Videology Presents, Full Frontal Magazine 2016

Full Frontal.ISSUE1March,2016.magazine 2016 NewFronts. Upfronts. The division between television and video is now indistinguishable. As we approach the 2016/2017 TV buying season, marketers, agencies and media companies alike are searching for real solutions for the real challenges of fragmented viewing. Will this be the year the industry goes full frontal?Are you ready to put some skin in the game?U.S/Canda $9.99 For more information visit www.VideologyGroup.com

Upfront. Dating back more than 50 years to 1962, The Upfronts have long been the home turf for buying TV advertising. Attended by the ‘who’s who’ of TV and advertising, the TV power players have traditionally used these events to showcase their new ‘must-see’ content. Marketers show up for the opportunity to buy television commercial airtime “up front”, or several months before the television season begins. Full Frontal.FULL FRONTAL MAGAZINE | March, 20162

Newfront.Run by the Interactive Advertising Bureau (IAB), TheNewFronts are the digital world’s response to TV’sUpfronts. The major digital video players use theseevents to showcase the razzle-dazzle of their datasets with the creativity of their new content. Since2008, advertisers thinking outside the TV world mightmake their way here. It’s an online party, but in person. Oh, yes. Full. Frontal. The days of siloes are over. TV folks have content AND data. Digital folks have data AND content. The lines have blurred. It’s time to stop thinking ‘Upfront’ vs ‘NewFront’ and start thinking Full Frontal. FULL FRONTAL MAGAZINE | March, 2016 3

HOW TV AND DIGITAL VIDEO AREEVOLVING AS COMPLEMENTARY ALLIES In the fourth quarter of 2015, Videology commissioned Forrester Consulting to evaluate current buyer and seller attitudes and behaviors towards video and TV advertising, and compare the results to a nearly identical study conducted in 2013. Our goal was to examine the latest trends in video and TV convergence, and find out how advertisers, agencies and media companies are responding Here’s what the study revealed...BOTH MEDIA BUYERS AND SELLERS ARE STRUGGLING TO SOLVE THE CHALLENGES POSEDBY SHIFTING VIEWING HABITS… AND THERE’S MORE TO COME IN THE YEARS AHEAD. PREDICT AN INCREASE IN 73% THE CONSUMPTION OFFULL-LENGTH SHOWS ONLINE PREDICT AN INCREASE IN 77%SMARTPHONE VIDEO VIEWINGPREDICT MORE TIME WILL BE 79%SPENT WATCHING SMART TVSBUT TRADITIONAL TV ISN’T GOING IN RESPONSE TO THESE TRENDS,ANYWHERE. IN FACT, IT’S THRIVING. FORRESTER FOUND THAT AGENCIES, ADVERTISERS, AND MEDIA COMPANIES 2013 2015 ARE INCREASINGLY EMBRACING NEW VIDEO OPTIONS, AND THE TECHNOLOGY 22% OF BUYERS AND 49% BELIEVE TIME SPENT NEEDED TO POWER THEM. SELLERS THOUGHT WATCHING TRADITIONALTIME SPENT WATCHING TV WILL INCREASE TRADITIONAL TV WOULD INCREASEWHEN IT COMES TO SCREENS, Today, 72% expect video In 2013, only 65% IT’S NOT ABOUT EITHER/OR, buying will become predicted this shift IT’S ABOUT MORE. more programmatic would happen In 2013, 66% 71% think advertisers will believed this shift dollars from linear TV to digital channels in the coming years 76% believe technology will be a crucial component for successFULL FRONTAL MAGAZINE | March, 20164

THE SURVEY ALSO UNCOVERED SOME CHALLENGES THAT MAY BE HOLDINGBACK VIDEO AND TV ADVERTISING.CHALLENGES OF ONLINE VIDEO CHALLENGES OF TELEVISION- Managing multiple technologies - Customer targeting- Understanding cross-platform - Managing diverse data sources - Holistically tying together linear viewing behavior- Measuring campaign performance and digital video buys In fact, 1/3 say measurement concerns are actually holding back their video spend!ADDITIONALLY, ABOUT HALF OF BOTH ADVERTISERS AND AGENCIES SAID FEARS ABOUT AD FRAUD WERE CONSTRAINING THEIR VIDEO SPEND.SO, WHAT CAN AGENCIES, ADVERTISERS, AND PUBLISHERS DO TO OPTIMIZERESULTS FROM THEIR TV AND VIDEO INVESTMENTS?1 Work with partners who have advanced Remember that when it comes to video, fraud and viewability controls in place to prevent loss of human views 3 it’s all about ROI. It’s crucial to quantitatively prove performance of a2 Seek technology partners who can tie marketer’s campaign against their together data and measurement across chosen KPIs screens and media types And finally, keep in mind that consumers 4 today aren’t choosing one screen over another – they are increasing viewing across all screensA CONVERGED ADVERTISING APPROACH HAS BECOME CRITICAL TO ENSURE BRANDS ARE REACHING THEIR TARGET AUDIENCE… WHENEVER AND WHEREVER THEY’RE WATCHING. Read the full report on page 13 FULL FRONTAL MAGAZINE | March, 2016 5

