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IAB Platform Status Report:
A Digital Video Advertising Overview
                                                                      January 2008




                    A series of papers that will lead the way to a vigorous
                  and healthy industry with commonly adopted terminology,
                                   practices and standards.
Platform Status Report: DIGITAL VIDEO




    Table of Contents
    Executive Summary:                                             3
    Video Advertising Market Overview                              3
    Video Advertising Operating Ecosystem                          4
    Content Experiences                                            4

    Video Ad Product Compendium                                    5
    In-Stream Video Advertising                                    6
    In-Stream Video Examples                                       7
    Key Digital Video Product Terminology Recap                    9

    Metrics                                                        9
    General Business Overview of Video Advertising                 10
    Current Industry Challenges                                    10
    Who is the IAB Digital Video Committee?                        11
    Appendix A: Definitions & Nomenclature                          13




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Platform Status Report: DIGITAL VIDEO




    Executive Summary:
    The Digital Video Committee of the Interactive Advertising Bureau (IAB) is pleased to introduce the first in
    a series of whitepapers committed to fostering a vigorous and healthy online video ecosystem with com-
    monly adopted terminology, practices and standards.
    This Overview report:
        Provides an overview of the digital video advertising market,
        Outlines multiple video ad formats by consolidating them into a macro framework,
        Reviews the basic metrics behind video advertising,
        Defines the basic economics of video advertising, and
        Discusses key challenges that face the industry today.
    Video advertising is one of the fastest-growing opportunities online today, as well as one of the most prom-
    ising online advertising formats. The emotional draw of the television experience, consumers’ adoption
    of broadband, and subsequent change in Internet content, capabilities, and consumption all contribute
    to driving this growth. Despite the surge in interest in digital video by both the consumer and advertiser,
    there are still many components of video advertising that are confusing, making the need for standards and
    best practices essential.
    In order to nurture and propel digital video advertising’s growth, the IAB and the members of its Digital
    Video Committee are committed to identifying important standardization initiatives for video and to evan-
    gelize online video advertising through awareness and outreach programs with the participation of all key
    stakeholders.
    Subsequent reports will address ad format standards, suggest best practices, and identify and implement
    standards that will improve efficiency and enable a smoother buying experience.

    Video Advertising Market Overview
    Digital video advertising was born almost a decade ago after several seminal events, but many agree it was
    the sale of Mark Cuban’s and Todd Wagner’s Broadcast.com to Yahoo in 1998 for the sum of $5.7 billion
    that put digital video on the map. During the early 2000s, as the Internet valuation bubble burst and the
    interactive industry regrouped, digital video progressed slowly. As the interactive industry rebuilt, leaders
    such as Microsoft’s Windows Media Player, Yahoo’s Launch, The FeedRoom, and MSNBC’s video content
    inched the industry forward by selling “test” programs to blue-chip advertisers who wanted to learn about
    the medium and gain insight. CPMs tended to run on the high-end of the TV-CPM range and inventory
    was limited. At this point, many believed that the future of digital video content lay in a subscription,
    rather than an ad-supported, business model.
    In 2005 however, growth began to accelerate quickly. An explosion of companies from networks to content
    providers made both premium and user generated video content available as new revenue streams. Wide-
    spread adoption of high-speed internet connections and improvements in video compression were major
    contributing factors.
    Two events served to focus the advertising world on digital video’s bright future. First, were upfronts by
    major media agencies such as Starcom and Mediavest. These were the first broadband upfronts in the
    history of advertising and the move proved to be transformational, positioning Starcom Mediavest as a
    leader in video advertising. Clients like Procter & Gamble, McDonald’s, Kellogg’s and Coca-Cola allocated
    millions of dollars for digital video and immediately focused media buyers across the industry on the value
    of premium online content. The second transformational event occurred in 2006 with the sale of YouTube
    to Google. For a $1.65 billion purchase price, digital video was back on the front pages of every newspa-
    per around the world. Unlike 1998, however, advertisers, agencies, and publishers now had experience
    with online display and search advertising and were ready to expand their budgets to include digital video.
    Meanwhile traditional television marketers easily understood the power of digital video’s sight, sound, and
    motion and began to take interest in online’s video advertising capabilities. According to eMarketer, digital
    video grew to a $775 million segment in 2007 and the same source predicts rapid growth by 2011 with
    $4.5 billion in online video ad spending.


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Platform Status Report: DIGITAL VIDEO




    Video Advertising Operating Ecosystem
    The operating ecosystem for video advertising can be complex and contains various entities, all of which
    play a different but vital role in the development, production and distribution of video advertising. These
    include: Web Sites and Portals, Ad Agencies, Networks, Measurement, Auditing, Research Firms, Ad Serv-
    ing Technology and Service Vendors, Video Technology Providers, and more.
    In an environment as fluid as the Internet, these roles are sometimes blurred and can be confusing. The fol-
    lowing table lists the key video operating ecosystem entities along with a description of their functions:

      Video Ecosystem Constituent          Description

     Aggregator / Distributors            The multitude of vendors and publishers in the market make it unfea-
                                          sible for all but the largest Portals to deal with a large enough num-
                                          ber of videos to offer a wide variety of content to their consumers.
                                          Aggregator/Distributors provide a solution by handling distribution
                                          agreements with a large number of content publishers and providing
                                          a “one stop shop” catalog of video content for Web Sites/Portals.
     Ad Serving Technology Vendors        A 3rd party technology vendor enlisted by the agency (or adver-
                                          tiser) to manage their campaigns across multiple networks and web
                                          properties.
     Web Sites and Portals                A Web site is, in this context, a venue on the Internet offering videos
                                          to consumers. A Portal is a Web site offering a variety of services
                                          to consumers, including videos and generally having a very large
                                          number of users.
     Advertising Networks                 In the context of this document, advertising networks function as
                                          aggregators of video advertising inventory and enable publishers to
                                          generate advertising revenue from their video content libraries or
                                          other advertising inventory without a direct sales relationship to an
                                          advertiser.
     Measurement Firms                    Companies that analyze and report on various online metrics associ-
                                          ated with campaign management and effectiveness.
     Auditing Firms                       Firms that examine the technology and/or business processes of
                                          companies aggregating and/or selling advertising to ensure transpar-
                                          ency and trust within the media marketplace.
     Research Firms                       Firms that report both publicly and privately on various aspects of
                                          the media marketplace, including measurement of unique users,
                                          frequency/traffic, impressions, etc.
     Agencies                             Both interactive and traditional media buying firms participating in
                                          the digital video marketplace.
     Video Technology Providers           There are several companies that provide encoding services and
                                          player technologies to publishers and networks, enabling video and
                                          advertising content throughout the ecosystem.

    Content Experiences
    With tens of millions of videos available online today and millions being added each month, consumers can
    view videos never before accessible through traditional mediums like television. Consumers can effort-
    lessly go from watching a professionally produced television show to a 10-second clip of a friend describing
    their first year away at college. Although this universe of content is broad and varied, the disparity of video
    content can be classified into three main areas:
        Premier Programming: gives users professionally produced content, generally, re-purposed from
        Broadcast Video and Cable Networks. There is a large amount of professionally produced video
        that has not been digitized but is quickly working its way online.
        Professionally-Generated Specialty Programming: video content professionally but generally
        created for a specific subset of online video consumers. Whether it is original content for the web
        or content from traditional media like local news or community events, consumers are searching for
        and consuming video content relevant to their micro interests.
        User-Generated Video: consists of clips created and uploaded by everyday people and make up


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Platform Status Report: DIGITAL VIDEO




        the largest volume of videos available online. Generally, the majority of these clips are watched by
        a small group of users but due to viral word-of-mouth messaging some become extremely popular
        and are viewed by millions.
    While these categories may vary in production quality, time length, and resolution, consumers are drawn to
    each category for different reasons and a variety of video ad products have been developed to best fit each
    of these different experiences. See the Video Ad Product Compendium section below for more informa-
    tion.

