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For Internal Use only
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Rate Card Assessment
Methodology
 The purpose of the Rate Card Assessment (RCA) project is to establish the base retail Cost Per View (CPV) and Cost
Per Click (CPC) based on the inputs collected from main Advertising Agencies in different comparable markets.
 Novelty Media has interacted with 4 media agencies – namely Carat (Dentsu), ArenaMedia (Havas), Globeone Digital
and Publicis – in three markets to provide:
• their point of view on the gross retail price SmartAd should be introduced (before bidding platform roll-out) and
• an indication of the expected market position versus comparable established competitors (e.g. YouTube,
Instagram, Viber, popular games and several local sites) both in terms of formats and profiling ability.
 Each Agency provided Novelty Media with their view on SmartAd’s differentiation factors, a recommended price range
along with useful insights on market’s semantics.
 This document summarizes the outcomes of the extensive interactions Novelty Media had held, mainly via meetings
and written communications.
 Further interactions with other two main agencies – namely MindShare (WPP) and PHD (Omnicom) – are in process in
2 countries. Two more programmatic advertising agencies will also be included in the evaluation.
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Product Assessment
Key Factors of the evaluation and positioning
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For Internal Use only
1
Innovation. The Media advertising industry is constantly seeking for new channels and formats.
SmartAd represents an innovative product for Advertisers to consider.
2
Performance/Impact. All campaigns are measured on results. To assess the impact of the
channel in full several KPIs should be taken into account (e.g. e2e conversion rates, average
view time). SmartAd has demonstrated so far very high CTR (>4%) but further measurements by
Digital Performance companies are required to establish its effectiveness rates.
3
Fraud free. Fraud is hugely impacting the digital market, both from an Advertiser’s and an End
User’s perspective. SmartAd looks much less impacted by the most common issues.
4
Buffering. The impact of buffering delays translating in missed views and poor user experience
is becoming more and more relevant in all markets.
5
Digital measurements. The non-clear traceability of in-call ads is an issue for SmartAd which is
counter balanced by the fact that ads can be viewed without data network availability.
6
Sophistication. The predictable and recurrent manner of addressing users is a plus.
Implementation of storytelling content can thus work extremely efficiently via SmartAd.
7
Branding, Product Introduction and Special Offers are the best-suited campaigns for
SmartAd
Recommendations
What should be taken into account
1
2
3
4
Independent audit
Click feature
CPM vs. CPV
Ads duration
For major Advertisers, it will
be mandatory to have an
independent reporting tool
integrated with SmartAd
platform (e.g. Double Verify,
Google Analytics).
Digital performance is
focusing on clicks. There
should be a strict
differentiation between the
policies of CPV and CPC. A
combined offering could
work in some countries
Despite for the product an
impression will correspond
to at least a partial view,
strategically is most relevant
to sell the product in CPV
since better perceived by the
market
Short videos are definitively
the new norm, but still
majority of ads are in the
range of 15-30secs videos.
So the recommendation is
not to charge for longer
formats.
5
6
7
8
Sound
Programmatic
Its importance is gradually
increasing making
mandatory the introduction
of HTML ads display and the
display on-demand post-call
ads
Volume Discounts
Introductory and test-only
offers are the norm.
Major brands and retailers
are used to +30% volume
discounts
No of Ads?day
SmartAd is considered as a
push display media.
1-2 ads/hour is considered
as non-intrusive. So in the
majority of the markets we
can go for 15-20 ads/day
Some clients still require a
sound-on feature, despite
the market is definitively
going in towards a sound
disabled trend.
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Price Recommendation
Collected feedback
Discount: +30%
Discount: 20-30%
0,020
$0,008-0,012
$0,2-0,3
0,020
0,015
0,015
0,010
0,010
0,005
0,005
CPV
CPC
0,020
• Base price to include
also extended
duration above 8secs
0,020
0,015
0,015
• Expected higher
discount rates in the
first year
0,010
0,010
0,005
0,005
$0,006-0,015
$0,25-0,4
CPV
Price Range in the market
CPC
Price Range in the market
Discount: 15-25%
Discount: 25-30%
0,020
$0,008-0,014
$0,3-0,5
0,020
0,020
$0,005-0,015
$0,2-0,4
0,020
0,015
0,010
0,010
0,005
0,005
0,005
0,000
0,000
0,015
0,010
0,010
0,005
CPC
• Provided that the
effectiveness will be
equal or better of the
established media
0,015
0,015
0,000
CONFIDENTIAL CPV
For Internal Use only
$
$
$
$
0,000
CPV
Price Range in the market
• Recommended to
price 30% higher to
match premium CPV
values, but to
incentivize adoption
via consistent special
deals and discounts
0,000
0,000
0,000
0,000
$
$
$
$
CPC
• Base price to include
most of the available
segmentation
• Recommended
discounts to be
granted in the form of
extra views
Price Range in the market
Conclusions
Recommended positioning
Medium advertizing
spending/capita markets
Low advertizing
spending/capita markets
Recommended
Cost Per View
$0,012
$0,009
Recommended
Cost Per Click
$0,030
$0,020
25%
20%
Volume discounts
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For Internal Use only