P2P-Next D2.5.3d

216217 P2P-Next D2.5.3d Targeted Ad + Editorial and Promotional Prototype Content Device

Contractual Date of Delivery to the CEC: 30. April 2012 Actual Date of Delivery to the CEC: 30. April 2012 Author(s): Thomas Look, Miriam Pelka, Felix Gertz, Konrad Gulla Participant(s): Workpackage: WP2 Est. person months: 2.0 Security: PU Nature: P Version: v1.4 Total number of pages: 65 Abstract: This deliverable details the targeted ad and editorial and promotional content device, which has been developed in the P2P-Next project. This includes a description of the general features and functions of the device as well as a technical exposition of its particular elements. The targeted ad and editorial and promotional content device needs to be divided into: a) the Ad Server that is tightly integrated with the Next Share Kernel and that serves as the basis of the free view ad supported monetization tools of the Fair Share Media Service and b) the proprietary stand alone service that is designed to form the basis of the commercial activities of the people and organizations that developed the respective foreground during the P2P-next project. Both versions of the Ad Server have 3 main sections: a) Analytics Section, b) Buy Side Functions and c) Sell Side Functions. But while the one tightly integrated with NextShare is largely based on open standards and open source software and is released under the LGPL license, the latter contains both - open source and proprietary elements that directly support the anticipated business case. Furthermore, as P2P delivery of video has not become mainstream and is not anticipated to do so in the years ahead, P2P support is of minor importance for the stand alone version, as it does not add any major business prospects in the near future. Keyword list: Targeted Ad + Editorial and Promotional Prototype Content Device, Ad server, Display Advertising, Search Engine, Affiliate Marketing, Controller Unit

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Table of Contents 1 Executive Summary...... 5 2 Online Advertising Market and Networks...... 6 2.1 Online Advertising World Wide...... 6 2.2 Online Video Advertising...... 7 2.3 Issues in Online Video Advertising - Key RoI Metrics...... 10 2.4 Issues in Online Video Advertising - Personalization and Targeting ...... 12 2.5 Issues in Online Video Advertising - Cross Platform Reception of Online Video...... 14 2.6 Online Video Advertising and Video AD Networks in the US and Western Europe...... 16 2.7 Enabled Business Model ...... 31 3 Ad Server Market and Standards ...... 35 4 The P2P-Next Ad Server...... 38 4.1. General Scope of Next-AD...... 38 4.2 Next-AD and the VAST and VPAID Standards...... 41 4.3 Details on Next-Ad...... 43 4.4 Next-AD Sell-Side (Publisher Lounge)...... 45 4.5 Next AD Buy-Side (Advertiser Lounge)...... 48 4.6 The Next-AD Video Player...... 53 4.7 Integration with NextShare and the FairShare MediaWorld ...... 54 4.8 Integration of HTML 5...... 56 5 A-2 Ad Server ...... 57 5.1 Functional Overview...... 58 5.2 Beyond SotA...... 61 5.2.1 Beyond SotA – 1 – New types of adverts and Cost Per Engagement...... 61 5.2.2 Beyond SotA – 2 – Multi Criteria Optimization and Decision Making ...... 62 5.2.3 Beyond SotA – 3 – Vast 3.0 + VPaid 2.0, VMPA 1.0, HTML5...... 64 5.2.4 Beyond SotA – 4 - Decision Engine...... 64 5.2.5 Beyond SotA – 5 - Contextual Advertising ...... 64 5.3 Watchpoints and prospective technology partnerships ...... 64 5.3.1 Watchpoint 1 – ePrivacy Directive of the EU and Cookie-directive of BMWi...... 64 5.3.2 WP 2 - Ad Blocking via Browser...... 65 5.3.4 TP 1 – Realtime Analytics...... 65 6 Next Steps...... 65

Table of Illustrations

Figure 1: Total Media Ad Spending Worldwide 2010-2015, eMarketer June 2011...... 6 Figure 2: Online Ad Spending Worldwide 2010-2015, eMarketer June 2011...... 6 Figure 3: Total Media Ad Spending Worldwide in billion, eMarketer June 2011...... 7 Figure 4: Online Ad Spending Share Worldwide in %, eMarketer June 2011...... 7 Figure 5: US Online Ad Spending by Format 2010-2015, eMarketer June 2011...... 8 Figure 6: US Online Ad Spending Growth, by Format 2010-2015, eMarketer June 2011...... 8

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Figure 7: Type of Online Ad with Most Revenue 2012 According to US Publishers, eMarketer Oct 2011...... 9 Figure 8: Greatest Barriers to Online Video As Growth, eMarketer Oct 2011...... 10 Figure 9: Most Limiting Factors to the Growth of Online Video Ads, eMarketer May 2011...... 10 Figure 10: Amount that US Online Publishers Expect Online Video Ad CPM to Increase, eMarketer Oct 2011...... 10 Figure 11: Marketing Objectives for The Use of Online Video, eMarketer April 2011...... 11 Figure 12: Factors Influencing Advertisers/Agencies to Buy More Online Video Ads, eMarketer April 2011...... 12 Figure 13: Effect of Personalized Video Ads on Selected Brand Metrics, eMarketer Sep. 2011...... 12 Figure 14: Attitudes toward Personalized Online Video Ads, eMarketer Sep. 2011...... 13 Figure 15: Attitudes of Internet Users Worldwide Toward Online Ads, eMarketer Sep. 2011...... 14 Figure 16: Tablet Users 2010-2014, eMarketer Nov 2011...... 15 Figure 17: US Smartphone Users and Penetration 2010-2015, eMarketer...... 15 Figure 18: Business Model Generation Methodology...... 32 Figure 19: Business Model for Next-AD...... 33 Figure 20: Next-AD Service 1 - OPAD Service...... 33 Figure 21: Next-AD Service 2 - VIAD (Video AD) Service...... 34 Figure 22: Next-AD Service 3 - ACE (Adaptive Campaign Engine) Service...... 34 Figure 23: General Scope and Objectives of NextAD Server...... 39 Figure 24: Structure of the Next-A module...... 40 Figure 25: Structure of the Next-M module...... 41 Figure 26: Level of Interoperability...... 41 Figure 27: Objective of VAST and VPAID Standards...... 42 Figure 28: Technical Definition of Interactivity in VAST and VPAID...... 42 Figure 29: Factors, Description and Implications of Next-AD Server...... 43 Figure 30: Next-AD Monitoring and Analytics Performance Indicators 1/2...... 44 Figure 31: Next-AD Monitoring and Analytics Performance Indicators 2/2...... 44 Figure 32: Next-AD Tracking Roadmap...... 45 Figure 33: Next-AD Publisher's Lounge – Spaces / Details...... 45 Figure 34: Next-AD Publisher's Lounge – Publisher Dashboard...... 47 Figure 35: Next-AD Publisher's Lounge - Spaces...... 47 Figure 36: Next-AD Advertiser's Lounge – Advertiser Dashboard...... 48 Figure 37: Next-AD Advertiser's Lounge – Advertiser Dashboard...... 49 Figure 38: Next-AD Advertiser's Lounge – Flights...... 50 Figure 39: Next-AD Advertiser's Lounge – Ads...... 51 Figure 40: Next-AD Advertiser's Lounge – Flights / Details...... 52 Figure 41: Main Features of Next-AD Player...... 53 Figure 42: Player Skin...... 54 Figure 43: Next-AD Integration with NextShare PC (A)...... 55 Figure 44: Next-AD Integration with NextShare PC (B)...... 55 Figure 45: Next-AD Integration with NextShare TV...... 56 Figure 46: Interaction, Engagement and Optimization in Next-AD...... 62

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1 Executive Summary This deliverable details the targeted ad and editorial and promotional content device, which is developed in the P2P-Next project. This includes a description of the general features and functions of the device as well as a technical exposition of its particular elements. The targeted ad and editorial and promotional content device needs to be divided into: a) the Ad Server that is tightly integrated with the Next Share Kernel and that serves as the basis of the free view ad supported monetization of the Fair Share Media Service and b) the proprietary stand alone Next-AD Service that is designed to form the basis of the commercial activities of the people and organizations that developed the foreground during the P2P-next project. For the sake of differentiating between the two versions the former one integrated with Next Share will be referred to as Next-AD in this document, while the latter one, the stand alone device will be called A-2. Both versions of the Ad Server have 3 main sections: a) Analytics Section, b) Buy Side (Media Buying and Planning) and c) Sell Side. But while the former server is largely based upon open standards and open source software and is released under the LGPL license the latter contains both - open source and proprietary elements that directly support the anticipated business case. Furthermore, as P2P delivery of video has not become mainstream and is not anticipated to do so in the years ahead, P2P support is of minor importance for the latter version. This is due to the fact that the main reasoning behind designing the 2 version is different. Next-AD is one of the monetisation and enhancement tools that accompany the main P2P-next service - the Fair Share Media service. As such it needs to serve the basic requirements of the licensees and users of this service. This means that it needs to be based on open standards and open source products that can easily be extended and adapted in the future and be individually configured and that will keep pace with market developments in the years ahead because they are constantly updated by market participants so that the main features do not become outdated sooner or later (Update of Vast 3.0 Standard, VPAID 2.0 Standard, etc.). Furthermore, it needs to serve the industry standard ad formats and needs to contain the bulk of the standard features that are required when serving video ads to be able to assist licensees in effectively monetising their content (Demand Driven Approach). Ad formats for which there is no industry demand yet and fancy features that are suited to conquer a niche market for a start up are not really suitable for this approach in the first place. On the other hand, it is exactly those features that are supposed to be the main differentiator of A-2 because A-2 is designed to serve the basis of an innovative start up trying to quickly conquer a niche in an already existing market and to grow quickly from there. For this to be achieved the anticipated company must differ from the services offered by the incumbent stakeholders

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(Innovation Approach).

2 Online Advertising Market and Networks

2.1 Online Advertising World Wide Globally, online advertising has performed well during the crisis years 2008 and 2009 and has remained strong throughout 2010 and 2011. 2010 marked the first time marketers put more money into online advertising than newspapers. Total spending on directories, internet, magazines, newspaper, outdoor, radio and TV advertising will continue to grow at steady single-digit rates through 2015, according to a recent eMarketer forecast (Figure 1). By that year, advertisers worldwide will be spending more than $600 billion on these media.

Global online ad spending will grow to $80.2 billion in 2011, up 17.2% from $68.4 billion in 2010. The Internet’s share of total ad spending will grow to 16.1% this year, and by 2015, online advertising is forecast to make up 21,9% of all ad dollars worldwide.

