At the time of writing TVrsquos most popular show is HBOrsquos Game of Thrones a story of shifting alliances the breakdown of traditional borders and old enemies joining forces to fight a greater threat In those respects the script-writers might well have been inspired by what has been happening in the TV advertising industry over the last few years Thus far the disruption of TV has mainly come in the form of new services like SVOD and social but regardless of which aspect of TV advertising from creative right through to delivery yoursquoll see a revolution of some sort taking place The devices are different therersquos an array of new ad formats and user behaviour seems to change from year to year But the true game changer will be addressable TV advertising Few would argue that applying data to campaigns will make TV adver sing more effective yet it remains to be seen whether it will strengthen the established TV players or if itrsquos more likely to open the door to new entrants most notably in the form of the US tech giants

Whilst many commentators were writing the obituaries for the top broadcasters and pay TV operators years ago the reality is that the future of TV advertising is still very much up for grabs Broadcasters and pay TV operators are learning to adapt and to work together to offer data-driven offerings at scale whilst the tech companies are similarly making equally

interesting forays into content production This competition has been wonderful for consumers who have been enjoying a golden age of TV whilst the various players compete for their viewership In putting together this guide we decided to forgo much of the introduction to TV type content which has already been covered with numerous reports elsewhere Instead we wanted to partner with a number of the companies leading the way in the industry to focus on how they see it evolving whilst also shining a light on what is happening in Europe today with a nod to our friends in the US of course where things are progressing quickly A final thanks to our sponsors ndash IPONWEB Smartclip and Videology ndash and to our independent contributors both for providing such valuable insights as well as being a pleasure to deal with along the way A few people also took some time out to provide us with some additional guidance particularly on the industry map For the industry map Irsquod particularly like to thank the following for their insights as well as their willingness to contribute the names of close competitors Rhys McLachlan Global Head of TV Strategy at Videology Henry Rivero General Manager Europe at Clypd and Jeremy Brandley Sales Director WideOrbit Editor Vincent Flood Video Ad News Designer Irene Palacio Video Ad News Writer Tim Cross Video Ad News Researcher Mo Deghayes Video Ad News Researcher Letizia Cennie Video Ad News

FOREWORDVincent FloodEditor Video Ad News

02

John Tigg SVP Enterprise Solutions EMEA Videology

The TV and video advertising market is experiencing a period of profound change development and disruption transitioning towards a more diverse data-driven and digitally-advanced ecosystem

In much of Europe linear TV viewing is under pressure as audiences fragment across a range of platforms and devices reducing the reach and volume of traditional TV spots Digital businesses are courting advertisers with promises of better targeting attribution and pan-regional reach although some of these promises have deflated in recent months All the while TV advertising has been relatively resilient While there has been neutral or positive revenue growth in most markets executives are nonetheless seeing threats looming on the horizon and there is a widespread consensus that the industry needs to invest and evolve before it is too late

For commercial broadcasters there is now a strong strategic imperative to invest in the development of progressive TV advertising solutions ndash data-driven addressability automation of trading and placement cross-media integration and advanced analytics

Furthermore a greater number of viewers are now moving seamlessly from screen to screen and from device to device making it ever harder and perhaps less relevant to separate digital and analogue viewing This transformation has in turn created a number of challenges for the broadcast and advertising industry on the advertising side how do brands take advantage of the opportunity to engage people with advertising across all of these new devices and screens For broadcasters how should data be collected managed and used in a way that enhances the viewing experience complies with both local and regional privacy legislation supports the creation of new advertising products while also creating a level playing field for measurement

How Ready is Europe for Addressable TVEarlier this year Videology carried out an extensive research initiative in partnership with MTM Our ambition was to take a Europe-wide view of the state of both programmatic automation techniques and the use of data in progressive television advertising The results of the research provide fascinating reading

The report provides detailed insight into three critical areas Firstly what are the enablers required for advanced advertising in Europe to be a scaled reality Specifically what are the underlying factors required for progressive TV advertising solutions to thrive Secondly what are the accelerators that are going to unlock the additional value afforded by advanced

The Outlook for European Progressive TV Advertising Solutions

03

television advertising Finally what are the driving forces that will create compelling commercial opportunities for both broadcasters and advertisers

What is clear is that broadcasters and platform operators across Europe are actively developing solutions for addressable advertising and automation on the TV screen looking to unlock significant benefits ndash chiefly bringing new advertisers and new kinds of campaign to the TV screen increasing the value of previously under-monetised inventory and providing enhanced targeting opportunities More Appetite More ActionHowever prospects for progressive TV advertising solutions vary market-by-market depending upon factors such as broadband infrastructure improved measurement of multiplatform TV consumption the costs of solutions and the scale of the returns that can be generated by industry participants While participants in each national market face unique opportunities and challenges a shared success factor is the willingness for TV platforms and broadcasters to collaborate and cooperate Progressive TV advertising is at very different stages of development across Europe and our research suggests there will be greater challenges in some markets However appetite for solutions from both the buy-side and sell-side of the market is strong and growing Markets that have traditionally lagged behind are showing signs of development and businesses that have lagged behind in investment are now focusing on

progressive TV advertising solutions are working on their strategies and looking to understand more about the opportunity However there are still barriers to overcome Most executives feel the biggest barrier to adoption is the need for collaboration around data and inventory especially in terms of commercial agreements between TV platforms and broadcasters and consumer protection In addition regulation is perceived to have slowed development in markets such as France and Germany but industry participants believe this will change over the next few years To realise the opportunity we believe there are five main priorities for the TV industry

1 Establish common approaches to data protection privacy and sharing 2 Encourage collaboration through joint platforms and standardisation 3 Support the development of unified measurement systems that are auditable and transparent 4 Drive demand through testing case studies and ROI analysis 5 Develop a compelling set of consumer benefits and a clear value exchange

Whilst many of the obstacles to progress are recognisable the positive outlook and ambition of European broadcasters remains enormously encouraging Making progressive TV advertising a reality will require an unprecedented level of cross-industry collaboration Broadcasters and distributors buyers sellers and finally measurement bodies will all need to come together The willingness to do so will in many ways determine the pace of adoption