Good morning, everyone! Table ofWe all know the evolution of video over the past several CONTENTSyears has transformed our viewing experiences, openingup a new range of possibilities for what, when and where 4we watch content. As a result, the businesses surroundingvideo—including advertising—are seeing dramatic change TV AND DIGITAL:as well. COMPLEMENTARY ALLIESThis particular time of year, the start of the Upfront buying A graphic representation of ourperiod for television and the digital video NewFronts, recent Forrester Consulting studyis the right time to come together to better understandwhat those changes may mean to video advertising in 8all its formations—from OTT to mobile, from linear TVto addressable, and everything in between. And most OUR PRESENTERSimportantly, it’s the right time to think about how thesechanges can be used to drive better results for advertisers Huge thanks to the star-studdedwhile keeping the entire ecosystem strong, and healthy, line up of industry expertsand humming to the sound of innovation. Welcome to the here todaythink tank! 10Some of you may remember we held our first Full FrontalVideo event back in 2013. At that point, we all knew TV GOES NERDY ANDconvergence was coming quickly, but it was still more DIGITAL GOES GLAMof a concept than a business reality. Today, just twoyears later, that has changed tremendously. Advances in Scott Ferber investigates the industry’stechnology, greater availability and activation of cross- evolution to true “full frontal” advertisingscreen data, and successful testing of new businessmodels surrounding automated, audience-based buying 13and selling of media are driving excitement and willingchange from both the demand and supply side of THE DEEP DIVEthe industry. An independent study we commissionedSo, we ask—is 2016 the year when true cross-screen, from Forrester Consulting about“full-frontal” planning and buying of TV and video goesmainstream? To what degree is that possible, and what the evolution of TV and Digital Videoobstacles still remain? And finally, why does it matter?What are the proven, performance-impacting benefits of 24converged advertising? CONNECTING THE WORLDSToday, we’ve invited a range of industry experts to help OF TV & DIGITALanswer all of these questions and offer their varyingperspectives. We have a great morning ahead of us, and I Aleck Schleider pulls back thecan’t wait to get to it. measurement curtainsThank you so much for taking the time to be with us 28today for this important conversation. Sit back, listen, askquestions, disagree, shout your support – it’s all welcome Q4 2015: WHAT Aat Full Frontal Video, Full On. DIFFERENCE A YEAR MAKESScott Ferber, Chairman & CEO, Videology Mark McKee digs into three trends in video convergence 28 THIS OSCAR SEASON, THINK BEYOND THE RED CARPET Making the most of a $2-million investment

AGENDAFULL FRONTAL VIDEO, FULL ON.8:30AMBreakfast9:00AM - 9:05AMWelcomeScott Ferber, Chairman & CEO, Videology9:05AM - 9:10AMRevealed: Survey Results, Newly Released Forrester Research9:10AM - 9:50AMRewind: Forrester Research Deep Dive: Uncovering the “Why” Behind the StatsModerator: Michael Kassan, Chairman & CEO, MediaLink · Ben Jankowski, Group Head, Global Media, MasterCard · Kern Schireson, EVP, Viacom Media Networks · Doug Ray, US CEO, Carat · Eric Solomon, SVP, Product Leadership, Nielsen9:50AM - 10:10AMProfile of a 21st Century Media Company: Fireside Chat with AT&T’s Jason BrownModerator: Will Richmond, Editor and Publisher, VideoNuze · Jason Brown, VP, Head of National Advertising Sales, AT&T AdWorks10:10AM - 10:30 AMNetworking Break10:30AM - 10:50AMProfile of a 21st Century Agency: Fireside Chat with MODI’s Mike BolognaModerator: Will Richmond, Editor and Publisher, VideoNuze · Michael Bologna, President at MODI Media – GroupM’s Advanced Television business unit10:50AM - 11:05AMFixing Video Advertising: An Industry Call to ArmsPresentation by: Tim Castree, Managing Director of North America, Videology11:05AM - 11:20AMSpotlight: 2016 Economic Advertising ForecastDynamics impacting this year’s Upfront market, and long-term trendsimpacting advertising, television, and media planning and buying · Jack Myers, Media Ecologist, Chairman, MyersBizNet11:20AM - 12:00PMFast-forward: The Biggest Thing to Happen to TV in 2016 Was…Moderator: Scott Ferber, Chairman & CEO, Videology · Arthur Mimnaugh, Sr. Business Development Manager, Primetime at Adobe · Kevin Patrick Smith, SVP, Comcast Media 360 · Nick Troiano, CEO, Cadent · Tracey Scheppach, EVP, Publicis Precision Video12:00PM -12:05PMCloseWifi Network: DreamEvent #GoFullFrontalPassword: GALLERY2016 @Videologygroup