    Video Ad Product Compendium
    In May 2006, the IAB Broadband Committee (now the Digital Video Committee) defined a video ad as a
    commercial that may appear before, during, or after a variety of content including streaming video, anima-
    tion, gaming, and music video content in a player environment. This definition included “Broadband Video
    Commercials” that appeared in live, archived, and downloadable streaming content.1
    Since 2006, both the experiences and consumption of video content has evolved significantly. While the
    2006 definition of a video commercial is still relevant today, newer video ad formats have been introduced
    to compliment these emerging types of video experiences and environments.
    Through 2007 and into 2008, the most common digital video ad experiences were either viewed within or
    around “In-Stream Video”, “In-Banner” or “In-Text” formats.
    In-Stream Video is generally played or viewed from a video player like a client browser
    In-Banner Video is generally displayed in IAB Universal Ad Package (UAP) banners.2
    In-Text Video is generally user-initiated and triggered by relevant highlighted words within content.
            The following chart focuses on the categorization of these three major video advertising categories:




                                     Figure 1. Distinguishing In-Stream Video, In-Banner Video, In-Text Video
                                                                                             Source: IAB Digital Video Committee

    Due to the fact that In-Banner video advertising and In-Text is generally tracked and operationally support-
    ed as a rich media advertisement, the major focus of this document will be on In-Stream Video advertising.
    While these three video ad types currently make up the majority of video ad inventory, there are other
    available methods of triggering a video ad experience, including brand integration like sponsorships and
    branded content. Another area of innovation in video advertising is to advertise entirely outside of the
    1        The 2006 Broadband Video Commercial spec can be found at:
             http://www.iab.net/iab_products_and_industry_services/1421/1443/1479
    2        IAB UAP Ad Sizes can be found at:
             http://iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/4631


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Platform Status Report: DIGITAL VIDEO




    video all together, or within the perimeter of the video, leaving the video stream ad-free – this practice is
    generally referred to as an advertising “skin.” In-Text video advertising is similar in that it does not require
    video content to deliver a video ad. In-Text video highlights words and phrases within the text of web con-
    tent and links the word to a relevant video advertisement. See Example 3 in the Video Examples section
    below.

    In-Stream Video Advertising
    There are two core video ad product categories in today’s In-Stream ad experiences. These are, “Linear
    Video” ads (Figure 1 REFERENCE A) and “Non-linear Video” ads (Figure 1 REFERENCE B):
        Linear Video ad: is presented before, in the middle of, or after the video content is consumed by
        the user, in very much the same way a TV commercial can play before, during or after the chosen
        program. One of the key characteristics of a Linear Video ad is that the user watch the ad instead
        of the content as the ad takes over the full view of the video. Examples of Linear Video ads in-
        clude:
        • A traditional repurposed 15 or 30 second TV ad
        • A purpose-built digital video ad product with interactivity inherent within the core video product
        experience
        • A full screen display ad or bumper ad viewed within a video player
        Because a user cannot experience the intended video content during a Linear Video ad impression,
        the ads are either placed before the content (also referred to as pre-rolls), between the content, or
        after the content. Note: the term “pre-roll” is also regularly referred to as a 15 or 30 second spot,
        but in this document “pre-roll” is used consistently as a description for the placement of the ad
        which is preempting the start of the video.
        Non-linear Video ad: runs parallel to the video content so the users see the ad while viewing the
        content. Non-linear video ads can be delivered as text, graphical ads, or as video overlays. Com-
        mon Non-linear Video ad products include:
        • Overlays which are shown directly over the content video itself
        • Product placements which are ads placed within the video content itself
    Both Linear and Non-linear Video ad products have the option of being paired with what is commonly
    referred to as a “Companion Ad” (Figure 1 REFERENCE C).
        Companion Ads: commonly text, display ads, rich media, or skins that wrap around the video
        experience, can run alongside either or both the video or ad content. The primary purpose of the
        Companion Ad product is to offer sustained visibility of the sponsor throughout the video content
        experience. Companion Ads may offer click-through interactivity and rich media experiences such
        as expansion of the ad for further engagement opportunities.
    The video ad products that publishers and vendors sell to media buyers are generally a combination of
    Linear, Non-linear and Companion Ad products packaged together in a compelling way. Popular combina-
    tions of In-Stream ad formats include:
                                        Linear Ads (A) + Companion Ads (C)
                                      Non-linear Ads (B) + Companion Ads (C)




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Platform Status Report: DIGITAL VIDEO




    In-Stream Video Examples
    The following section illustrates examples of different In-Stream ads and combinations.


        Example 1:
        In-Stream Video Ad Example
        In MSN’s Video Player example to the
        right, a Linear video ad plays before the
        video content and is accompanied by a
        clickable, expanding 300 X 250 display
        companion ad product.




                                                                                              Source: MSN Video Player




                                                              Example 2:
                                                              In-Stream Video Ad with Skin
                                                              In this example by Heavy, a
                                                              1020(w) x 620(h) ad unit surrounds a
                                                              video for the duration of the program
                                                              and actually becomes part of the
                                                              viewing experience.




     Source: Heavy




        Example 3:
        In-Text Video Ad Example
         Vibrant Media’s screenshot to the right
         shows a user mousing over a relevant
         word which triggers a relevant video
         advertisement.




                                                                                                  Source: Vibrant Media




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Platform Status Report: DIGITAL VIDEO




        Example 4:
        In-Stream Video Ad Overlay
       This screenshot depicts a non-linear
       overlay ad product in an original show.
       The advertiser is MacDonald’s in a
       Broadband Enterprises production “The
       Fantastic Two”



                                                                                  Source: Broadband Enterprises




                                                           Example 5:
                                                           In-Stream Video Ad Overlay
                                                           In this screenshot, Yahoo! offers a
                                                           non-linear overlay that is triggered
                                                           by the user mousing over the video
                                                           advertisement content. This overlay
                                                           communicates a call to action to the
                                                           user.




    Source: Yahoo!




       Example 6:
       In-Stream Video Ad Overlay
       This screenshot illustrates a non-linear
       overlay ad format with an accompanying
       companion ad to the right of the video.




