At our recent VideoNuze Online Video Ad Summit, the “Video’s Programmatic Roadmap” session explored how programmatic is becoming more mainstream in premium video, why connected TV is a huge growth area, how brand safety and viewability are being ensured, the various ways data is being used by both advertisers and publishers, plus lots more.
Participating on the session were Melissa Bonnick (SVP, Programmatic Strategy, Affiperf/Havas), Eric Hoffert (SVP, Video Technology, AppNexus), Sean Holzman (Chief Digital Revenue Officer, Bonnier), Keren Katz (Head of Bidder and Buyer Development, Programmatic, Microsoft), with Brian Leder (Partner, Chief Strategy Officer, Promatica Consulting), moderating.
How data is being used to improve monetization and user experiences is one of the hottest industry topics these days. But is data living up to its potential? At our recent VideoNuze Online Video Ad Summit, we focused a session on this question, with panelists including George Musi (EVP, Data, Analytics, Insights, Blue 449/Publicis Media), Lance Neuhauser (CEO, 4C), Bre Rosetti (SVP, Director of Strategy and Innovation, Havas Media), Vikram Somaya (SVP, Global Data Officer and Ad Platforms, ESPN) and Dan Punt (Managing Director, FTI Consulting) moderating.
The session explored the value of data for brands, using data to uncover what’s meaningful to consumers, how to deal with limitations imposed by walled gardens, how data can power subscription models, when does value of data actually start to diminish, the importance of having the right infrastructure and talent in place, evolving to data-driven decision-making, complying with GDPR and much more.
Today I’m continuing our “In Focus,” series, in which I preview one of the sessions at our 8th annual VideoNuze Online Video Advertising Summit, coming up on Tuesday, June 12th, including what I hope you’ll learn and why I think the topic is important.
In focus today is our 1:35pm session, “Is Data Living Up to Its Potential?” which includes George Musi (EVP, Data, Analytics, Insights, Blue 449/Publicis Media), Lance Neuhauser (CEO, 4C), Bre Rosetti (SVP, Director of Strategy and Innovation, Havas Media) and Vikram Somaya (SVP, Global Data Officer and Ad Platforms, ESPN), with Dan Punt (Managing Director, FTI Consulting) moderating.
Data has become the most important ingredient in the advertising ecosystem, driving how tens of billions of dollars of annual spending are distributed by advertisers eager to micro-target their desired audiences and achieve the highest return on ad spend. It is no secret that Google and Facebook in particular, have used their massive troves of user data (sometimes to their detriment), to help advertisers’ quest for targeting and efficiency in the digital world.
Major platforms like YouTube, Facebook and Snapchat offer video content providers opportunities to reach big audiences, but they also create a variety of new risks around loss of business control and monetization. At last month’s Video Ad Summit, Mike Shields from the WSJ moderated a session “Achieving Video Success in the Platform Economy,” which addressed this central tension.
The panel included Stacy Fuller (Head of Content, North America, Havas Media), Paul Kelly (Chief Partnerships Officer, AwesomenessTV), Michael Kuntz (SVP, Digital Revenue, USA TODAY Network) and Jeff Urban (President and Co-founder, Whistle Sports).
Digging into the topic, the group discussed the range of approaches YouTube, Facebook and Snapchat are using with partners and how content providers determine where to allocate their finite resources. One big discussion point was that Facebook does not accept pre-roll ads, so the challenge of making money with Facebook is even steeper. That led to another key topic of what role branded content should play when distributing on the platforms.
With platforms constantly changing their approaches, learning how to work with them is incredibly confusing for video content providers. The session gives a lot of insights into how providers and agencies are navigating this new terrain.
Watch the video now (33 minutes, 3 seconds).
As the traditional bridge between buyers and sellers in the video ad business, agencies have a huge vested stake in how programmatic plays out. On the one hand, programmatic gives advertisers more control than ever in terms of managing their spending and targeting their audiences. But on the other hand, programmatic requires highly specialized new skill sets and investments to truly pay off.
These topics and more were part of our “Agency of the Future” session at last month’s SHIFT // 2015 Programmatic Video & TV Ad Summit. The session included Christina Beaumier (SVP, Xaxis Media), Adam Kasper (Chief Media Officer, Havas Media North America) with Steve Grubbs (Prohaska Consulting and former CEO, PHD North America), moderating.