Figure 2: Online Ad Spending Worldwide 2010- 2015, eMarketer June 2011

Figure 1: Total Media Ad Spending Worldwide 2010-2015, eMarketer June 2011

Asia-Pacific is expected to increase its share of total ad spending worldwide over the next few years, and overtake North America as the worldwide leader in the next five years. eMarketer estimates ad spending in Asia-Pacific will reach $146.3 billion year 2011, compared to about $165 billion in North America (Figure 4).

By 2015, however, ad spending in Asia-Pacific will grow to $191.4 billion and a 32% share of global ad spending, while North America will reach just $190 billion and a 31.1% share that year (Figure 3 and 4).

However, Asia-Pacific still trails the West in terms of online advertising. Online ad spending in North America will reach $33.4 billion in 2011, trailed by Western Europe at $23.1 billion. Online

Page 5 P2P-Next D2.5.3d ad spending in Asia-Pacific will reach $19.3 billion this year, and isn’t expected to surpass North America or Western Europe in the current forecasting period (Until 2015).

Total media ad spending in the US is expected to reach approx. $16 billion in 2011, with online ad spending expected to top $40 billion. The US will lose some share of the global online ad market as other regions grow their spending, but eMarketer still expects nearly two in every five global online ad dollars to be spent in the US throughout our forecast period.

Figure 3: Total Media Ad Spending Worldwide Figure 4: Online Ad Spending Share Worldwide in billion, eMarketer June 2011 in %, eMarketer June 2011

Between 2010 and 2015, Asia-Pacific, Eastern Europe, Latin America, and the Middle East and Africa will all gain share of the online market, though Asia-Pacific is the only one of those regions with significant levels of spending during the forecast. Online ad spending in Asia-Pacific will more than double from $16.4 billion in 2010 to $34.6 billion in 2015, with spending in China alone nearly tripling during that period from $3.7 billion to $11.3 billion.

2.2 Online Video Advertising Whether they think of it as magnetic content or advertising, marketers are increasingly focused on creating video assets. This type of media reproduces the richness consumers associate with TV, often at a lower cost. And if online venues tend to fall short of TV when it comes to reach, they make up the difference by engaging viewers in an active, lean-forward mode.

The virtuous circle of content and technology adoption that consumers are experiencing is also fueling this trend. eMarketer estimates that US online video ad spending will grow by a compound annual rate of 38% in a five-year span ending in 2015, making this by far the fastest-rising category of online spending (Figure 5).

By 2015, video ad spending will reach $7.11 billion, up from $2.16 billion in 2011. In the past year alone, growth was 52.1% (Figure 6).

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Figure 6: US Online Ad Spending Growth, by Figure 5: US Online Ad Spending by Format Format 2010-2015, eMarketer June 2011 2010-2015, eMarketer June 2011

Similarly, in the UK video advertising will lead the pack, growing by a compound annual rate of 65% over five years. By 2015, UK video online ad spending will reach $850 million, compared with $150 million in 2011. As a percentage of total online advertising, video will grow to 8.2% in 2015 from 2.1% in 2011.

Still, challenges remain, including the high price of online video ads and the need for better reach and measurement. Several factors will mitigate these problems, making the upward course for video ad spending strong in 2012 and beyond. These factors include better filtering technologies for user- generated content, so publishers can better monetize it with ads; the emergence of cost per view and cost per engagement pricing structures; the increased use of interactive ad units and magnetic content and personalization and targeting of video ads.

According to online video ad network BrightRoll, publishers too are focused on digital video advertising: More than three-quarters of US online publishers expect online video advertising—in some form - to be a top revenue generator for 2012. Most publishers (63%) are betting on in-stream video ads, such as pre-roll or mid-roll units to generate the most revenue. Nine percent said in- banner video would bring in the most ad dollars (Figure 7).

Figure 7: Type of Online Ad with Most Revenue 2012 According to US Publishers, eMarketer Oct 2011 However, publishers and advertisers alike recognize roadblocks are keeping more money from freely moving to online video advertising. Most online publishers think that lack of standardization

Page 7 P2P-Next D2.5.3d was limiting online ad growth—a valid statement considering the vast number of networks, video players and providers in the online video space. Likely related are the challenges of technical implementation and integration with third parties, mentioned by 31% and 26% of respondents, respectively.

Online publishers also saw online video’s interruptive nature as bad for the user experience, with 39% of respondents citing this as a barrier to additional online video ad growth (Figure 8). On the other hand, the interruptive nature of online video is often considered an asset among advertisers looking to capture complete user attention.

Publishers and advertisers appear misaligned in their opinions on cost. Though only 17% of US online publishers said cost was a deterrent, earlier Q1 2011 findings from BrightRoll indicated cost was the most prohibitive factor among US ad agencies to increased online video ad growth (Figure 9).

Figure 8: Greatest Barriers to Online Video As Figure 9: Most Limiting Factors to the Growth Growth, eMarketer Oct 2011 of Online Video Ads, eMarketer May 2011

US online publishers plan to raise their average cost per impression (CPM) in late 2011 and 2012 ; therefore, cost will be a continued factor for online video advertisers. Seventy-three percent anticipate CPM hikes of 15% or more; only 7% of publishers expect no increase (Figure 10).

Figure 10: Amount that US Online Publishers Expect Online Video Ad CPM to Increase, eMarketer Oct 2011

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2.3 Issues in Online Video Advertising - Key RoI Metrics The goals of an ad campaign are naturally tied to its strategy, from the way advertisers decide where to buy placements to how they measure success. For online video advertising, research suggests that brands are mostly looking to support and quantify awareness and engagement.

According to research from Digiday and video advertising network YuMe, brand awareness and brand engagement are the two biggest marketing objectives for advertisers and agencies using online video ads.

Together, the two goals were the main uses of online video for about two-thirds of respondents, compared with just 8.1% who were looking to drive direct response and an equal number aiming to encourage traffic (Figure 11).

Figure 11: Marketing Objectives for The Use of Online Video, eMarketer April 2011

To that end, advertisers and agencies rated brand lift and percent of video completed the two most important metrics of online video ROI. Content producers, though, placed significantly less importance on the percent of video completed; instead, nearly half of producers of online video content said they thought click-through rate was the most important metric for advertisers. In reality, advertisers said click rate was their least important metric when measuring the effectiveness of online video ads.

The disconnect could cause problems for the expansion of online video advertising, since 72.5% of advertisers and agencies said measurability was a key factor in deciding which properties to place ads on (Figure 12). Measurability came in just after targeting capabilities as very important to the growth of online video advertising. Advertiser and agency respondents also said that better measurement, along with better reach, were the leading factors that would get them to spend more on video ads.

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Figure 12: Factors Influencing Advertisers/Agencies to Buy More Online Video Ads, eMarketer April 2011

These findings echo those of the Interactive Advertising Bureau (IAB), which reported that US marketers considered targeting, results and reach extremely important for video ad spending—far more so than cost.

2.4 Issues in Online Video Advertising - Personalization and Targeting

According to online video provider Eyeview and travel site KAYAK, personalized video ads can have positive brand-boosting effects for advertisers. To test whether personalized online video ads had a brand impact, Eyeview split respondents into two groups. The first group was shown a generic KAYAK ad; the second a more personalized, localized ad featuring real-time flight deals for their local airport.

The study found online video ad personalization and relevancy resulted in a 37% lift in reported purchase intent, a 100% lift in brand favorability and 73% lift in brand loyalty (Figure 13). Clearly, personalization can increase the ability to remember and relate to online video ads, ultimately creating a more powerful branding effect.

Figure 13: Effect of Personalized Video Ads on Selected Brand Metrics, eMarketer Sep. 2011

Overall, respondents were generally receptive to the personalized video ads. When asked to rate

Page 10 P2P-Next D2.5.3d their perception of the personalized video ad on a Likert Scale, 66% felt positively about the ads while only 12% had negative sentiment about ad relevancy (Figure 14). Twenty-two percent were neutral.

Figure 14: Attitudes toward Personalized Online Video Ads, eMarketer Sep. 2011

However, the generally positive attitude toward personalized advertising is not necessarily reflective of the industry at large. Personalization - often made possible through the use of some form of audience data and targeting technology - is largely received with mixed sentiment by internet users.

CrowdScience found 41% of internet users worldwide said they are tired of irrelevant advertising; however, 37% remain suspicious of ads that appear to be targeted or personalized to their interests and, likely, their demographic or personal information (Figure 15).

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Figure 15: Attitudes of Internet Users Worldwide Toward Online Ads, eMarketer Sep. 2011 Undoubtedly, this creates something of a Catch 22 for marketers. Brands should keep in mind that favorability for ad personalization will vary across industries. For instance, internet users are likely to be more comfortable with personalized ads that highlight retail, entertainment or travel preferences than they are with those that feature relevant financial services or health-related ads that lead internet users to question just how much personal information a company might know.

2.5 Issues in Online Video Advertising - Cross Platform Reception of Online Video Surges in tablet, smartphone and eReader adoption have stoked demand for content consumed on these devices, including video, audio, social media, games, news, books and periodicals. eMarketer estimates that the number of US tablet users will reach 89.5 million in 2014, up from 33.7 million in 2011 (Figure 16). Tablet users will make up 35.6% of internet users in 2014, up from 14.5% this year.

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Figure 16: Tablet Users 2010-2014, eMarketer Nov 2011 The number of US adult eReader users will reach 53.9 million by 2014, up from 33.3 million in 2011. eMarketer also expects robust growth in smartphone users, even though that product category is more mature than tablets and eReaders. By 2015, there will be 148.6 million smartphone users in the US, up from 90.1 million in 2011 (Figure 17). These users will represent 58% of mobile phone users in 2015, up from 38% this year.

Figure 17: US Smartphone Users and Penetration 2010-2015, eMarketer These devices create demand for apps, streaming video and audio, games, eBooks and periodicals, social networking and other marketer-supported activities. Content availability has already skyrocketed to meet the demands of consumers with smart devices, and these confluent trends will help US online video advertising to more than triple over the next four years, eMarketer estimates.

The more consumers adopt new technologies, the more comfortable they become with accessing content on every available screen and expecting the experience to be seamless across devices and platforms. The companies that are best suited to meet these consumer expectations are those that can deliver hardware, software, content and social integration. Solution providers that can offer integrated multiplatform services, tools and devices may profit from these.

As regards ad servers this specifically applies to cross platform analytics and measurement devices, cross platform buy side media buying, planning and optimization tools as well as cross platform sell side ad inventory management, ad delivery and hosting devices.

And the marketers that will get the most out of this new content ecosystem are those that understand how to deliver the best possible experience for each platform.