                                                                                              Source: YouTube




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Platform Status Report: DIGITAL VIDEO




    Key Digital Video Product Terminology Recap

      Term                            Description

     Broadband Video Commercial      The IAB’s 2006 definition of a video ad as a commercial that may ap-
                                     pear before, during, and or after a variety of content including stream-
                                     ing video, animation, gaming, and music video content in a player
                                     environment. These commercials are generally :15 and :30 video ads
                                     that run before , between, and after a video clip is shown. The 2008
                                     IAB Digital Video Committee is renaming Broadband Video Commer-
                                     cials as “In-Stream Video” ads that are either “Linear” or “Non-linear”
                                     core video products.
     Video Ad Experience             A term used to describe where the source of the video advertising
                                     experience is coming from. This document describes three video ad
                                     experiences; In-Stream In-Banner, and In-Text.
     In-Stream Video                 A video ad experiences either viewed within or around video content
                                     (In-Stream) from a video player, like a browser, or client
     In-Banner Video                 A video ad experience displayed or triggered within a display banner
                                     like an IAB Universal Ad Package (UAP) size like a 300 X 250 or a 768 X
                                     90.
     In-Text Video                   A relevant video ad experience displayed only when a user chooses
                                     to mouse-over, a highlighted word or phrase within the text of web
                                     content..
     Core video ad products          The root ad product that serves as the source or core ad that compli-
                                     ments the video ad experience.
     Linear video ads                A Linear Video ad is experienced In-Stream, which is presented before,
                                     between, or after the video content is consumed by the user. One of
                                     the key characteristics of Linear video ads is the ad takes over the full
                                     view of the video
     Non-linear video ads            A Non-linear Video ad product runs parallel to the video content so the
                                     user still has the option of viewing the content. Common Non-linear
                                     ad products include overlays which are shown directly over the content
                                     video itself, and product placements which are ads placed within the
                                     video content itself. Non-linear video ads can be delivered as text,
                                     graphical banners or buttons, or as video overlays.
     Ad Placements                   The physical location or placement of the ad product or experience.
     Pre roll                        A Linear video spot that appears before the video content plays.
     Mid roll                        A Linear video spot that appears in the middle of the video content.
     Post roll                       A Linear video spot that appears after the video content completes.
     Companion ad products           Both Linear and Non-linear ad products have the option of pairing their
                                     core video ad product with what is commonly referred to as companion
                                     ads. Companion ads are commonly text, display ads, rich media, or
                                     skins that wrap around the video experience, can run alongside either
                                     or both the video or ad content. The primary purpose of the Compan-
                                     ion Ad product is to offer sustained visibility of the sponsor throughout
                                     the video content experience. Companion Ads may offer click-through
                                     interactivity and rich media experiences such as expansion of the ad for
                                     further engagement opportunities.
     Rich Media                      Advertisements with which users can interact (as opposed to solely
                                     animation) in a web-page format. They may appear in ad formats such
                                     as banners and buttons, as well as transitionals (interstitials) and various
                                     over-the-page units such as floating ads, page take-overs, and tear
                                     backs.
     Skins                           The ads that are placed around the video experience perimeter, com-
                                     monly placed in the shell of the video player.

    Metrics
    The core metric used for currency in digital video advertising is a “Digital Video Ad Impression”, also
    referred to as a Broadband Video Commercial Impression as described in the IAB’s Broadband Video Com-


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Platform Status Report: DIGITAL VIDEO




     mercial Measurement Guidelines released May 20063.
     In 2006, the IAB’s Broadband Committee and Measurement Task Force developed a set of Broadband
     Video Commercial Measurement Guidelines. Specifically, these guidelines determined at what point a
     video commercial is counted by defining a video ad as a commercial that may appear before, during,
     and after a variety of content including streaming video, animation, gaming, and music video content in a
     player environment.
     The key point to this guideline is that the video impression is measured at the latest point possible in the
     delivery of the ad creative to the user’s browser, which is the closest opportunity to see by the user.
     The 2006 measurement guidelines are still the basis for the currency of video buys in 2008, specific to In-
     Stream, Linear and most Non-linear Video Ad Products. In the future as the IAB embraces new Non-linear
     ad formats into the mix of standardized video ad products, careful attention will be paid to determining
     the proper currency metrics for these new formats where appropriate. Other non-currency measurement
     metrics exist today but because of the amount of innovation in the medium, none have become standard.

     General Business Overview of Video Advertising
     The buyers of digital video advertising include the interactive and traditional ad agencies and extend to
     major marketers, long-tail marketers and resellers. For the most part, digital video advertising buying mir-
     rors other media buying behaviors. Today, most buying of digital video is being done by interactive agen-
     cies on behalf of the major marketers. Traditional agencies and buyers of traditional media have lagged
     thus far, but are entering the marketplace. Progress at agencies where digital buyers are working closely
     with traditional buyers presents a powerful model for the future.
     The sellers of digital video advertising range from the largest portals and media companies to the most
     specialized user-generated content sites on the web. The major online portals and broadcast media
     companies comprise the bulk of the video traffic and all have made strategic moves in both the content
     and technology space to insure their leadership positions. The smaller content sites generally use both
     direct sales and/or network sales strategies to fulfill their inventory needs. To take advantage of incremental
     video advertising revenue many websites are now choosing to deploy In-Text video advertising within their
     content pages.
     Current pricing practices in digital video suggest that the medium is quickly maturing. CPM-based pric-
     ing is the predominant model for buyers, particularly the In-Stream, Linear Ad format (pre-rolls, post-rolls,
     etc). CPMs can span a wide range and are based on a number of factors including the quality of the site’s
     content and users, targeting capabilities, and individual programming.
     The CPA and CPC models are also available and are the predominant measures for In-Text video advertis-
     ing. These buying models are helping to bring large, Direct Marketing advertisers into digital video and
     long-tail marketers or “mom and pop shops” that have not had a place in the medium in the past. Many
     brand-based advertisers believe the CPA and CPC models lend accountability to brand-based advertising
     where other media have traditionally struggled.

     Current Industry Challenges
     There are many components of Digital Video Advertising that have yet to be standardized, including cre-
     ative units and new metrics. While the video industry is still relatively young, the IAB Digital Video Com-
     mittee recognizes the importance of simplifying the buying and selling process as an impetus for further
     long-term growth.
     The following have been identified by the Digital Video Committee as current key challenges:

         Challenge                           Description

      3rd party ad serving not always       Many publishers with In-Stream video ad products do not support
      supported                             third party ad serving into their video players at this time.


     3        The 2006 Broadband Video Commercial spec can be found at:
              http://iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/4982


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Platform Status Report: DIGITAL VIDEO




       Challenge                            Description

      Video ad length effectiveness        Since the majority of ads are repurposed television :15 and :30’s,
      not well understood                  there has been limited opportunity to research and experiment with
                                           different ad lengths online. Different serving environments may need
                                           different ad lengths to be most effective.
      Reporting discrepancies              There can be reporting discrepancies between 3rd party ad servers,
                                           publishers, and 3rd party video vendors making the billing and recon-
                                           ciliation process sometimes confusing for media buyers.
      Online buying not similar to TV      While TV buys typically consist of placing :30 or :60 spots in a uniform
      buying                               environment, online buys require a broad understanding of multiple
                                           ad experiences, different video integrations on websites/portals, net-
                                           work differentiation and a more engaged, one-to-one user relation-
                                           ship.
      Many different video ad              Media buyers have expressed confusion over the plethora of formats
      products available                   available in different video consumption experiences, including differ-
                                           ences such as features, video sizes, etc.
      Different video player               There is no standard technology to serve and enable video content
      technologies                         or advertising. Current player technologies include Adobe Flash,
                                           Windows Media Player, Quicktime, and RealPlayer.
      Attribution of metrics and           Because of networks and ad platforms’ distributed nature, there is
      viewers                              debate within the industry on how best to attribute a viewer from a
                                           reporting perspective. For instance, if a video is shown on a website
                                           through a network feed, does the website get attributed the viewer
                                           or the network or both?

