Vindico-Year-In-Review-2013-Final

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Vindico-Year-In-Review-2013-Final

3ANNUAL

REPORT


As a partner to 350 of the world’s largest brands,

Vindico provides an unparalleled view of today’s

online video advertising landscape. Seeing

the collective opportunities and challenges

faced by today’s top agencies, we recognize

our greatest value may be in the combined

information we house and our willingness to

share insights that move the industry forward.

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ANNUAL REPORT

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Executive Summary

Quality

Viewability

Verification Pillars

Performance by Quality

Performance Benchmarks

Interactive

Content Detection

Glossary

About/Contact

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EXECUTIVE SUMMARY

Digital video advertising continues to prove its unique value, offering optimal digital

opportunities to convey a brand’s message. When fully leveraged, digital video

provides brands and marketers an immense amount of consumer insights, as well as

flexibility to reach the right audience in the right way.

As the sister to marketing’s absolute giant, television, digital video advertising is

well positioned to offer powerful messaging solutions. Historically, however, digital

video represents a far smaller investment than its powerful potential. A lack of

accountability, rooted in a lack of measurement and clarity, hampers great investment

and trust. But that perspective is changing.

2013 marked an important year for the digital video advertising market. This is the

year the industry addressed the growing importance of measuring quality. Major

marketers demanded more understanding of viewability, and the industry shifted

from talking about high quality video to quantifying it. For our industry to fully

realize success, we must support and provide market demand for consistency of

measurement.

• Quality counts and marketers will pay for it. With millions invested in the creative,

marketers want to understand how their video ad is treated across digital publishing

partners. 2013 marks the first year digital video can define quality, providing

quantifiable insights on content, execution and traffic as well as their impact on

viewership. Measures can be compared across publishers against these key pillars of

quality. It’s no longer guess work or gut instinct – quality is measurable.

• Viewability : The ‘must-have’ metric. There is simply no reason to invest in 30-second

creatives if the ad lacks the ability to be seen. Viewability is the ‘must-have’ metric when

evaluating any other performance attributes. The past year has seen an increased focus

from the buy-side on measuring viewability and that attention continues in 2014 as the

entire industry aims to find an acceptable definition for both the buy- and sell-side.

• Consistent measurement is needed now more than ever before. The complexity

of digital video ad campaigns is growing every year; we see a greater use of demo

verification partners, an increased interest in reaching consumers on connected and

mobile devices, and a stronger need to wholistically understand what’s happening to

campaigns. For agencies, consistent measurement at scale comes from their thirdparty

ad serving platform.

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2013:

A Flight

Towards

Quality

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QUALITY

Quality measurement brings accountability to digital video

The introduction of standardized quality measurement offers a clear understanding of digital media buys for

advertisers. Currently, 34% of the market’s impressions represent a TV-like quality experience (Grade A/B). For the

industry to grow as a medium for brand advertisers, greater accountability across all placements is needed.

Share of Impressions, by Grade

As quality is

identified at scale

in the market,

advertisers will push

to buy high quality

placements.

B

16%

A

18%

F

2%

D

42%

Poor quality

impressions cost the

market over $1.2B*

annually.

C

22%

Source: Vindico Adtricity Data, Sep – Dec 2013

*Based on CPM values cited in eMarketer, Credit Suisse, “Web 2.012,” Feb 21, 2012

What the Grades Mean....

A-B High quality

video ad environment,

imitating a TV-like

experience. Video

ads are front and

center, often housed

in a large player size

and frequently user

initiated.

C Generally this

reflects an in-banner

video placement.

The ad is not

necessarily tied to

content but is often

cleanly executed and

viewable on the page.

XXX

D-F Poor quality

video ad treatment

that is often below

the fold and may

be alongside

inappropriate content.

Fraudulent practices

reflect viewerless

impressions.

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Placement matters….significantly

Major media sites consistently perform best in overall quality as they mimic their TV counterparts. Quality

assessment is a bit clouded across Internet brands. Internet brands offer high quality content and placement,

particularly across their owned and operated arenas. However, these properties often also provide extended reach

through a long tail of additional properties. While that portion of inventory supports reach, it can hinder the overall

quality for that publisher type. As with any placement, agencies should monitor down to the domain level with

scalable viewability and measurement tools.

Share of Impressions, by Grade Across Publisher Types

A

B

C

D

F

2%2%

MAJOR

MEDIA

90% 6%

INTERNET

BRAND

7% 17% 24% 49% 3%

3%

AD NETWORKS/

EXCHANGES

19% 27% 48% 3%

Source: Vindico Adtricity Data, Sep – Dec 2013

Pay attention to placements. The

biggest single influencer of quality is

placement choice. Benefit by leveraging

a platform that can service your direct

and programmatic needs, as a way to

optimize for quality inventory.