Our Presenters Michael Bologna, President, MODI Media, GroupM’s Advanced Television business unit: Mike is president of GroupM’s MODI, which specializes in the strategy, implementation and analysis of multiple advanced television disciplines including addressable TV, hyper-local TV, interactive TV and digital distribution. Prior to MODI, Bologna was Managing Partner Director of Emerging Communications at GroupM. His primary role was to assist in the development of marketing and advertising applications for GroupM clients on advanced television digital platforms. Mike has managed key initiatives across a variety of GroupM advertisers.Jason Brown, VP and Head of National Advertising Sales, AT&T AdWorks: Jason is responsible forthe total national sales revenue including the largest household-level addressable TV product in theindustry. Under his leadership, growth for national sales has significantly outpaced the marketplace.The first decade of Brown’s career was dedicated to launching and adopting emerging networks in thecable industry. During his tenure at companies including Turner Broadcasting, NBC Cable, and DiscoveryNetworks, he successfully launched and scaled networks such as MSNBC, Discovery Health Channeland BBC America. Tim Castree, Managing Director of North America, Videology: With over 20 years of industry experience, Tim’s diverse management experience spans creative, media and integrated agencies. Tim leads Videology’s business across the North American region and develops its strategy for providing cross-screen media technology solutions for advertisers, agencies and media companies. Prior to joining Videology, Tim was Chief Operating Officer for MediaVest U.S. In this role, he ran the daily operations at MediaVest, and led major client accounts including American Honda Motor Company, Mondelēz, Coca-Cola, Microsoft and Sprint.Scott Ferber, Chairman & CEO, Videology: Scott has spent his career utilizing mathematics andinformation technology to build profitable businesses and products. As Chairman and CEO ofVideology, Scott is focused on guiding the company through each new phase of growth, and drivinginnovation to meet the industry’s latest opportunities. A pioneer in the digital advertising industry, Scottis committed to developing smart solutions to meet the needs of the world’s largest marketers andmedia agencies, with a focus on international expansion that has resulted in offices in 28 locationsacross the globe. Benjamin Jankowski, Group Head, Global Media, MasterCard: Ben is responsible for managing the MasterCard investment in marketing communications. This includes working with global, regional and local marketing teams as well as agency partners to drive engagement and preference among MasterCard’s core constituents. Having worked for many agency networks such as Omnicom, WPP, and Havas, Jankowski has a vast experience with helping drive business success of some of the world’s leading marketers such as Chase, Citibank, Dell, GE, Johnson & Johnson, Nestlé, PepsiCo, Procter & Gamble, and Xerox.Michael E. Kassan, Chairman & CEO, MediaLink: Michael E. Kassan is an internationally recognizedbusiness strategist operating at the intersection of the media, advertising, entertainment and technologyindustries. He is the founder of MediaLink, a leading advisory and business development firm withprincipal offices in New York, Los Angeles and Chicago. The team of 100+ provide critical counsel in theareas of strategic marketing and brand development, implementation roadmaps, technology solutionsfor media, media sales and revenue generation, business development, organizational planning andcompetitive analysis to many of the Fortune 100’s biggest global brands. Arthur Mimnaugh, Sr. Manager Business Development for Advertising & Video Solutions, Adobe: With more than 15 years experience in the digital video space, Art is responsible for driving all advertising and technology partnerships as part of the Primetime team within the Adobe Marketing Cloud. Prior to joining Adobe, Art was Vice President of Broadband Solutions at Advanced Digital Broadcast and has held positions at Digital Fountain (acquired by Qualcomm in 2009), Minerva Networks and AT&T Bell Labs. FULL FRONTAL MAGAZINE | March, 2016 8

Jack Myers, Media Ecologist, Chairman, MyersBizNet: Jack is a cultural, economic and technologyvisionary, award-winning documentary film producer and author. Jack is chairman and mediaecologist at MyersBizNet, the home of MediaVillage.com-- one of the most extensive business-to-business content and relationship networks serving the marketing, advertising, media andentertainment communities. Jack is the author of five books including his new book The Future ofMen: Masculinity in the Twenty-First Century. Doug Ray, U.S. CEO of Carat, Dentsu Aegis Network’s flagship media network: Doug’s vision is clear: to redefine media by leveraging the disruptive, yet powerful dynamics of globalization and media convergence. Under Doug’s leadership, Carat has consistently achieved year-over-year growth by focusing his innovation agenda on people, product, and clients. The agency has added more than $4 billion dollars in billings and nearly doubled in revenue since he was appointed to lead the brand in 2011. Most recently, Carat has expanded its relationship with leading marketers including P&G, Mondelez, Sony and Pfizer.Will Richmond, Editor and Publisher, VideoNuze: Will is a 20-year veteran of the broadband, cableTV, content and technology industries. He is a well-known and acknowledged industry expert whoseinsights and advice are sought by C-level industry executives, venture capitalists, journalists andothers. Will was selected by LinkedIn as one of their top 10 media writers of 2015. Tracey Scheppach, Executive Vice President, Publicis Precision Video: Tracey is responsible for strategic and operational oversight of Publicis’s Precision Video Center of Excellence and is charged with determining best practices for emerging video technologies. She invests clients’ advertising dollars across cutting edge video contact points such as addressable advertising, VOD, IPTV, interactive TV, audience based buying, programmatic TV, online video, mobile video, and more.Kern Schireson, Executive Vice President, Viacom Media Networks: Kern is responsible for Viacom’soverall data strategy, and the consumer and audience intelligence that powers Viacom’s content,platforms, and partnerships. Prior to joining Viacom, Kern served as CEO of Schireson Associates– an insights and strategy consultancy that he founded. In over a decade at Schireson, Kern led thedevelopment of innovative product and brand strategy for some of the world’s leading companiesincluding Amazon, American Express, Intel, Microsoft, Nestle, and many others. Kevin Patrick Smith, Senior Vice President, Comcast Media 360: Kevin leads six teams under the Comcast Media 360 portfolio: Content Partners, Performance Plus, National Sales, Direct Response Sales, Media Intel and Digital Solutions. These teams work arm in arm to coordinate cross-company initiatives and showcase Comcast’s full portfolio of assets to marquee marketers who crave addressable, interactive and accountable solutions. Kevin’s partnerships with the video business unit, NBCUniversal, and Comcast’s Symphony initiative and others have driven significant results for Comcast Spotlight.Eric Solomon, Senior Vice President, Product Leadership, Nielsen: Eric is Nielsen’s global productleader for Planning and Programmatic products. He is responsible for the strategic vision androadmap for the data and tools used by agencies and media companies to plan, understand the valueof their content and advertising, and find their audiences in the cross-media world. Eric joined Nielsenin 2010 and has spent much of his tenure driving Nielsen’s strategy for television and digital audiencemeasurement, known as Total Audience. Nick Troiano, CEO, Cadent (formerly BlackArrow): Nick leads Cadent, a leading provider of media, advertising technology and data solutions for the pay-TV industry. He was previously CEO of BlackArrow, the worldwide leader in cross platform advertising and data products and services, which is now a part of Cadent Technology. Prior to BlackArrow, he was Vice President of Business Development at Yahoo!, where he led a business development team responsible for cross-platform technology and ad sales partnerships with major media customers, and Senior Vice President of Sales and Business Development for Maven Networks (acquired by Yahoo! in Feb. 2008). FULL FRONTAL MAGAZINE | March, 2016 9

