media channels and content platforms. agencies, distribution platforms and Multichannel campaigns are rapidly content providers? increasing and advertisers want to see . Judd Rubin, STRATA: Let us use the same targeting and performance Demand Side Platforms as an example. metrics wherever their ad runs so we Each DSP brings a special sauce as their make sure we have relationships with unique value proposition to the media every type of TV provider so there is a community. It is important for Strata to complete solution for our advertisers. enable its customers to use any DSP that The industry is really going beyond they choose. Let’s face it, there will traditional demographics to now saying, always be other companies entering the “Did this sell enough product to justify this programmatic/ cross media realm with ad buy?” This is a big change from 5 unique ways of accessing inventory. It is years ago. The sell side of TV our goal to enable all of these entities to understands that data consistency allows work directly with our customers. for a much cleaner analysis and understanding of advertising campaign . Brad Danaher, Experian: We see the performance. usage of Experian data in programmatic

Looking Ahead to Programmatic in Local TV in 2016

Question 11: buying entire footprints. We purchase impressions on individual cable networks What are the opportunities you are that are part of an overall package seeing in the programmatic TV realm without knowing where our commercials for data companies? will air on each network until after they . Brad Danaher, Experian: Data is more run and we receive the “As Run” reports. important than ever as TV advertising The only guaranteed deliveries we campaigns become more and more receive are total impressions across all targeted. Programmatic TV companies networks and cumulative dayparts. I are mainly using behavioral and would like to see greater flexibility in contextual identifiers now – as online daypart and program selection by buys have been. However, we see the individual cable networks and better future as a melding of these factors with geographic targeting that offers a wider transactional data and demographics – audience impression dispersion than the TV’s traditional tool - to create a very current addressable TV universe of 23 rich method of identifying a target million and can still be purchased at audience. Bringing more known and efficient pricing. modeled data sets to programmatic TV from a variety of sources is a real . Dot DiLorenzo, USIM: One of the most opportunity for data companies. More important elements that needs to be than ever, our media partners are using developed for any new TV platform to us for deploying segmentation across succeed is integration into our workflow multiple channels, linkage for connecting process. USIM is a Strata shop. We think to multiple 1st and 3rd party datasets and it is essential that advanced TV ROAS measurement to prove the value platforms, such as programmatic TV and of their media. addressable platforms, integrate with Strata to enable us as advertisers to Question 12: utilize the technology as a complement to our existing local broadcast and cable What do you think could be done to buys as well as integrate with our digital improve the programmatic TV systems to exploit enhanced metrics e.g. deliverable in the future? view completion rates, engagement, time spent, to name a few, in order to develop . Russell Zingale, USIM: Presently, in our programmatic TV buys we are limited to industry/category benchmarks for future campaigns.

Looking Ahead to Programmatic in Local TV in 2016

About the Participants was in charge of the association’s new technology assessment, audience and policy research, strategic planning and information systems, including all Internet operations.

Ducey was recognized in academia as the 2011 Shapiro Fellow at George Washington University, where he teaches entrepreneurship in new media. He has also Rick Ducey designed and taught innovative courses while on the faculties of Michigan State Managing Director, BIA/Kelsey University, George Mason University, Rick Ducey is managing director, leading our George Washington University and the strategy consulting practice. He brings a University of Maryland. He has published tremendous amount of leadership over sixty referred scholarly and industry experience and expertise to this role. He articles and papers and serves on editorial assists clients with their business planning boards of leading academic journals in the and revenue models, strategic research, telecommunications and media fields. market assessment, and designing and implementing strategies for leveraging Ducey received his Ph.D. from Michigan video media assets and inventory in local State University, M.S. from Syracuse markets. University and B.A. from the University of Massachusetts at Amherst. With more than 30 years of executive experience inside academia, private industry and associations, Ducey is a sought-out expert for his coverage and analysis of how disruptive technologies; emerging competition; shifting consumer demographics and media usage trends are driving changes in the media ecosystem and what C-level executives must do to be successful. As a media strategist and Mitch Oscar technologist, Ducey has consulted with Director of Programmatic TV Strategy, USIM major media and Fortune 500 companies Executive Industry Adviser, including Google, Microsoft, Time Warner, BIA/Kelsey NBCU/Comcast, Gannett and Yahoo, Advance Digital, Pandora, and Entravision. Mitchell Oscar currently holds the position of Director, Programmatic TV Strategy, a Prior to joining BIA/Kelsey in 2000, Ducey newly created position at U.S. International was senior vice president of NAB’s Research Media, focusing on the development and and Information Group. In this position, he deployment of new video applications as

Looking Ahead to Programmatic in Local TV in 2016

they traverse programmatic TV, addressable Brett was a member of the Board of TV, connected devices and streaming video. Directors of numerous portfolio companies His mission is to explore the potential value and oversaw investments in the Four Points of these advanced television applications Media broadcast group and other media- and technologies for the development related acquisitions. (ideas and implications) and execution of advertising models and campaigns for USIM Brett graduated cum laude from Babson clients. College with a concentration in finance and applied statistics. Mitch also serves as Expert Industry Advisor for BIA/Kelsey.