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VIEWABILITY

56% of all digital video ads never have

the opportunity to be seen

In the simplest of terms, viewability reflects the consumer’s opportunity to see an ad. In 2013, the industry

questioned how to define – and measure – viewability. Moving forward, it will become increasingly important to

assess how this metric can impact overall key performance indicators (KPIs). For example, how do completion rates

shift as viewable impressions become the impression standard by which to measure? Are engagement rates across

interactive units lifted as non-viewable impressions are removed from industry analyses? These questions (and

others) will be front and center to what will mark a shifting year for benchmarks across the digital video landscape.

Share of Video Ad Impressions, by Viewability

VIEWABLE

IMPRESSIONS

Viewability needs to be

the primary metric from

which to measure all other

performance indicators.

44%

56%

NON-VIEWABLE

IMPRESSIONS

Source: Vindico Adtricity Data, Sep – Dec 2013

DEFINING VIEWABILITY: Based on 2013

measurement: 50 percent of the ad in

view for at least one second

Prediction:

2014 will see a

great push towards

viewability-based

transactions.

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Eight out of every ten major media impressions are viewable

Major media provides a highly viewable experience, achieving viewability rates that are nearly double the industry average.

Share of Online Video Ad Impressions, by Viewability Across Publisher Types

Viewable Impressions

Non-Viewable Impressions

OVERALL 44% 56%

MAJOR

MEDIA

78% 22%

INTERNET

BRANDS

37% 63%

AD NETWORKS/

EXCHANGES

37% 63%

Source: Vindico Adtricity Data, Sep – Dec 2013

Effective CPMs should be assessed

through a lens of viewability. Non-viewable

impressions are wasted inventory.

% of Viewable Impressions Across

Quality Grades

78%

As agencies move to

quality-based transactions

and guarantees, high quality

inventory is an effective

way to deliver viewable

impressions.

53%

41%

26%

21%

A B C

Source: Vindico Adtricity Data, Sep – Dec 2013

D

F

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Adjust your KPIs: Completion rates are

higher when ads are in view

Overall, 81% of viewable video impressions were watched to completion. Using viewable impressions as the base

metric, the advertiser has a clear picture of how a viewer behaved with the ad. Without that level of visibility, it’s

unclear what happened to the ad campaign.

% of Viewable Impressions Seen to Completion

81%

89%

78% 78%

OVERALL

MAJOR MEDIA

INTERNET BRANDS

AD NETWORKS/EXCHANGES

Not surprisingly, higher quality video experiences such as

major media garner significantly higher completion rates on

viewable impressions.

% of Measured Impressions Seen to Completion

36%

69%

29% 29%

OVERALL

MAJOR MEDIA

INTERNET BRANDS

AD NETWORKS/EXCHANGES

Source: Vindico Adtricity Data, Sep – Dec 2013

Viewable impressions are only a subset of measured

impressions. Savvy advertisers will push to get a larger

portion of their buy to be both measured and viewable for

greater transparency on their campaign.

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VERIFICATION:

CONTENT, EXECUTION, TRAFFIC & DOMAIN

There’s more to quality than viewability

While viewability is the most critical quality element, verification and its three pillars—content, execution and traffic &

domain—complete a truly comprehensive scope for understanding quality.

Verification Grades, by Publisher Type

DESCRIPTION OVERALL MAJOR MEDIA

INTERNET

BRANDS

AD

NETWORKS/

EXCHANGES

Content

Grade

A grade based on the general content topics and

page context where ads are present, including

detection of vulgar, inappropriate, hate language,

the amount of advertising to content ratio, and

the presence of content obstructions (overlays,

popups, redirects).

B

A+ B B

Execution

Grade

A grade based on the observed delivery

environment of ads. This includes metrics for

domain and page level transparency (iframes,

VPAID script access), ad rendering and initiation,

video player size and attributes, page load times.

C

A+ D+ C-

Traffic &

Domain

Grade

A grade based on the site’s trust level (domain

registration data, time online, malware rating)

and traffic quality (time/engagement on site,

referring sites, detection of forced visits from

popups, redirection, or embedded pages).

B

A+ B B-

Source: Vindico Adtricity Data Sep-Dec 2013

Prediction:

Given newfound

measurement,

viewability and execution

will be among the

required placement

guarantees for the

industry.

The industry has historically focused

on planning against content. Today,

we have greater measures to

understand the totality of how the

video was treated. We call that quality.

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PERFORMANCE BY QUALITY

When you measure for quality, you are measuring for success

As quality becomes the cornerstone for media buying, overall performance metrics can – and should - be assessed

through a lens of quality. In short, high quality inventory produces more efficient buying opportunities, offering

higher rates of completion, click-through and engagement. In addition, high quality inventory often runs in large

player sizes, providing a great opportunity for creative storytelling.