TV Goes Nerdy, and Digital Goes Glam.But is anyone going Full Frontal?Scott FerberChairman & CEO, VideologyIt’s that time again: The television the show floor. These changes will be driven by two trends impacting theUpfronts, where broadcast and cable entire industry, namely the proliferation of data activation across screensnetworks received 50 percent to 70 and the increase in new content distribution channels. So this year, expectpercent of last year’s ad revenue, and to see the Upfront participants try to out-dazzle each other with shiny newthe digital NewFronts, the industry’s applications of data, and the NewFront participants flash their content andshowcase for digital video. Now long- star power.standing traditions, the upfronts dateback more than 50 years to 1962, and A Role Reversalthe NewFronts are approaching a 10- Here’s why. Advances in technology and content delivery—from apps, toyear anniversary after first rolling out OTT, to mobile devices—have made the delineation between TV and videoin 2008. increasingly blurred. As a result, TV is beginning to embrace and gain access to what has traditionally made digital so powerful– the applicationOver the years, we’ve grown to expect of precise data segmenting and measurement.certain standards from participantsin the ‘fronts.’ The televisionnetworks used the Upfronts to rollout their biggest stars and must-seeprogramming of the new season.The digital players, while traditionallylacking the big ‘star power,’ dazzled usin their own way—with innovative data,targeting and audience insights.But one has to ask, at a time in theindustry that is undergoing so muchchange, so too must theseevents, right?Yes, and no. In terms of relevancy,these events aren’t going anywhere.The concept of upfront buying and thesurrounding “pre-sell” is still a crucialelement of advertising strategy.Despite the rise in programmatictechnologies, TV and premium videois still scarce and demand is still high.With high scarcity and high demandcomes the need for guarantees.Advertisers want to know they’regetting what they need.But in terms of the events themselves,we are likely to see some significantchanges this year in what Upfront andFULL FRONTAL MAGAZINE | March, 201610

Stated differently, the broadcast and cable Though the Upfronts and NewFronts may stillnetworks have gone nerdy. TV buyers can now be divided, there are myriad efforts to try to tieapply massive data sets to their strategy— together the various devices on which consumersunderstanding much more about a consumer are viewing contact. Data providers like TV-than the traditional ‘age and gender’ demo. ratings powerhouse Nielsen—and now digital ratings powerhouse comScore—have recognizedConversely, with evolving distribution channels the need for unified measurement and insightslike online platforms and OTT delivery, there’s a across all screens. Moreover, MVPDs and Telcoswhole new world of opportunity for delivering with access to the data “pipes” spanning online,premium original content to consumers. So TV and mobile—are able to bring new levels ofNewFront players like Hulu and BuzzFeed, cross-screen audience insight to media planningare now squarely in the video production and buying that were never before available.business, while other digital players like Taken to the next level, marrying this cross-screenAmazon and Netflix took home a combined measurement with offline purchase data from46 nominations for the 2015 Emmys. sources like Kantar ShopCom or J.D. Power then allows advertisers to measure the actual value ofData and Distribution that advertising to drive real-world results.To be clear about the aforementioned ‘rolereversal,’ the fact that digital players are putting Nerd or not, that’s something to make even theemphasis on their shiny new content does most jaded marketer take notice. While somenot mean they’ve lost the ability to provide have said there’s a resurgence of the “Goldenexcellent data, and the fact that networks are Age of Television” from a content perspective –embracing more data does not mean they’ve spurred by the diversity of new voices broughtlost the ability to produce excellent content. about by the proliferation of distribution outlets—These changes simply highlight the much it’s also becoming the “Golden Age of Televisionlarger trend of video convergence. The Advertising.” In the latter case, the new gold islines between tradition TV players and new data—bringing a new level of insight into who isdigital video players is quickly becoming seeing an ad and if it’s working.indistinguishable. Apps now allow us tostream ‘digital’ content to the big screen in Full Frontal Movementour living room. TV everywhere programs let There is still work to be done before all upfrontus watch ‘linear’ content on our smartphones, planning and buying can be carried out holisticallycomputers and tablets. To consumers— across both video and TV in all its manifestations.there’s virtually no difference. And increasing, There are technological limitations to overcome,the industry is starting to agree. and business models that must evolve. But it’s happening, quickly. And it must. The need to reachThis article first ran in re/code. consumers, regardless of what they’re watching and how they’re watching it, is real. This upfront season, the role reversals we’ll see are signs of another step in our evolution to ‘full frontal’ advertising, where the distinctions between the Upfronts and NewFronts become undistinguishable. FULL FRONTAL MAGAZINE | March, 2016 11

