360Media Insight Session Slides

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Facilitator: Gordon StevensonHead of Digital, Herald & Times Group

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Guy Philipson CEO, Internet Advertising Bureau (IAB)

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Interactive Scotland 360DGuy Phillipson, CEO, IAB UK

In this presentation…1.The UK Digital Advertising market2.Advertising in Real time3.Video and branded content4.The majority-mobile Future

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27% of Scottish premises are still off-line!

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The UK 2014 Ad spend landscape

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Digital = 39% of a £18.55 billion market

Rapid growth of Programmatic ad trading

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2014 results used the same framework as 2013

Direct

Indirect

Traditional Programmatic

Direct sales

Inventory bought at fixed prices directly from media owners through in-house or external sales teams, using insertion orders and manual processes to book and run the campaign

Programmatic direct (e.g. private marketplaces)Inventory bought from a particular media owner using automated processes, where a direct relationship exists between the buyer and media owner in the form of pre-existing deal terms (e.g. exclusive access and price floors)

Networks

Inventory bought at fixed prices from a third-party offering packages which aggregate supply across multiple media owners

Programmatic indirect (e.g. open RTB exchanges)

Inventory bought on an impression-by-impression basis in real-time through an open, unreserved auctionPl

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Technique

The UK Display programmatic market

Programmatic trading accounted for 45% of total UK digital display advertising

45%programmatic

Mobile display and video

£0.47bn

Desktop display£1.14bn

Online video£0.28bn


£0.86bn*

Desktop display£1.0bn*

* - Display affiliate advertising is excluded from the totals

Overall, direct sales still account for 49% of the market –programmatic direct has grown strongly to 24%

49% 24%

6% 21%

Direct sales Programmatic direct (e.g. private marketplaces)

Networks Programmatic indirect (e.g. open RTB exchanges)


£0.47bn


Online video£0.28bn


£0.86bn


-15pp +8pp

+2pp = percentage point change

-2pp +9pp

Online retail, telecoms and finance advertisers are believed to be the most advanced in the transition to

programmatic

Base: 15 media ownersQuestion: Based on your experiences, which advertiser categories do you believe are spending the highest proportion of their budgets using programmatic techniques? 1 is little to no spend using programmatic techniques and 5 is a very high proportion of spend using programmatic techniques

Proportion of budget spent using programmatic techniques by advertiser category - indicative

None

Very high Media owners believe that the online retail,

telecoms, finance, motors and travel categories – major performance advertisers – are allocating the highest levels of spend to programmatic

Online Video and Branded Content

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Top UK Vloggers command huge online audiences

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IAB Transparency Guidelines for Brands and Vloggers

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The mobile majority future is here!

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Device mix of internet usage changing rapidly

Presentation for IABUK Board - 18 September 2014

Total internet usage by device (hours, billion)

Base: 4+ internet users, excludes offline app and TV-based usage [Source: Enders Analysis]

84%of the top 250 UK

advertisers have an

optimised site

1 in 2 ofoptimised sites were responsive web design

8 in 10 of the top 250 UK advertisers have an optimised site

Base: Top 250 UK advertisersSource: IAB top 250 mobile audit

Thank You! Presentation for IABUK Board - 18 September 2014

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Peter Borgen-Nielsen Head of Digital, Mediacom

Programmatic01

Programmatic spend reached over a Billion Pounds in 2014*

It will account for 60-75% of display spend in 2017**

As a workflow it is starting to increasingly impact on traditional mediums

Huge Opportunity

£350m

£100m

£600m

*Source Enders Analysis, GroupM and FirstPartner **source IAB and MTM

How Digital has Evolved02

2000..2005 2005..2012 2012..2014

Publishers Publishers

Ad Networks

Agencies Agencies

Ad Networks Ad Exchanges

Ad Exchanges

Programmatic Buyers

Agencies

http://www.groupm.com/

2000..2005 2012..2014

Publishers

Ad Networks

Agencies Agencies

Ad Exchanges

Programmatic Buyers

2005..2012

Publishers

Agencies

Ad Networks

Agencies


2000..2005 2005..2012 2012..2014

Publishers Publishers

Ad Networks

Agencies Agencies Agencies

Ad Networks Ad Exchanges Ad Exchanges

Programmatic Buyers

Agencies


2000..2005 2012..2014

Publishers

Ad Networks

Agencies Agencies

Ad Exchanges

Programmatic Buyers

2005..2012

Publishers

Agencies

Ad Networks Ad Exchanges

Agencies


The Programmatic Landscape03

Advertisers,Agencies & Trade Desks

Programmatic Tech Building Blocks (simplified)


Ad Exchanges

All Digital Channels

Display

Mobile

Video

Radio

etc…

Publishers

What is a DSP (Demand side Platform)?