Adam and Christina shared how their organizations are structured to capitalize on programmatic, why automation does not lead to staffing cost savings, what the proper agency compensation models are for programmatic, whether programmatic video and TV should be planned/executed in one group, why connected TV advertising is gaining momentum and much more. It’s a fascinating discussion for anyone with an interest in agencies’ role in the programmatic future.
Not a day goes by where there isn't an article about the health of the broadband video industry - how viewer consumption is growing, how much ad revenue it's slated to generate (or not), and what content and infrastructure partnerships have been inked. With the lion's share of the industry ad supported, it's time to hear from the people who are in position to make or break projected revenue budgets: the media buyers.
This interview is with Ed Montes, EVP/Managing Director of Havas Digital US; it is the first of a series of interviews that The Diffusion Group's senior analyst, Mugs Buckley, is conducting with advertising's key media buyers.
WHAT TYPE OF ONLINE ADS DO YOU BUY?
We buy pre-rolls, mid-rolls, in-line video ads. The only thing we have not bought much of are ads around user-generated content.
WHO ARE SOME OF YOUR CLIENTS?
Sears, K-Mart, Fidelity Investments, Amtrak, Tyson, Choice Hotels, Volvo, Air France, and Reckitt Benckiser, to name a few.
ARE ALL OF YOUR CLIENTS BUYING VIDEO ADS?
Many of our clients are placing ads in online video.
IS IT A "MUST HAVE" ON THE MEDIA PLAN?
We're definitely see it grow in importance and yes, it is a "must have" on some media plans. What I can say with more certainty is that online video advertising is becoming, and for some clients is, as important as display advertising. What remains a more consistent "must have" are search buys.
WHAT ARE THE SIZES OF SOME OF YOUR BUYS? WHAT ARE THE CPM TRENDS?
A buyer considers two things: scale (will it reach enough people) and the size/cost of a buy. It depends on the overall size of the campaign. For instance, in a large campaign a buy is south of $50K, may not make the plan, unless we're going to do it for the intelligence of the buy or because the CPM is very discounted. On a smaller campaign $50K might be the entire campaign so you will see much smaller video purchases. There is a huge swing for CPM range depending on the content. Everything hinges on the content. We see CPMs ranging from $15-$40 for non-UGV content in-stream units. UGV, the lower-end quality content CPMs tend to be in the single digits. In-banner video is generally on the lower end of the single digit range.
HOW LABOR INTENSIVE IS AN ONLINE VIDEO AD BUY?
Relatively speaking, it is a lot more labor intensive than a broadcast buy. In the online world, there are a lot of steps in the process to create, buy, optimize, build and analyze a video ad campaign.
WHAT DO YOU WANT YOUR SELLERS TO KNOW BEFORE THEY COME AND PITCH YOU?
I'd like sellers to be informed about our clients, their campaigns, and goals so we can build the best possible idea. I want someone to bring me a solution, not just sell me their unsold inventory.
IS THE "BUY" ALL ABOUT SCALE?
I think it's about audience fragmentation, the inverse of scale. People buy TV because they can aggregate a large audience; it is the best mass media vehicle. As TV ratings decline, a buyer has to buy an increased mix of television to achieve the same scale they did previously. Now the consideration shouldn't just be TV, it should be all video.
WHO DOES THE BUYING? BROADCAST BUYER? ONLINE BUYER?
Both online buyers and broadcast buyers do the buying but like anything, it depends on the buy. Pure online purchases (like Hulu, Veoh, YouTube), the online buyers are in the lead. On the network side (such as buying from ABC), it's a little bit different because there are instances where media is bought by network buyers with the assistance of online buyers.
WOULD YOU BUY FROM AN INDEPENDENT WEB STUDIO OR THEIR CONTENT?
I would consider such a buy but it goes back to the issue of scale. Would we buy directly from the programmer or buy from a network? In a world where I'm trying to aggregate reach, they may fall out of the category due to their limited audience size.
"We're bullish on online video, the performance we've seen from it is highly encouraging."