     Who is the IAB Digital Video Committee?
     The IAB Digital Video Committee is comprised of IAB member companies who are committed to creating
     and implementing a comprehensive set of guidelines, measurement, and creative options for interactive
     video advertising. Additionally, the committee will educate markets and agencies on the strength of broad-
     band as a marketing vehicle.
     Co-Chairpersons: Michael Hurt, Microsoft; Joey Trotz, CNN
     The Committee members span the range of players in the video advertising and/or media ecosystem, and
     for the reader’s convenience, we have listed them below by primary role. Please note that many companies
     may offer multiple services or business models.

       Web Sites & Portals

      Advanstar Communications          Fox News Channel                           Q Interactive
      AOL                               Google                                     Reader’s Digest
      Associated Content                Heavy.com                                  Reuters
      Atom Schockwave Corp              Howstuffworks                              Revolution Health Group
      Batanga                           Hulu                                       Wall Street Journal
      Cars.com                          IAC                                        Time, Inc.
      Cartoon Network                   IGN Entertainment                          Univision Online
      CBS Interactive                   Joost                                      VMIX
      Clip Syndicate                    Jump TV                                    Walt Disney Internet Group
      CNET Networks                     Martha Stewart Living Omnimedia            Washington Post Newsweek
      CNN                               MediaFLO USA Inc                           Weather Channel Interactive
      Comcast Corporation               Metacafe                                   WeatherBug
      Conde’ Net                        Microsoft Digital Advertising Solutions    WebMD
      Cox Newspapers                    MSG Interactive                            World Wrestling Entertainment
      Edmunds                           MTV Networks                               WorldNow
      ESPN                              NBC Universal Digital Media                Yahoo!, Inc.
      Facebook                          Orbitz Worldwide                           YouTube
      Forbes                            Perfspot.com                               Zango
      Fox Interactive Media             PureVideo




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Platform Status Report: DIGITAL VIDEO




      Agencies                          Networks                        Measurement, Auditing, and
                                                                        Research Firms

     360i                              24/7 Real Media, Inc.           AMC Group Online Media
     Agency.com                        Ad Infuse                       Claria
     Adtegrity                         Advertising.com                 Comscore
     BIA Information Network           Blinkx                          Critical Mention
     Centro                            Broadband Enterprises           Dynamic Logic
     Critical Mass                     Burst Media Corporation         Interpolls
     Geary Interactive                 Looksmart                       Millward Brown
     PBJS                              Maven Networks                  M:Metrics
     Quigo Technologies                Nielsen Online                  Quantcast
     Range Online Media                Pulse360                        Rentrak
     Sapient Corporation               Right Media                     Theorem, Inc.
     True North, Inc.                  Scan Scout                      Visible Measures Corp.
     Vizi                              SpotXchange                     WebTrends
                                       Taboola
                                       Tacoda
                                       The Fifth Network
                                       Traffic Marketplace
                                       Tremor Media
                                       Unicast
                                       ValueClick Media
                                       Vibrant Media
                                       Video Egg
                                       YuMe Networks

      Ad Serving Technology and         Video Technology Provider       Other
      Service Vendors

     Adify                             Adobe                           Jordan Edmiston Group, Inc.
     Akamai                            Aurix LTD                       Television Bureau of Advertising
     Atlas                             Brightcove
     DoubleClick, Inc                  Cisco
     Eyeblaster                        Transpera
     Eyewonder
     Internet Broadcasting Systems
     Panache Technologies




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Platform Status Report: DIGITAL VIDEO




     Appendix A: Definitions & Nomenclature
     Average view time – refers to the average amount of time the video ad was played by users.
     Brand Awareness – research studies can associate ad effectiveness to measure the impact of online
     advertis ing on key branding metrics.
     Bug – is a persistent, graphical element that appears in the video environment. Clicking on it will take the
     user to a website.
     Bumper Ad – usually refers to a linear video ad with clickable call-to-action; format is usually shorter than
     full linear ads (i.e. 3-10 seconds) and call-to-action usually can load another video or can bring up a new
     site while pausing the content.
     Click-through – the action of following a hyperlink within an advertisement or editorial content to another
     Web site or another page or frame within the Web site.
     Companion Ad – both Linear and Non-linear Video ad products have the option of pairing their core video
     ad product with what is commonly referred to as companion ads. Commonly text, display ads, rich media,
     or skins that wrap around the video experience, can run alongside either or both the video or ad content.
     The primary purpose of the Companion Ad product is to offer sustained visibility of the sponsor throughout
     the video content experience. Companion Ads may offer click-through interactivity and rich media
     experiences such as expansion of the ad for further engagement opportunities.
     Completes – completes refer to whether the video played to completion.
     Contextual Ads – existing contextual ad engines deliver text and image ads to non-video content pages.
     Ads are matched to keywords extracted from content. Advertisers can leverage existing keyword-based
     paid search campaigns and gain access to a larger audience. 3rd party publishers receive a share of the
     revenue collected from the advertisers.
     Core ad video – the essential video asset, often repurposed from offline. Can be displayed directly in the
     player, or in a more customized presentation.
     Event trackers – primarily used for click-through tracking today, but also for companion banner interactions
     and video session tracking (e.g. 25%, 50%, 75%, 100%)..
     Full screen views – refers to the number of impressions where the video was played in full screen mode
     (where available)
     Hot Spot – an ad unit that is sold within the video content experience. Mouse action over the video
     highlights objects that can be clicked. The click action initiates a Linear video commercial or takes the user
     to a website.
     In-Banner Video Ads – leverage the banner space to deliver a video experience as opposed to another
     static or rich media format. The format relies on the existence of display ad inventory on the page for its
     delivery.
     In-Page Video Ads – delivered most often as a stand alone video ad and do not generally have other
     content associated with them. This format is typically home page or channel based and depends on real
     estate within the page dedicated for the video player.
     In-Stream Video Ads – played before, during or after the streaming video content that the consumer has
     requested. These ads cannot typically be stopped from being played (particularly with pre-roll). This format
     is frequently used to monetize the video content that the publisher is delivering. In-Stream ads can be
     played inside short or long form video and rely on video content for their delivery. There are four different
     types of video content where in-stream may play, UGC (User Generated Content/Video), Syndicated,
     Sourced and Journalistic.
     In-Text Video Ads – delivered from highlighted words and phrases within the text of web content. The ads
     are user activated and delivered only when a user chooses to move their mouse over a relevant word or
     phrase.