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2.6 Online Video Advertising and Video AD Networks in the US and Western Europe Advertising dollars are continuing to pour into online video. Some of the largest online video ad networks have seen revenue growth accelerating throughout 2011, and expect the fourth quarter to be even bigger. This applies to networks such as Tremor Media and Break Media. Tremor Media, which is one of the largest video ad networks and second only to Hulu in the number of video ads it serves expects to reach revenues in excess of 200 Mio. USD this year. Relatively small shifts in advertising budgets from TV to online can create huge swings in growth for online video. It very well may just be the big ad networks and properties like Hulu that are seeing the vast majority of new ad dollars. TV advertisers want to match their reach on TV, and online video that is deemed to be safe, professional content is starting to get to those levels. It is not American Idol, but it is like a large cable network. Advertisers can’t yet reach 30 million people in an hour with a single media buy online, but they can reach that many people over the course of a week, and they can target to specific demographics and get some feedback on how the ads are performing, which TV advertising still can’t do very well. Advertisers are becoming increasingly comfortable with putting their video ads online. But video ad spenders are also beginning to trust the larger video ad networks like Tremor and Break, which put ads against a wider range of professionally-produced video from guy videos to sports clips and movie trailers. It is not uncommon to see online video test budgets that start at half a million dollars, now. Usually ad agencies start testing with one tenth as much. Also, one can see about a dozen larger commitments in the double-digit millions over the course of the year, “online video upfronts”, because they are negotiated in advance like regular TV upfronts. According to the latest video numbers from metrics firm comScore Google, including YouTube sites, is still leading the video category. comScore's research indicates that more than 5.1 billion video sessions were initiated in November 2010 with the bulk (1.979 billion) coming from Google/YouTube sites. Consumers spent more than 270 minutes with Google video clips alone for the month. Yahoo, VEVO, AOL and Viacom Digital were also in the top ten for viewing sessions and minutes per viewer. Hulu continues to lead the video ads category, with 42 ads per viewer and a 48% reach into the total US population. American viewers watched more than 5 billion video ads in November; ads accounted for roughly 15% of all video clips for the month. Major players include:

YuMe -

Yume is one of the leading video ad technology companies.

VPN – Video Performance Network

Video Performance Network is a Video CPA Network. Click through rates on Video are tremendously higher than banner click rates. Their platform levels the playing field by allowing Affiliates and Advertisers to cooperate and share in the rewards of advertising through Video.

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VideoNap

The vision is to bring global communities together and provide virtual home environment – Anywhere – Anytime.

Vdopia

Vdopia is the largest Video Ad Network and Video Ad Platform that targets Indians across the world. It provides advertisers opportunity to advertise on the most premium online video content available on the internet. The company’s proprietary BrandConnect Ad technology combines the advantages of TV and Internet and provides value to large brand advertisers and publishers, allowing Vdopia to deliver industry leading CPMs. Vdopia is a video ad network that has managed to monetize online video content effectively, this has resulted in massive growth in online video across all Indian websites.

Value Click Media

ValueClick Media offers innovative performance advertising solutions across its display and lead generation platforms. They leverage their twelve years of experience, proprietary data from across ValueClick, Inc., direct relationships with 8,000 sites, real-time bidding into major exchanges and their market-leading ad targeting and optimization technology to consistently deliver direct response and brand marketing performance of the world’s leading online advertisers.

UnderTone (acquired Jambo)

With their syndicated player, content management and ad delivery technology, Undertone delivers premium video inventory, giving marketers a new distribution channel for in- stream video married with high-value, branded content. User-initiated or above-the-fold in-banner placements ensure the ads will be seen.

Tremor Media (Acquired ScanScout earlier in year)

Tremor Media is a leading online video advertising network providing advertisers with video advertising opportunities on over 2,500 in-stream sites and over 5000 in-page sites comprised of top-tier publishers with more than 190 million unique visitors per month. Tremor Media also offers the patent-pending Acudeo Video Monetization Platform for publishers, a full suite of products and services to monetize streaming video and maximize ROI.

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Just as Google and Overture revolutionized the search advertising space by creating a frictionless marketplace, the SpotXchange platform connects advertisers and sellers in a transparent and efficient marketplace where supply and demand are matched in real-time. SpotXchange has partnered with hundreds of publishers who represent tens of thousands of sites and tens of millions of daily video impression opportunities. Advertisers of all shapes and sizes, from small local businesses to Madison Avenue’s largest brands, currently advertise on the SpotXchange network.

Specific Media (acquired BBE)

Specific Media is one of the world’s largest independent media platforms and enables display advertisers to target consumers throughout North America and Western Europe based on demographics, behaviors, geographic locations and the contextual relevance of websites visited. Specific Media’s premium display network reaches nearly 160 million US consumers and 260 million consumers globally each month.

ScanScout (acquired by Tremor Media)

Founded by two friends from MIT in 2005, ScanScout is the web’s largest in- stream video ad network, helping top brands engage their target audiences in high performing, 100% brand-safe environments. The business is based on the proprietary SE2 technology which analyzes audience behaviors to find the segments advertisers want, and catalogs billions of content data points across their network of sites, allowing us to determine the category and safety of an ad destination before it is served.

SAY Media (formerly VideoEgg, recently purchased SixApart)

The SAY Media platform brings together VideoEgg’s rich advertising platform with SixApart’s suite of content creation and aggregation tools to power advertising campaigns that are more conversational and interactive.

Monsoon Ads

Monsoon Ads is one of India’s largest digital Video Ad networks connecting advertisers and ad agencies to Indian audiences worldwide on major video content Internet portals and mobile applications. Monsoon empowers advertisers and brands to reach highly targeted audiences viewing on-demand video content on the internet and mobile mediums through its state of the art technology and its premium publisher network.

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Microsoft Advertising

Microsoft Media Network is an ad network of top-ranked commercial sites, such as The Wall Street Journal Digital Network, CNBC.com, and Bing, etc.

Hulu – US-only

Serving hundreds of millions of streams per month, Hulu is a Top 10 online video property featuring an immense collection of premium entertainment across all genres and formats — television shows, feature films, clips and more, regardless of network or studio.

Collective

The business of Collective is to find the right intersection of the right ad, targeted to the right person, in the right environment. Not as easy as it sounds. Analyzing the billions of data points in their AMP Audience Cloud, and finding the right, top-tier inventory on the Internet takes experience and know-how.

CBS Interactive

CBS Interactive offers the ability to buy advertising directly through a self service ad store! Customers can purchase inventory across a variety of leading online brands including CNET, CBS.com, TV.com, Gamespot, CBSSports.com, Chow, Urban Baby.

BrightRoll

Led by a team of Internet advertising veterans and engineers, BrightRoll has served billions of advertisements since they started. They achieved this growth by enabling agencies and brand advertisers to execute smart video ad campaigns across the industry’s leading publishers. Three-quarters of the top 50 advertising agencies work with BrightRoll to execute campaigns for their premier brands.

Break Media

Through their branded properties and the Break Media Network reach over 70 million men aged 18-34 each month. Break’s wholly-owned properties include: Break.com,

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MadeMan.com, Chickipedia.com, CagePotato.com, HolyTaco.com, ScreenJunkies.com, AllLeftTurns.com, and FileFront.com.

Auditude (also owns Crosspoint Media)

Their platform helps satisfy the increasingly complex requirements of video advertisers while benefiting from multi-party demand. Auditude enable you to engage multiple sellers, turn on integrated ad network demand, and apply complex advertising rules like category exclusions, sponsorships, share of voice, composite ads, in-stream pods, ad pacing.

Advertising.com

Advertising.com is the technology, data and insights arm of AOL Advertising. At the heart of Ad.com’s technology is AdLearn, the most advanced optimization and bid management system in the business. AdLearn has processed up to ten billion transactions per day for the past ten years.

AdSolution

LongTail’s AdSolution includes Premium Ads which are advertisements from high quality advertisers and Ad Networks. Many Premium Ad Networks have minimum volume requirements in order to directly work with them. AdSolution provides publishers, who do not meet those minimum volume requirements, a way to work with Premium Ad Networks. Sample Premium Ad Networks include Google’s AdSense for Video, Scanscout, and Yume. The AdSolution is LongTail Video’s self service Video Advertising Network used by thousands of websites which serves hundreds of millions of Video Ads monthly. Websites that use the JW Player can sign up and start running Video Ads in minutes.

AdoTube

AdoTube provides agencies and advertisers with premium in-stream atop relevant video content, helping media buyers utilize the video space efficiently and effectively to accomplish various goals: branding, tune-in, engagement, return on ad spend, leads, etc. AdoTube has worked with leading brands such as Federal Express, ABC, AT&T and Fox and has partnered with top digital agencies, including: Media Contacts, Mediaedge, OMD, Avenue A, and many others.

Adconion

Online video advertising, an extension of the successful TV format, combines

Page 18 P2P-Next D2.5.3d the power of the moving image with the interactivity and target-ability of the web. Adconion offers targeting technology, a breadth of video advertising executions and creative production studios. adBrite

adBrite’s Exchange provides a yield management solution. Their advertisers range from small local companies to world-wide advertising agencies, to demand side platforms, real time bidders, ad networks, and everyone in between.

Adap.tv

adap.tv develops video advertising trading, serving and management technology. The adap.tv marketplace (atm) is an online video advertising marketplace. atm connects advertisers, agencies, publishers and ad networks with a robust marketplace to make smart buying and selling decisions in real-time. adap.tv is also the creator of OneSource, an online video ad serving platform.

Video Ad Networks – Video Seeding

YouTube Promoted Videos

Whether an AdAge 100 advertiser or a local retailer, everyone can broadcast their ad campaign on YouTube and tap into the world’s largest online video community with promoted videos. You can easily drive additional views to your videos on a cost-per-view basis and doing so allows you to place an overlay ad on your video directing users back to a URL of your choosing.

TubeMogul PlayTime

TubeMogul delivers video views for any online video campaign . They offer advanced targeting capabilities in the industry, transparency and robust campaign measurement.

Sharethrough

Sharethrough is a social video advertising platform and distribution network. Sharethrough’s customers include top brands, media and creative agencies. The company has run over 200 social video advertising campaigns, including some of the most watched brand videos to- date. Founded in 2008 by Brett Keintz, Dan Greenberg, Matt Monahan and Rob Fan, Sharethrough is based in San Francisco.

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Alphabird

AlphaBird enables video content producers to engage a guaranteed target audience with their video through a network of website publishers, social networks, mobile devices, and digital out-of-home devices. AB guarantees delivery of any video to any desired audience on a performance basis. AlphaBird was founded and is managed by online video industry veterans from ValueClick (NASDAQ: VCLK), InfoSpace (NASDAQ: INSP), and Sony (NYSE: SNE).

Misc Video Ad Solutions

SocialAds (by TwitVid)

Over 100 million people visit Twitter every month and use Twitter to get the latest news and updates from businesses they like. Building and engaging a Twitter audience is important for social media marketing. SocialAds can help to get more Twitter Followers and Retweets using online video.

