The current video landscape is being transformed by the confluence of technological innovation and consumer behavior shifts. This new media landscape created by the TV-video shift is increasingly automated, data-driven, addressable, and accountable, where audience is as important as content and context. The perceived dichotomies of television vs. video, broadcast vs. cable, and desktop vs. mobile are breaking down under the pressure of an accelerated convergence of technologies and markets. In a world of endless choices, accessibility, quality content and user experiences are key.

Sight, sound, and motion have always been the most engaging way to reach an audience, and the continued vitality of ad spend in linear TV demonstrates that the compelling nature of television advertising has not abated. The introduction of internet technologies to the TV market has certainly blurred the lines between linear TV and digital video—by introducing more data, addressability, and cross-platform capabilities—but without diminishing TV’s core value proposition. Whether viewed on a connected TV set at home, on a streaming device at the gym, or on a desktop at work, video remains an advertiser’s most powerful tool to connect with audiences, wherever, whenever, and however they may be watching.

When ad buyers—particularly brand advertisers—look at this new media landscape, they see the persistent value of television as a high-reach medium. They also see how valuable digital video is in targeting and delivering cross-platform niche audiences to advertisers, especially younger, tech-savvy, and thus highly desirable demographics. Buying only linear TV would leave out a growing audience that doesn’t necessarily tune in for primetime, but are accustomed to watching video on the go.

A key question continues to vex cross-platform marketers: which screen is most effective for reaching a particular audience or communicating about a particular product? The measurement and attribution side of video marketing is an ongoing challenge facing the converged TV-video space. These market forces have culminated in a critical inflection point, illuminating the industry’s need for a clearer and more detailed understanding of the ongoing interplay between traditional TV and digital video. This Guide to Digital Video Advertising seeks to make sense of those changes.

If TV is increasingly digital, what does digital video mean? What will it become? How can video best be used to reach, engage, and drive actions?

To start tackling these questions, IAB and its members have created this Guide to Digital Video Advertising. The guide seeks to help the industry demystify video by giving publishers, marketers, and brands the tools they need to understand the evolving video landscape. The guide is presented as a reference for all things video in the digital advertising space, providing best practices, thought-leading perspectives, and practical advice on the state of the video advertising ecosystem. It will offer a deep dive into data and targeting, automated buying and selling processes and mobile video, as well as the future of digital video—the New TV. This guide draws extensively from research papers, primers, and standards authored by IAB, IAB Tech Lab, Media Rating Council (MRC), Trustworthy Accountability Group (TAG), and a wide range of external research sources. The guide provides links to all current IAB working groups with the hope to promote broader industry participation in advancing video advertising space education.

We encourage our members to read through sections of interest, share the content with their co-workers and social networks, and to communicate feedback and suggest updates to [email protected]. This guide will be updated periodically to reflect the continuing evolution of the digital video advertising marketplace.

 

The 2017 Guide to Digital Video Advertising was developed by the Digital Video Committee, a working group of the IAB Digital Video Center of Excellence, primary forum for discussing and addressing the challenges that arise from delivering video content and advertising. This comprehensive, practical guide to the current state of digital video is the centerpiece of the working group’s educational mission.

This Guide to Digital Video Advertising would not be possible without the invaluable input of the following contributing IAB member companies:

About the IAB Digital Video Center of Excellence

The IAB Digital Video Center of Excellence—a dedicated unit within IAB—is devoted to the advancement of the digital video medium in the global marketplace. Its board and members reflect a dynamic mix of top television brands, original digital video content producers, pure digital players, digital video technology leaders, and innovative startups spanning the growing digital video programming, marketing, and distribution spectrum. Together with its member companies and in cooperation with the IAB Tech Lab, the IAB Digital Video Center produces technical standards, research, and thought leadership critical to the field. Established in November 2014, the Digital Video Center is based at the New York headquarters of IAB, and membership is open to all IAB member companies.

For more information about the IAB Digital Video Center of Excellence, please visit iab.com/video or email Val Dietl-Baron, Director, Video, at [email protected].