Click-Through Rate, by Quality Grade

0.98%

0.72% 0.40% 0.36% 0.10%

A B C D F

Source: Vindico Adtricity Data, Sep – Dec 2013

Share of Quality Grade Impressions, by Player Sizes

1%

SMALL

MEDIUM

LARGE

A

31%

68%

B

30%

65%

5%

C

69%

31%

D

73%

26%

1%

F

99%

1%

Source: Vindico Adtricity Data, Sep – Dec 2013

DEFINING PLAYER SIZE:

Large: width ≥ 701

Medium: 701 > width ≥ 500

Small: 500 > width ≥ 200

Player size is an important measure to consider for

agencies as they evaluate the execution of a video

ad campaign. Larger player sizes tend to deliver high

completion rates, and often exist across video-centric

and user-initiated environments.

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PERFORMANCE BENCHMARKS

VOLUME

Share of Impressions, by Ad Serving Standards, 2011 - 2013

SITE SERVED IMPRESSIONS

AD SERVED IMPRESSIONS

VAST

13%

28%

50%

2011

50%

40%

2012

60%

2013

72%

VPAID

87%

Source: Vindico Data, Full Year 2013

[ ]

In digital video, delivery standards are key to a successful campaign. The

increased adoption of VPAID and VAST (IAB delivery standards) assist the

agencies and brands in fully maximizing the capabilities within this space.

Share of Impressions, by Site Type

MAJOR MEDIA

INTERNET BRANDS

AD NETWORKS/EXCHANGES

2011

42% 20% 38%

2012

36% 29% 35%

2013

31% 32% 37%

Source: Vindico Data, Full Year 2013

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COMPLETION RATE

Ad Completion Rate, by Site Type

87%

MAJOR

MEDIA

INTERNET

BRAND

AD NETWORKS/

70% EXCHANGES 70%

86%

87%

:15 SEC :30 SEC

:15 SEC :30 SEC

:15 SEC

:30 SEC

76%

74%

65%

66%

Share of Distribution Share of Distribution Share of Distribution

43% 57% 47% 53% 54% 46%

Source: Vindico Data, Full Year 2013

[ ]

Major media publishers often provide full length shows that viewers are committed to

watching from beginning to end. Agencies and brands can feel confident knowing their

message is being seen in full when utilizing these types of placements.

Ad Completion Rate Among Skippable Impressions

19%

Source: Vindico Data, Full Year 2013

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COMPLETION RATE (CONTINUED)

Ad Completion Rate, by Content Length

LONG FORM CONTENT

(10 minutes +)

SHORT FORM CONTENT

(less than 10 minutes)

89%

88%

:15 SEC

:30 SEC

:15 SEC

74%

:30 SEC

70%

Share of Distribution

Share of Distribution

40% 60% 58% 42%

Source: Vindico Data, Full Year 2013

Ad Completion Rate, by Ad Position

90%

92%

PREROLL

MIDROLL

POSTROLL

64%

Source: Vindico Data, Full Year 2013

[ ]

In content environments that allow for repeat ad exposure to a viewer, better

identification of ad position, coupled with sequential messaging, can truly offer a

richer and deeper communication between a brand and their consumer.

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INTERACTIVE

Share of Video Ad Impressions, by Creative

INTERACTIVE CREATIVE

TV CREATIVE

7% 93%

Source: Vindico Data, Full Year 2013; *Based on campaigns >1M+ impressions.

Average Engagement Lift Across

Common Interactive Video Creative

627%

301%

293%

79%

AD

CURTAIN

BRANDED

CANVAS

Source: Vindico Data, Full Year 2013; *Based on campaigns >1M+ impressions.

SHOWCASE

TOTAL*

[ ]

Interactive video advertising provides a unique way to communicate with potential customers.

Advertisers can take advantage of the digital space by tailoring their message in real-time based

on every selection a viewer makes.

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CONTENT DETECTION

Share of Content-Detected Ad Impressions, by Program Genre

19%

REALITY

TV

DRAMA

57%

13%

SITCOM/

COMEDY

4%

SCI FI/

ACTION

4%

2%

1%

TALK

SHOW

Source: Vindico Data, Full Year 2013

OTHER

NEWS

[ ]

Over the last year, content detection has increased 750%. This is due, in large part, to growing

advertiser demand for understanding the true context of their ad placements.

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GLOSSARY DEFINITIONS

Quality

Adtricity: A comprehensive measure of quality that

brings together viewability and verification. Adtricity’s

standard and transparent system of measurement for

defines quality for the digital industry. Adtricity evaluates

over 100 metrics across four pillars to provide an overall

Adtricity grade.