13
Platform Status Report: DIGITAL VIDEO




     Invitation unit – a smallish still or animated graphic often overlays directly onto video content. Typically
     used as a less-intrusive initial call-to-action. Normally when a viewer clicks or interacts with the invitation
     graphic, they expand into the ad’s full expression, which might be a simple auto-play video or an interactive
     experience
     IPTV – generally refers to video programming offered by telecom companies over copper wire. Often mis-
     used to refer to PC-based video.
     Journalistic Video – content that was shot and used by the actual publisher. MSNBC journalist shooting a
     video and using the video for their own purposes.
     Linear Video Ads – experienced In-Stream, which is presented before, between, or after the video content
     is consumed by the user. One of the key characteristics of Linear video ads is the ad takes over the full view
     of the video.
     Metadata – business-critical data such as advertiser name, eCPM goal, format and version information.
     Mid-roll – a Linear video spot that appears in the middle of the video content.
     Non-linear Video Ads – an Non-linear Video ad product runs parallel to the video content so the user
     still has the option of viewing the content. Common Non-linear ad products include overlays which are
     shown directly over the content video itself, and product placements which are ads placed within the video
     content itself. Non-linear video ads can be delivered as text, graphical banners or buttons, or as video
     overlays.
     Overlay ad – a banner ad that appears in the bottom 20% of the video window. Click action initiates a
     Linear video spot or takes the user to a website. Sold on a CPM and CPC basis.
     Playlist – online video content can be broken down by content verticals such as news, music, tv shows,
     movies, sports, UGC, casual games, automotive, travel, business, b to b, careers, communities, technology,
     education, directories, government, non-profit, family, health, real estate, personals, science, adult and
     gambling. There are hundreds of sub-content verticals under the aforementioned.
     Post-roll – a Linear video spot that appears after the video content completes.
     Pre-roll – a Linear video spot that appears before the video content plays
     Quartile reporting – refers to whether the video played to its 25% and 75% points.
     Replays – refers to the number of times a user requested to see the video ad again (where available)
     Rich media – advertisements with which users can interact (as opposed to solely animation) in a web-page
     format. They may appear in ad formats such as banners and buttons, as well as transitionals (interstitials)
     and various over-the-page units such as floating ads, page take-overs, and tear backs.
     Sourced Video – content generated by a third party (typically professional) and will denote the source. An
     example may be a new car review provided by General Motors but hosted on CarTV.com.
     Syndicated Video – content sourced from a professional third party, examples may include syndicated
     television shows, news footage from AP or Reuters, etc.
     Sponsorship graphics – components that are displayed as very persistent graphics such as with a player
     surrounding skin. Sponsorship graphics are generally displayed throughout the entirety of the content play.
     Sometimes the sponsorship graphic remains interactive and will behave like an invitation unit allowing
     viewers to explore deeper ad units such as the embedded interactive.
     User-Generated Video – content created by the public at large and directly loaded to a site like YouTube
     or MySpace
     VOD – Video on Demand, usually refers to services offered by cable companies through set-top boxes.




