How online video ads can pass TV ad revenues TV experience and Internet power comes together Oded Napchi, HIRO Media

THE MEDIUM IS NOT NECESSARILY 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

WHY DO WE GENERATE LESS REVENUE FROM ONLINE ADS?

% of people who believe a particular advertising platform is most effective TV IS STILL THE MOST EFFECTIVE ADVERTISING MEDIUM Deloitte 08/10

% of people who find ads more memorable on a particular platform TV ADS ARE MORE MEMORABLE THAN INTERNET ADS Deloitte 08/10

Likelihood of people's attention being held by an ad on a particular platform TV ADS ARE MORE ‘ATTENTION GRABBING’ 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 effective than TV ads

LESSONS TO LEARN Half a century of TV advertising experience has resulted in the most effective means of persuasion WEB ADVERTISERS SHOULD LEARN FROM THIS…

LET’S UNITE with the power of internet The knowledge of TV advertising

TV Vs ONLINE main concept TV = Demographic targetingOnline = CTR optimization

Most video advertising is brand advertising. Brand advertising DOES NOT encourage clicks. SO… CTR BECOMES IRRELEVANT

TV Vs ONLINE Frequency 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 ONLINE Content Targeting TV advertisers target programmes Online advertisers target web pages

ASSOCIATING AN AD WITH CONTENT IS MORE EFFECTIVE Jack Daniels would advertise within Mad Men McDonald’s would not advertise within Super Size Me The 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 power Ad load TV ADS minutes PER HOUR OF CONTENT 20 INTERNET 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 power Ad load

TV shows appear in ONE channel The ads are sold by ONE organization Online power Ad 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 power Ad routing 1

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 power Ad 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 x 2x 3x 4x 5x

AVERAGE CPM DOUBLED Start of demo targeting x 2x 3x

CPM COMPARISON x 2x

TARGETED ADS LEAD THE WAY

THE AD LOAD EXTENDED

AND ADVERTISERS BUY MORE ADS

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

For more information: ww.hiro-media.com By harnessing the knowledge of TV advertising and the power of digital media, ONLINE VIDEO REVENUES CAN FINALLY PASS TV AD REVENUES