Viewability: A grade based on the probability of ads

having the opportunity to be seen. Based on 2013

measurement: 50 percent of the ad in view for at least

one second.

Content: A grade based on the general content topics

and page context where ads are present, including

detection of vulgar, inappropriate, hate language, the

amount of advertising to content ratio, and the presence

of content obstructions (overlays, popups, redirects).

Execution: A grade based on the observed delivery

environment of ads. This includes metrics for domain and

page level transparency (iframes, VPAID script access), ad

rendering and initiation, video player size and attributes,

page load times.

Traffic & Domain: A grade based on the site’s trust

level (domain registration data, time online, malware

rating) and traffic quality (time/engagement on site,

referring sites, detection of forced visits from popups,

redirection, or embedded pages).

Quality Grade Definitions

A: Observed ad placements imitate a ‘TV-like’

experience, they are placed in high impact areas and

excellently executed.

B: Observed ad placements reflect high quality

treatment by the publisher/domain, they are often placed

front and center, and generally well executed with minor

deductions.

C: Observed ad placements are cleanly executed and

viewable on the page, they reflect acceptable levels of ad

treatment by the publisher.

D: Observed ad placements reflect a significant

departure from standard and acceptable quality

benchmarks.

F: Observed ad placements are often well below

standard quality with indications of fraudulent activity.

Site Types

Ad Networks/Exchanges: Aggregator or broker of

advertising inventory for many sites. Ad networks are the

sales representatives for the sites within the network.

Internet Brands: Web site brands that evolve from

standalone digital content offerings (MSN, Yahoo!,

YouTube, etc).

Major Media Brands: Web site brands that evolve

from pre-existing traditional media outlets. This site

type encompasses sites with broadcast, cable and print

affiliations (CBS, CNN, Hulu, NBC, The New York Times, etc).

Creative & Screens

TV Creative: Straight-forward re-purposed TV spots,

without any alterations made to take advantage of the

interactive digital environment.

Interactive Creative: Ad experience that allows users

to interact with an ad message within a video window.

The ad plays for a prescribed minimum length of time

(usually length of video creative) inviting the user to

interact. The ad may include video, animation, or images.

Ad Curtain: A user-initiated interactive overlay,

displayed on top of the video ad.

Branded Canvas: Viewers are exposed to

additional branding with interactive elements

surrounding the video ad.

Showcase: An ad unit with great flexibility to

incorporate many user-initiated engagement points,

including the capability of creating a microsite within

the unit.

Engagement: Any user-initiated interaction within

a digital video ad (clicks, hover, type in user-requested

information, etc).

Definitions and terms based on IAB glossary when applicable.

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GLOSSARY DEFINITIONS

Content Types

Short Form: A descriptive term for a type of video

content that lacks a content arc which in its entirety

typically lasts less than 10 minutes. The experience is

typically uninterrupted with linear video ads playing

before or after.

Long Form: A type of video content that has a content

arc with a beginning, middle, and end which in its entirety

typically lasts longer than 10 minutes. If the content is ad

supported, it typically contains breaks (mid-roll).

Ad Position

Pre-roll: An ad placement that is played before the

content video plays.

0:00 / 3:50

Mid-roll: Ads that are played during a break in the

middle of the content video.

0:00 / 3:50

Post-roll: A form of online video ad placement where

the advertisement is played after the content video

plays.

0:00 / 3:50

iab.

Other Key Words

Ad Serving: The delivery of ads by a server to an end

user’s computer on which the ads are then displayed by a

browser and/or cached. Ad serving is normally performed

either by a Web publisher or by a third-party. Ads can be

embedded in the page or served separately.

VAST (Video Ad Serving Template): IAB standard for

video ad serving.

VPAID (Video Player Ad Interface Definition):

IAB standard for video ad serving and player rendering,

allowing for interactive creative units and advanced

tracking capabilities.

Definitions and terms based off IAB glossary when applicable.

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ABOUT US

Vindico is the first ad management platform dedicated

exclusively to video and currently manages more than onethird

of all digital video ads in the US. Vindico’s video ad

management platform gives brands and agencies a single

solution to serve, track, create, measure and analyze all of

their digital video ad activity. Through Adtricity, Vindico’s

propriety viewability and verification product, advertisers

are provided a measure of Quality on how and where their

ads are delivered.

Through the Vindico Bid Manager, a DSP, we also provide

a platform to source Quality inventory based on Adtricity

ratings. This enables large scale demand side partners

(publishers, trading desks, clients) access to ‘pre-graded’

Quality inventory at scale.

CONTACT US

Sales - Jes Santoro, jsantoro@vindicogroup.com, 646-833-2921

Marketing/PR - marketing@vindicogroup.com

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