TV amp Spend euro Infraestructure Commercialstructure

Regulation Meassurement Competition Demand Commercialopportunity

UK 49bn Good Good Good Fair Fair Good Good

Germany 46bn Fair Fair Fair Good Fair Fair Good

Italy 38bn Poor Fair Fair Poor Poor Poor Fair

France 33bn Good Poor Poor Fair Good Good Fair

Spain 21bn Poor Poor Fair Good Poor Poor Fair

Netherlands 10bn Good Fair Poor Fair Fair Fair Fair

Sweden 05bn Good Fair Good Fair Good Fair Poor

Norway 04bn Fair Poor Fair Fair Fair Fair Poor

Denmark 03bn Fair Fair Fair Fair Fair Good Poor

Enablers Drivers

Prospects by addressable TV advertising Good few barriers Fair minor barriers Poor major barriers

Jamie West Deputy Managing Director Sky Media UK amp Group Director of Advanced Advertising Sky PLC

Earlier this year you announced a partnership with Liberty Global Europersquos largest pay TV operator who will be using the Sky AdSmart product Could you provide a bit of background on how the partnership will work

This partnership is the first time that platforms have truly co-operated for the good of the advertiser in essence it means that as targeted TV expands onto new platforms that there are consistent capabilities currencies and targeting which is hugely beneficial to clients

By adopting Skyrsquos approach and operating model underpinned by in-depth customer data the partnership will transform the scale of addressable TV advertising in the UK and Ireland Adding Virginrsquos 3 million customers grows the targetable audience significantly boosting brands ability to reach audiences whilst utilising the attractive quality trusted and brand safe environment of TV

The partnership covers both targeted linear and video on demand (VOD) TV advertising with Virgin Media making use of technology developed by parent company Liberty Global as well as Skyrsquos ground-breaking and award winning Sky AdSmart

Platform operators face the decision to build buy or borrow ad technology What was your approach in putting together the Sky AdSmart product

Most of Skyrsquos Adtech development is done ldquoin partnership withhelliprdquo We developed AdSmart with our middle-ware partners Cisco There were also a number of internal systems we had to enhance and build ourselves What would you do differently if you started again today One of the most important factors facing any organisation trying to build new products is to fail fast and learn One of the main learnings we have taken from Sky AdSmart is striking a balance between priming the market and actually launching the product priming the product In more recent product launches we have been careful to make sure the proposition is ready in line with warming up our customers How are you measuring Sky AdSmart campaigns and which metrics are advertisers typically interested in Sky AdSmart campaigns are measured on an impression basis with a minimum 75 viewing to be counted giving advertiser faith that that ads are being seen Frequency is key for advertisers and this can be easily tracked and capped with Sky AdSmart analytics What advertisers are interested in is the ability to so closely define their audience and the ability to use their own data to create custom segments relevant to them One important metric to us is the number of lsquonew to tvrsquo advertisers wersquore able to bring to the market ndash and this continue to grow significantly meaning TV is no longer just the preserve of the big brand

At the Addressable TV Coalface

0505

Jamie West Deputy Managing Director Sky Media UK amp Group Director of Advanced Advertising Sky PLC

Earlier this year you announced a partnership with Liberty Global Europersquos largest pay TV operator who will be using the Sky AdSmart product Could you provide a bit of background on how the partnership will work

This partnership is the first time that platforms have truly co-operated for the good of the advertiser in essence it means that as targeted TV expands onto new platforms that there are consistent capabilities currencies and targeting which is hugely beneficial to clients

By adopting Skyrsquos approach and operating model underpinned by in-depth customer data the partnership will transform the scale of addressable TV advertising in the UK and Ireland Adding Virginrsquos 3 million customers grows the targetable audience significantly boosting brands ability to reach audiences whilst utilising the attractive quality trusted and brand safe environment of TV

The partnership covers both targeted linear and video on demand (VOD) TV advertising with Virgin Media making use of technology developed by parent company Liberty Global as well as Skyrsquos ground-breaking and award winning Sky AdSmart

Platform operators face the decision to build buy or borrow ad technology What was your approach in putting together the Sky AdSmart product

Most of Skyrsquos Adtech development is done ldquoin partnership withhelliprdquo We developed AdSmart with our middle-ware partners Cisco There were also a number of internal systems we had to enhance and build ourselves What would you do differently if you started again today One of the most important factors facing any organisation trying to build new products is to fail fast and learn One of the main learnings we have taken from Sky AdSmart is striking a balance between priming the market and actually launching the product priming the product In more recent product launches we have been careful to make sure the proposition is ready in line with warming up our customers How are you measuring Sky AdSmart campaigns and which metrics are advertisers typically interested in Sky AdSmart campaigns are measured on an impression basis with a minimum 75 viewing to be counted giving advertiser faith that that ads are being seen Frequency is key for advertisers and this can be easily tracked and capped with Sky AdSmart analytics What advertisers are interested in is the ability to so closely define their audience and the ability to use their own data to create custom segments relevant to them One important metric to us is the number of lsquonew to tvrsquo advertisers wersquore able to bring to the market ndash and this continue to grow significantly meaning TV is no longer just the preserve of the big brand

At the Addressable TV Coalface

0505

Sebastian Busse Director Addressable TV International Smartclip

Whilst our industryrsquos attention is fixated on the seemingly infinite opportunities in digital advertising good old-fashioned linear TV advertising still offers a unique value proposition to marketers which explains TVrsquos ongoing strength as a distribution and advertising platform today Linear TV broadcast continues to tick the most important boxes for brand advertisers offering unrivalled reach combined with premium content in a brand safe environment Most of the recent industry discussions about ldquoTV vs digitalrdquo acknowledge that in many respects digital advertising has yet to prove its worth and that it will not simply wipe out TV advertising overnight However digital advertisingrsquos strengths have also shone a light on the limitations of traditional TV advertising For instance one-to-one ad delivery combined with real time data and addressability has not been part of the agrave la carte menu of the typical TV stationrsquos advertising portfolio This is rapidly changing however and technologies and broadcasters have put addressable TV high on their strategy roadmaps HbbTV is one of the key technologies in Europe for enabling next generation TV advertising opportunities which is why smartclip launched its addressable TV advertising platform in 2015 And it is growing rapidly Just two years on smartclip provides services to more than 40 Tier 1 TV stations in several European markets