14

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IAB Digital Video Report

  • 1. IAB Platform Status Report: A Digital Video Advertising Overview January 2008 A series of papers that will lead the way to a vigorous and healthy industry with commonly adopted terminology, practices and standards.
  • 2. Platform Status Report: DIGITAL VIDEO Table of Contents Executive Summary: 3 Video Advertising Market Overview 3 Video Advertising Operating Ecosystem 4 Content Experiences 4 Video Ad Product Compendium 5 In-Stream Video Advertising 6 In-Stream Video Examples 7 Key Digital Video Product Terminology Recap 9 Metrics 9 General Business Overview of Video Advertising 10 Current Industry Challenges 10 Who is the IAB Digital Video Committee? 11 Appendix A: Definitions & Nomenclature 13 2
  • 3. Platform Status Report: DIGITAL VIDEO Executive Summary: The Digital Video Committee of the Interactive Advertising Bureau (IAB) is pleased to introduce the first in a series of whitepapers committed to fostering a vigorous and healthy online video ecosystem with com- monly adopted terminology, practices and standards. This Overview report: Provides an overview of the digital video advertising market, Outlines multiple video ad formats by consolidating them into a macro framework, Reviews the basic metrics behind video advertising, Defines the basic economics of video advertising, and Discusses key challenges that face the industry today. Video advertising is one of the fastest-growing opportunities online today, as well as one of the most prom- ising online advertising formats. The emotional draw of the television experience, consumers’ adoption of broadband, and subsequent change in Internet content, capabilities, and consumption all contribute to driving this growth. Despite the surge in interest in digital video by both the consumer and advertiser, there are still many components of video advertising that are confusing, making the need for standards and best practices essential. In order to nurture and propel digital video advertising’s growth, the IAB and the members of its Digital Video Committee are committed to identifying important standardization initiatives for video and to evan- gelize online video advertising through awareness and outreach programs with the participation of all key stakeholders. Subsequent reports will address ad format standards, suggest best practices, and identify and implement standards that will improve efficiency and enable a smoother buying experience. Video Advertising Market Overview Digital video advertising was born almost a decade ago after several seminal events, but many agree it was the sale of Mark Cuban’s and Todd Wagner’s Broadcast.com to Yahoo in 1998 for the sum of $5.7 billion that put digital video on the map. During the early 2000s, as the Internet valuation bubble burst and the interactive industry regrouped, digital video progressed slowly. As the interactive industry rebuilt, leaders such as Microsoft’s Windows Media Player, Yahoo’s Launch, The FeedRoom, and MSNBC’s video content inched the industry forward by selling “test” programs to blue-chip advertisers who wanted to learn about the medium and gain insight. CPMs tended to run on the high-end of the TV-CPM range and inventory was limited. At this point, many believed that the future of digital video content lay in a subscription, rather than an ad-supported, business model. In 2005 however, growth began to accelerate quickly. An explosion of companies from networks to content providers made both premium and user generated video content available as new revenue streams. Wide- spread adoption of high-speed internet connections and improvements in video compression were major contributing factors. Two events served to focus the advertising world on digital video’s bright future. First, were upfronts by major media agencies such as Starcom and Mediavest. These were the first broadband upfronts in the history of advertising and the move proved to be transformational, positioning Starcom Mediavest as a leader in video advertising. Clients like Procter & Gamble, McDonald’s, Kellogg’s and Coca-Cola allocated millions of dollars for digital video and immediately focused media buyers across the industry on the value of premium online content. The second transformational event occurred in 2006 with the sale of YouTube to Google. For a $1.65 billion purchase price, digital video was back on the front pages of every newspa- per around the world. Unlike 1998, however, advertisers, agencies, and publishers now had experience with online display and search advertising and were ready to expand their budgets to include digital video. Meanwhile traditional television marketers easily understood the power of digital video’s sight, sound, and motion and began to take interest in online’s video advertising capabilities. According to eMarketer, digital video grew to a $775 million segment in 2007 and the same source predicts rapid growth by 2011 with $4.5 billion in online video ad spending. 3
  • 4. Platform Status Report: DIGITAL VIDEO Video Advertising Operating Ecosystem The operating ecosystem for video advertising can be complex and contains various entities, all of which play a different but vital role in the development, production and distribution of video advertising. These include: Web Sites and Portals, Ad Agencies, Networks, Measurement, Auditing, Research Firms, Ad Serv- ing Technology and Service Vendors, Video Technology Providers, and more. In an environment as fluid as the Internet, these roles are sometimes blurred and can be confusing. The fol- lowing table lists the key video operating ecosystem entities along with a description of their functions: Video Ecosystem Constituent Description Aggregator / Distributors The multitude of vendors and publishers in the market make it unfea- sible for all but the largest Portals to deal with a large enough num- ber of videos to offer a wide variety of content to their consumers. Aggregator/Distributors provide a solution by handling distribution agreements with a large number of content publishers and providing a “one stop shop” catalog of video content for Web Sites/Portals. Ad Serving Technology Vendors A 3rd party technology vendor enlisted by the agency (or adver- tiser) to manage their campaigns across multiple networks and web properties. Web Sites and Portals A Web site is, in this context, a venue on the Internet offering videos to consumers. A Portal is a Web site offering a variety of services to consumers, including videos and generally having a very large number of users. Advertising Networks In the context of this document, advertising networks function as aggregators of video advertising inventory and enable publishers to generate advertising revenue from their video content libraries or other advertising inventory without a direct sales relationship to an advertiser. Measurement Firms Companies that analyze and report on various online metrics associ- ated with campaign management and effectiveness. Auditing Firms Firms that examine the technology and/or business processes of companies aggregating and/or selling advertising to ensure transpar- ency and trust within the media marketplace. Research Firms Firms that report both publicly and privately on various aspects of the media marketplace, including measurement of unique users, frequency/traffic, impressions, etc. Agencies Both interactive and traditional media buying firms participating in the digital video marketplace. Video Technology Providers There are several companies that provide encoding services and player technologies to publishers and networks, enabling video and advertising content throughout the ecosystem. Content Experiences With tens of millions of videos available online today and millions being added each month, consumers can view videos never before accessible through traditional mediums like television. Consumers can effort- lessly go from watching a professionally produced television show to a 10-second clip of a friend describing their first year away at college. Although this universe of content is broad and varied, the disparity of video content can be classified into three main areas: Premier Programming: gives users professionally produced content, generally, re-purposed from Broadcast Video and Cable Networks. There is a large amount of professionally produced video that has not been digitized but is quickly working its way online. Professionally-Generated Specialty Programming: video content professionally but generally created for a specific subset of online video consumers. Whether it is original content for the web or content from traditional media like local news or community events, consumers are searching for and consuming video content relevant to their micro interests. User-Generated Video: consists of clips created and uploaded by everyday people and make up 4
  • 5. Platform Status Report: DIGITAL VIDEO the largest volume of videos available online. Generally, the majority of these clips are watched by a small group of users but due to viral word-of-mouth messaging some become extremely popular and are viewed by millions. While these categories may vary in production quality, time length, and resolution, consumers are drawn to each category for different reasons and a variety of video ad products have been developed to best fit each of these different experiences. See the Video Ad Product Compendium section below for more informa- tion. Video Ad Product Compendium In May 2006, the IAB Broadband Committee (now the Digital Video Committee) defined a video ad as a commercial that may appear before, during, or after a variety of content including streaming video, anima- tion, gaming, and music video content in a player environment. This definition included “Broadband Video Commercials” that appeared in live, archived, and downloadable streaming content.1 Since 2006, both the experiences and consumption of video content has evolved significantly. While the 2006 definition of a video commercial is still relevant today, newer video ad formats have been introduced to compliment these emerging types of video experiences and environments. Through 2007 and into 2008, the most common digital video ad experiences were either viewed within or around “In-Stream Video”, “In-Banner” or “In-Text” formats. In-Stream Video is generally played or viewed from a video player like a client browser In-Banner Video is generally displayed in IAB Universal Ad Package (UAP) banners.2 In-Text Video is generally user-initiated and triggered by relevant highlighted words within content. The following chart focuses on the categorization of these three major video advertising categories: Figure 1. Distinguishing In-Stream Video, In-Banner Video, In-Text Video Source: IAB Digital Video Committee Due to the fact that In-Banner video advertising and In-Text is generally tracked and operationally support- ed as a rich media advertisement, the major focus of this document will be on In-Stream Video advertising. While these three video ad types currently make up the majority of video ad inventory, there are other available methods of triggering a video ad experience, including brand integration like sponsorships and branded content. Another area of innovation in video advertising is to advertise entirely outside of the 1 The 2006 Broadband Video Commercial spec can be found at: http://www.iab.net/iab_products_and_industry_services/1421/1443/1479 2 IAB UAP Ad Sizes can be found at: http://iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/4631 5