1: The Nielsen Company, Monitor Plus (Standard Calendar, Total includes B2B, National Internet (Display only), FSI Coupons), Oct. 2016
2: IAB/PwC 2016 Internet Advertising Revenue Report
https://www.iab.com/wp-content/uploads/2016/04/IAB_Internet_Advertising_Revenue_...
3: To view the Top 10 Video Content Properties by Unique Viewers, see comScore’s monthly release of their Video metrix data.
http://www.comscore.com/Products/Audience-Analytics/Video-Metrix
4: Business Insider: “The US Digital Media Ad Revenue Report: The path to $100 billion in annual revenue by 2021.”
http://www.businessinsider.com/the-us-digital-media-ad-revenue-report-the-path-t...
5: IAB/PwC 2016 Ad Revenue Report
https://www.iab.com/wp-content/uploads/2016/04/IAB_Internet_Advertising_Revenue_...
6: Business Insider: “5 video advertising trends that will change your business.”
http://www.businessinsider.com/sc/5-video-advertising-trends-2017-3
7: PwC: “2017-2021 Global Entertainment and Media Outlook.”
http://www.pwc.com/us/en/industry/entertainment-media/publications/global-entert...
8: Forrester Research, 2016
https://go.forrester.com/blogs/16-08-24-announcing_our_annual_benchmark_on_the_s...
9: Pathak, S. (2017). “Why digital advertising is experimenting with blockchain.” Digiday, 4 Apr 2017
https://digiday.com/marketing/digital-advertising-experimenting-blockchain/
10: Gross Rating Point: Measured by the % of households that tune into to a particular show or network and have the opportunity to see an ad.
11: Reach: Represents the total number of people exposed to the media plan or ad over a certain time period, based on the total size of the target audience.
12: Frequency: Is a measure of media repetition.
13: IAB’s Digital Video In-Stream Ad Format Guideline.
http://www.iab.com/wp-content/uploads/2016/01/DVAFG_2015-01-08.pdf
14: IAB Deep-Dive on In-Feed Ad Units: A Supplement to the IAB Native Advertising Playbook
https://www.iab.com/news/iab-deep-dive-on-in-feed-ad-units-a-supplement-to-the-i...
15: Herrmann, J. & Isaac, M. (2016). “The Online Video View: We Can Count It, but Can We Count on It?” The New York Times, 2 Oct 2016
https://www.nytimes.com/2016/10/03/business/media/the-online-video-view-we-can-c...
16: Cloud Servers: A cloud server is a logical server that is built, hosted and delivered through a cloud computing platform over the internet. Cloud servers possess and exhibit similar capabilities and functionality to a typical server but are accessed remotely from a cloud service provider.
17: Syndication is a term that is used in both print and broadcast media. It indicates content that for instance is purchased for use by a local newspaper, TV, or radio station. It is not produced by the media company’s owner but through an outside source.
18: XML: Extensible Markup Language (XML) defines a set of rules for encoding documents in a format that is both human/machine-readable
19: CSS: is the language for describing the presentation of Web pages, including colors, layout, and fonts. It allows one to adapt the presentation to different types of devices, such as large screens, small screens, or printers. CSS is independent of HTML and can be used with any XML-based markup language
20: Audience segments are subsets of user data signifying specific facts, interests and other attributes. Audience segments, and the techniques
21: URI is a string of characters used to identify a resource. Such identification enables interaction with representations of the resource over a network using specific protocols. Schemes specifying a concrete syntax and associated protocols define each URI. The most common form of URI is the Uniform Resource Locator (URL), frequently referred to informally as a web address.
22: Making Measurement Make Sense (3MS) is a cross-industry initiative founded by the American Association of Advertising Agencies (4A’s), the Association of National Advertisers (ANA), and Interactive Advertising Bureau (IAB). The Media Rating Council (MRC), an independent body, is responsible for setting and implementing measurement standards.
23: IAS 2016 year-end survey results
https://insider.integralads.com/2016-year-end-survey-results/
24: An “affiliate” is an entity that controls, is controlled by, or is under common control with another entity. Control of an entity means that one entity (1) has significant common ownership or operational control over the other, or (2) can exercise a controlling influence over the management or policies of the other entity. In addition, for an entity to be under the control of another—and thus be treated as first party under these entity’s policies.Principles—that entity must adhere to online behavioral advertising policies that are not materially inconsistent with the other
25: Deloitte. “2015 Global Mobile Consumer Survey: US Edition. The rise of the always-connected consumer.”
