Anna Bager. Executive Vice President IAB US TRENDER & NYHETER ONLINE VIDEO FRÅN USA, IAB OCH IAB TECHLAB

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1 Anna Bager Executive Vice President IAB US TRENDER & NYHETER ONLINE VIDEO FRÅN USA, IAB OCH IAB TECHLAB

2 Video Trends and News Anna Bager, Executive Vice President of Industry Initiatives IAB Sweden Digital Video Seminarium 14 June 2018 Finlandshuset, Snickarbacken 4, Stockholm

3 media shifting to a direct brand economy

4 Agenda Video marketplace - Shift to direct-to-consumer brand economy - Video Trends: viewing and revenue - Value of the digital video viewer Marketing trends - Rise of new formats such as vertical video, native video, and interactive/shoppable video Challenges - Consumer ad experience - Cross-platform measurement - Data usage and regulation Initiatives underway to solve industry challenges relating to consumer ad experience, cross-platform measurement, and video ad fraud 4

5 media shifting to a direct brand economy

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8 The internet is transforming into a video first destination By 2019, 80% of all internet traffic will be video with mobile leading the way 8

9 Mobile video is dominant, but OTT is disrupting Consumers spend the most amount of time watching video on mobile devices The popularity of watching TV via digital means is exploding in the U.S. even more so in Sweden! TV Viewing Methods in the U.S. and Sweden 9

10 The traditional living room is now digitally enabled Streaming enabled TVs have not only penetrated into a majority of HHs, but are consumers preferred method of digital video consumption 10 Source: IAB The Changing TV Experience May 2017 Source: emarketer US Internet Users' Preferred Device for Watching Digital Video, Sep 2017 (% of respondents)

11 A trend that is now a global phenomenon OTT devices penetration is on the rise across the globe 12 Source: SpotX

12 Advertisers following the eyeballs Shifting media habits among consumers towards digital video yields greater ad spending 13

13 Digital Spending > TV Spending 14 Source: MAGNA

14 Prime Primetime timeisispersonal personal

15 Digital video viewers represent a valuable demo for brand marketers Young Cord cutters/nevers Diverse Curious Adaptable Forwardthinking Adventurous Source: Digital Video Viewers and Brand Connection, IAB 2018.

16 This audience is also comprised of brand seekers Brand Seekers (prefer to communicate with the brand directly AND curious to hear from brand they did not know before) 45% 40% 38% ODV Viewe r TV Show O nline Viewer Ad-Free Only Digital Original Viewer Source: Digital Video Viewers and Brand Connection, IAB 2018.

17 Digital video advertising is especially well positioned for DTC brands 54% DTC Brand Awareness 68% 63% 66% DTC Purchase Intent 29% 22% 14% 15% Ge ne ral Population Origi n al Dig i ta l Video Viewer TV Show O nline Viewer Ad-Free Only Di gi tal Ori gi na l Viewer Ge ne ral Population Origi n al Dig i ta l Video Viewer TV Show O nline Viewer Ad-Free Only Di gi tal Ori gi na l Viewer Source: Digital Video Viewers and Brand Connection, IAB 2018.

18 Publishers and marketers are embracing new ad formats like vertical video Vertical video ads are mobile video ads that play in a vertical (portrait) orientation rather than the typical horizontal (landscape) orientation. Well over half of advertisers (61%) interviewed for the IAB 2018 NewFronts Video Ad Spend study stated they purchased vertical video ads in Source: IAB Video Ad Spend Study 2017; IAB Vertical Video Advertising Best Practices, 2017.

19 Native video advertising is growing in popularity Native Video Ad: A form of paid media where the ad experience follows the natural form and function of the user experience in which it is placed. According to the Business Insider, native advertising will reach $21 billion in 2018 and will drive 74% of all ad revenue in the US by Source: IAB Video Glossary 2016; BI Intelligence

20 Interactive & shoppable videos brings the store directly to viewers BrightLine Interactive/Shoppable Video Ad Example with Hulu and Fandango: TICKET PURCHASE Interactive video is digital video creative served on Connected TV/OTT, mobile and desktop that can take user input to perform enhanced actions through elements integrated above and beyond the standard video playback controls. FULL-SCREEN MOVIE SEARCH Interactions can include various calls-to-action, registration form, poll/survey, links, menus and hot-spots to support story progression and/or drill down on specific parts of the content itself. SECOND SCREEN CHECKOUT 21 Source: IAB Video Glossary 2016 & creative example from BrightLine, 2018,

21 :06 second ads will be at the forefront of this innovation Studies have indicated a :06 second ad is 60% as effective as a :30 ad 22 Source: ARF CONSUMERxSCIENCE Conference, March 28th, What a Shorter Ad Can (and Can t) Do.

22 Current challenges include consumer experience, measurement, data usage, and fraud Consumer ad experience Cross-Platform Measurement Data usage and regulation Video Ad Fraud (addressing with ads.txt) 23 Source: Advancing the Ad Experience, FreeWheel Council for Premium Video, 2017; Q Video Monetization Report, FreeWheel

23 VAST updates will improve consumer experience and measurement processes VAST 4.1 brings improvements to help eliminate ad delivery delays and create a better consumer experience Open Measurement SDK simplifies the measurement process VPAID-I refocuses on interactivity with verification being handled by Open Measurement initiatives 24

24 Cross-industry collaboration is key to solving measurement challenges NBCU s new metric, CFlight, aims to provide a comprehensive view of ad exposure across NBCU shows on all screens. OpenAP, founded by a consortium of television publishers and operated by a leading, neutral third-party auditor, delivers cross-publisher targeting and independent posting for advanced audiences. The MRC is also working on digital audience guidelines to help move the industry closer to cross platform comparability. 25

25 IAB Tech Lab works creates awareness standards for industry regulation surrounding data usage IAB Tech Lab worked with members to create an IAB GDPR Overview and Compliance Checklist for the marketplace. Tech Lab also released GDPR Transparency and Consent Framework to help companies ensure they comply with regulation when processing or accessing user data.

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27 28 Thank You