TV AND VIDEO ARE EVOLVING. ADVERTISERS, AGENCIES, AND MEDIA COMPANIES ARE RESPONDING. FIND OUT HOW.FULL FRONTAL MAGAZINE | March, 201612

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Connecting the Worlds of TV and Digital Aleck Schleider, VP Data and AnalyticsWe all know TV is a great medium. In fact, a recent Concentrated Delivery of Precise TV Audiencessurvey commissioned by Videology from Forrestershows the industry is even more bullish on TV than it The previous two case studies demonstrated ourwas two years ago. ability to use online video to reach specific TV viewers. However, our insights can also be used bi-directionallyThat being said, there are certain challenges that TV is to find qualified digital audiences on TV.facing in light of the multitude of viewing options thatsimply didn’t exist a few years ago. Fragmentation of Our unique Nielsen integration allows us to activelytelevision audiences across multiple content providers link over 10,000 digital attributes back to televisionand multiple devices makes it difficult to achieve audiences, so we can find the highest indexing TVadequate reach using television alone. Television programming to reach specific consumers.campaigns often reach a small portion of the targetaudience with tremendous frequency, while missing In Case Study 3, we were able to optimize a TVor underexposing a large amount of other target campaign for a QSR brand to achieve more effectiveconsumers completely. reach of its heavy category buyers while maintaining daypart allocations and constraints. This resulted in anAs a video ad technology provider our unique server-to- 18.5% increase in reach against the brand’s strategicserver integration across Nielsen’s People Meter Panel, target for the same budget, and a 57% decrease in theCross Channel Panel & Fused Online Panel, allows strategic target CPM.us to drive incremental reach, awareness, recall andintent to purchase. In fact, last fall Nielsen released the Videology Online Audience Delivery CASE STUDY 1results of an analysis that showed Videology drives 6 72% of onlinetimes higher brand lift for digital media compared to (% of Online Audience) video campaigntheir industry norms. reached 45% consumersIncremental Reach of Targeted Audiences underexposed 40% to the brand’sVideology’s platform has the ability to identify 35% 39% TV adsconsumers who were not exposed, or who wereunderexposed, to an advertiser’s TV campaign–then 30% 33%reach them with digital video . This capability can be 25%used to drive incremental, cross-screen campaignreach with greater precision. 20% 23% 15%As shown in Case Study 1, for a major beverage brand,Videology delivered 72% of online video campaign 10%impressions to consumers who were underexposed(0-3x) to their national TV campaign. Moreover, of 5% 5%those consumers reached, 39% had not seen the TV 0%campaign at all! 0 TV Exposures 1-3 TV Exposures 4-9 TV Exposures10+ TV ExposuresReach of Audiences Exposed to a Competitor’s Ads % of Videology Campaign that was CASE STUDY 2Videology can also determine which viewers are exposed to the Competitors TV Ad 76% of theexposed to a competing brand’s TV commercial, campaign reachedallowing an advertiser to use online video as an Exposed Not Exposed M18-34 previouslyaccurate tool to conquest. exposed to 76% 24% competitor’s TV ad Exposed Not 0% 20% 40% 60% 80% 100% Strategic Target Reach CASE STUDY 3 Bilateral insights 64% increase TV’s reach against brand’s strategic 54% target by 18.5% for the same budget Original TV Schedule Optimized TV ScheduleAs shown in Case Study 2, an advertiser targeting We have found that convergence is one of the mostyoung men ages 18-34 used Videology’s platform to powerful tools for driving advertising results. Atreach consumers within this demo who were exposed Videology, we continually innovate to help clientsto a competitor’s TV campaign. The result: through use our technology to achieve seamless planning,effective cross-channel targeting, 76% of all men 18- execution and measurement across TV and digital34 reached by the online video campaign had seen the video. Our Nielsen integration is one example ofcompetitor’s TV ad. this innovation. To find how our capabilities differ, and how we can help your brand achieve optimal results in aFULL FRONTAL MAGAZINE | March, 2016 converged world of screens, please contact us at24 solution [email protected].