  • 6. Platform Status Report: DIGITAL VIDEO video all together, or within the perimeter of the video, leaving the video stream ad-free – this practice is generally referred to as an advertising “skin.” In-Text video advertising is similar in that it does not require video content to deliver a video ad. In-Text video highlights words and phrases within the text of web con- tent and links the word to a relevant video advertisement. See Example 3 in the Video Examples section below. In-Stream Video Advertising There are two core video ad product categories in today’s In-Stream ad experiences. These are, “Linear Video” ads (Figure 1 REFERENCE A) and “Non-linear Video” ads (Figure 1 REFERENCE B): Linear Video ad: is presented before, in the middle of, or after the video content is consumed by the user, in very much the same way a TV commercial can play before, during or after the chosen program. One of the key characteristics of a Linear Video ad is that the user watch the ad instead of the content as the ad takes over the full view of the video. Examples of Linear Video ads in- clude: • A traditional repurposed 15 or 30 second TV ad • A purpose-built digital video ad product with interactivity inherent within the core video product experience • A full screen display ad or bumper ad viewed within a video player Because a user cannot experience the intended video content during a Linear Video ad impression, the ads are either placed before the content (also referred to as pre-rolls), between the content, or after the content. Note: the term “pre-roll” is also regularly referred to as a 15 or 30 second spot, but in this document “pre-roll” is used consistently as a description for the placement of the ad which is preempting the start of the video. Non-linear Video ad: runs parallel to the video content so the users see the ad while viewing the content. Non-linear video ads can be delivered as text, graphical ads, or as video overlays. Com- mon Non-linear Video ad products include: • Overlays which are shown directly over the content video itself • Product placements which are ads placed within the video content itself Both Linear and Non-linear Video ad products have the option of being paired with what is commonly referred to as a “Companion Ad” (Figure 1 REFERENCE C). Companion Ads: commonly text, display ads, rich media, or skins that wrap around the video experience, can run alongside either or both the video or ad content. The primary purpose of the Companion Ad product is to offer sustained visibility of the sponsor throughout the video content experience. Companion Ads may offer click-through interactivity and rich media experiences such as expansion of the ad for further engagement opportunities. The video ad products that publishers and vendors sell to media buyers are generally a combination of Linear, Non-linear and Companion Ad products packaged together in a compelling way. Popular combina- tions of In-Stream ad formats include: Linear Ads (A) + Companion Ads (C) Non-linear Ads (B) + Companion Ads (C) 6
  • 7. Platform Status Report: DIGITAL VIDEO In-Stream Video Examples The following section illustrates examples of different In-Stream ads and combinations. Example 1: In-Stream Video Ad Example In MSN’s Video Player example to the right, a Linear video ad plays before the video content and is accompanied by a clickable, expanding 300 X 250 display companion ad product. Source: MSN Video Player Example 2: In-Stream Video Ad with Skin In this example by Heavy, a 1020(w) x 620(h) ad unit surrounds a video for the duration of the program and actually becomes part of the viewing experience. Source: Heavy Example 3: In-Text Video Ad Example Vibrant Media’s screenshot to the right shows a user mousing over a relevant word which triggers a relevant video advertisement. Source: Vibrant Media 7
  • 8. Platform Status Report: DIGITAL VIDEO Example 4: In-Stream Video Ad Overlay This screenshot depicts a non-linear overlay ad product in an original show. The advertiser is MacDonald’s in a Broadband Enterprises production “The Fantastic Two” Source: Broadband Enterprises Example 5: In-Stream Video Ad Overlay In this screenshot, Yahoo! offers a non-linear overlay that is triggered by the user mousing over the video advertisement content. This overlay communicates a call to action to the user. Source: Yahoo! Example 6: In-Stream Video Ad Overlay This screenshot illustrates a non-linear overlay ad format with an accompanying companion ad to the right of the video. Source: YouTube 8
  • 9. Platform Status Report: DIGITAL VIDEO Key Digital Video Product Terminology Recap Term Description Broadband Video Commercial The IAB’s 2006 definition of a video ad as a commercial that may ap- pear before, during, and or after a variety of content including stream- ing video, animation, gaming, and music video content in a player environment. These commercials are generally :15 and :30 video ads that run before , between, and after a video clip is shown. The 2008 IAB Digital Video Committee is renaming Broadband Video Commer- cials as “In-Stream Video” ads that are either “Linear” or “Non-linear” core video products. Video Ad Experience A term used to describe where the source of the video advertising experience is coming from. This document describes three video ad experiences; In-Stream In-Banner, and In-Text. In-Stream Video A video ad experiences either viewed within or around video content (In-Stream) from a video player, like a browser, or client In-Banner Video A video ad experience displayed or triggered within a display banner like an IAB Universal Ad Package (UAP) size like a 300 X 250 or a 768 X 90. In-Text Video A relevant video ad experience displayed only when a user chooses to mouse-over, a highlighted word or phrase within the text of web content.. Core video ad products The root ad product that serves as the source or core ad that compli- ments the video ad experience. Linear video ads A Linear Video ad is experienced In-Stream, which is presented before, between, or after the video content is consumed by the user. One of the key characteristics of Linear video ads is the ad takes over the full view of the video Non-linear video ads A Non-linear Video ad product runs parallel to the video content so the user still has the option of viewing the content. Common Non-linear ad products include overlays which are shown directly over the content video itself, and product placements which are ads placed within the video content itself. Non-linear video ads can be delivered as text, graphical banners or buttons, or as video overlays. Ad Placements The physical location or placement of the ad product or experience. Pre roll A Linear video spot that appears before the video content plays. Mid roll A Linear video spot that appears in the middle of the video content. Post roll A Linear video spot that appears after the video content completes. Companion ad products Both Linear and Non-linear ad products have the option of pairing their core video ad product with what is commonly referred to as companion ads. Companion ads are commonly text, display ads, rich media, or skins that wrap around the video experience, can run alongside either or both the video or ad content. The primary purpose of the Compan- ion Ad product is to offer sustained visibility of the sponsor throughout the video content experience. Companion Ads may offer click-through interactivity and rich media experiences such as expansion of the ad for further engagement opportunities. Rich Media Advertisements with which users can interact (as opposed to solely animation) in a web-page format. They may appear in ad formats such as banners and buttons, as well as transitionals (interstitials) and various over-the-page units such as floating ads, page take-overs, and tear backs. Skins The ads that are placed around the video experience perimeter, com- monly placed in the shell of the video player. Metrics The core metric used for currency in digital video advertising is a “Digital Video Ad Impression”, also referred to as a Broadband Video Commercial Impression as described in the IAB’s Broadband Video Com- 9
  • 10. Platform Status Report: DIGITAL VIDEO mercial Measurement Guidelines released May 20063. In 2006, the IAB’s Broadband Committee and Measurement Task Force developed a set of Broadband Video Commercial Measurement Guidelines. Specifically, these guidelines determined at what point a video commercial is counted by defining a video ad as a commercial that may appear before, during, and after a variety of content including streaming video, animation, gaming, and music video content in a player environment. The key point to this guideline is that the video impression is measured at the latest point possible in the delivery of the ad creative to the user’s browser, which is the closest opportunity to see by the user. The 2006 measurement guidelines are still the basis for the currency of video buys in 2008, specific to In- Stream, Linear and most Non-linear Video Ad Products. In the future as the IAB embraces new Non-linear ad formats into the mix of standardized video ad products, careful attention will be paid to determining the proper currency metrics for these new formats where appropriate. Other non-currency measurement metrics exist today but because of the amount of innovation in the medium, none have become standard. General Business Overview of Video Advertising The buyers of digital video advertising include the interactive and traditional ad agencies and extend to major marketers, long-tail marketers and resellers. For the most part, digital video advertising buying mir- rors other media buying behaviors. Today, most buying of digital video is being done by interactive agen- cies on behalf of the major marketers. Traditional agencies and buyers of traditional media have lagged thus far, but are entering the marketplace. Progress at agencies where digital buyers are working closely with traditional buyers presents a powerful model for the future. The sellers of digital video advertising range from the largest portals and media companies to the most specialized user-generated content sites on the web. The major online portals and broadcast media companies comprise the bulk of the video traffic and all have made strategic moves in both the content and technology space to insure their leadership positions. The smaller content sites generally use both direct sales and/or network sales strategies to fulfill their inventory needs. To take advantage of incremental video advertising revenue many websites are now choosing to deploy In-Text video advertising within their content pages. Current pricing practices in digital video suggest that the medium is quickly maturing. CPM-based pric- ing is the predominant model for buyers, particularly the In-Stream, Linear Ad format (pre-rolls, post-rolls, etc). CPMs can span a wide range and are based on a number of factors including the quality of the site’s content and users, targeting capabilities, and individual programming. The CPA and CPC models are also available and are the predominant measures for In-Text video advertis- ing. These buying models are helping to bring large, Direct Marketing advertisers into digital video and long-tail marketers or “mom and pop shops” that have not had a place in the medium in the past. Many brand-based advertisers believe the CPA and CPC models lend accountability to brand-based advertising where other media have traditionally struggled. Current Industry Challenges There are many components of Digital Video Advertising that have yet to be standardized, including cre- ative units and new metrics. While the video industry is still relatively young, the IAB Digital Video Com- mittee recognizes the importance of simplifying the buying and selling process as an impetus for further long-term growth. The following have been identified by the Digital Video Committee as current key challenges: Challenge Description 3rd party ad serving not always Many publishers with In-Stream video ad products do not support supported third party ad serving into their video players at this time. 3 The 2006 Broadband Video Commercial spec can be found at: http://iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/4982 10