DMPData

Management Platform Ad Exchanges

• Edinburgh only

• iPad inventory

• between 8 and 10pm

• not more than £4 CPM• Using whitelist of specific publishers

All Digital Channels

Display

Mobile

Video

Radio

etc…

Publishers

What is a DMP (Data Management Platform)?


DMPData

Management Platform Ad Exchanges

• London only

• iPad inventory

• between 8 and 10pm

• not more than £4 CPM

• Using whitelist of specific publishers

• People who look similar toto my best online customers

• Male 25-34

• Who are health-conscious

• Tennis fanatics, etc…

This is what it actually looks like

Why is Programmatic important04

Programmatic is about putting the consumer at the heart & letting technology make very detailed & continuous optimisation

Consumer

Reach Frequency Viewability Greater Measurement

Greater control and insight to make performance improvements

Programmatic Buying Benefits

Campaign Effectiveness

More data available that can yield greater insight

Campaign Insights Operational Efficiency

Pay the right price for the right piece of media that will hit the right audience.

Reduction of some admin processes

Advice for the Road Ahead05

Focus on connecting with Consumers

Data = People

Treat delivery of Advertising as Moments

Harness the true potential of targeting and optimisation

Ensure that all informed advertising is personalised where appropriate

Safeguard against missing out on innovation

Achieve true scale in Audience

Match macro management with micro execution

Sing where they can hear you

Don’t miss the opportunity

Programmatic Playbook

• Programmatic is a system of working that demands too much debate

• Keep sights on the consumers and KPI’s and not on the jargon

• Tech is there to Deliver not to Dictate

Focus on connecting with Consumers

• Programmatic allows us to make them as valuable as possible

• Get as much from them as you can• Think about engagement and how to get

your message across

Treat delivery of Advertising as Moments

•This is key to determining actual value in data planning•Clean up-to date data will drive the best performance•It is only as good as its application

Data = People

• Fluid real-time optimisation is now viable

• Swarm intelligence and map trends• Engage the Beta demographic

Harness the true potential of targeting and optimisation

• Be truly agnostic in delivery• Act on the potential of the insight you have• Follow the data

Sing where they can hear you

• Establish a set up that allows speed to market

• Be always on• Don’t be scared, it takes ten seconds to

stop!!

Don’t miss the opportunity

About MediaCom

WHO WE ARE?We are MediaCom, the Content and Connections agency who deliver 20|20 Connections Planning

WHAT DO WE DO?We believe communication works in systems not silos and content is the fuel of high performing systems

HOW WE DO IT?We are One Mediacom offering integrated as well as stand alone specialist services

WHO WE DONE IT FOR?We have connected the world’s most iconic brands as solution providers planning for outcomes not inputs

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Alistair BrownChief Technology & Platforms Officer, STV

1. HOW HAS TV CHANGED2. WHAT HAS CAUSED THIS CHANGE3. WHAT NEXT?

TV'S FUTURE: OVER THE TOP?

1. HOW HAS TV CHANGED

Source: Ofcom Technology Tracker, Q1 2015

UK AVERAGE = 43% 48% 12% 15% 60% 62%

USE OF CATCH-UP, STANDALONE VIDEO SUBSCRIPTION AND PVRS IN SCOTLAND

DECLINE OF VIEWING AT TIME OF BROADCASTTV has remained remarkably resilient over the last 3 years – live viewing still accounts for 87% - a drop of only 1% point per annum in STV’s peak-time average audience

Composition of STV Peak-time average audience 2013 2014 2015

STV – all platforms

Live 89% 88% 87%

VOSDAL 6% 7% 8%

Timeshift 1 to 7 days 5% 5% 5%

STV TOTAL 100% 100% 100%Source: BARB 2013-2015, peak=1800-2230

OLD HABITS DIE HARDHalf of all households in Scotland have access to HD TV services but only 19% of peak-time viewing on STV comes via HD – 78% comes through our standard definition channel.