The HbbTV Story HbbTV is a standard that forms part of the European broadcast standard known as DVB By definition this standard is available in all TV devices provided in Europe and allows TV stations to merge the traditional broadcast signal with digital technology This gives broadcasters new opportunities and full control over any solution that allows the combination of broadcast and internet back channeling The value of HbbTV becomes clearer when taking into account that HbbTV is utilizing the massive reach of broadcast TV that already exists today This is a major difference from the fragmented market of OTT solutions which for the most part cannot compete with broadcast in terms of reach

Enormous potential enormous reach For most of the largest European TV markets HbbTV already provides significant reach and consequently massive potential for addressable TV advertising In Germany a market of 38 million TV households more than 16 million unique devices are addressable via the smartclip addressable TV platform (ssource for the 16 million devices smartclip Addressable TV Platform) Other European markets in which we are already seeing significant HbbTV reach are France and Spain (ca 25 percent of households) with UK and Italy recently having adopted HbbTV and expected to have a relevant footprint very soon TV stations in Netherlands and the Nordic markets have conducted first trials utilizing HbbTV for addressable TV advertising which again underlines the Pan-european opportunities According to the HbbTV consortium (HbbTVorg) the HbbTV potential for the UK is 50 percent of households and for

HbbTV Building on the Shoulders of the Broadcast Giants

06

Italy it is 80 percent of households fuelling the expectations for the 5 largest TV markets Research underlines the fact that the internet connectivity of TV devices will not be a limiting factor In 2017 57 of households already own a Smart TV and with this in 2018 advertising budgets for addressable TV are estimated with euro100-150 million (source Enders Analysis Programmatic TVrsquos European Evolution)

HbbTV Misunderstood and Undervalued Despite the fact that HbbTV has achieved a significant footprint in major TV markets in Europe it is still lacking credibility in the industry regarding its potential for providing addressable TV advertising products This is surprising as marketers always strive to provide scalability in combination with standardization and features that make it possible to reach the target audience in the most efficient way HbbTV is creating what can be described as the lsquomissing linkrsquo for broadcast technology as it enables the fusion of broadcast and digital ad technology For interactive content HbbTV allows viewers to use the lsquored buttonrsquo to access catch-up video libraries or content-related features via the remote control For advertising HbbTV opens up a world of new possibilities Thus far broadcast advertising has not been able to deliver ads on a 11 basis and make use of real-time data for enhanced targeting With HbbTV all of this is possible HbbTV allows broadcasters to generate real-time data which lets them create detailed insights of their viewers and based on that create audience segments building the basis for enhanced targeting Several hundred campaigns have been executed on TV stations throughout Europe which were delivered via our ad server into the linear broadcast stream and were specifically targeted to individual

devices Targeting features like time and regional targeting have been combined with sophisticated data points allowing defined audience segments that have been generated via a dedicated TV DMP to be addressed Marketers and advertisers can control and monitor efficiency as they can now use technology to control the contact class of their campaigns and combine this with data and targeting These opportunities together with real-time monitoring and reporting through digital KPIrsquos are highly appreciated by marketers and advertisers and are valued higher than talks about the newest formats available In more than 90 percent of these campaigns a special ad format was used which was introduced into a brand safe environment within truly premium and effective content

Broadcasters Just Have to Flick the Switch It is clear however that static image formats will not be the end of the road In fact we have already run dynamic video ad insertion campaigns Mediengruppe RTL Deutschland and smartclip recently carried out a video campaign for their client Ferrero which proved that HbbTV 20 can handle the complexity of seamlessly inserting a video ad format into the linear broadcast stream Now it is just a matter of time before HbbTV 20 gains a significant footprint and broadcasters flick the switch to open up more of their inventory to addressable TV and video campaigns Now that the pipes have been laid for the linear TV advertising market the next step is sketched out TV channels will connect their inventory to the automated booking process and will be able to deliver data-driven TV ads in real-time via programmatic platforms Showing addressable TV has by far matured from being in a test and trial phase HbbTV provides a technology standard which will become the basis for a significant revenue generator for TV channels across Europe

07

The Rise of the TV Alliances

Over the last year or so wersquove seen a number of interesting TV advertising alliances spring up in the US and Europe These sell-side partnerships are primarily designed to enable broadcasters and pay TV operators to offer even more reach to advertisers which is key to making data-driven advertising more effective But theyrsquore also designed to tap into ad budgets that are being managed by centralised programmatic buying units who are running pan-regional campaigns Finally itrsquos also important for broadcasters and pay TV operators to make addressable TV and video advertising easier to buy at scale by providing a single point of access Below are three of the most interesting initiatives to have sprung up in Europe and the US over the last year or so

Members Sky and Liberty GlobalMarkets UK amp IrelandType of Inventory TV and VideoNumber of Households 15 Million

Sky and Liberty Globalrsquos partnership announced in June this year saw Liberty Global-owned Virgin Media sign up to Skyrsquos AdSmart service AdSmart launched in 2014 allows targeted advertising to be delivered to set top boxes via a broadband connection which are then played during commercial breaks for live broadcasts Initially limited to Skyrsquos own products AdSmart now delivers addressable advertising to around 100 channels in the UK and Ireland

The deal which covers both broadcast and VOD will see the channels already signed up to AdSmart plus Virgin Media-owned TV3 in Ireland become targetable with addressable advertising on Virgin Media set top boxes This will increase the reach of AdSmart in the UK and Ireland from the 114 million Sky subscribers to 15 million households in total or roughly 30 million individuals All sales will be handled by Skyrsquos media sales house which hopes to boost sales to pound1 billion by 2020 from under

$800 million last year and revenues will be split between the partners on a pro-rata basis based on impressions