54%* OF MARKETERS SAID UNDERSTANDINGCROSS-PLATFORM VIEWING BEHAVIOR WAS A MAJOR CHALLENGE TO VIDEO PLANNING AND BUYING… 54%, MEET VIDEOLOGY.Videology Links Audience Data & Consumers’ Media Consumption Across TV & Digital Video for Holistic, Cross-Screen Planning & Activation ONLINE & OFFLINE ONLINE & OATFTRFILBIUNTEESATTRIBUTES Over 10,000 Cross Channel Over 10,000 CrDoasstaCAhtatrnibnuetel Ds ata Attributes Demo, HouseDheomldo, P, HuorcuhseahseoldBa, sed, Interest, PInu-rMchaarkseedt, BSaesaerdc,hI,nSteorceisat,l In-Market, Search, Social TV CONSUMPTION Unique 1:1 DIGITAL VIDEO integration Across CONSUMPTIONShows Watched, Genres Watched,DVR Behavior, Commercial Exposure, Nielsen Panels Full Episode Players, Premium VideoReach & Frequency, Ad Exposure & Publishers, Short-Form Video,Demographic Ratings Exchange, OTT, Reach & Frequency, Ad Exposure & Demographics HHoouusseehhoolldd &&DDeevviciceeGGrarapphhiningg CONVERGED VIDCEOONTEVCEHRNGOELDOGVYIDFEOOR OTEPCTIMHANLOALUODGIENYCE ALLOCATION FOR OPTIMAL AUDIENCE ALLOCATIONBENEFITS TO MARKETERS:Fluidity: Easily apply strategic and advanced data sets across TV & DigitalRecency: Access regularly updated data sets based on consumers’ monthly behaviors, interests and transactionsAccuracy: Utilize Nielsen respondent data, including Natl. People Meter Cross-platform Homes Panels & TV/Internet Data FusionConvergence: Directly link audiences across TV & Digital to develop holistic video planning, activation and optimization scenariosAT VIDEOLOGY, IT’S ALL COMING TOGETHER. * Forrester survey, released March 2016, commissioned by Videology.www.videologygroup.com @Videologygroup /Videologygroup /Company/Videology-GroupFor more information, please contact [email protected]

Q4 2015: WHAT A DIFFERENCEA YEAR MAKESMark McKee, SVP, Marketing & Sales, VideologyOur quarterly ‘Video Market At-A-Glance’ reports are Beating the Botsgreat sources of insight. There’s always an interesting In Q4, we blocked a record number of fraudulent adtrend to be spotted—telling new stories about the state requests. Bot requests spiked during the weeks beforeof our industry. Christmas and in the final days of the year. We asked Michael Tiffany, CEO of White Ops, our integratedFor Q4 of 2015, we found three big trends in the partner for fraud prevention, what he thought aboutUS report: this data. Here’s his response: • More and more marketers are leveraging TV data in “Videology’s findings are directly in line with what we their digital planning see on the broader Internet. Spending levels increased • Viewability remains a pressing issue for advertisers in the run-up to Christmas, and budgets needed to • Sophisticated technology is required to overcome be completely spent before the end of the year. But the challenge of bot fraud consumers didn’t browse the Internet more, to view more ads, just because there was more ad budgetLeveraging TV Data getting spent. So bot traffic rose to fill in the gapBased on all the impressions run through our platform between all the ads that advertisers wanted to buy andin the fourth quarter, the number of U.S. video the actual number of ads available to show tocampaigns using TV audience data to target with digital real people.”video increased 114% over last year. That’s no smallnumber. More and more marketers are embracing the We agree. The findings are directly in line with theever-converging worlds of TV and digital video to reach research we conducted with White Ops last quarter.customers holistically, across devices, at the most They reinforce the need for advertisers to work withideal CPM. advanced platforms that offer viewability guarantees and leading fraud solutions. You can learn more aboutIn looking at the TV segments most used for digital our work to prevent advertising fraud attargeting, advertiser’s current TV schedules was used videologygroup.com/bot-fraud.more often than any other data set—i.e., marketers areextending the reach of their TV buys by finding thosesame viewers, or similar viewers, on digital platforms.Marketers know their audiences are now on multipledevices, and they’re leveraging platforms like Videologyto reach those users, wherever they’re viewing content.Viewability in ViewWe’ve long prioritized advertiser viewability concernsin the Videology platform. We were one of the firstvideo platforms to receive MRC accreditation forviewable measurement back in 2014. We also recentlyannounced the ability for platform users to transacton viewable impressions as measured by Integral AdScience, Moat and DoubleVerify.We’ve made these concerns paramount to us becausethey’re paramount to our customers, which is veryapparent in our ‘At-A-Glance’ report. In Q4, 56% ofadvertisers chose to optimize their campaigns towardsviewable rates—an increase of 36% since Q1.FULL FRONTAL MAGAZINE | March, 201626

