ALIGNING PROGRAMMATIC TV INVENTORY WITH LINEAR TV REGULATIONS New Video Frontiers – October 20-21 2015, London Confidential AGENDA INTRODUCTION PREMIUM VIDEO BY THE NUMBERS UNDERSTANDING PROGRAMMATIC TV REGULATIONS & COMPLIANCE QUESTIONS SOLUTIONS TO MEET THE BIGGEST CHALLENGES OF THE EVOLVED MEDIA LANDSCAPE TECHNOLOGY SERVICES ADVISORY SERVICES PREMIUM MARKETPLACE 3 AT THE HEART OF PREMIUM VIDEO ECONOMY 4 PREMIUM VIDEO BY THE NUMBERS Confidential DEFINING PREMIUM CONTENT • Professionally Produced • Rights Managed • Limited in Supply • Direct Sold/ Guaranteed Inventory 6 AD AND VIDEO VIEW GROWTH In Q2, audience and monetization both grew at strong, doubledigit rates, reflecting the importance of premium content 7 AD VIEW GROWTH BY CONTENT DURATION We see growth across all content types, with Live continuing to be the fastest growing segment Short- and Mid-form Long-form Live 8 VIEWING ACROSS SCREENS 20% 7% STB generated 20% of volume for enabled clients in May 2015, indicating strong potential for this new screen 19% 11% 42% OTT Desktop Smartphone Tablet STB 9 AD VIEW SHARE BY CONTENT CATEGORY AND DEVICE TYPE Q2 2015 10 LONG-FORM AUTHENTICATION RATE AND GROWTH While authenticated volume continues to surge, the share of monetisation happening in behind the wall has leveled off 11 AD VIEW SHARE BY CONTENT DURATION 12 AD VIEW SHARE BY DEVICE TYPE 194% growth 107% growth 13 KEY TAKEAWAYS 1 2 3 Premium digital video generates substantial ad views and is continuing to grow 2530% each quarter OTT and STB continue to gain steam, as digital is introduced to the living room The line between linear and digital continues to blend, as authenticated apps gain traction and ad loads approach linear levels 14 PROGRAMMATIC: KEY FUNDAMENTALS FOR VIDEO Confidential THE ADVERTISING MODEL IS CHANGING YESTERDAY Unified audience Single currency Unified transactions TODAY Fragmented audience Multiple currencies Fragmented transactions TOMORROW Fragmented audience Multiple currencies Unified transactions 16 PROGRAMMATIC COMPONENT PARTS Automation Transaction Model Data + + Understanding the use cases - what are the companies asking to trade and why? Determine the business rules to be operated under. what needs to be/not be supported and why? 17 WHAT TRENDS ARE WE SEEING? 1 2 3 MANUAL WORKFLOW DRIVING COMPLEXITY NEW LINEAR/DIGITAL CURRENCIES EMERGING LINEAR EVENTS MOVING TO IP $ Significant operational cost to manage “long-tail” networks Need for “translation layers” between evolving currencies Increase fill rates in unpredictable live TV inventory by pre-scheduling spots No easy way to pre-“schedule” ads in digital Improved analytics to understand performance across metrics Difficult to predict volume spikes and ensure full monetization Bring automation to scheduling Optimize across multiple datasets Improve yield management 18 PROGRAMMATIC BY PLATFORM Desktop • Volume of inventory and tag friendliness Mobile • Tag requirements of buyers vs. what works; limited demand OTT / CTV • Tag requirements of buyers vs. what works; limited demand STB VOD / Catch up • High theoretical demand – long-form, fraud free, closed environment, viewable (!) • Data enablement requirements; creative process Linear TV • Big hype; big potential 19 PROGRAMMATIC: CHALLENGES & OPPORTUNITIES • Protect value of inventory and data • Maximise ROI on available inventory • Improve revenue predictability • Maintain control and compliance across screens • Simplify operations, understand all parts (SSPs, DSPs, DMPs…) Automation Data Transaction Model 20 COMPLIANCE ACROSS SCREENS Confidential RULES OF ENGAGEMENT Linear TV IP TV CREATIVE APPROVAL ? SCHEDULING ? CLASH CONTROL ? DATA MANAGEMENT ? 22 Programmatic Programmatic Dynamic Ad Scheduled Ad OPERATOR Ad Dynamic Ad Scheduled Ad Scheduled Ad Programmatic Scheduled Ad Scheduled Ad Programmatic Prog. sponsor DEEP DIVE: PROTECTED 23 IMPLEMENTED TODAY PREMIUM MARKETPLACE TV COMPLIANCE INVENTORY PROTECTION DATA PROTECTION CREATIVE CONTROL 24 COLIDING LINEAR AND DIGITAL LINEAR MIRRORING DYNAMIC AD ALOCATION LINEAR AD SERVING UNIFIED TRAFFICKING/ STEWARDSHIP • Run linear scheduled ads in digital environments • Receive information from linear system • Serve all ads in C3/C7 • Ability to “pre-empt” scheduled ads • “On the fly” and “addressable” ad decisioning • Plug-in “TV safely” to programmatic demand • Align linear, digital and STB as one tradable pool of inventory • Get digital “credit” for linear scheduled ads • Gain full “census” level data / reporting • Access to “real-time” deliver data • DAI opt-in capability to improve yield • Increase CPMs/ advanced targeting • Full monetization of live streams • Increased scale and inventory flexibility • Reduced liability/ increase operational efficiency 25 THANK YOU Confidential