While expanding the reach of AdSmart the partnership will also help standardise the purchasing process for addressable advertising with a Virgin press release stating that consistent capabilities targeting and currencies will be ldquohugely beneficialrdquo to clients Given the international ambitions of the two companies shown by AdSmart rolling out across the continent and Liberty Globalrsquos plans to launch addressable advertising across the EU and in Latin America these two players could have serious clout in setting standards across the Western world

The deal remains limited to the UK for now and the two companies will still compete in other forms of advertising Nonetheless it is clear that necessity brought these two rivals together Sky COO Andrew Griffith said the deal came about as he wants to compete ldquowith the Facebooks and Googles of this worldrdquo

Sky and Liberty Global

08

Members TF1 (France) Mediaset (Italy and Spain) ProSiebenSat1 (Germany)Markets France Spain Italy and GermanyType of Inventory Online Video Total Market Population 250 Million

European Broadcaster Exchange launched last June is a joint venture of ProsiebenSat1 TF1 MediaSet media companies based in Germany France and Italy respectively EBX based in London will be a joint trading platform for digital video advertising designed to accommodate media agencies planning Europe-wide advertising campaigns

Initially the three creators will make digital video advertising inventory from within their own countries available on the platform but they hope in the future for other European media companies to join expanding the inventory available The focus will be on programmatic video advertising to start with but statements announcing the project also mentioned plans for

further collaboration

EBX follows a previous joint venture of the three companies an investment earlier this year in Studio 71 a multichannel network that produces online content and conducts analytics Now by collaborating and providing advertisers with access to an area with a population of over 250 million they hope to tap into advertising budgets previously inaccessible on a national level and fully exploit a programmatic video advertising market which is growing by 45 percent in Western Europe annually

Shared data and unified technologies could ease the process of planning pan-European advertising campaigns for advertisers The EBX founders have emphasised too the premium nature of their product asserting that EBX will guarantee access to high quality brand safe content a clear attempt to capitalise on worries over brand safety of advertising on online competitors like YouTube

European Broadcaster Exchange (EBX)

OpenAP

Members Turner Fox ViacomMarkets USA Type of Inventory TV and VideoNumber of Households 110 Million

OpenAP when it was launched by Turner Fox and Viacom last April was billed as a response to concerns from advertisers over the difficulty of buying the narrower audiences that were being offered in TV advertising The platform will seek to bring standardisation and transparency to audience definitions and measurements by enabling cross-publisher audience targeting and independent measurement

OpenAP is operated and audited by Accenture and will allow advertisers to use a standardised set of data when targeting certain audiences across the three broadcasters eliminating the inefficiency brought on by constantly redefining audiences when buying from different publishers The companies involved will pool and share data on viewership across devices and will also receive set-top box data from comScore and ratings and consumer information from NielsenAlongside standardisation the platform aims to increase the accuracy of audience ratings for TV shows which has fallen as viewing has become more fragmented split between multiple devices and apps

09

Shane Shevlin General Manger EMEA IPONWEB

At the recent VAN TV Rise event in San Sebastian Spain there were many great insights into the continuing evolution of the programmatic TV market - whether addressable or linear - but I was struck by one comment in particular from John-Paul Major Head of Programmatic Futures at Mediacom ldquoWe donrsquot think in terms of online video and TV anymore we just think about video - thatrsquos how we want to plan it thatrsquos how we want to buy it regardless of where it happensrdquo This comment was striking because it offered a concise summary of where we need to be in order to grow the programmatic TV market over the coming quarters and years The time for lamenting the userrsquos fragmented attention is over - there is no going back and the trend is not just among a cross-section of younger audiences itrsquos across the board

Channel Agnostic Ecosystem Perspective

Advertisers and content providers who embrace this shift to a channel-agnostic video focus reaching the desired audience across many screens and devices including addressable TV will be able to take advantage of the fragmentation in the market and make it work for them Through this shift marketers will be able to achieve greater impact and engagement with video audiences and programmers will be able to build data assets understand the true value of their audiences and extract greater yield for every impression through ldquoone-to-one and one-to-a few (household)rdquo targeted audience-based marketing

Similar to digital video the shift to addressable TV provides an advertiser the ability to deliver household-level targeted TV advertising against a defined audience achieved through existing verified supplier data assets (1st 2nd or 3rd party) with enhanced frequency management creative management and tracking and ROI measurement With the help of addressable advertising advertisers can move beyond traditional TV demos to focus on relevance impact and precision

At the same time programmers operators and broadcasters can take advantage of the fact that bringing automated demand across video delivery channels is not a straight line this fragmentation and complexity is (for now) an opportunity to define the terms by which trading occurs Advertisers need to have a holistic audience based view of the ecosystem in order to reach their target consumers as the video market continues to splinter

Regional Challenges

With competing media companies and broadcasters multiple languages evolving regulatory and privacy frameworks complexity around carriage rights region-specific census amp audience tracking standards as well as provider requirements further fragmentation of the market is occurring particularly in Europe To help navigate this and reduce some of the complexity for large-scale buyers initiatives such as the European Broadcaster Exchange (EBX) have sprung up to ldquocompete more efficiently with global competitors and to design [joint innovation strategies] to create new ways for advertisers to reach their consumersrdquo (EBX Press Release) Other providers are teaming up together under Skyrsquos AdSmart initiative These

The New Video A Holistic View of TV amp Video Inventory

10

developments are aimed at maintaining and building audience assets while maintaining the scale and reach as well as some of the ease of buying that TV has historically enjoyed They also are a start to counterbalance the proven successful tools strategies and market offerings that the dominant digital players have employed Without competitive market offerings from the video ecosystem market share will continue to accrue to those companies that best address advertiser needs

TVrsquos Current Scale

Even with the advent of collective groups scale will be a concern for many advertisers considering the switch from traditional ad buys to more personal audience-based advertising This is due in part to limits regulatory bodies put on the amount of addressable inventory available for sale and equally constraints like Contract Rights Renewal (CRR) in the UK hamstring specific broadcasters and need to be updated in the context of an evolving industry