U.S. VIDEO MARKET AT-A-GLANCE Q4 2015 CAMPAIGN TARGETING CAMPAIGNS BY DEVICE65% (% of Total Campaigns) 60% CTV <1% PC ONLY 13% 18% 16% 14% 10% PC, MOBILE, MOBILE 7X MOBILE CONTINUES 2% 2% ONLY TO PROVE ITS VALUE, & CTV Q4 GROWTH GROWING 7X COMPARED 51% 3% TO Q4 2014. OVER Q4 2015 2014GEO PC BEHAVIORAL & MOBILE TV VIEWING (FPRREESEQNUCEENOFCUYSERCIAD)PS 32 % DAYPART CONTEXTUAL LAN BGRUOAWGSEER HH INCOMEWhile almost all advertisers used demographics like age and gender for CROSS-SCREEN GROWTHtargeting, 39% of impressions were measured using tools such as Nielsen’sDAR or comScore’s VCE to validate they were delivered in-demo. SEEING ITS EFFECTIVENESS, MORE THAN 4 OUT OF 5 DIGITAL CAMPAIGNS114% year-over-year increase in number of campaigns using CURRENTLY UTILIZE A CROSS-SCREEN APPROACH. IN JUST ONE YEAR, THEcross-screen TV data to target online. NUMBER OF CROSS-SCREEN CAMPAIGNS HAS GROWN WELL OVER 50%. MOST USED TV VIEWING SEGMENTS IN Q4 AD FRAUD#1 ADVERTISER’S #2 SPORTS #3 POLITICAL #4 #5COMPETITOR’S DAY TIME Total Rejected Ad Requests By Bots The largest spikes in rejections of ad TV SCHEDULE VIEWERS SHOW TV SCHEDULE TV VIEWERS requests due to bot activity came in VIEWERS the last few weeks before Christmas and in the final days of the year.#6 TV DRAMA #7 #8ADULTS EXPOSED CABLE TV #9 #10NEWS SHOW PRIME TIME Fraudsters look to deploy bots during VIEWERS TO CHILDREN’S VIEWERS VIEWERS TV VIEWERS periods when advertisers are looking for extra traffic (holidays) or when PROGRAMMING budgets are typically being expended (end of the quarter/year). TOP 5 AD CATEGORIES 10/8/2015 To learn more about ad fraud and 10/22/2015 how to combat it, please visit videologygroup.com/bot-fraud. 11/5/201535% CONSUMER 11/19/2015 GOODS* 12/3/2015 12/17/2015 12/31/201511% RESTAURANTS CAMPAIGN OBJECTIVES VIEWABILITY10% AUTO Percentage of Campaigns Choosing Viewable Rate as Objective 62% 56%10% RETAIL 56% 46% 29% 6% 31% 20%6% TELECOM 1% THE CONSUMER GOODS CATEGORY SAW A LARGE DIGITAL VTR VIEWABLE CTR CPA CONVERSION Q1 Q2 Q3 Q4PRESENCE IN Q4 2015, FOLLOWED BY RESTAURANTS. AUTO, RETAIL PERCENTAGE RATE Advertisers increasingly chose to optimize AND TELECOM ROUNDED OUT THE TOP 5. their campaigns for Viewable Rate in 2015. Although View Thru Rate (VTR) continued to *Consumer goods is a combination of CPG and Food and Beverage ad catagories. be the most popular campaign objective among advertisers in Q4, Viewable Rate continues to gain steam (see chart on right). PROGRAMMATIC BUY TYPE AD DURATION CPCV dCPM Nearly all campaigns in Q4 ran on OTHER Thirty second creatives were more popular 2% 2% guaranteed, TV-like pricing models, the 4% in Q4, which wasn’t the case in Q3, when vast majority of which ran on regular CPMs. 15 second creatives led the way. We sawGUARANTEED CPM Reserved Dynamic Pricing, (Reserved 15 SECONDS the same trend in Q3 and Q4 of 2014 as 96% dCPM), however, grew in popularity. The 36% well. This was likely due to advertisers’ new pricing type offers users the ability to desire to spend more of their advertising run campaigns on a reserved, dynamic 30 SECONDS budgets to close out the year. price basis. 60%Videology (videologygroup.com) is a leading software provider for converged TV and video advertising. By simplifying big data, we empower marketers and media companies to make smarter advertising decisions to fully harness the value of their audience across screens. Our science-based technology enables our customers to manage, measure and optimise digital video and TV advertising to achieve the best results in the converging media landscape. FULL FRONTAL MAGAZINE | March, 2016 Source: Videology impressions, USA, October 1st through December 31st 2015. 27 The data featured within this infographic is extracted quarterly from Videology’s platform and analyzed by our team of experts.

This Oscar Season, ThinkBeyond the Red Carpet Richard Hall, VP of TV Strategy, VideologyThe Oscars awards ceremony Media companies are making big strides in embracing the change. Manywas the fourth biggest US major TV events are now being live streamed and made available via OTTtelevision event in 2015, services. Networks are licensing their content to streaming services like Huluattracting a global audience and Netflix. Last year, ABC even launched a unique second-screen initiative toof 36 million-plus and raking let viewers watch backstage coverage of The Oscars on their mobile devices.in a record $100 million forABC in commercial time for These changes are having a big impact on marketers.the three-hour show. Today, brands have an unprecedented opportunity to amplify the overall reachThe show’s success follows of their campaigns, find previously underexposed audiences and measure thethe same premise of all impact of their efforts.television advertising—pay apremium price in exchange fora guarantee that your brandmessage will be seen by lotsof people simultaneously.And the crazy part is—it works!The Oscars, The Super Bowl,The Olympics—people tunein to these events and brandsbenefit from the advertisingthey invest in the content.Still yet, things aren’t assimple as they once were.The Oscars awards show isa perfect example of a biggertrend in video advertisingand consumption in today’sconverged world.Organizers predict more \"Multitasking with multiple devicesthan 70 percent of tablet and has become the new normal.”smartphone owners will be ontheir devices while watchingthis year’s ceremony on TV.Furthermore, a recent reportby the Internet AdvertisingBureau (IAB) found that ofthose viewers who regularlywatch TV, 22% simultaneouslystream video on theirsmartphones.In today’s world, a singletelevision event, regardlessof its size, simply doesn’tcommand the the samefocused attention it once did.Multitasking with multipledevices has become thenew normal.FULL FRONTAL MAGAZINE | March, 201628

