The State of Digital Video

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State of Digital Video in 2015 Ryan M. Pamplin VP, Digital Evangelist @RyanPamplin

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About Extreme Reach 100 of the top 100 Ad Age Brands use Extreme Reach @RyanPamplin

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Television 9 out of 10 TV Ads @RyanPamplin

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Talent $1.2 Billion Paid in 2014 @RyanPamplin

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Digital Video Most Sophisticated Measurement @RyanPamplin

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Daily Time Spent with Major Media by US Adults 2010 2014 1 6 1 6 5.46 5 5 4.28 3 HOURS HOURS 4.24 3.11 3 2 2 0 0 DIGITAL Source: eMarketer @RyanPamplin TV DIGITAL TV

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Digital Video Trends !  !  !  @RyanPamplin 1.4 million new households were created in 2014 and only 140,000 subscribed to cable. 69% of all mobile ad revenue in 2014 went to Facebook. In April 2015 Facebook said its users now watch 4 billion videos on its service every day. 75% of the video views are happening on mobile devices.

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Digital Video Trends !  !  @RyanPamplin In May 2015 Verizon bought AOL for $4.4 billion to take a "significant step in building digital and video platforms to drive future growth.” In July, AT&T closed its $49 billion acquisition of DirecTV, making AT&T the largest pay TV provider, with more than 26 million subs.

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Is the death of Flash going to hurt? will no longer auto-play Flash powered in-banner video or Chrome !  rich media banners. Instead, the ads will load in a paused state. A play button will appear over the ads. !  @RyanPamplin For real digital video (pre-roll, in-stream, etc.), this change will have little impact today. In the long run, it pushes our industry forward towards better, more efficient, unified, and secure technology built into every modern browser and device from your desktop, phone, tablet, game console, and even many smart TV devices.

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Non-Viewable In-Stream Impressions: 42.22% @RyanPamplin

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Non-Viewable Impressions by Media Vendor Type 59% PERCENT NON-VIEWABLE 47% 46.34% 37.91% 35% 24% 12% 0% Direct Publishers @RyanPamplin Inventory Aggregators

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Video Player Size Standard Size — 853 x 480 IAB Minimum Recommended Size — 400 x 300 In-Banner Size — 300 x 250

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In-Stream Ads Delivered In-Banner: 17.7% @RyanPamplin

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In-Banner Delivery by Media Vendor Type 26% 20.6% PERCENT IN-BANNER 21% 16% 11.96% 11% 5% 0% Direct Publishers @RyanPamplin Inventory Aggregators

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Non-Viewable Impressions In-Banner Robotic Traffic Unsafe Environments @RyanPamplin

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Top Consumer Issues with Digital Ads @RyanPamplin Of the seven choices, nearly 1 in 3 chose “frequency” as their top issue.

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#1 Frequency (Same Ad Seen Too Often) Cause: Unlike TV, most digital video campaigns only include one video ad. @RyanPamplin

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#2 Relevance (Wrong Audience for Product or Message) Cause: Often the result of inaccurate targeting or messaging that doesn’t resonate. Can also occur when ads are placed through site aggregators that may not reach the intended audience accurately. @RyanPamplin

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#3 A / V Quality (Distorted or Low Resolution Video, Poor Audio, etc.) Cause: The video file is transcoded too many times or transcoded incorrectly. And there’s a lack of quality control throughout the digital workflow, which is often unnecessarily complex. @RyanPamplin

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Ryan’s Digital Predictions !  Time spent with mobile video will overtake desktop by 2016 !  Digital video will surpass time spent with traditional TV by 2020 !  !  @RyanPamplin Virtual Reality will become a widespread entertainment platform by 2017, led by the Sony Morpheus, Oculus Rift, and Valve HTC Vive The majority of users will utilize AdBlocking software on desktop

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Takeaway Points •  Use accredited third party measurement tools to measure everything you possibly can •  Optimize your digital video ads out of in-banner, bot, and other garbage inventory •  Write terms into your IOs to hold media vendors accountable @RyanPamplin

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I eat, sleep, and breathe digital video... Questions? Ryan M. Pamplin VP, Digital Evangelist RPamplin@ExtremeReach.com @RyanPamplin

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