The implication of operating in an ever increasing fragmented and complex ecosystem is that there are many more moving parts and considerations that require greater flexibility automation machine intelligence bespoke integrations for audience definition amp measurement tracking of return path data and much more At IPONWEB we have developed a programmatic TV solution that offers a unique opportunity for media owners to build out solutions that can

quickly tap into the growing pool of automated programmatic demand

Bridging the Gap between TV and Digital

To address these technical and market challenges as well as increased opportunities broadcasters and media companies need advanced and proven solutions that are designed with them in mind and built to satisfy their unique needs and business requirements By employing a customised TV solution broadcasters and media companies can bring forward the features and functionality required specifically for the performance of their media business and focus on unique ways to differentiate and evolve their market offering Importantly adopting a proven modular approach to building out programmatic TV solutions offers the ability respond adapt and evolve as the opportunities shift over time This allows for the creation of holistic systems that work cross-channel to understand and utilise all of your data to maximise monetisation reduce complexity around vendor management cost inefficiencies and similar challenges

Without taking a flexible and tailored approach to programmatic TV solutions broadcasters and media companies run the risk of losing market share failing to understand the value of their inventory and accelerate the transfer of audience and proprietary data to 3rd parties whose interests are not aligned with theirs

11

The Case for a Custom Solution

Maria Mryasova Sales Engineer Emerging Technologies IPONWEB

IPONWEB Modular TV SSP Solution Features and Benefits of a Custom Platform

Inventory Management

Audience Management

Avails Show Data

ComscoreNielsen STB Data

Advertiser DataOther 3rd Party Data

Ad RunProcessing

Inventory Deals

Packaging

Creative Approval

Auction Host

Internal Demand

Ad Delivery Scheduling

AnalyticsReporting

To bring together the key aspects of both TV and digital a purpose-built TV SSP solution is required to satisfy the specific programmatic and automation needs of televisionrsquos supply side

Functionally the TV SSP solves various ecosystem challenges by leveraging nine distinct modules that can be configured according to an individual companyrsquos requirements and goals Those include

bull Inventory management controls processing and transformation into programmatic slots

bull Audience modules to manage audience data uploads and matching from various sources to create a unified pool of users

bull Creative approval and ad delivery modulesbull Audience Analytics for planning and

measurement

Analytics and reporting are available to both supply and demand partners for transactional transparency

Each TV SSP is tailored to support a clientrsquos specific business cases unique data formats and workflows Using a bespoke solution broadcasters are able to create targeted inventory based on a variety of audience data while gaining access to new advertising budgets and buyers

As the addressable TV ecosystem continues to mature broadcasters who take a proactive and tailored approach will be able to bring to market a supply platform that can truly transform their business setting themselves up for the rapid and inevitable advertising evolution and growth with a foundation that is built specifically around their needs and is agile enough to quickly adapt to the changing market landscape

API

API

API

API API

UI

UIUI

UIAPI

API RTB Pipes

TraffickingSystems

Demand Partners

As Runs

12

The Case for a Custom Solution View from the US

60 Seconds with Brian Wieser Senior Analyst Pivotal Research

Brian Wieser is Senior Analyst at Pivotal Research and has become one of the most respected commentators on the prospects of the TV industry Here gives some quick insights into what he thinks is coming further down the line What poses the single greatest threat to the TV industry today

If we are referring to advertising revenues on TV in particular the biggest threat is that the advertisers and kinds of advertisers who dominate TV (large brands who differentiate on the basis of awareness of brand attributes exist in oligopolistic categories then budget for share of voice and look to optimize for reach and frequency) diminish in importance within the economy Which lsquotraditionalrsquo TV companies are coping best with digital disruption By traditional TV companies I assume you mean owners of businesses which are packagers of content like todayrsquos networks On that basis and solely looking at the US Irsquod say Fox and CBS Fox is continuously investing in building up its businesses to a degree that I donrsquot think others do CBS is best positioned both because itrsquos positioned well as a broadcast network (which maintains its reach advantage over cable especially as cord-cutting shaving expands) and because of its ability to capture retransmission consent revenues

Do investors lsquogetrsquo ad tech do you think No Itrsquos too fragmented and too complicated for most to justify the time to try and understand it Which companies stand out to you as over-valued And more interestingly which do you think are under-valued At this point in time (August 24th) I have sell ratings on Disney Adobe Snap and Facebook which would mean those are the ones which are most over-valued in my valuation framework As for under-valued I only have a few buy ratings as well on IPG Discovery and Fox Will see another wave of venture capital (VC) investment coming into ad tech do you think No VC in ad tech is done At this point they all want exits without losing much money which means more of a focus on recapitalizations and consolidation Wersquove seen some recent declines in the value of some of the large agency holding groups Are the agencies well positioned to survive over the long haul Paraphrasing Rishad Tobaccowala agencies are cockroaches not dinosaurs Yes I think they will outlast us all just in a continuously evolving form

13

EMERGING AD TECH SOLUTIONS TO GDPR

The EUrsquos General Data Protection Regulation (GDPR) will standardise privacy laws across the EU while also bolstering the privacy and security of personal data For consumers the new rules will give them a number of new rights when it comes to controlling how their data is used online but in doing so the EU has created a number of technical and legal challenges for the media and ad tech industry

Included among the new provisions are

bull Right to access users must be able to access data that is collected about them and see who has access to it and how itrsquos being used

bull Right to consent users must consent the collection and use of their data and must be able to withdraw that consent at any time

bull Right to portability users must be able to obtain a copy of their data and copy or transfer it safely between services

bull Right to be forgotten users have the right to demand of any data controller that they erase all information they hold about that individual

bull Built from ground up privacy systems must be built with consumer privacy as a fundamental concern rather than an afterthought

In response to GDPR multiple companies are working on systems and platforms to help publishers and ad tech companies to ensure compliance with the new rules

New York-based MadHive uses blockchain as the basis for its solution using open-source blockchain infrastructure Hyperledger to manage permissions and privacy across ad campaigns MadHiversquos solution would see a blockchain layer called up during the ad-buying process Consumers would have access to a trigger by which they could block the use of their data which would be instantly relayed to the blockchain The blockchain would then block the use of that consumerrsquos data every time it was called up during the ad-buying

process Given that all transactions are recorded permanently on the blockchain it would also allow consumers to track where and when their personal information had been used