https://www2.deloitte.com/content/dam/Deloitte/us/Documents/technology-media-tel...
26: Mobile Spearheads Digital Video Advertising’s Growth.” eMarketer, 22 Feb 2016.
https://www.emarketer.com/Article/Mobile-Spearheads-Digital-Video-Advertisings-G...
27: comScore Inc., Nielsen, and ZenithOptimedia
http://www.zenithoptimedia.cz/en/zenith/news/detail/107-Mobile%20to
28: Nielsen Q2 2016 Comparable Metrics report.
http://www.nielsen.com/content/dam/corporate/us/en/reports-downloads/2016-report...
29: Q2 2016 Comparable Metrics report.
http://www.nielsen.com/content/dam/corporate/us/en/reports-downloads/2016-report...
30: AARP.
https://press.aarp.org/2016-12-05-Smartphone-Ownership-Up-Among-Adults-Age-50-Pl...
31: Nielsen Q2 2016 Comparable Metrics report.
http://www.nielsen.com/content/dam/corporate/us/en/reports-downloads/2016-report...
32: Mobile Spearheads Digital Video Advertising’s Growth.
https://www.emarketer.com/Article/Mobile-Spearheads-Digital-Video-Advertisings-G...
33: ANA reports 7.2B lost in Ad fraud
http://adage.com/article/digital/ana-report-7-2-billion-lost-ad-fraud-2015/30220...
34: Snapchat internal data snapchat.com/ads
35: The continued evolution of enhanced mobile experiences that overlay digital information on top of the physical world
36: Duffy, F. (2017). “Turner Takes on eSports in a Big Way.” NCTA Platform, 6 Jan 2017.
https://www.ncta.com/platform/industry-news/turner-takes-on-esports-in-a-big-way...
37: The waterfall model is a sequential process in which progress is seen as flowing steadily downwards (like a waterfall) through the various phases, in this case, the potential demand sources or buyers
38: IAB Programmatic Revenue Report 2014 Results. July 2015
http://www.iab.net/media/file/PwC_IAB_Programmatic_Study.pdf
39: IAB Transparency is the Key to Programmatic Success
http://www.iab.net/media/file/IABDigitalSimplifiedProgrammaticAdvertisingTranspa...
40: WTF is header bidding?
https://digiday.com/media/wtf-header-bidding/
41: Thomvest ventures
http://blog.thomvest.com/header-bidding-overview/
42: Programmatic TV definition per IDC
http://pages.thetradedesk.com/rs/527-INM-364/images/TheTradeDesk_IDC_Programmati...
43: Lotame Bridge the TV ad gap & PWC Media forecast 2015, agency reports, front row advisory analysis
https://event.on24.com/eventRegistration/EventLobbyServlet?target=reg20.jsp&part...
44: eMarketer More OTT Time Means More Ad Time
https://www.emarketer.com/Article/More-OTT-Time-Means-More-Ad-Time/1012388
45: eMarketer’s Connected TV and Over-the-Top Video: The Living Room’s Place in the US Digital Video Ecosystem report.
https://www.emarketer.com/Article/Premium-Content-Helps-Grow-US-Connected-TV-Aud...
46: Frank N. Magid Associates study
http://magid.com/
47: comScore 2016 U.S. Cross Platform Future in Focus report.
https://www.comscore.com/Insights/Presentations-and-Whitepapers/2016/2016-US-Cro...
48: Nielsen’s first-quarter 2016 Total Audience Report.
http://www.nielsen.com/us/en/insights/reports/2016/the-total-audience-report-q1-...
49: Adobe U.S. Digital Video Benchmark 2Q15; adobe primetime; TV connected devices=apple TV, Roku, gaming console, amazon fire TV,smart TV, other
50: Based on 2016 total viewers Broadcast - Source: Nielsen. Prime time total viewers, Live+7; Broadcast data: 12/28/15-12/4/16
51: Based on 2016 total viewers Cable - Source: Nielsen; Live+SD numbers from 12/28/2015-12/18/2016
52: Based on 2016 TV household coverage. Networks supplied coverage percentages, except for Create TV, which came from Across Platforms consltancy
http://www.tvnewscheck.com/article/96496/diginets-keep-growing-despite-auction-c...
53: IDC
https://static1.squarespace.com/static/57901762725e2547f073e884/t/58aefa0bff7c50...
54: Video Landscape Report
https://www.iab.com/wp-content/uploads/2016/10/IAB-Video-Landscape-Report-Novemb...
55: IAB TV 20/20 Webinar, 2016. Videology % estimates from Nielsen, eMarketer trend data; Time spent data calculated by Videology from Nielsen and KPCB data. Highest rated programs based on Nielsen A18-49 Live+7 data.
56: “2016 U.S. Cross-Platform Future in Focus,” comScore
https://www.comscore.com/Insights/Presentations-and-Whitepapers/2016/2016-US-Cro...
57: IAB Digital Video Landscape report
https://www.iab.com/wp-content/uploads/2016/10/IAB-Video-Landscape-Report-Novemb...
58: Any Given Minute Comparable Metrics Report, VAB 2016
http://www.thevab.com/wp-content/uploads/2016/04/VAB-Any-Given-Minute-Comparable...
59: IAB: The Programmatic Supply Chain: Deconstructing the Anatomy of a Programmatic CPM)
https://www.iab.com/wp-content/uploads/2016/03/Programmatic-Value-Layers-March-2...
60: Ghostery, Inc. Interview with Ghostery CEO Scott Meyer. IAB Annual Leadership Conference. January 26, 2016.
61: IAB/EY Study released on Dec-15. Estimates are for the U.S. Market only. Industry-wide collaboration under the auspices of TAG is needed in order to forestall these criminal activities