AffiliatePLY

AffiliatePLY, a PLYmedia division, is a video ad network that enables video distribution and monetization, based on various commission models. It enables advertisers to gain from the power of affiliates, by re-purposing their commercial or tutorial video content and by enabling for distribution of their video and campaigns based on action rather than impressions. Publishers can provide their viewers with an interactive video experience and earn money for directing relevant and meaningful viewers to the video advertisers.

Besides ad networks competition to the Fair Share Media Service Monetization Features and A-2 may come from digital video enablers that also provide monetization services and ad server companies.

The main digital enablers that need to be watched out are detailed below:

Ooyala OOyola is focusing on publishing, monetisation and analytics of the digital video chain. “Publishing - We deliver video to browsers, phones, tablets, and connected TVs—with the quality that keeps viewers coming back. Monetization - $5.7 billion a year: that's what will be spent on online video ads by 2014 in the U.S. market alone. And more than four times that amount will be spent on online video rentals. Ooyala’s ad and paywall options help you capture a bigger share of the pie. Analytics - Get powerful insights into how your users watch video and what thrills and engages them most. And determine how much to charge for content or where to place ads”[1].

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OOyoloa is following a modular approach. As key to success the company sees personalisation of video content: .

KIT Digital KIT Digital has developed a complete, end-to-end solution for cloud-based video delivery – the KIT Platform. The KIT Platform is a “cloud-based video asset management system, which currently enables more than 2,200 media & entertainment, network operator and non-media enterprises across 50 countries to produce, manage, and deliver their live and on-demand socially-enabled video experiences from any source to any screen”. The KIT Platform is based on a modular architecture, delivers at “broadcast-grade” level for TV, tablets, PC and mobile.

Brightcove The Brightcove Online Video Platform is the most common platform for publishing and distributing professional video on the Web. More than 2,500 customers in 55 countries, including some of the world’s largest news and entertainment media companies and Fortune 1000 enterprises, rely on Brightcove for video content management, player publishing, video syndication, advertising and analytics. Brightcove is a Software-as-a-Service (SaaS) business with offices across North America, Europe and Asia. The Brightcove platform provides a single, integrated solution to meet a range of video publishing and distribution needs and is accessible anywhere in the world. Its workflows and processes enable customers to bring content to market faster and achieve higher ROI. Brightcove is available in three editions – Express, Pro and Enterprise – designed to meet the varying needs of different organizations. thePlatform thePlaorm™ is a leading Online Video Management and Publishing company defining itself as an open, central hub for managing, monetizing, and syndicating billions of video views annually. thePlatform's services provide versatility for designing and supporting video businesses on PCs, mobile, and TV”. The kernel is mpx. mpx is a video management system available with enterprise-class performance and easy media publishing to PCs, mobile phones, and TVs. mpx represents a new approach as a leading online video platform with more efficient content management, personalized workflows, and automated publishing, all built on top of a service-oriented architecture. mpx allows users to get started quickly and scales with the needs as the video business grows. The mpx Dev Kit’s REST-based application programming interfaces (APIs) helps users to manage the entire video publishing life cycle. The mpx Dev Kit is built on an underlying service-oriented architecture for greater scalability and reliability, which helps customers add capacity, isolate issues, and plan for growth. The Player Dev Kit gives users the tools to display broadband and mobile video in different ways. The Player Dev Kit's range of features allows users to distinguish the user's broadband video player, engage the audience, and ensure business policy consistency across the web.

ExtendMedia/Cisco Extend Media was acquired by Cisco in 2010. The main product is the Content-Management-

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System Opencase. Opencase integrates advertising into video and music files, delivers to a number of platforms and provides DRM. There is an Enterprise Suite and a suite hosted by Extend Media.

European, namely German players active in the market include the following entities:

Smartclip Funded in 2008 and acquired by Adconion in late 2011 Smartclip is one of the leading online video advertising networks in Europe. The company has recently turned to a multi platform approach by claiming. "Content and applications are becoming more and more important, irrespective of the platform they are being shown on. smartclip leads this trend and deploys and optimises online video advertising across different platforms for mobile devices, TV screens and computers. A seamless delivery of the right advertising with the right content, consumed by the advertiser’s target group on multiple devices is the challenge for advertisers and the solution offered by smartclip" - www.smartclip.com .

Clipkit Clipkit is a smaller competitor to Smartclip headquartered in Berlin.

ZoomIn Zoom.in is the largest producer of online news videos in Europe Zoom.in publishes around 200 news videos daily in ten languages on more than 1500 channel sites across 11 countries. Zoom.in produces much of its own content and receives content of over 120 content providers worldwide. The news categories of Zoom.in are domestic and local, international, sports, boulevard, film & music, games, finance, car, racing, crime, women, gadgets, fashion and more. Zoom.in provides services towards publishers by sharing its products and knowledge. Zoom.in offers the following to help publishers make money with video online (not in a specific order and in any combination): · Advertising (e.g. money) on video impressions - Ad forms like pre-roll, overlay, rolling logo, picture-in-picture, mid-roll and post-roll, · News video’s to add to the website or portal to buy or for free · A revenue share method to make money on the website with video as a whole · A white label ad server solution to run video ads on video impressions · A full operational and look and feel video player in wmv, flash or silverlight · A full white label content management system to upload video’s to the website · A white label mobile system that works for 250 mobile phones including the iPhone · Hosting & streaming facilities · International border crossing solutions in both sales and content for international players”]

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News Agencies – Reuters, DPA and DAPD, AP, Media houses (ASV, GuJ, etc.) News agencies such as dpa, dapd and large media houses such as Axel Springer Verlag have all established online video offerings and related technical services. Agencies such as Reuters and AP have started to offer end-to-end services which are monetized by adverts and which are free to publishers who broadcast the video content on their sites and receive a part of the revenues generated through advertising.

Ad Server and Ad Technology Companies A list of major ad server and ad technology companies is provided below:

►24/7 Real Media is one of the larger ad servers and was acquired by the media giant WPP (WPP stands for "Wire and Plastic Products", stock symbol: WPPGY) in 2007

►AdBrite, "The Internet’s Ad Marketplace", powers a marketplace to buy and sell online advertising. AdBrite also provides OTX: Open Targeting Exchange, an open exchange for ad targeting technologies that allows advertisers to tap into the expertise of multiple third-party targeting providers from within the AdBrite platform.

►AdECN, a real-time, auction-based exchange for online display advertising

► Ad Magnet - the ad network launched by DGTL Media uses proprietary 4th generation ad serving technology to aggregate billions of ad impressions across categories, create audience segments and help advertisers reach highly fragmented Internet users. Ad Magnet provides a platform for advertisers to tap into audiences across sites by various categories, surfing habits, context and other similar features. Ad Magnet’s inventory monetization platform uses proprietary longitudinal research algorithms to enhance advertiser performance and maximize publisher revenue. Hosted on Rack Space and a number of CDNs, Ad Magnet delivers an uninterrupted, robust and state of the art feature laden platform. Ad Magnet is backed by Sequoia Capital, a leading venture capital. Globally, Sequoia Capital has been an early investor in leading technology and internet companies such as Google, Yahoo, Apple, Oracle, Cisco, Paypal and Youtube

►Adoori Adoori is a platform which provides both advertising and publishing products and services globally. It’s traffic network covers more than 250 countries. You can buy global traffic from Adoori starting as low as US $1/CPM. Adoori is located in Asia

►Adservar.com Ad server Web Advertising Ad Serving is an online network of advertisers and publishers. It provides advertising solutions for advertisers of all sizes. Adservar.com – Ad server Web Advertising allows you to advertise using text and banner advertisements. The ads submitted to the

Page 23 P2P-Next D2.5.3d system are served worldwide through a large publisher network.

►ADTech AG from Germany is part of AOL’s Advertising.com

►Advertising.com one of the largest (world wide operating) Advertising Networks in the world. It is owned by AOL.

►Atlas Solutions is an ad server solution, which acquired competitor "Accipiter" in 2006 and is part of aQuantive, which was acquired for $6 billion by Microsoft in 2007. aQuantive also owned the advertising agency Avenue A | Razorfish.

►Bidvertiser Bidvertiser offers an automated bid management system.

►Blogads Blogads specializes in blog advertising, connecting advertisers with blog readers.

►BlueLithium.com - a smaller online ad network founded in 2004.

►Bluestreak ionAd ad-server solution. It was acquired by Aegis Group in summer 2007

►Burst.com Burstware® video and audio delivery software for IP networks.

►BurstMedia Burst Network is a brand-focused ad network that gives advertisers targeted access to more than 100 million monthly unique visitors worldwide. Advertisers are guaranteed full site disclosure on their campaigns across more than 4,000 high-quality, interest-based websites segmented into more than 400 content sub-channels.

►Burst Direct Performance Driven Distribution. Burst Direct caters to national direct response advertisers who require massive reach through a wider selection of web properties.

►The Casale Media® network, MediaNet™, provides advertisers and agencies with a powerful tool for reaching and interactively communicating with targeted consumer segments through online display media.

►CheckM8 is a provider of rich media and ad management technologies for the online advertising industry. Their main product is AdVantage.

►Chitika Founded in 2003, Chitika (pronounced CHIH-tih-ka), is a full-service on-line advertising network

Page 24 P2P-Next D2.5.3d serving over 3 billion monthly impressions across more than 100,000 websites. For advertisers and media buyers, Chitika is a proven channel for targeting on-line consumers and qualified buyers. For all publishers, Chitika is an easy-to-use platform for earning daily ad revenue

►ClickBooth.com Founded in 2003, Chitika is a full-service on-line advertising network serving over 3 billion monthly impressions across more than 100,000 websites.

►Clicksor.com Contextual advertising network.

►CPXInteractive formerly known as IncentAclick, a CPA Network, no setup fees. Online consumer acquisition and lead generation. CPX Interactive is owned by CX Digital Media, formerly Incentaclick Media Group.

►DoubleClick.com - one of the largest display advertising and rich media advertising networks, owned by Google.

►Epic Direct Epic Direct is a division of the Epic Media Group and is the company’s flagship performance-based ad network focused primarily on customer acquisition and pay-for-performance online advertising campaigns.

►Exper Click open market for online advertising

►EyeBlaster Unified Digital Marketing Solutions offers a set of advertising solutions, including: EyeBlaster ACM, EyeBlaster Rich Media, EyeBlaster Video, EyeBlaster Search and EyeBlaster In-Game

►Falk eSolutions AG is an ad server from Germany who offers three advertising packages: AdSolution, AdSolution rx and AdSolution fx.

►Foxnetworks one of the largest international ad networks, is the online division of FOX International Channels.