Currently MadHive is is unable to handle open programmatic situations and still experiences some latency issues but it is hoped these problems will be solved by the time GDPR comes into force

MadHive

14

New York-based MadHive uses blockchain as a platform for identity management giving consumers easy access to and control over their data Users will be able to view and adjust their permissions via Faktorrsquos platform which will have four different access points including a browser extension and a Faktor app Users will therefore be able to micromanage consent of which data can be collected and who is able to track it and access to content will then be adjusted based on how much data the user is willing to provide There will also be a dedicated entry point for TV advertising where customers

can link a set top box to their mobile via a QR code scan allowing their consent preferences to then be applied to addressable TV advertising

Faktor will further encourage user provision of data via a cryptocurrency FKTR to be launched at the end of the year Users will accumulate the currency by sharing content or engaging with products or brands which can then be spent on access to content or ad-free experiences

PageFair for example is building a data protection platform designed to protect the entire ad supply chain blocking data access when consent isnrsquot given while also protecting against data leakage PageFairrsquos tech will convert ad formats which leak data block third party

data obtained without permission and enable management of mixed states of user consent ensuring all parties can apply the correct data mode for each individual PageFair will also build lsquointerest groupsrsquo allowing programmatic ad targeting without the need for personal data

Evidonrsquos offering is its Universal Consent Platform which similar to Faktor is geared towards managing user consent Based on Evidonrsquos existing technology the Universal Consent Platform will tailor consent forms to each user and website populating it with all the tracking technologies any given website uses

and making it appropriate for the user in terms of language and content of the agreement based on their location Evidonrsquos monitoring platform will then alert the publisher to any non-compliant activity which takes place on their digital platform