  • 11. Platform Status Report: DIGITAL VIDEO Challenge Description Video ad length effectiveness Since the majority of ads are repurposed television :15 and :30’s, not well understood there has been limited opportunity to research and experiment with different ad lengths online. Different serving environments may need different ad lengths to be most effective. Reporting discrepancies There can be reporting discrepancies between 3rd party ad servers, publishers, and 3rd party video vendors making the billing and recon- ciliation process sometimes confusing for media buyers. Online buying not similar to TV While TV buys typically consist of placing :30 or :60 spots in a uniform buying environment, online buys require a broad understanding of multiple ad experiences, different video integrations on websites/portals, net- work differentiation and a more engaged, one-to-one user relation- ship. Many different video ad Media buyers have expressed confusion over the plethora of formats products available available in different video consumption experiences, including differ- ences such as features, video sizes, etc. Different video player There is no standard technology to serve and enable video content technologies or advertising. Current player technologies include Adobe Flash, Windows Media Player, Quicktime, and RealPlayer. Attribution of metrics and Because of networks and ad platforms’ distributed nature, there is viewers debate within the industry on how best to attribute a viewer from a reporting perspective. For instance, if a video is shown on a website through a network feed, does the website get attributed the viewer or the network or both? Who is the IAB Digital Video Committee? The IAB Digital Video Committee is comprised of IAB member companies who are committed to creating and implementing a comprehensive set of guidelines, measurement, and creative options for interactive video advertising. Additionally, the committee will educate markets and agencies on the strength of broad- band as a marketing vehicle. Co-Chairpersons: Michael Hurt, Microsoft; Joey Trotz, CNN The Committee members span the range of players in the video advertising and/or media ecosystem, and for the reader’s convenience, we have listed them below by primary role. Please note that many companies may offer multiple services or business models. Web Sites & Portals Advanstar Communications Fox News Channel Q Interactive AOL Google Reader’s Digest Associated Content Heavy.com Reuters Atom Schockwave Corp Howstuffworks Revolution Health Group Batanga Hulu Wall Street Journal Cars.com IAC Time, Inc. Cartoon Network IGN Entertainment Univision Online CBS Interactive Joost VMIX Clip Syndicate Jump TV Walt Disney Internet Group CNET Networks Martha Stewart Living Omnimedia Washington Post Newsweek CNN MediaFLO USA Inc Weather Channel Interactive Comcast Corporation Metacafe WeatherBug Conde’ Net Microsoft Digital Advertising Solutions WebMD Cox Newspapers MSG Interactive World Wrestling Entertainment Edmunds MTV Networks WorldNow ESPN NBC Universal Digital Media Yahoo!, Inc. Facebook Orbitz Worldwide YouTube Forbes Perfspot.com Zango Fox Interactive Media PureVideo 11
  • 12. Platform Status Report: DIGITAL VIDEO Agencies Networks Measurement, Auditing, and Research Firms 360i 24/7 Real Media, Inc. AMC Group Online Media Agency.com Ad Infuse Claria Adtegrity Advertising.com Comscore BIA Information Network Blinkx Critical Mention Centro Broadband Enterprises Dynamic Logic Critical Mass Burst Media Corporation Interpolls Geary Interactive Looksmart Millward Brown PBJS Maven Networks M:Metrics Quigo Technologies Nielsen Online Quantcast Range Online Media Pulse360 Rentrak Sapient Corporation Right Media Theorem, Inc. True North, Inc. Scan Scout Visible Measures Corp. Vizi SpotXchange WebTrends Taboola Tacoda The Fifth Network Traffic Marketplace Tremor Media Unicast ValueClick Media Vibrant Media Video Egg YuMe Networks Ad Serving Technology and Video Technology Provider Other Service Vendors Adify Adobe Jordan Edmiston Group, Inc. Akamai Aurix LTD Television Bureau of Advertising Atlas Brightcove DoubleClick, Inc Cisco Eyeblaster Transpera Eyewonder Internet Broadcasting Systems Panache Technologies 12
  • 13. Platform Status Report: DIGITAL VIDEO Appendix A: Definitions & Nomenclature Average view time – refers to the average amount of time the video ad was played by users. Brand Awareness – research studies can associate ad effectiveness to measure the impact of online advertis ing on key branding metrics. Bug – is a persistent, graphical element that appears in the video environment. Clicking on it will take the user to a website. Bumper Ad – usually refers to a linear video ad with clickable call-to-action; format is usually shorter than full linear ads (i.e. 3-10 seconds) and call-to-action usually can load another video or can bring up a new site while pausing the content. Click-through – the action of following a hyperlink within an advertisement or editorial content to another Web site or another page or frame within the Web site. Companion Ad – both Linear and Non-linear Video ad products have the option of pairing their core video ad product with what is commonly referred to as companion ads. Commonly text, display ads, rich media, or skins that wrap around the video experience, can run alongside either or both the video or ad content. The primary purpose of the Companion Ad product is to offer sustained visibility of the sponsor throughout the video content experience. Companion Ads may offer click-through interactivity and rich media experiences such as expansion of the ad for further engagement opportunities. Completes – completes refer to whether the video played to completion. Contextual Ads – existing contextual ad engines deliver text and image ads to non-video content pages. Ads are matched to keywords extracted from content. Advertisers can leverage existing keyword-based paid search campaigns and gain access to a larger audience. 3rd party publishers receive a share of the revenue collected from the advertisers. Core ad video – the essential video asset, often repurposed from offline. Can be displayed directly in the player, or in a more customized presentation. Event trackers – primarily used for click-through tracking today, but also for companion banner interactions and video session tracking (e.g. 25%, 50%, 75%, 100%).. Full screen views – refers to the number of impressions where the video was played in full screen mode (where available) Hot Spot – an ad unit that is sold within the video content experience. Mouse action over the video highlights objects that can be clicked. The click action initiates a Linear video commercial or takes the user to a website. In-Banner Video Ads – leverage the banner space to deliver a video experience as opposed to another static or rich media format. The format relies on the existence of display ad inventory on the page for its delivery. In-Page Video Ads – delivered most often as a stand alone video ad and do not generally have other content associated with them. This format is typically home page or channel based and depends on real estate within the page dedicated for the video player. In-Stream Video Ads – played before, during or after the streaming video content that the consumer has requested. These ads cannot typically be stopped from being played (particularly with pre-roll). This format is frequently used to monetize the video content that the publisher is delivering. In-Stream ads can be played inside short or long form video and rely on video content for their delivery. There are four different types of video content where in-stream may play, UGC (User Generated Content/Video), Syndicated, Sourced and Journalistic. In-Text Video Ads – delivered from highlighted words and phrases within the text of web content. The ads are user activated and delivered only when a user chooses to move their mouse over a relevant word or phrase. 13
  • 14. Platform Status Report: DIGITAL VIDEO Invitation unit – a smallish still or animated graphic often overlays directly onto video content. Typically used as a less-intrusive initial call-to-action. Normally when a viewer clicks or interacts with the invitation graphic, they expand into the ad’s full expression, which might be a simple auto-play video or an interactive experience IPTV – generally refers to video programming offered by telecom companies over copper wire. Often mis- used to refer to PC-based video. Journalistic Video – content that was shot and used by the actual publisher. MSNBC journalist shooting a video and using the video for their own purposes. Linear Video Ads – experienced In-Stream, which is presented before, between, or after the video content is consumed by the user. One of the key characteristics of Linear video ads is the ad takes over the full view of the video. Metadata – business-critical data such as advertiser name, eCPM goal, format and version information. Mid-roll – a Linear video spot that appears in the middle of the video content. Non-linear Video Ads – an Non-linear Video ad product runs parallel to the video content so the user still has the option of viewing the content. Common Non-linear ad products include overlays which are shown directly over the content video itself, and product placements which are ads placed within the video content itself. Non-linear video ads can be delivered as text, graphical banners or buttons, or as video overlays. Overlay ad – a banner ad that appears in the bottom 20% of the video window. Click action initiates a Linear video spot or takes the user to a website. Sold on a CPM and CPC basis. Playlist – online video content can be broken down by content verticals such as news, music, tv shows, movies, sports, UGC, casual games, automotive, travel, business, b to b, careers, communities, technology, education, directories, government, non-profit, family, health, real estate, personals, science, adult and gambling. There are hundreds of sub-content verticals under the aforementioned. Post-roll – a Linear video spot that appears after the video content completes. Pre-roll – a Linear video spot that appears before the video content plays Quartile reporting – refers to whether the video played to its 25% and 75% points. Replays – refers to the number of times a user requested to see the video ad again (where available) Rich media – advertisements with which users can interact (as opposed to solely animation) in a web-page format. They may appear in ad formats such as banners and buttons, as well as transitionals (interstitials) and various over-the-page units such as floating ads, page take-overs, and tear backs. Sourced Video – content generated by a third party (typically professional) and will denote the source. An example may be a new car review provided by General Motors but hosted on CarTV.com. Syndicated Video – content sourced from a professional third party, examples may include syndicated television shows, news footage from AP or Reuters, etc. Sponsorship graphics – components that are displayed as very persistent graphics such as with a player surrounding skin. Sponsorship graphics are generally displayed throughout the entirety of the content play. Sometimes the sponsorship graphic remains interactive and will behave like an invitation unit allowing viewers to explore deeper ad units such as the embedded interactive. User-Generated Video – content created by the public at large and directly loaded to a site like YouTube or MySpace VOD – Video on Demand, usually refers to services offered by cable companies through set-top boxes. 14