Types of TV advertising

What are the different types of TV advertising?

Advanced TV includes all types of Non-traditional formats of TV viewing. 

For e.g. Interactive TV, Connected TV, Smart TV & OTT (Over the top). The most common term is OTT, which comprises of:

Streaming devices - Apple TV, Android Tv, etc.

HDMI sticks - Chromecast, Roku, Fire stick

Smart TVs - TVs with Netflix or HBO Go.

Game consoles

DVR set-top boxes

Smart Blue-ray/DVD players

Advertising on these internet-enabled devices is more targeted.  

Programmatic TV- Advanced TV with Ads purchased programmatically. Either thru streaming provider or Ad-network.

Addressable TV- More targetted ads shown to different households for the same program. Targeting on OTT is mostly done on a household level.

Models used for targeting:

High-index modeling- Ads decided based on viewership data for a particular show.

CrossDevice graph - Data from different devices in a household to create identifiers & target audience. 

a) Probabilistic: Device type, location, time of day. The probability is benchmarked to get expected accuracy. 

b) Deterministic: Login data for the consumer across devices 

c) Look-alike modeling for finding a similar audience to build scale

Revenue models for Video

SVOD - Subscription video on demand. Access to an entire library for a small recurring fee. Netflix, Hulu, HBO.  

TVOD - Transactional video on demand. Pay-per-view basis. Charged per video. Google play or iTunes. 

AVOD - Ad-based-video on demand. Here the content is free. Youtube.

Video Advertising Formats

What are the different types of Video advertising formats?

Video advertising is to show ads either within, before or after the video. They are known as Mid-roll, pre-roll or post-roll ads. All these three types of ads come under Linear ads. 

So they are like normal ads but they play either before the video or in between the video (so the video one is watching is stopped for that duration) or after the video is completed.

Non-Linear Ads run along with the video so the users see the Ad while seeing the video. 

Companion ads: Run on the side and do not disturb the viewing experience. It can be in the form of an image, text or video. 

  

Bid Shading - First price auctions

What is Bid Shading?

A technique in first-party auctions to optimize the bid price without reducing the chance of winning. So basically an algorithm that arrives at a price optimization strategy considering factors like pricing, website, exchange in place as well as a competitive environment.

The shift started happening after Google's announcement of moving to first-party auction model.

Done by DSPs or Exchanges since they moved to first-price auctions. DSPs are in the best position to do Bid-shading as they have a complete picture of the bid data.

Hence taking away any advantage that Publishers had in the short term. 

They look at the holistic view of the competitive environment to arrive at the price for an advertiser while bidding for an impression. So there is a trade-off here, as you loose quality impressions in case you cannot win at the right price. 

Google: Optimize fixed CPM bidding

Rubicon Project: EMR or Estimated market rate 

Pubmatic: Intelligent bidding

Trade desk: KOA

Bid shading has reduced CPMs for publishers and there is more downside in the future as algorithms improve. 

More transparency is required to show the delta in value in cases where Bid shading was applied.