Faktor

PageFair

Evidon

15

The European Addressable TV Advertising Landscape

Buy-Side TV Ad TechAgency Groups DSPS

Media Agencies

Custom Solutions

Optimisation

Measurement Data amp Analytics

16

OTT

DAI

OTT Apps

OTT Platforms

HbbTV

Sales Houses

Marketplaces Optimsation amp Allocation

Consumer Data Verification

Pay TV OperatorsSell-Side Ad TV Tech

17

AGENCY GROUPS WEBSITE Telephone

AKQA wwwakqacom Tel +44 (0)207 780 4786

Dentsu wwwdentsuaegisnetworkcouk Tel +44 (0) 207 070 7700

Havas wwwhavasmediacouk Tel +44 (0)20 3196 9000

Interpublic Group wwwipgukcom Tel +44 (0) 20 7082 0120

Omnicom Group wwwomnicomgroupcom Tel+44 (0) 20 7298 7007

Publicis Groupe wwwpublicisgroupecom Tel+44 (0) 20 7935 4426

WPP wwwwppcom Tel +44 (0)20 7408 2204

DAI WEBSITE TELEPHONE

Arris wwwarriscom Tel +353 21 7305800

Ericsson wwwericssoncom Tel +46 10 719 00 00

Invidi wwwinvidicom Tel (917) 676-3590

Seachange wwwschangecom Tel +48 (22) 213 1665

YoSpace wwwyospacecom Tel +44 1784 466 388

DSPrsquos WEBSITE TELEPHONE

Adobe wwwadobecom Tel +44 1628 590 000

Appnexus wwwappnexuscom Tel +1 (646) 825-6460

Addressable TV Directory

18

AGENCY GROUPS WEBSITE Telephone

AKQA wwwakqacom Tel +44 (0)207 780 4786

Dentsu wwwdentsuaegisnetworkcouk Tel +44 (0) 207 070 7700

Havas wwwhavasmediacouk Tel +44 (0)20 3196 9000

Interpublic Group wwwipgukcom Tel +44 (0) 20 7082 0120

Omnicom Group wwwomnicomgroupcom Tel+44 (0) 20 7298 7007

Publicis Groupe wwwpublicisgroupecom Tel+44 (0) 20 7935 4426

WPP wwwwppcom Tel +44 (0)20 7408 2204

DAI WEBSITE TELEPHONE

Arris wwwarriscom Tel +353 21 7305800

Ericsson wwwericssoncom Tel +46 10 719 00 00

Invidi wwwinvidicom Tel (917) 676-3590

Seachange wwwschangecom Tel +48 (22) 213 1665

YoSpace wwwyospacecom Tel +44 1784 466 388

DSPrsquos WEBSITE TELEPHONE

Adobe wwwadobecom Tel +44 1628 590 000

Appnexus wwwappnexuscom Tel +1 (646) 825-6460

Addressable TV Directory

18

AGENCY GROUPS WEBSITE Telephone

BrightRollYahoo wwwbrightrollcom

Rubicon Project wwwrubiconprojectcom Tel + 44 (0) 20 3206 2400

The Trade Desk wwwthetradedeskcom Tel+44 (0)203 868 8100

Tremor Video wwwtremorvideocom Tel +44 (0) 20 7379 5544

Videology wwwvideologygroupcom Tel +44 (0) 203 608 8700

HBBTV Ad Tech WEBSITE TELEPHONE

Smartclip wwwsmartclipcom Tel +49-40-68 87 68 70

TeraVolt GmbH wwwteravolttv Tel +49-40-298 677-0

Marketplaces Optimsation amp Allocation

WEBSITE TELEPHONE

1 x AOL wwwonebyaolcom Tel +44 (0)20 7492 1000

Cadent wwwcadentnetworktv Tel +1 212 796 1960

Clypd wwwclypdcom Tel +1 (844) 302-5973

IPONWEB wwwiponwebcom Tel +44 (0) 207 420 0670

Sorenson Media wwwsorensonmediacom Tel +44 (0) 2920 198 092

TV Squared wwwtvsquaredcom Tel +44 (0) 131 290 2333

Videa wwwvideatv Tel +1 678-645-6550

Videology wwwvideologygroupcom Tel +44 (0) 203 608 8700

Wideorbit wwwwideorbitcom Tel +17202282140

Measurements and Analytics WEBSITE TELEPHONE

1 x AOL wwwonebyaolcom Tel +44 (0)20 7492 1000

BARB wwwbarbcouk Tel +44 (0) 20 7024 8100

19

AGENCY GROUPS WEBSITE Telephone

Bluefin solutions wwwbluefinsolutionscom Tel +44 (0)870 233 0404

Broadcasters Audience Research Board Ltd wwwbarbcouk Tel +44 (0) 20 7024 8100

DataXu wwwdataxucom Tel +44 (0) 20 7636 8010

GfK wwwgfkcom Tel +44 (0) 20 7890 9000

IBM Coremetrics wwwwelcomecoremetricscom Tel +44 (0)2392 282340

Kantar wwwkantarmediacom Tel +44 (0)20 7160 5505

Mediametrie wwwmediametriecom Tel +33 1 47 58 97 58

Nielsen wwwnielsencom Tel +44 020 7014 0590

Realytics wwwrealyticsio Tel +44 (0) 20 3445 6532

RentrakComscore wwwcomscorecom Tel +44 (0) 20 3195 7800

SKO wwwkijkonderzoeknl Tel 020-6414333

Tivo Analytics wwwbusinesstivocom Tel +441628677300

TV Squared wwwtvsquaredcom Tel +44 (0) 131 290 2333

TVbeat wwwtvbeatcom

Webtrends wwwwebtrendscom Tel +44 (0) 1784 415 700

Media Agencies WEBSITE TELEPHONE

360i Europe www360icouk Tel +44 (0) 2070237600

Acceleration Partners wwwaccelerationpartnerscom Tel +44 (0)20 3318 4922

Adjust Your Set wwwadjustyoursetcom Tel +44 (0)20 7580 5933

Carat wwwcaratcomuk Tel+44 (0) 207 430 6000

DigitasLBi wwwdigitaslbicomen-gb Tel +44 (0) 20 7063 6000

20

AGENCY GROUPS WEBSITE Telephone

GroupM wwwgroupmcom Tel+44 (0)20 7158 5000

Initiative wwwinitiativecouk Tel +44 (0)20 7073 7333

Maxus wwwmaxusglobalcouk Tel +44 (0)20 7025 3900

MCampC wwwmcandcouk Tel +44 (0) 20 7307 6100

MEC wwwmecglobalcouk Tel +44 207 803 2000

Mediacom wwwmediacomcom Tel + 44 (0)207 158 5500

Merkle wwwinterpubliccom Tel +44 (0)330 060 6065

Mindshare wwwmindshareworldcom Tel +44 (0)20 7969 4040

OMD UK wwwomdcomuk Tel +44 (0) 20 3023 4500

Starcom Mediavest (IPA) wwwstarcomwwcom Tel +44 (0) 20 7235 7020

UM wwwumwwcouk Tel +44 (0) 20 7833 5858

Xaxis wwwxaxiscom Tel +44 (0) 20 7158 5000

ZenithOptimedia wwwzenithmediacom Tel +44 (0)20 7961 1000

OTT Ad Tech WEBSITE TELEPHONE

Adobe wwwadobecom Tel +44 1628 590 000

AppNexus wwwappnexuscom Tel +1 (646) 825-6460

FreeWheel wwwfreewheeltv Tel +44(0)20 7280 4601

Google wwwdoubleclickbygooglecom Tel +44 (0)20 7031 3000

Ooyala wwwooyalacom Tel +44 (0)20 7494 6200

SpotX wwwspotxtv Tel +44 (0) 20 8068 2951

21

AGENCY GROUPS WEBSITE Telephone

Sales Houses WEBSITE TELEPHONE

Admeira wwwadmeirach Tel +41 31 298 22 22

Antena 3 (Intact Media Group) wwwintactmediagroupro Tel +40 21 40 91 880

ARD-Werbung SALES amp SERVICES GmbH wwward-werbungde Tel +49 69 154 24-218

AS Eesti Meedia wwwkanal2ee Tel 372 666 2469

Atmedia CZ wwwatmediacz Tel + 420 222 998 714

Atmedia HU wwwatmediahu Tel +36 1 799 26 40

AtresMedia wwwatresadvertisinges Tel+ 34 91 6 234 577

Bauer Media Denmark wwwbauermediadk Tel +45 33119000

Bauer Media Finland wwwbauermediafi Tel +358 9 8848 8757

Bauer Media Group UK wwwbauermediacouk Tel +44 (0)20 7437 9011

Belcom AG wwwbelcomch Tel +41 44 448 25 25

Bell Media wwwbellmediaca Tel 4169246664

BTV - CME Group wwwbtvbg Tel +359 888 675464

Bulgarian National Television wwwbntbg Tel +359 2 814 26 63

Canal+ Reacutegie wwwcanalplusregiefr Tel +33 1 71 35 35 35

Channel 4 Sales wwwchannel4salescom Tel +44 207 306 6440

Discovery Networks International wwwdiscoveryukcom Tel +44 208 811 3000

Disney Media wwwdisneymediaplusde Tel +49 (0) 8999340-0

Dogus Yayin Grubu wwwdogusyayingrubucom Tel + 90 53 23 86 14 14

DTV Haber Gorsel Yayincilik AS wwwkanaldcomtr Tel +90 536 398 55 74

22

AGENCY GROUPS WEBSITE Telephone

EBU-UER www3ebuch Tel +41 (0) 22 717 28 01

El Cartel Media GmbH amp Co KG wwwelcartelmediade Tel +49 (89) 64185 7005

EMG (Europa Media Group) wwwemgfm Tel +36 1 453 3801

Eurosport SAS wwweurosportcom Tel +33 1 40 93 83 76

Everest Sales wwweverest-salesru Tel +7(495)941-64-00

Fox Networks Group wwwfoxinternationalchannelscom Tel + 44 203 426 7271

France Teacuteleacutevisions Publiciteacute wwwfrancetvpubfr Tel +33 1 56 22 62 00