Prior to joining USIM, Mitch was EVP, Managing Director of Innovation at MPG; EVP, Carat Digital; and held the position of SVP/Director of Media Futures at Universal McCann.

Mr. Oscar is a standing member of industry Brad Danaher trade associations and a frequent panelist Television Partnership Director, Experian and speaker at industry events. Marketing Services Brad Danaher is the Television Partnership Director at Experian Marketing Services and is responsible for creating and managing key TV relationships to build Experian’s product and service offerings. He works closely with TV operators, device manufacturers, measurement firms, media agencies and advertisers. Brett Adamczyk Before joining Experian in 2008, Mr. Vice President, Business Development and Danaher has over 20 years of experience in Strategy, Videa sales, marketing and product management Brett joined Videa as Vice President of at 3M, Cheetah Technologies, Tech Data and Business Development after spending over TV measurement firm erinMedia, LLC. nine years in the financial services industry, both as an advisor and an investor. Mr. Danaher received a B.B.A from The University of Iowa and an M.B.A. from He specialized in distressed investing and Florida State University. the technology, media, and telecommunications industries while at Rothschild, Cerberus Capital Management, and Berylson Capital.

Looking Ahead to Programmatic in Local TV in 2016

Dot DiLorenzo Chris Raleigh EVP, Director of Planning, U.S. International Chief Commercial Officer, placemedia Media Chris Raleigh oversees the aggregation of Successful people are often described as inventory from media company partners exceeding expectations and that is Dot and manages the companywide revenue DiLorenzo’s trademark. As Executive Vice generation from advertisers, agencies and President, Director of Planning, Dot brings demand side partners. In this role, he her inspirational energy, enthusiasm and manages the national affiliate and extensive media experience to U.S. advertiser sales teams. International Media. Previously, Chris oversaw network With experience at full-service agencies like advertising sales and cross platform sales O&M and JWT, media-management for The Weather Company including companies like Initiative and Carat, and with weather.com, weather mobile and tablet. responsibilities for digital and traditional He also had responsibility for national sales media under her belt, Dot is perfectly suited offices for the NBCU/Bain/Blackstone- to help the wide array of USIM’s clients craft backed company. Prior to joining The communication strategies that advance the Weather Company in 2008, he served as “big idea” from inception through successful senior vice president of advertising sales for execution. GSN, the game content cable network, then owned by Sony and Liberty Media. Raleigh In addition to loving her job that’s reunited joined GSN from serving four years as Vice her with former co-workers who are “best in President of Advertising Sales for Tech TV class”, Dot loves travelling to remote and techtv.com. corners of the world to dive, learn a new language & sample unique culinary delights. Prior to that, he was Vice President of Daytime/Late Night/Teens/All Night Sales at Dot holds an Executive MBA from the NBC Television Network. He was Pepperdine University. responsible for forecasting, developing and implementing sales strategies for the leading broadcast network in the four dayparts. Before that, he was Vice President of News Sales, where he led all aspects of sales for the NBC News

Looking Ahead to Programmatic in Local TV in 2016

properties including the “Today Show,” companies on strategy and risk “Nightly News,” and “Meet the Press.” management. Prior to his time in Media, Rubin was a political consultant in California Raleigh graduated from Babson College in and also served as the Northwest director Wellesley, MA. He is a Board Member for at AIPAC, widely considered one of the most the Boy Scouts of America, Greater New influential lobbying groups in the U.S. York Councils.

Steven Walsh Judd Rubin Executive Vice President, Local Markets, Vice President, Revenue Development, comScore STRATA Steve Walsh brings more than 20 years of Judd Rubin is the Vice President, Revenue proven strategic sales and sales Development at STRATA. Rubin has more management experience to his role as than 20 years of cross-industry experience Executive Vice President of Local Markets in advertising, technology, political and for comScore. A widely recognized sales and management consulting, and client relationship leader in the multi-screen has advised Fortune 500 companies along audience research industry, Mr. Walsh held with some of the country’s top media key sales leadership positions at research organizations. Under his direction, industry startups and current standard- Rubin has developed and bearers before joining comScore (then launched new technology and business called Rentrak) in 2009. Most notably, he models for a wide range of media and played a critical role in significantly shaping technology companies. and expanding revenue, client base and strategic positioning for companies such as In his role at STRATA, Rubin is responsible Integrated Media Measurement, Inc. (IMMI), for new business along with marketing. He Experian Research Services, IAG Research, has directed business relations with leading Kantar Media Intelligence and Nielsen inventory providers including Hulu, Media Research, and was instrumental in iHeartRadio, NCM, and Videa. While at growing IAG from an eight-employee Mediaocean, he led business development startup in 2001 into a 250-employee and growth initiatives primarily in digital, syndicated advertising effectiveness video and audio. measurement company by 2006, eventually leading to the acquisition of IAG by Nielsen Rubin served as a consultant at Monitor Media Research in 2008 for $225 million. Group, where he advised Fortune 500