►Google Adwords

►Hiro - HIRO-Media has created an online video ad serving platform born from the knowledge of TV advertising and the power of online media. The platform includes traditional media capabilities such as demographic targeting, reach calculation and advanced media planning and combines it with online video advertising requirements including ad routing, ad mapping, syndication and rights management.

►Hydra

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Hydra operates a premium cost-per-action (CPA) performance marketing network, enabling campaign monetization via its internal media distribution groups.

►Infolink Infolinks, Inc. is a leading PPC contextual advertising network, providing In Text Advertising services to online content publishers worldwide. Infolinks enables website owners and publishers to benefit from premium In Text ads without any risk while earning the highest revenue share – guaranteed.

►Komli.com is a leading Ad network from India that operates worldwide. One of its innovations is the product "Search RePlay" which merges search and display advertising. Search RePlay was launched in October 2007.

►Kontera Kontera delivers In-Text Advertising & Related Information solutions online. Kontera’s patented technology performs real-time semantic analysis of content and other information to dynamically hyper-link the terms that most accurately represent and predict user-intent and engagement. Kontera enhances consumer experience through superior phrase relevance, driving increased user interaction, unparalleled campaign performance for advertisers, and substantial revenue for publishers. Reaching more than 140 Million unique users per month, Kontera’s exclusive network features over 15,000 premium and niche publishers and represents a unique opportunity for advertisers to reach their target audiences through innovative text, rich media and video advertising units.

►M3 Media Services provides Media Planning & Execution Services among other services, including traditional display advertising via its ad server plaform.

►Mirror Image content delivery network for Ads and media streaming

►Motive Interactive premium Ad + Lead Generation Network by Motive Interactive Inc., located at Lake Tahoe, NV

►Neverblue is a premier global performance-based affiliate network that brings together choice affiliates and quality online advertisers as partners through carefully monitored, custom advertising.

►Nuffnang - is Asia-Pacific’s first and leading blog advertising community.

►Oversee.net Navigation, Lead Generation and Advertising Solutions

►Prime Q Interactive Advertising

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►RealTech Network is an advertising network that offers next to the regular ad-serving services also features like behavioral targeting and contextual advertising. RealTechNetwork was founded in 2004.

►Revenue.net Advertising Network that leverages tradition of delivering proprietary technology solutions and product enhancements for advertisers, publishers and agencies

►RedEye provides ad serving services next to their core business of web analytics and campaign analysis.

►Right Media open media exchange for the interactive advertising industry

►Smart Ad Founded in 2001, Smart AdServer develops and markets premium ad serving solutions for media agencies and publishers to manage display campaigns for Web, mobile and iPad/tablets. Smart AdServer’s innovative functionalities and optimal service quality has earned it over 300 customers on 1,600 sites, across four continents. The company provides solutions for such media agencies/advertisers as Zenith Optimedia, GroupM, 6:AM, BetClic, Meetic, as well as numerous other sites and ad networks, including Amaury Medias (L’Equipe, Le Parisien), Canal+, Deezer, PIXmania, Axel Springer, Fox International Channels, Bild and Marca. They also provide mobile solutions for such companies as mbrand3, 20 minutes, Allociné, NEXTRégie (BFM, RMC), Hi- Media and Boursorama. Backed by a major international group for its development, Smart AdServer has operated as a subsidiary of the Axel Springer group since September, 2007.

►Specificmedia.com Specific Media provides advertisers, marketers, and agencies with multiple distribution channels to reach consumers on the Web. Performance Network. CPA/Ad Network Hybrid founded by the three Vanderhook Brothers.

►TradeDoubler Reach the ad network from TradeDouble who is primarily known as affiliate and CPA network.

►Tribal Fusion® is a leading site representation company, serving 19 billion monthly impressions and reaching 160 million users per month.

►Tumri.com is another display Ad network from India, which works across media channels, including media buys, affiliate marketplace and other web marketing initiatives.

►Undertone Networks Large Advertising Network by Intercept Interactive

►ValueClick, Inc. the Advertising Behemoth. ValueClick Services include the Display Advertising Networks

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MediaPlex.com and ValueClick Media

►VideoPlaza Videoplaza empowers broadcasters, publishers and ad networks to maximise their advertising revenues from the New IP-delivered TV. Videoplaza's sell side ad management platform is used to monetise video experiences across PCs, mobile devices, tablets, game consoles, IPTV and Smart TVs. Headquartered in London, with offices across Europe and Asia, Videoplaza works with a global client base across 20 countries.

►Zedo EDO, Inc. is a digital ad solutions company that offers products and services for a publisher’s premium, self service, and remnant inventory. Products include ad network optimization, innovative rich media formats for publishers’ direct sales teams, full featured ad serving, behavioral targeting data built into the ad server, an exchange-like platform for publishers to sell behavioral and DMA targeted inventory at high CPMs (see: www.zedoadnetwork.com), a self service platform to allow advertisers to buy directly from a publisher, outsourced ad ops and more. These products are integrated into one technology platform for publishers to choose from, or use seamlessly together. ZEDO has been in the internet advertising industry for over 10 years, and is the most successful independent ad server in the US. The company provides innovative solutions that boost revenues for Internet publishers. ZEDO is headquartered in San Francisco and has four development centers in Russia and India

2.7 Enabled Business Model There are 3 main business models that are enabled by the targeted ad and editorial and promotional content device in general:

1. Targeted ad and editorial and promotional content device as Sell Side Ad Server 2. Targeted ad and editorial and promotional content device as Buy Side Ad Server 3. Targeted ad and editorial and promotional content device for Analytics purposes.

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Figure 18: Business Model Generation Methodology

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Figure 19: Business Model for Next-AD

Figure 20: Next-AD Service 1 - OPAD Service

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Figure 21: Next-AD Service 2 - VIAD (Video AD) Service

Figure 22: Next-AD Service 3 - ACE (Adaptive Campaign Engine) Service

Details on the specifics of the business models followed by Next-AD and A-2 have been provided in the deliverable 2.5.2

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3 Ad Server Market and Standards As regards standards the ad server market has not shown dramatic changes in 2011/12 compared to the situation described in the previous version of deliverable D2.5.3 in 2010. Of major importance for the ad server related work in P2P-next have been 4 developments: a) The IAB has defined the VAST (Digital Video Ad Serving Template - V1.0, v2.0) and VPAID standards to foster interoperability between video publisher sites and a range of 3rd party video ad servers. On 10th April 2012 an update was released - Vast 3.0 b) The IAB has defined an update to the VPAID standard (Digital Video Player-Ad Interface Definition v2.0 - April 2012). c) The IAB has defined the Digital Video Multiple Ad Playlist (VMAP) 1.0 - April 2012. d) BVDW , the German Digital Media Association is currently in the process to work out guidelines for a common AdPlayer which will be based on the aforementioned standards and which is supposed to become the de facto standard in ad player technology and delivery in Germany.

VAST The IAB’s Video Ad Serving Template (VAST) specification is a universal XML schema for serving ads to digital video players, and describes expected video player behavior when executing VAST-formatted ad responses. VAST 3.0 adds critical functionality that opens up the in-stream digital video advertising marketplace, reducing expensive technical barriers and encouraging advertisers to increase video ad spend. As online video content publishing has become more common, video publishers have sought to monetize their content with in‐stream video advertising. Before VAST, there was not a common in-stream advertising protocol for video players, which made scalable distribution of ads impossible for ad servers. In order to serve ads to multiple publishers using disparate proprietary video players, ad-serving organizations had to develop slightly different ad responses for every publisher/video player targeted. This approach was expensive and didn’t easily scale. VAST provides a common protocol that enables ad servers to use a single ad response format across multiple publishers/video players. In 2008, the IAB introduced the first version of VAST to the video advertising marketplace, which has since been widely adopted throughout the industry. In 2009 features were added that enabled additional functionality and more clarity. Today, as the in‐stream digital video advertising market becomes more sophisticated, additional features and functionality are required to improve support for in-‐stream ad display and reporting. VAST 3.0 provides more features, increased functionality and better reporting, while maintaining backward compatibility with VAST 2.0 to ensure a smooth transition for the industry. VAST 3.0 provides additional detail for the ad response format and the expected behavior of video players. With VAST 3.0, video players now have the ability to declare which ad formats they support. Five formats are provided as options: Linear Ads, NonLinear Ads, Skippable Linear Ads, Linear Ads with Companions, and Ad Pods (a sequenced group of ads). Skippable Linear Ads and Ad Pods are new formats offered with this release. Some video players choose to only support certain VAST ad formats in accordance with their publishing business model. With VAST 3.0, the guesswork of which VAST ad format a player supports is eliminated.

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Video content publishers should upgrade their video players to support VAST 3.0 ad responses according to the ad formats they support. These video players should also adhere to the expected behaviors defined in this document. Additionally, ad-serving organizations should ensure that their VAST 3.0 ad responses are well formatted and adhere to the specifications outlined in this document.

VPAID The IAB’s Video Player Ad-Serving Interface Definition (VPAID) establishes a common interface between video players and ad units, enabling a rich interactive in-stream ad experience. In-stream video advertisers have two important execution goals for the delivery of their video ad campaigns: a) provide viewers a rich ad experience, and b) capture ad playback and user- interaction details that report on the viewed ad experience. To achieve these goals in a world without common video player functionality, advertisers would have to develop multiple specialized versions of their ad creative for every unique video player—an expensive proposition that doesn’t scale well. The Video Ad-Serving Template (VAST), another IAB specification, provides a common ad response format for video players that enables video ads to be served across all compliant video players. However, VAST alone does not provide support for rich interactivity. VAST alone only supports relatively simple in-stream video ad formats that are not executable. These simple ad formats do not provide an interactive user experience, and do not allow the advertiser to collect rich interaction details. Layering VPAID onto VAST offers an enhanced solution. VPAID establishes a common communication protocol between video players and ad units that allows a single “executable ad” (one that requires software logic to be executed as part of ad playback) to be displayed in-stream with the publisher’s video content, in any compliant video player. Furthermore, it enables the executable ad unit to expect and rely upon a common set of functionality from the video player. VPAID enables the video player to expect and rely upon a common set of functionality from the executable ad unit. The significance is that advertisers using VPAID ads can provide rich ad experiences for viewers and collect ad playback and interaction details that are just as rich as the ad experience. With the adoption of VPAID, advertisers have more control over the display experience in their video campaigns. Also, as VPAID compliant video players enable a more diverse and interactive set of video advertising, VPAID compliant publishers should expect to sell more instream video inventory.