Gazprom Media wwwgazprom-mediacom Tel +7 (495) 725 54 00

Goldbach Media AG wwwgoldbachmediach Tel +41 44 914 92 71

Inter Media Plus wwwinter-mediage Tel +995 599 60 00 33

IP Belgium SA wwwipbbe Tel +32 2 337 62 11

IP Deutschland wwwipde Tel +49 221 456 24000

IP Luxembourg wwwipllu Tel + 352 44 70 70 46 62

IP OumlSTERREICH wwwip-oesterreichat Tel +43 1 367 80 40 21

Karnaval Media Group wwwkarnavalcom Tel +90 533 202 48 23

LNK wwwlnklt Tel +37060000022

M6 Publiciteacute wwwm6pubfr Tel 33 1 41 92 66 66

Medialaan NV wwwmedialaannet Tel +32 2 255 39 04

MTG Group wwwmtgcom Tel +46 73 699 2717

MTG TV Denmark wwwmtgtvdk Tel + 45 77 30 57 29

MTG TV Norway wwwtv3no Tel+47 452 68 593

23

AGENCY GROUPS WEBSITE Telephone

MTV Oy wwwmtvfi Tel +358 40 772 0740

MTVA wwwmtvhu Tel + 36 1 759 52 53

Nelonen Media - Sanoma Media Finland Ltd wwwnelonenmediafi Tel + 358 9 454 5384

Next Reacutegie wwwnextregiefr Tel + 33 1 71 18 53 02

Nova Croatia - CME wwwnovatvhr Tel + 385 1 600 83 10

Nova CZ - CME wwwtvnovacz Tel +420 242 464 616

One Media Sales wwwomsfm Tel +31 35-750 5950

ORF Enterprise GmbH amp Co KG wwwenterpriseorfat Tel +43 1 87077 14500

Polsat Media Biuro Reklamy wwwpolsatmediapl Tel +48 22 514 53 95

PRO PLUS - CME Group wwwpro-plussi Tel +386 1 589 32 21

PRO TV - CME Group wwwprotvro Tel +40318250315

ProSiebenSat1 TV SevenOne Media wwwsevenonemediade Tel +49 89 9507-4370

Publitalia 80 wwwpublitaliait Tel +39 022 10 23 968

R-TimeMagyar RTL Televizio Zrt wwwr-timehu Tel +36 1 382 85 34

Radio Televisioacuten Espantildeola wwwrtvees Tel +34 91 581 58 40

Rai Pubblicitagrave wwwraipubblicitait Tel +39 011 744 1533

RTL AdConnect wwwrtl-adconnectcom Tel +352 421 42 47 21

RTL Nederland wwwadverterenbijrtlnl Tel +31 35 711 38 74

RTP wwwrtppt Tel +351 351 217 947 000

RUV wwwruvis Tel +354 5153243

SBS Broadcasting wwwadverterenbijsbsnl Tel +31 654 24 67 68

24

AGENCY GROUPS WEBSITE Telephone

Sky Media DE wwwskymedianetworkde Tel +49 8999587167

Sky Media Italy wwwskypubblicitait Tel +39 02 30 80 12 974

Sky Media UK wwwskymediacouk Tel +44 207 705 3000

Sport1 Media GmbH wwwsport1mediade Tel +49 (0) 89 960 66-2554

Starlight Brand Content wwwslmua Tel +38 (044) 495 77 88

Telewizja Polska SA Biuro Reklamy wwwbrtvppl Tel +48 22 547 22 40

TF1 Publiciteacute wwwtf1pubfr Tel +33 1 41 41 48 45

TURKUVAZ REKLAM wwwturkuvazreklamcom Tel +90 212 354 32 33

Turner wwwturnercom Tel +44 20 7693 1000

TV3 Estonia wwwtv3ee Tel +372 52 49 892

TV3 Latvia wwwtv3lv Tel +371 67 479 100

TV3 Lithuania wwwtv3lt Tel +370 5 203 01 77

TV3 Sweden - MTG Group (Viasat) wwwmtgsverigese Tel + 46 73 699 2419

TV8 (MNG TV YAYINCILIK ASGROUP) wwwtv8comtr Tel +90 212 304 89 18

TVN MEDIA wwwreklamatvnpl Tel +48 22 856 64 02

TVR - Romanian Public Television wwwtvrro Tel +40 21 30 58 9 08

Viacom International Media Networks UK wwwviacomcom Tel +44 (0)20 3580 2000

ZDF Werbefernsehen GmbH wwwzdf-werbefernsehende Tel +49 6131 70 14044

25

AGENCY GROUPS WEBSITE Telephone

Measurements and Analytics WEBSITE TELEPHONE

1 x AOL wwwonebyaolcom Tel +44 (0)20 7492 1000

BARB wwwbarbcouk Tel +44 (0) 20 7024 8100

Bluefin solutions wwwbluefinsolutionscom Tel +44 (0)870 233 0404

Broadcasters Audience Research Board Ltd wwwbarbcouk Tel +44 (0) 20 7024 8100

DataXu wwwdataxucom Tel +44 (0) 20 7636 8010

GfK wwwgfkcom Tel +44 (0) 20 7890 9000

IBM Coremetrics wwwwelcomecoremetricscom Tel +44 (0)2392 282340

Kantar wwwkantarmediacom Tel +44 (0)20 7160 5505

Mediametrie wwwmediametriecom Tel +33 1 47 58 97 58

Nielsen wwwnielsencom Tel +44 020 7014 0590

Realytics wwwrealyticsio Tel +44 (0) 7850 153 604

RentrakComscore wwwcomscorecom Tel +44 (0) 20 3195 7800

SKO wwwkijkonderzoeknl Tel 020-6414333

Tivo Analytics wwwbusinesstivocom Tel +441628677300

TV Squared wwwtvsquaredcom Tel +44 (0) 131 290 2333

TVbeat wwwtvbeatcom

Webtrends wwwwebtrendscom Tel +44 (0) 1784 415 700

Verification WEBSITE TELEPHONE

Integral Ad Science wwwintegraladscom Tel+44 (0)203 696 5589

Moat wwwmoatcom Tel +1 6462487843

26