Looking Ahead to Programmatic in Local TV in 2016

At comScore, Mr. Walsh leads a sales and Mr. Weisbord is responsible for all account management team that has built a web/mobile app/social media creation, client roster serving over 630 client interaction of the unit with news and television stations and 150 local and television station platforms, revenue regional agencies in over 175 markets since generation, and exploring strategic comScore Local launched in 2010. Today, partnerships and potential related Mr. Walsh and his team are laser-focused acquisitions. on creating the new model for a dynamic, cross-platform local measurement currency He served as Vice President/New Media based on massive scale and superior from June 2010 to January 2014. From 2008 methodology, to the benefit of the local to June 2010, he served as Director of Digital broadcasters, agencies and marketers we all Interactive Marketing for Sinclair. From serve. 1997, he served in various management positions for the Company including Mr. Walsh holds a Bachelor of Science Regional Group Manager, General Manager degree in Telecommunications for the Company’s Las Vegas duopoly of Management from Syracuse University's S.I. KVMY-TV and KVCW-TV, and Director of Newhouse School of Public Sales. Prior to that and from 1993, he was Communications and, in addition to being a National Sales Manager for WTVT-TV in member of the Television Bureau of Tampa, Florida. Advertising (TvB), the Advertising Research Foundation (ARF) and the Advisory Board Mr. Weisbord began his broadcasting career has been a featured guest lecturer at in the radio industry with Family Group Syracuse University, New York University, Broadcasting in 1985. the University of Florida and the University Mr. Weisbord holds a Bachelor of Science of Connecticut. degree in Business Management and a Master's in Business Administration from the University of Tampa.

Rob Weisbord

COO, Sinclair Digital Group Weisbord has served as Chief Operating Russell Zingale Officer of Sinclair Digital Group, a newly President, Eastern Region, U.S. created Digital Interactive Business Unit for International Media Sinclair Broadcasting Group since January Russell is President – Eastern Region at US 2014. International Media. Russell oversees 60+

Looking Ahead to Programmatic in Local TV in 2016

staffers across all service divisions. Russell Bates and Wells, Rich Greene managing oversees the CDC, Aruba Tourism, Century accounts such as Proctor & Gamble, US 21, O’Charley’s Restaurants, People’s United Navy, CPC, Avis Rent a Car and other. Bank, WellPet, K12, Delta Education, Institute of Culinary Education accounts About BIA/Kelsey among others on the East Coast. Local media is one of the fastest moving Prior to working at USIM, Russell held the industries of our time. And BIA/Kelsey has position of Managing Director at Media been at the center of it for more than 30 Storm. His role was dual, new business years. director as well as client service director on non-entertainment accounts. Russell is a BIA/Kelsey is the leading research and 20+ year veteran in the media industry advisory firm focused on the advertising having spent the majority of his time and marketing marketplace. We have developing strategy and running a planning proven advisory services and consulting group. methods that put our clients in the best possible position to compete and stand out Russell was at Carat USA in the roles of SVP in today’s multiplatform, interactive world. Director of Business Development and Managing Director of Carat Affiliates. He has Our research, forecasts, industry analysis, worked at Carat’s New York office for over 6 competitive intelligence and industry- years. As Director of Business Development leading analyst team propel our clients he oversees new business efforts across the success forward. Put yourself in the best US and interacts with the various Aegis non- possible position to compete and win – turn Carat Divisions, as well as Carat to BIA/Kelsey. International. His role in business development includes new client We are pleased to announce our new prospecting as well as current client Programmatic Program that features a business expansion. As the Managing series of papers and webinars that will Director of Carat Affiliates, he managed an help our clients understand the potential account team of 9 staffers in New York of programmatic. Contact us today for overseeing accounts such as Marriott more details –[email protected]. International, Viacom Networks, TOUS, Liz Claiborne perfumes, Ernst & Young, New Connect with BIA/Kelsey: York University, Land O’ Lakes and more. www.biakelsey.com

Prior to launching Carat Affiliates, Russell Local Media Watch blog

held management positions at Initiative www.twitter.com/BIAKelsey Media where he worked on clients such as Applebee’s, Goya, Enterprise Car Rental, www.facebook.com/biakelsey AOL among a list of others. Prior to his 14

year tenure at Initiative, Russell held BIA/Kelsey’s daily newsletter planning positions at Backer, Spievogel