With VPAID, the IAB aims to address the following market inefficiencies for publishers, advertisers, and vendors by:

• Increasing common video ad supply technology so that video publishers can readily accept video ad serving from agency ad servers and networks; • Providing common technology specifications for advertisers to develop against, thereby decreasing the cost of creative production and thus increasing business ROI; • Improving video ad supply liquidity, thus decreasing the cost of integration with each publisher.

To improve the interactive ad experience in video players, publishers should build their video

Page 33 P2P-Next D2.5.3d players to the VPAID specifications outlined in this document. These specifications were defined with creativity and innovation in mind and should not limit video player design. As with all IAB guidelines and specifications, this document will be updated as video advertising progresses and new ad formats become more widely adopted.

VMAP The IAB Video Multiple Ad Playlist (VMAP) specification is an XML template that video content owners can use to describe the structure for ad inventory insertion when they don’t control the video player or the content distribution outlet. In order to effectively monetize video content with in-stream insertion advertising, video content owners must carefully manage the structure and use of ad inventory opportunities available within their content. When the content owner controls the content distribution outlet, the content owner can easily manage ad placement within the content they play. However, when the video content airs in a video player that they do not control (such as when the content is syndicated using a video aggregation service), managing ad placement becomes complicated. Business arrangements between the video content owner and a distribution outlet may grant the owner the right to manage its video ad inventory, but without control of the video player or the distribution outlet, the video content owner is effectively prevented from exercising this right. Content owners and distribution outlets have looked to the IAB Video Ad Serving Template (VAST) to help solve this problem. While VAST 3.0 provides some additional controls over the use of video ad inventory (such as support for ad pods), it lacks the ability to define ad breaks or the timing of those ad breaks within the video content entertainment timeline.

With VMAP, video content owners can exercise control over the ad inventory displayed in their content when they can’t control the video player, to capitalize on advertising while maintaining the integrity of their program content. VMAP enables the content owner to define the ad breaks within their content, including the timing for each break, how many breaks are available, what type of ads and how many are allowed in each break.

What VMAP cannot do is define the ads themselves. VMAP was designed to accept VAST 3.0 ad responses to fill ad breaks, but can also accept ad responses in other formats. VMAP is complementary to VAST and only useful in cases where content owners have no control over the video players, but have rights to control the advertising experiences within their content.

Video players that support VMAP provide a mechanism to honor business agreements that give advertising control to video content owners. VMAP specifications were defined with creativity and innovation in mind and should not limit video player design. As with all IAB guidelines and specifications, this document will be updated as video advertising progresses and new ad formats become more widely adopted.

BVDW AD Player BVDW , the German Digital Media Association is currently in the process to work out guidelines for a common AdPlayer which will be based on the aforementioned standards and which is supposed to become the de facto standard in ad player technology and delivery in Germany.

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4 The P2P-Next Ad Server WP2 develops a media planning engine and targeted ad server which is suited for rich media ads (mainly video) and editorial content. The Next Ad Server needs to be divided into: a) the Ad Server that is tightly integrated with the Next Share Kernel and that serves as the basis of the free view ad supported monetization tools of the Fair Share Media Service and b) the proprietary stand alone Next-AD Service that is designed to form the basis of the commercial activities of the people and organizations that developed the respective foreground during the P2P-next project. Both versions of the Ad Server have 3 main sections: a) Analytics Section, b) Buy Side Functions and c) Sell Side Functions. But while the one tightly integrated with NextShare is largely based on open standards and open source software and is released under the LGPL license, the latter contains both - open source and proprietary elements that directly support the anticipated business case. Furthermore, as P2P delivery of video has not become mainstream and is not anticipated to do so in the years ahead, P2P support is of minor importance for the stand alone version, as it does not add any major business prospects in the near future.

4.1. General Scope of Next-AD Next-AD is built upon a fully REST-full compliant architecture. Communication takes place on demand. The client is active and requests a modification or a resource from the passive server. Resources, the objects of the application, have an associated URI, with which they can be addressed. The representation of a resource may be requested by the client as a document, as well. Representation can refer to other resources which in turn provide representations, which in turn can refer to other resources. The server does not keep track of the client status. Any request to the server must include all information necessary to interpret a request. Caches are supported as the server can mark the feedback as capable or non-cachable. Next-AD is Vast 3.0, VMAP 1.0 and VPAID 2.0 compliant and works with HTML5.

Page 35 P2P-Next D2.5.3d O v e r v i e w o f g e n e r a l s c o p e s a n d o b j e c t i v e s o f t h e N ext A d S e r ver

O b j e c t i v e s

M i s s i o n o f N e x t - Ad is to p r o v i d e a f l e x i b l e V i d e o Ad- M a n a g e m e n t s o l u t i o n f o r t h e i n t e r n e t

O b j e c t i v e o f N e x t - A d s e r v e r

n C a p a b l e t o i n s e r t, n H i g h l e v e l of n I n t e g r a t i o n i n n P o w e r f u l a n d n T e c h n o l o g y f o c u s r u n a n d m a n a g e a u t o m a t i o n t o e x i s t i n g A d d e t a i l e d r e p o r t i n g on W ebSe r v i c es s e v e r a l a d t y p e s d e c r e a s e r e q u i r e d m a n a g e m e nt e n g i n e t o p r o v i d e and C l o u d S e r vic e s a n d m e t h o d s i n t o h u m a n i n t e r a c t i o n s y s t e m s /- ser ver d a t a f o r a u t o - ( A m a z o n C l o u d ) t o v i d e o s , v i d e o o p t i m i z a t i o n a n d e s t a b l i s h a s t r e a m s a n d l i v e d e c i s i o n m a k i n g d e c e n t r a l i z e d str e a m i n g s yst e m

1 2 3 A d m a n a g e m e n t f o r d i r e c t o n - d e m a n d A d m a n a g e m e n t f o r s t r e a m i n g o v e r A d m a n a g e m e n t f o r s t r e a m i n g o v e r s t r e a m i n g m e d i a CDN d i s t r i b u t e d n e t w o r k s / p 2 p

Figure 23: General Scope and Objectives of NextAD Server

5 Next-Ad is composed of 2 modules: A) a targeted ad server (Next-A) which is suited to manage ad inventory, and to carry and deliver them sell-side ad server) B) a media planning engine (Next-M) suited to plan, manage and optimize 360° media and advertising campaigns and to create new types of rich media adverts (buy-side ad server). Furthermore, there are analytics, monitoring and reporting facilities which both – sell side and buy side market participants – may use. Next-A is a comprehensive end-2-end ad management framework. It runs with and without Next-M and has interfaces to a number of third-party solutions integrating these seamlessly into the ad creation and delivery process. It focuses on display ads. The philosophy in building Next-A is to focus on new forms of creating and delivering adverts and to use existing solutions for standard parts in the value chain wherever possible. The kernel of Next-A is an innovative delivery and tracking engine (Next-A ACE) that combines in- stream video ad formats as defined by the IAB in May 2008 with new types of innovative video- based (In-stream and out-stream) advertising. Interfaces to third party solutions which can be seamlessly integrated with Next-A act as separate Next-A modules.

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Figure 24: Structure of the Next-A module

Interfaces with which the Next-A TPI is supposed to smoothly work together include: 1. interfaces with existing ad servers and ad analytics solutions 2. interfaces with existing ad management solutions 3. third party ERP software such as SAP, Salesforce, etc.

The structure of the Next-M module is displayed in the next Figure (see also D5.1.2):

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Figure 25: Structure of the Next-M module

4.2 Next-AD and the VAST and VPAID Standards Next-AD is Vast 3.0. and VPAID 2.0 compliant. It will be held compliant with all further updates of the VAST and VPAID standards. Major development effort for 2011 has been to keep Next-AD VAST and VPAID compliant while working with both – Browser-based HTML5 and Player based Flash Video. The economic benefits of the VAST standard for online video are described in the following Figure:

Figure 26: Level of Interoperability

Page 38 P2P-Next D2.5.3d

VAST + VPAID provide a technical definition of the interactivity between Ad’s, Player and Server as well as publishers (or their agencies)the inventory and the ad networks, ad exchanges or marketers directly.

Figure 27: Objective of VAST and VPAID Standards

Figure 28: Technical Definition of Interactivity in VAST and VPAID

Page 39 P2P-Next D2.5.3d

4.3 Details on Next-Ad

Figure 29: Factors, Description and Implications of Next-AD Server

Next-AD is able to carry and deliver all ad formats as described by the IAB In-Stream Ad Format guidelines number of advertisement innovations. The monitoring and analytics section of Next-AD gives publishers, ad agencies and marketers valuable information about the way users engage with the content. The list of performance indicators is detailed in the next two figures:

Page 40 P2P-Next D2.5.3d

P e r f o r m a n c e I n d i c a t o r s D e s c r i po n C h eck

V i d e o P l a y e d 1 0 0 % - C o m p l e t e d P l a y H o w oe n h a v e 1 0 0 % o f t h e v i d e o b e e n v i e w e d ? ✔

V i d e o P l a y e d 1 0 0 % - C o m p l e t e d P l a y % i n t o t a l v i e w s . ✔ R a t e A v e r a g e T i m e V i d e o P l a y e d ( T i m e A v e r a g e v i e w i n g m e . ✔ S p e n d V i e w i n g ) V i d e o S tar t R a te H o w oe n h a s the v i d e o b e e n s tarte d ? ✔ Paus e H o w oe n h a s the v i d e o b e e n p a u sed ? ✔ R e s u m e H o w oe n h a s the v i d e o b e e n r e s u m e d ? ✔

F u l l s c r e e n H o w oe n h a s the f u l l s c ree n m o d e b e e n s w i tch e d o n ? ✔

F u l l s c r e e n E x i t H o w oe n h a s the f u l l s c ree n m o d e b e e n s w i tch e d off? ✔ Rewi n d H o w oe n h a s the v i d e o b e e n w o u n d b a c k ? ✔

F a s t - F o r w ard H o w oe n h a s t h e v i d e o b e e n f a s t - f o r w ard ed? ✔

R e p l ay H o w oe n h a s the v i d e o b e e n rep l a y e d ? ✔ A u d i o M u t e H o w oe n h a s the v i d e o b e e n m u t e d ? ✔

U n m u t e H o w oe n h a s the s o u n d b e e n s w i tch e d b a c k o n ? ✔ Figure 30: Next-AD Monitoring and Analytics Performance Indicators 1/2

P e r f o r m a n c e I n d i c a t o r s D e s c r i po n C h eck

A d I m p r e s s i o n A d i n s e ro n ✔

A d C l i ck C l i c k o n t h e a d v e rsem e n t . ✔

C l i c k T h r o u g h R a t e ( C T R ) - C o n ver s i o n C T R ( p r o p o ro n b e t w e e n A d C l i c k a n d A d I m p r e ssio n ) . ✔

