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How online video ads can pass TV ad revenues
TV experience and Internet powercomes together
Oded Napchi, HIRO Media
THE MEDIUM
IS NOTNECESSARILY THE MESSAGE…
… THE ‘REAR VIEW MIRROR EFFECT’ CAN BE BENEFICIAL…
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*
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
WHY DO WE GENERATE LESS REVENUE
FROM ONLINE ADS?
% 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
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
THE PARADOX
they say…
the future of advertising lies on the Internet
THE PARADOX
they say…
the future of advertising lies on the Internet
however… at present the
Internet is less effectivethan TV ads
LESSONS TO LEARN
Half a century of TV advertising experience has
resulted in the most effective means of
persuasionWEB ADVERTISERS
SHOULD LEARN FROM THIS…
LET’S UNITE with the power
of internetThe knowledge
of TV advertising
The knowledge of TV
advertising
TV Vs ONLINEmain concept
TV = Demographic targeting
Online = CTR optimization
Most video advertising is brand advertising.Brand advertising DOES NOT encourage
clicks.
SO… CTR BECOMES IRRELEVANT
TV Vs ONLINEFrequency cap calculation
TV = optimizing to number of views
Online = limiting max number of views
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
TV Vs ONLINEContent Targeting
TV advertisers target programmes
Online advertisers target web pages
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
with the power of online media
Online powerAd load
TV ADS minutes PER HOUR OF CONTENT
20INTERNET ADS
minutes PER HOUR OF CONTENT
3
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
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
Instead of having 1 ad sales
organization selling to 1 site
Online powerAd routing
1
Online powerAd routing
You can have
multiple ad sales organization,
selling for multiple web sites
1,000,000
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
How does it WORK?
TV way of thinking | Test case
• TV company• Around 2M video impressions per month• Moved from leading display ad server to HIRO
TV PARADIGM FOCAL POINTS
• Uses demographic targeting• Uses advanced media planning rules• Uses video ad load optimization
The result?
AD REVENUES INCREASED
oct nov dec january feb march april may june july
revenues
x
2x
3x
4x
5x
AVERAGE CPM DOUBLED
Start of demo targeting
october
november
december
january
february
march
april
mayjune
july
x
2x
3x
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
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
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
IP POWER TEST CASE
• Content syndicator• Around 60M video impressions per month• Moved from leading ad network server to HIRO
IP POWER FOCAL POINTS
• Uses ad routing• Uses video ad load optimization
The result?
AD VIEWED
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
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