By combining data about what people are watching Today, with precision targeting, this waste can beon TV (via sources like Nielsen and Rentrak) with greatly reduced. We’re able to better disperse adsdemographic and behavioral data about the make up across the right set of TV shows, while also allocatingof TV show audiences (via 1st and 3rd party sources, the optimal delivery of those ads across differentcomScore, eXelate, Acxiom etc.), advertisers can reach screens. A campaign that only delivers to one screentheir target audience holistically across all devices and suffers from diminishing returns, but truly convergent,content channels. Furthermore, they can do so before, cross-screen campaigns overcome this painful inertia.during or after an event like The Oscars. Finally, by embracing modern measurement solutions,Using technology, we can now move beyond we can track the performance of our campaigns andcampaigns that focus simply on the demographic then optimize our learnings for future strategy. Didmakeup of an audience and, instead, identify a far that $2-million investment result in a brand lift ormore precise and useful “strategic audience.” offline sales results? As stewards of large advertising budgets, we need the answers. Now we can find themFor example, a luxury car brand’s advertising campaign and use them to refine and iterate who and how wecan deliver far superior results if, instead of targeting target in the most cost effective manner.programming popular with adults 35+, it targetsconsumers based on criteria about their income, home By all means, tent pole events like The Oscars willownership and preference for luxury goods. remain important to the industry, but the marketers who move the party beyond the red carpet will be theWe’re at a crossroads where we can direct ads to any ones who stand out above the competition.combination of variables—age, gender, householdincome, responses to precise and highly brand relevant “the marketers that move thesurvey questions or, whether or not they tuned in to an party beyond the red carpetawards show such as The Oscars. will be the ones who stand out above the competition.”Additionally, we’re now able to manage andeliminate waste. This article first ran in MediaPost.Previously, a TV ad campaign might aim for eachtargeted viewer to see an ad only 3 times. However,because of imprecise targeting, the majority of thatcampaign’s budget would be wasted showing a smallminority of those targeted viewers the same ad overand over again. FULL FRONTAL MAGAZINE | March, 2016 29

HAVE YOU BEENSUFFERING FROM LACKOF PERFORMANCE?Videology’s DETV Product canhelp you reach your target.SIDE EFFECTS MAY INCLUDE:Increased ReachIncreased EfficiencyMeasurable PerformanceOptimal DeliveryHeightened Impact & SalesConsult your Videology sales rep and stop suffering today. DETVEmail [email protected] to learn more. A Videology ProductBefore consulting your doctor or sales rep, always read the fine print. Videology is a leading software provider for converged TV and video advertising. By simplifying big data, we empowermarketers and media companies to make smarter advertising decisions to fully harness the value of their audience across screens. Our math and science-based technology enables ourcustomers to manage, measure and optimize digital video and TV advertising to achieve the best results in the converging media landscape. Videology, Inc., is a privately-held,venture-backed company, whose investors include Catalyst Investors, Comcast Ventures, NEA, Pinnacle Ventures, and Valhalla Partners. Videology is headquartered in New York, NY with keyoffices in Baltimore, Austin, Toronto, London, Paris, Madrid, Singapore, Sydney, Tokyo and sales teams across North America. Are you still reading the fine print? You deserve a gift. [email protected] and we’ll send you a fun Videology-branded gift! Did you know that Videology was founded in 2007 by Scott Ferber—also the co-founder of advertising.com. From the start, Videology’s technology was built to solve the industry’s marketing challenges in a world where video viewership was fragmenting across screens, and the definition of“television” was changing. We have always focused on one goal: helping advertisers effectively and efficiently reach consumers wherever they are watching video. Today, our advertisingsoftware is being used by the biggest agencies, trading desks, and marketers around the world to reach consumers with relevant video advertising across screens. Are you still reading now?That is very impressive.

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converge\kən-ˈvərj\ verb (con.verge)1. to move toward one point and join together: to come together and meet2. to come together and have one interest, purpose, or goalTV? VIDEO? EXACTLY.Look around. Consumers are watching more video onmore screens than ever before. How can advertisersensure they’re still getting powerful results in today’sconverged media world?Introducing Videology’s Converged Advertising Software.Our technology helps Advertisers, Agencies, and Media Companiesdrive better results through cross-screen planning, execution, andmeasurement in a single platform.Videology is already working with some of the biggest players inthe business. To learn more, visit videologygroup.com or [email protected].