E n g a g e m e n t ( I n t e r a co n ) R a t e A l l e n g a g e m e n t s ( i n t e r a co n s) i n p r o p o ro n w i th the A d I m p r e s s i o n s. ✔ A ver a g e E n gagem e n t ( I n t e r a co n ) H o w l o n g h a s the u s e r b e e n i n teracn g w i th the a d v e rs i n g m a ter i a l ? ( p l a y e d , ✔ Tim e p a u s e d , r e w i n d ) V i d e o V i e w i n % P e r c e n t a g e o f v i e w e d v i d e o m a t e r i a l ? ✔

V i ews H o w oe n h a s the v i d e o b e e n v i e w e d ? ✔ V i d e o P l a y e d 2 5 % H o w oe n h a v e 2 5 % o f the v i d e o b e e n v i e w e d ? ✔

V i d e o P l a y e d 2 5 % R a t e % i n t o t a l v i e w s . ✔

V i d e o P l a y e d 5 0 % H o w oe n h a v e 5 0 % o f the v i d e o b e e n v i e w e d ? ✔

V i d e o P l a y e d 5 0 % R a t e % i n t o t a l v i e w s . ✔ V i d e o P l a y e d 7 5 % H o w oe n h a v e 7 5 % o f the v i d e o b e e n v i e w e d ? ✔ V i d e o P l a y e d 7 5 % R a t e % i n t o t a l v i e w s . ✔ Figure 31: Next-AD Monitoring and Analytics Performance Indicators 2/2

The tracking roadmap, incl. Further developments inside and outside the project is displayed in the next Figure:

Page 41 P2P-Next D2.5.3d

C l i e n t b a s e d t r a c k i n g ( v i d e o p l a y e r ) R e p o r t i n g

¾ U R L t r a c k i n g ¾ C o l l e c t s a l l d e f i n e d e v e n t s ¾ E v ent - p o s t i n g i n rea l t i m e t o p re - d e f i n e d U R I ¾ A g g r e g a t i o n o f a l l a v a i l a b l e d a t a ¾ V A S T c o m p l i a n t ¾ I n r e l a t i o n t o t o t a l d e f i n e d K P I: ¾ C o n t e n t v i d e o t r a c k i n g ¾ n u m b e r s , p e r c e n t a g e , g r o w t h r a t e , v a r i a n c e ¾ A d t r a c k i n g ¾ S t a n d a r d e x p o r t f u n c t i o n ( c s v , x m l )

I n t e r a c t i v e C onsumpti on E v e nt S e r v e r b a s e d t r a c k i n g ( l i s t e n e r ) e v e n t ( a c t i o n ) e v e nt B u s i n e s s I n t e l l i g e n c e

n O L A P cub e

¾ S e r v e r s i d e t r a c k i n g l i s t e n e r n B u s i n e s s I n t e l l i g e n c e s y s t e m f o r s p e c i a l r e p o r t i n g : ¾ E n g i n e w h i c h c a p t u r e d a n d s t o r e s a l l t r a c k i n g e v e n t s s e n d n T a r g e t g r o u p s o u t b y t h e c l i e n t ( v i d e o p l a y e r ) n A g e n D e m o g r a p h i c d a t a ¾ N o o f f i c i a l s t a n d a r d a v a i l a b l e ( w o r k i n p r o g r e s s ) n G e o - t a r g e t i n g ( I P b a s e d )

Figure 32: Next-AD Tracking Roadmap

4.4 Next-AD Sell-Side (Publisher Lounge)

The Next-AD Publisher Lounge is the space where publishers can manage advertisements on their portals. It can also be used by content producers. The Lounge is divided into main sections : 1. Dashboard 2. Spaces

Figure 33: Next-AD Publisher's Lounge – Spaces / Details

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Dashboard • Dashboard – get overview (statistics) about running Ad’s on your inventory and keep track of performance on your spaces

• Shows a list of all already configured websites and it’s domain.

Spaces

• Spaces – manage, edit, delete and create ad spaces on your inventory

• Setup of targeting criteria and matching channels i.e. Sports, Art, Entertainment, Computer, Lifestyle

• Configuration set for the publishers player (code snipped), publisher has to add this code snipped in publishers space (website).

Details on the information that is provided in the Spaces and dashboard sections are provided in the next two figures:

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Figure 34: Next-AD Publisher's Lounge – Publisher Dashboard

Figure 35: Next-AD Publisher's Lounge - Spaces

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4.5 Next AD Buy-Side (Advertiser Lounge)

The Advertiser Lounge is divided into 4 main sections:

1. Dashboard 2. Flights 3. Ads and 4. Assets.

The dashboard is the control panel and provides aggregated information to the advertiser. It is designed to create, edit and manage your video ads and track success of ads. Details are provided in the next two figures:

Figure 36: Next-AD Advertiser's Lounge – Advertiser Dashboard

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Figure 37: Next-AD Advertiser's Lounge – Advertiser Dashboard

In the Flights section a complete overview of an advertisement campaign is provided. Details are displayed in the next Figure:

Page 46 P2P-Next D2.5.3d

Figure 38: Next-AD Advertiser's Lounge – Flights

The Ads section generate logical ads based on media assets while the assets section is the data base of ad assets. Ad assets are different media files. Details on how to operate the two sections are given in the next figures:

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Figure 39: Next-AD Advertiser's Lounge – Ads

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Figure 40: Next-AD Advertiser's Lounge – Flights / Details

The statistics overview provides examples of statistical data such as ad impressions, click and engagement by different ad types.

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4.6 The Next-AD Video Player

The Next-AD tool is video player agnostic and works with any VAST compliant video player. Furthermore, it will be made compliant with HTML5 applying the VAST and VPAID standards to the HTML5 world.

For demonstration purposes and as part of the marketing strategy, the project has developed its own player which may be given for free to publishers that enter into a contractual relationship with Next- AD. This player has the following main features

rd • VAST compliant video player, enabling 3 Party video ad and content serving • Features set: fullscreen, mute, pause, resume, forward, replay • Different tracking information are generated and send to pre-define server (primary ad and secondary ad server) • code snipped requests pre-defined video player including pre-defined ad types (format and timing)

S t a n d a r d s P l a y e r f i l e s i z e M e d i a f o r m a t s C u s t o m i s a t i o n

n O b j e c t i v e i s t o b e n O b j e c t i v e i s t o n O b j e c t i v e i s t o n O b j e c t i v e s a r e t o s t a n d a r d c o m p l i a nt p r o v i d e a f a s t - s e r v e a s m u c h a s p r o v i d e a f l e x i b l e w i t h o u t v e n d o r l o c k l o a d i n g p l a y e r p o s s i b l e d i f f e r e nt i n t e r f a c e f o r s k i n f i l e / m e d i a f o r m a t s c u s t o m i s a t i o n n B a sed o n O p e n n P l a y e r fil e s i z e i s S o u r c e c o m p o nents t h e m o s t r e l e v a nt n D o w n w a r d s n E a c h p u b l i s h e r i s p o i n t f o r i n d i v i d u a l c o m p a t i b l e a b l e t o c u s t o m i z e p e r c e p t i o n t h e s k i n n F l o w p l a y e r f o r Dem o n V A S T com p l i a n t n Y o u t u b e : 1 1 3 k b n F l a s h 9 . 0 / 1 0 . 0 n S i z e n X M L , JSO N n B r i g h t c o v e : 2 2 5 k b n H T M L 5 n O v e r l a y / l a y o u t i n t e r f a c e n H u l u : 2 6 5 k b n C o l o r s n M ysp a c e : 2 4 4 k b n F o n t s

T h e N e x t A d A d M a n a g e m e n t sys t e m i n t e r a c t s w i t h a n y V A S T c o m p l i a n t V i d e o p l a y e r . F u r t h e r m o r e i t c a n h a n d l e H T M L 5 .

Figure 41: Main Features of Next-AD Player

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Figure 42: Player Skin

4.7 Integration with NextShare and the FairShare MediaWorld

The following three figures detail the integration scenarios as sketched in early 2010. The first two figures apply to NextShare PC, the final one to NextShare TV. The PC integration was based on a Player/Flash concept at that time.

Page 51 P2P-Next D2.5.3d

Figure 43: Next-AD Integration with NextShare PC (A)

Figure 44: Next-AD Integration with NextShare PC (B)

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Figure 45: Next-AD Integration with NextShare TV

In 2011 and 2012 an integration with the Fair Share Media World Service has been accomplished that will be demonstrated at the final review in July 2012.

4.8 Integration of HTML 5

While the integration concepts as depicted in the preceding section remain valid for Flash Video based delivery the project has decided to integrate Next-AD based on HTML5 delivery and adapt the VAST and VPAID functionalities to HTML5 based on a Javascript implementation.

As of December 2011 a P2P-next Video has been integrated in a website adding • An Ad Video (Pre/Mid/Post Roll) • Overlay Ads and • enabling VAST Reports to the Ad server

The setup of the Javascript Video Player has been based upon: • Use of HTML5 video tag • Control of content P2P-next swarm video • VAST request and event processing • Control of ad videos and overlay ads

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As such an albeit shallow integration with the LIMO tool has also been provided.

5 A-2 Ad Server

The underlying business model that the A-2 ad server is designed to serve is a copy of the business model of Tremor Media - adapted to the German market and modified and equipped with several technological innovations in order to gain a competitive advantage in certain areas. Three essential activities are carried out:

Activity 1

There are marketing contracts with publishers, especially entered for video advertising (online sites). These may also include agreements with publishers, which have no editorial video content. The contracts may or may not be exclusive in nature. The publishers will be bundled into channels such as Consumer Finance, Advice, Fashion, Insurance, etc. The channels and not the individual editorial editorial offers will be marketed. The publishers have to integrate the A-2 technologies with them. Complying with the guidelines of the A-2 technologies, the network is open to publishers, that want to offer inventory but do not expressly want to be marketed by A-2. Via a number of interfaces third-parties will be allowed to offer additional services within A-2; services that A-2 itself does not intend to carry out. These are subject to commission.

Activity 2

There will be placement agreements with advertisers and their marketers. This is accomplished employing a hybrid model consisting of AE and performance. Performance targets can be composed of a multitude of criteria - a mix of different sub-goals and criteria - and can be changed during a campaign. Media agencies and marketers may in some cases, have direct access to the network, in these cases the individual campaigns will be conducted by them - making use of the technology from A-2 and the A-2 network but with no additional service. This is commissionable.

Activity 3

A-2 carries out advertising campaigns based on the agreed performance targets and placed advertisements in Activity 2 in the network - marketing the channels assembled via Activity 1.

