how online video ads can pass tv ad revenues tv experience and internet power comes together oded...
TRANSCRIPT
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How online video ads can pass TV ad revenues
TV experience and Internet powercomes together
Oded Napchi, HIRO Media
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THE MEDIUM
IS NOTNECESSARILY THE MESSAGE…
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… THE ‘REAR VIEW MIRROR EFFECT’ CAN BE BENEFICIAL…
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TV ADVERTISING VERSES INTERNET
Although Internet is becoming the leading advertising medium,
Publisher see MORE REVENUE FROM TV ADS
* in the US
Internet Revenue return is around
$0.35*
Television
RPH (revenue per hour per user)
$0.50*
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UK TOTAL AD SPEND: SEPT 2009
PwC 0909
24%
22%19%
12%
11%5%
2%3%
1%
internet tv press directmail classifiedoutdoor directories radio cinema
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WHY DO WE GENERATE LESS REVENUE
FROM ONLINE ADS?
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% of people who believe a particular advertising platform is most effective
tv
news paper
magzine
display
online video ads
0 10 20 30 40 50 60
TV IS STILL THE MOST EFFECTIVE ADVERTISING MEDIUM
Deloitte 08/10
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tv
news paper
display
iphone
online video ads
0 10 20 30 40 50 60
% of people who find ads more memorable on a particular platform
TV ADS ARE MORE MEMORABLE THAN INTERNET ADS
Deloitte 08/10
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THE PARADOX
they say…
the future of advertising lies on the Internet
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THE PARADOX
they say…
the future of advertising lies on the Internet
however… at present the
Internet is less effectivethan TV ads
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LESSONS TO LEARN
Half a century of TV advertising experience has
resulted in the most effective means of
persuasionWEB ADVERTISERS
SHOULD LEARN FROM THIS…
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LET’S UNITE with the power
of internetThe knowledge
of TV advertising
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The knowledge of TV
advertising
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TV Vs ONLINEmain concept
TV = Demographic targeting
Online = CTR optimization
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Most video advertising is brand advertising.Brand advertising DOES NOT encourage
clicks.
SO… CTR BECOMES IRRELEVANT
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TV Vs ONLINEFrequency cap calculation
TV = optimizing to number of views
Online = limiting max number of views
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For people to understand and remember a message
THEY SHOULD SEE IT SEVERAL TIMES
Hence limiting the number of impressions
DAMAGES THE POTENTIAL EFFECT OF THE AD
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TV Vs ONLINEContent Targeting
TV advertisers target programmes
Online advertisers target web pages
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ASSOCIATING AN AD WITH CONTENT IS MORE
EFFECTIVEJack Daniels would advertise within Mad MenMcDonald’s would not advertise within Super
Size MeThe web page, whether it is a home page or an Internal page, does not have the same effect
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with the power of online media
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Online powerAd load
TV ADS minutes PER HOUR OF CONTENT
20INTERNET ADS
minutes PER HOUR OF CONTENT
3
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HIRO uses ad load optimization algorithm for achieving the best ad load
5 minutes of ADS PER HOUR, DOES NOT CREATE A DROP IN USAGE
Online powerAd load
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TV shows appear inONE channel
The ads are sold by ONE organization
Online powerAd routing
Internet is VIRAL.Content is
SYNDICATED
Ads are sold to ALL SITES are by
ONE ORGANIZATION
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Instead of having 1 ad sales
organization selling to 1 site
Online powerAd routing
1
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Online powerAd routing
You can have
multiple ad sales organization,
selling for multiple web sites
1,000,000
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Instead of having one ad sales organization selling to one site
Online powerAd routing
You can have multiple ad sales organization selling for multiple web sites
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How does it WORK?
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TV way of thinking | Test case
• TV company• Around 2M video impressions per month• Moved from leading display ad server to HIRO
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TV PARADIGM FOCAL POINTS
• Uses demographic targeting• Uses advanced media planning rules• Uses video ad load optimization
The result?
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AD REVENUES INCREASED
oct nov dec january feb march april may june july
revenues
x
2x
3x
4x
5x
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AVERAGE CPM DOUBLED
Start of demo targeting
october
november
december
january
february
march
april
mayjune
july
x
2x
3x
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TARGETED ADS LEAD THE WAY
feb march april may june0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
% imp % rev
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THE AD LOAD EXTENDED
oct nov dec jan feb mar apr may jun jul august0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
Mid Roll ratio
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AND ADVERTISERS BUY MORE ADS
oct nov dec january feb march april may june july0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
% sold inventory
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IP POWER TEST CASE
• Content syndicator• Around 60M video impressions per month• Moved from leading ad network server to HIRO
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IP POWER FOCAL POINTS
• Uses ad routing• Uses video ad load optimization
The result?
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AD VIEWED
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MORE MID AND OVERLAY
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
pre/midpre/overlay
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For more information: [email protected]
ww.hiro-media.com
By harnessing the knowledge of TV advertisingand the power of digital media,
ONLINE VIDEO REVENUES CAN FINALLY PASS TV AD REVENUES