Capitalizing on the CTV Opportunity Sarah Warner Harms VP, NA Agency Platform Lead

Click icon to add picture Nationwide, Video Viewing Habits are Shifting

40%

Over 40% of consumers The average U.S. home owns today use CTV devices to stream 10 Connected Devices content on a daily basis

Source: Relevance Report, 2019 How Many US Connected TV Users Are There?

In 2022, the number of CTV users will rise to 204.1 million, which will represent 60.1% of the population.

Source: eMarketer, July 2018 Benefits for Marketers

Access to Premium Inventory Audience Targeting Increased Efficiency

Networks are adapting CTV advertising allows CTV, commercials to viewer habits brandsbrands to to get get in inFront Front of lower the ad load ofthe the Right Right Audience Audience atat the 40% of OTT users have Connected TV ads are theRight Right Time Time paused content to more interactive purchase or learn more CTV advertising is 32% higher lift in the about a product associatedassociated with with increases perception that the brand mentioned in an ad. increasedad recall ad recall has a unique story to tell compared to linear TV

Source: OpenX, 2019 Consumer OTT report, Magna “Under the Hood of Over The Top Measurement” 2018 Decline in Pay TV Subscribers Mirrors Predicted CTV Ad Spend

By 2023, 56.1 million households in the US will be cord-cutters; up from 20.6 million in 2013.

CTV programmatic video ad spending is expected to increase from $3.39 billion in 2019 to $6.26 billion in 2021.

Source: eMarketer, July 2019 & eMarketer, October 2019 Defining Key Terms

(OTT) (CTV) AVOD vMVPD TVE

Over The Top Connected TV Advertising-Supported Virtual multichannel TV Everywhere Video On Demand video programming distributor

OTT is the overarching CTV refers to a TV that’s AVOD services, including vMPDs deliver a bundle of TVE is a streaming service term for streaming been connected to the Hulu and Tubi, offer on- TV content via the internet operated by a TV, cable advertising. OTT internet and can support demand video content to instead of cable or or satellite network—or by encompasses TV access to streaming consumers with satellite feeds. They often an MVPD—that requires everywhere, SVOD and media applications. CTV advertising breaks that have access to a users to authenticate their AVOD, which are service devices include smart TVs allow the service to be specified number of pay TV subscriptions in types, as well as from manufacturers such free or discounted in commercial minutes per order to access the Connected TV, which is a as Vizio and Samsung, as price. Available content hour to sell, negotiated as content, for example, device type. well as external devices may be aggregated from part of their carriage logging in to your HBO Go that can be connected to multiple sources or agreements with account with your and display content on proprietary to the service, broadcast networks. Comcast email address. TVs, such as Roku, Apple or both. Some vMVPDs include There is not a direct TV and Microsoft’s Xbox. Dish Network’s Sling, AT&T relationship between the TV Now, and Google’s consumer and YouTube TV. programmer. Programmatic Platform Myth Busting

Myth Reality

Technology can't replicate With the shift towards “video neutral” buying, convergent my direct buys and leverage platforms are moving alongside them to allow agencies to across Advanced TV activate their unique relationships and campaigns with the scale, audience-based buying, and efficiency provided by Ad technology.

Direct relationships ensure Today’s media marketplaces are fueled by flexible my media investment goes transaction technology, allowing agencies to dictate – or towards premium inventory discover – the right relationships they need to connect with the right audience.

Platforms operate in service of Platforms increasingly are offering full transparency as a the platform owner – not a publisher, best business practice and provide tools to clients to not client, or total ecosystem only protect, but enforce proprietary investment process, pricing, and strategy. Operations

Direct Paths to Premium Supply Effective Reach Across Audiences SSPs that provide more direct paths to The best way to achieve audience premium content creators are more at scale is to buy from parties with likely to deliver scale for buyers. direct user relationships, whether it be Direct connection between the DSP distribution platforms (the vMVPDs) or and SSP removes discrepancies and scaled publishers, such as increases audience match rates. WarnerMedia and Hulu.

Transparent Context Streamlined Measurement There is not yet an IAB video content The general consensus among CTV taxonomy and no marketplace with a buyers is that greater consistency both content standard today. Understanding in terms of measurement and audience the full context of placements across activation are key to driving more content-type, network and show (from investment, and creating uniform publishers or their SSP/DSP) can assure standards is an important factor. buyers they’re getting real quality.

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CTV Keeps Growing CTV targeting capabilities Advertisers are noticing Programmatic platforms can create opportunities for brands offer tremendous value through to reach audiences audience-buying and streamlined activation.

Growth in CTV viewership is CTV enables audience CTV programmatic video The time is now to explore increasing faster than targeting, allowing brands spend is expected to migrating CTV buying previously predicted. to get in front of the right double by 2021. into platforms. audience at the right time.