Based on the analytics capabilities of the A-2 ad server sites with bad campaign performance will constantly receive less ad budget, better-performing sites receive more budget. Video advertising is also placed in the context of text pages, which emit no editorial video content. In addition to industry standard pre-roll and mid-roll ads non-interruptive advertising and innovative special forms of advertising will be delivered and served. Making use of VAST 3.0 3rd party ad serving is possible. Based on contracts with editorial offices editorial content may also be provided in addition to adverts. This may take the form of "dirty feeds". The promotional material can be hosted directly at A-2.

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It is the goal of A-2 to provide maximum coverage and related benefits of TV advertising to be connected with the targeting, analytics and optimization capabilities of the Internet. Types of advertising that accompany the consumption of editorial content and do not interrupt it have priority. Instead of pushing adverts when they disturb viewers, the user is offered to consume tailored advertising via a pull-option, when and if he is ready to shoot.

5.1 Functional Overview

The A-2 ad server consists of 7 main modules / components

Module 1 - A-2 Start, ingest, metadata, transcoding / encoding,

Module 2 - A-2 Generate - advert selection and production, delivery of adverts, campaign parameters (with an external interface for advertising innovations from 3rd parties)

Module 3 - A-2 Analytics - Real-time analytics of advertising performance (with interface to 3rd party analytics solutions)

Module 4 - A-2 Optimization - Optimization of adverts, media, placement, campaigns, site selection

Module 5 Dashboard / Admin - Front-end, customer accounts, billing, AdView count, contract admin

Module 6 - Reaktor (back-end) - database, storage

Module 7 - Interfaces - SAP, 3rd party ad servers, other

Module 1 - A-2 Start, ingest, metadata, transcoding / encoding

The module contains of 3 submodules: Ingest, Metadata,Transcoding/Encoding.

Ingest Media agencies and marketeers can upload their advertisements into the A-2 network, where they are hosted on a server and stored. The hosting of this will be handled by module 6. A cloud approach is currently under investigation.

Metadata At the same time licensees provide the advertising material with metadata. These e.g. define how, when and where advertising should not be sent or delivered. The Dublin Core metadata terms will be adhered to. The Ingest module also ensures that ad inventory is properly labelled and defined by the publishers in the network in such a way that advertising space can be identified, adverts can be temporarily

Page 55 P2P-Next D2.5.3d blocked, can be provided with restrictions, etc.

Transcoding / Encoding Video content is converted into the corresponding broadcast formats, provided with video qualities and then encoded / transcoded. This may be provided via interfacing with a relevant service provider, that e.g. provides adaptive bit rate encoding.

Storing (Module 6) Video content can be stored in a central repository and stored for shipment.

Module 2 - A-2 Generate - advert selection and production, delivery of adverts, campaign parameters (with an external interface for advertising innovations from 3rd parties)

This module has four submodules: advert selection, advert production, delivery of adverts, campaign parameters.

Advert selection A-2 supports all formats defined by the IAB. In addition, some of the formats can also be delivered Out-Stream/In-Player and Out of the Player. For this A-2 provides a number of ad format templates.

Advert production As part of the A-2 ad format development kit there are a number of special ad format templates and features. These can be used to enhance existing standard ad formats. This applies in particular to a number of cost per engagement adverts with features such as Like, Send 2Friend, comment, give input, order, lead, etc.). In addition, there are interfaces to other providers of special forms of adverts (e.g., Personology, tape.media - 360 °, Impossible Software, etc.)

Campaign parameters The Client and/or A-2 can define RoI details of an individual campaign and can change and optimise these details on the fly.

Delivery The submodule determines the video quality and details in which quality the ads are to be delivered. This will be based on e.g. available bandwidth of the user who receives the advertisement. Scalable video coding may be used.

Module 3 - A-2 Analytics - Real-time analytics of advertising performance (with interface to 3rd party analytics solutions)

The module provides a number of statistics and metrics, namely a) Adviews 100 % b)Adviews 10 %

Page 56 P2P-Next D2.5.3d c) Adviews 50 % d) Adviews until brand or claim appears e) Clicks f) Click through Rate g) AdView Index h) Rewinds i) Video minutes delivered and viewed j) Views on selected Engagements k) Actions l) Engagement-Index m) Campaign Goal Index

Results are displayed real time or near real time per user, site, channel and advert. There is an interface to 3rd party analytics packages such as Webtrekk.

Module 4 - A-2 Optimization - Optimization of adverts, media, placement, campaigns, site selection

Individual campaigns can be based on individual criteria such as CPC, CPL, CPO, AdViews and be optimized accordingly. This includes campaigns that have a single optimization objectives as well as campaigns that have multiple optimization objectives simultaneously or sequentially during a campaign. For the latter, various optimization functions can be selected, such as threshold values, maximum values, minimum values, indices, etc. Premium users who want to conduct their own campaigns, are provided with a kit to select and develop their own optimization procedures. This includes rigid rule-based systems as well as self- learning methods in the field of Artificial Intelligence (GA, fuzzy logic, neural networks).

Module 5 Dashboard / Admin - Front-end, customer accounts, billing, AdView count, contract admin

Five types of users login via the front end: a) Publishers and marketers that have marketing contracts with A-2 and A-2 marketing their sites b) Advertisers and their agencies, with A-2 providing technical services c) "Self-propellers" (Publisher + Advertisers) using only the network and the technology

Page 57 P2P-Next D2.5.3d d) External parties that have developed interfaces to the system and receive commissions e) A-2 itself

Module 6 - Reaktor (back-end) - database, storage The module has the following tasks: a) Storage of adverts b) Storage of editorial content c) Other typical back-end functions

Module 7 - Interfaces - SAP, 3rd party ad servers, other

There are interfaces to the following groups of products: a) 3rd party ad servers b) Ad exchanges (RTB) c) Analytics Solutions d) Ad Inventory management systems e) Content management systems (and delivery systems) f) Ad management systems g) Other - to be defined

5.2 Beyond SotA

5.2.1 Beyond SotA – 1 – New types of adverts and Cost Per Engagement A main goal of A-2 is to complement interruptive forms of advertising such as pre-rolls and mid- rolls (Push-Approach) via new forms of advertising that accompany editorial content via a pull approach and to provide the respective tools to carry through such an approach. This includes: a) Interfaces to 3rd party systems, e.g. for the integration of promotional objects in Videos, Clickable Video, 360° Motion Ad, etc. b) Out-Stream and Out-Player Advertising coupled with Call for Actions and Call for Engagements. Different types of Engagements have different prices (see following Figure for a list of suitable engagements)

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Figure 46: Interaction, Engagement and Optimization in Next-AD

5.2.2 Beyond SotA – 2 – Multi Criteria Optimization and Decision Making A licensee has special methods and options to choose from: a) Manual Single Factor Optimization

The user selects one optimization goal such as CPC. Results (adverts, channels and sites) are displayed on a hourly, daily or weekly basis In a predefined time interval, the user can now start a series of manual optimization runs and can discharge completely or allocate less budget and ad time to certain adverts, sites or channels while increasing others. b) Semi-Automated Single Factor Optimization

Based on a set of predefined criteria the system optimizes the allocation of adverts, ad times and budgets on its own and makes suggestions for changing a campaign. The user has the option to accept, modify or discharge the suggestions before they enter the system and be executed. c) Fully Automated Single Factor Optimization

The system carries through the campaign completely on its own - until the performance falls below a certain threshold and will be automatically stopped or in case criteria are met the budget is fully consumed (which is the preferred option, of course).

Page 59 P2P-Next D2.5.3d d) Manual Multi Criteria Optimization

Method a) is extended and applied to work with multi criteria and factor analysis and optimization. The user can choose from the methods displayed in g). e) Semi automated multi criteria automization

The same as in d) applies to method b. f) Fully Automated Multi Criteria Optimization

The same as in e) applies to method c. g) Definition of the optimization function (Fitness Function)

The definition of the optimization function is based on the criteria licensing model and capabilities of the user.

Model 1a – simple basic

The user defines a few important parameters of his campaign on the basis of a questionnaire and a few requirements and parameters of the optimization method (rule based and explanatory, numeric, black box accepted etc. ). The system chooses the fitness function/ optimization function. Limited simulations and a few optimization runs will be carried through selected from a few available parameters.

Model 1b– simple premium

The method as in 1a is carried through but with an extended set of calculations. After the system has been trained and tested the best 5 methods will be selected and retained for actual usage. These perform live and are in a constant competition with each other. The best system will be used for actual decision making until another of the 5 selected systems takes over and yields better results.

Model 2a – advanced basic

The user has a few optimization functions and variables at hand but can develop its own optimsation system based on a set of methods and operations that are available. The method is for math and statistics savvy users only.

Model 2b – advanced premium

There is a combination of model 2a and 1b.

Model 3a – super basic

The user has access to all methods and optimization functions in the kit to develop its own system.

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Live simulation capabilities are limited though to basic level.

Model 3b – super premium

This is the full "monty" - a combination of the models 1b and 3a.

5.2.3 Beyond SotA – 3 – Vast 3.0 + VPaid 2.0, VMPA 1.0, HTML5 A-2 is fully compliant with the latest IAB standard specifications.

5.2.4 Beyond SotA – 4 - Decision Engine As part of the advert optimization process ad delivery will also be optimized. A decision engine that knows the available bandwidth at the user end device selects whether a video should be in SD or HD quality or whether a text link or a banner suits better than a video ad. As such A-2 is a cross platform system suited also for tablets, mobile and connected TV.

5.2.5 Beyond SotA – 5 - Contextual Advertising As the number of websites with good quality editorial video content that is not yet marketed by somebody else is limited, A-2 wants to target editorial content and sites that appeal to brand advertising but that is not video. These sites can have video ads integrated in their offering when this comes in the form of contextual video advertising based on text links. Alternatively editorial video content can be offered to these publishers in the form of dirty feeds.

5.3 Watchpoints and prospective technology partnerships

5.3.1 Watchpoint 1 – ePrivacy Directive of the EU and Cookie-directive of BMWi The reporting and analytics facilities will comply with a) German (BMWI) Cookie Directive (In Progress) b) EU ePrivacy Directive c) Similar and corresponding directives in the US.

5.3.2 WP 2 - Ad Blocking via Browser

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Ongoing research will be carried through to make sure to be able to offer types of adverts that cannot be blocked by new browsers (Html 5 based) or that cannot be blocked using the standard browser configuration.

5.3.4 TP 1 – Realtime Analytics Contracts with real time analytics services such as Webtrekk will be entered with. The same applies to hosting, encoding and CDN delivery.

6 Next Steps The project will continue to add features to A-2 in 2012. Main efforts will include: 1. Programming necessary API's to 3rd Party software (SAP; etc.) 2. Adding still missing ad innovations 3. Development work preparing for commercial roll out after the project.

The commercial roll out is planned for 2013.

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