It’s not an issue to access – STV HD is available on Sky, Virgin and Freeview and STV HD is even the default TV channel for 870,000 individuals with Sky in the West of Scotland.

Source: BARB Jan-Jun 2015

FUTURE PREDICTIONS OF DECLINEWhile 87% of TV is currently watched live, predictions about the future consumption levels of linear TV vary. EBU Eurodata estimate that by 2020 72% of TV will still be watched live. Meanwhile Enders Analysis believe that 81% will be watched live.

Source: EBU Eurodata Vision 2020 viewing trends 2014, Enders Analysis UK internet device and consumption forecasts to 2020

SOME GENRES LEND THEMSELVES MORE TO CATCH-UPWhile its true that 87% of the STV audience watches our content live, certain programme genres lend themselves more to catch-up than others.

Live VosdalTimeshift 1-7 days Comments

Broadchurch 61% 15% 24% 39% of Broadchurch audience watched the latest series after the live broadcast

Coronation street 77% 14% 9% Corrie is a steady 23% watch after live

Uefa champions league live 97% 3% 0% Not surprising that sporting events lose their appeal

once the result is known

Source: BARB 2015

MEASURED GROWTH OF ALL ON-DEMAND PLAYERSThrough our annual Brand Tracker, STV has measured increased usage of both PSB VoD and Subscription VoD across Scotland

Source: ScotPulse Brand Tracker, Jan 2015 1,100 responses

Source: Flurry Analytics, comScore

TIME SPENT ON MOBILE DEVICES AND TVU.S. Daily Average (min)

Source: eMarketer 2015 data

% OF TIME SPENT IN MEDIA VS. % OF ADVERTISING SPEND, USA 2014

DEVICE PENETRATION IN SCOTLAND VS UKFigures in black indicate UK penetration

Each household now has

an average of

7.4 internet enabled devices

Source: BARB Establishment Survey 2015, OFCOM Comms Report 2015, Thinkbox Total UK Video Consumption 2014, YouGov survey, March 2015 (2,090 respondents)

85% 80%66%

65% 52%

45%34% 21%

Source: British Population Survey

ACCESS TO AND USE OF WEB-ENABLED MOBILE DEVICES, BY AGE

NEW KID ON THE BLOCKNetflix uptake in Scottish households is 5% points ahead of the UK averageHowever subscription vod currently makes up only 2.2% of all minutes of video consumed by the average person each day – increasing to 3.7% for 16-24 year olds

Source: BARB Establishment Survey 2015, OFCOM Comms Report 2015, Thinkbox Total UK Video Consumption 2014

OUR TALENT

WEBSITES AND APPS EVER USED, BY NATION

Source: Ofcom ressearch, ‘Connected Devices’, May 2015

SITE OR APP MOST RECENTLY ADDED

Source: Ofcom ressearch, ‘Connected Devices’, May 2015

Facebook

TV DRIVES SOCIAL GROWTH1 in 5 Scottish adults say that they are “hooked” on social media – Ofcom Comms Report 2015

Social media drives traffic to our websites – 44% of STV News page views are referred by social media posts. This is the biggest YoY increase in driving traffic to the STV News sites.

Source: Comscore Jan-Jun 2014 and 2015Fanpagekarma.comFans as of Aug 10th

We need to go where our users areSingle sign on and synchronisation – tailoring and improving consumer experienceNext Generation news app – Project MetropolisWe need to go where our users areSingle sign on and synchronisation – tailoring and improving consumer experienceNext Generation news app – Project Metropolis

THE STV FAMILY92% of Scots interact with STV each monthConsumption extending ‘beyond the box’

TOMORROW’S WORLD


Panel Session

- Guy Philipson : IAB - Peter Borgen-Neilsen : Mediacom

- Alistair Brown : STV - Heather Kane : Communicorp UK

- David Pugh-Jones : Buzz Feed

360Media Insight Session Slides

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Transcript of 360Media Insight Session Slides