ADDRESSABLE TV Unterföhring, February 2018
Agenda 1 I 2 I 3 I 4 I Addressable TV: classification Advertising opportunities Facts & Figures Appendix 2
Digital Revolution on TV 11.5 mio. devices addressable SwitchIn contacts/month Exclusive placement in the program High reach potential Even without TV Spot Source: SevenOne Media, October 2017 3
Addressable TV can be used with televisions or set-top-boxes Based on the technology-standard HbbTV Reception requirements HbbTV compliant TV or set-top-box DSL connection min. 2 MBit/s Connection via wireless or LAN-cable (devicedependent) All TV distribution channels DVB-S, DVB-T or DVB-C Usage / Navigation Access via RedButton color key on remote control Arrow keys and ok for navigation Color and numeric keys for additional navigation 4
All current Smart TV models support Addressable TV Samsung LG Philips Panasonic Sony others Receiver / Set-Top-Boxen HbbTV advantage over Smart TV: programmed for all devices maximization of technical reach and potential Minimal coordination and low production costs, due to device- and platform-independent standard Engagement push from linear TV program 91% coverage Smart TVs 2016 Source: GfK Retail & Technology, 02/2017 5
Three different approaches for Addressable TV campaigns InStream Top InStream impact Addressable TV Maximum impact, awareness- and engagement-push Sponsoring Format- related, image-transfer MidRoll PostRoll Multiscreen Wrap Branded RedButton Microsite SwitchIn Classic Microsite SwitchIn Freestyle Microsite SwitchIn XXL Pure Microsite Individual integration SwitchIn Special InStream + InPage ads 6
Agenda 1 I 2 I 3 I 4 I Addressable TV: classification Advertising opportunities Facts & Figures Appendix 7
Branded RedButton empowers clickable TV commercials! 8
Engagement-push by interactive microsites Ø1:50 min. retention time Positive impact on image and sympathy + 5% brand awareness, + 29% ad recall 76% burger-personalization finishes Source: SevenOne Media, New Media Research, July 2015 9
Branded RedButton Regional erlaubt auch regionalisierte, interaktive TV Spots Branded RedButton national / regional Microsite (regionalized) Displayed with all TV spot motives Direct Positive image-shift by Addressable TV campaign (Klick RedButton während des TV Spots) High retention time Ø 1:32 min on Regio-Microsite Microsite usage raises purchase intention up to 115% Source: SevenOne Media New Media Research, April 2015 10
Digital ads conquer the TV screen - SwitchIn Classic TV advertising without TV commercials Full attention on channel switch Exclusive placement on linear TV program 11
Innovation - SwitchIn Freestyle Absolutely eye-catching by free-form layout Transparency generates huge closeness to TV More creative freedom than SwitchIn Classic 12
Maximum attention - SwitchIn XXL Pure Top innovation with TV impact Maximum branding area in TV Split layout TV reach scale 13
SwitchIn XXL Kombi perfect combination of both SwitchIn layouts SwitchIN XXL Pure 0,17% CTR SwitchIn XXL Kombi SwitchIn Classic 1. contact: Big Branding area for awareness 2.-3. contact for reminding Source: SevenOne Media, Ø Addressable TV campaigns July December 2017 14
OPEL SwitchIn Case Study SwitchIn family with convincingly impact SwitchIn Classic SwitchIn Freestyle SwitchIn XXL Exclusive placement on linear TV program Top innovation with TVimpact Absolutey eye-catching Transparency generates huge closeness to TV TV reach scale Maximum branding area in TV Split layout Unsupported advertising remembrance 5 +29% Uplift 14 16 +50% Uplift 20 +58% Uplift Ohne Kontakt Source: SevenOne Media Research, August 2016, base: adults 18+, n=1.000
SwitchIn offers decisive advantages stand-alone and in combination with TV Digital SwitchIn stand-alone Booking stand-alone without TV media Easy access into TV no TVC production On top contacts by family usage Awareness AND engagement Digital + TV SwitchIn + TV Media Booking in combination with TV media Activation of incremental reach Digital Touchpoint on 1st Screen Digital Awareness Booster Exclusive contact SwitchIn Increase in % 100 80 60 40 20 +15% +24% Combined contacts SwitchIn Microsite TV spot Increase in % 100 80 60 40 20 +59% +75% 0 Brand awareness Ad recall no contact SwitchIn exclusive contact 0 Brand awareness Ad recall no contact SwitchIn combined contacts Source: SevenOne Media New Media Research, CTV survey November 2014 Base: Connected TV users with SwitchIn contact, channels ProSieben, Sat.1, kabel eins and sixx 16
SwitchIn XXL is less annoying than different kinds of advertising 51,5% SWITCHIN XXL IS LESS ANNOYING THAN DIFFERENT KINDS OF ADVERTISING Question: How do you rate this particular type of advertising? This type of advertising... Base: Connected TV users on channels ProSieben, Sat.1, kabel eins and sixx; Source: SevenOne Media August 2017 17
SwitchIn premium quality Only high-quality TV channel brands Maximum net reach, all formats All timeslots incl. PrimeTime 18
SwitchIn with strong benefits for brands TV reach with 1:1 audience selection, e.g. geo-targeting TV target group digitally addressable on 1 st screen TV innovation guarantees attention and positive image TV impact is well-known, positive effects are proven Brand-engagement by 1 st screen interaction (clickable) 19
Addressable TV-targeting continously improving Already established today Development in 2018+ Audiencetargeting Geotargeting Behavioraltargeting Spot-Retargeting & cross-device-targeting AGF/GFK-Panel IP-basiert Cookie-basiert TV-und Digitaldaten-basiert e.g. Age, male oder female e.g. Federal states, cities, weather e.g. Federal states, cities, weather Connection between TV and Digital Data 20
Live weather data as a creative campaign element A B Powered by Targeting on weather condition or temperature Optional wetter.com CoBranding on XXL Layout Use with/without TV spot sunny - overcast fog, shower - thunderstorm 21
First Mover for you Predictive Behavioural Targeting on TV for the first time NEW Attractive new target groupes familiy singles Targeting on household level Efficient media control Source: Adserver Tracking SevenOne Media, September 2017 22
Reaching attractive target groups with Predictive Behavioural Targeting Single HH Family HH +62% +58% Uplift in target group Uplift in target group HHNI over 3,000 Generation 50+ HH +40% +39% Uplift in target group Uplift in target group Source: AGF in collaboration with GfK; TV Scope 6.1; first 6 months 2017 (1.1.-30.6., weekdays, 3.00-3.00 o clock), Base: TV households; validation via blindtest on AGF/GfK Data status June, 71M Research, July 2017 23
More Adressable TV targeting options TV selective watcher Individual target group segments Technical targeting based on tv using Less than 15 minutes daily TV usage, in average Less than 15% commercials based on TV watching in total Segmentation of individual AGF target groups Detailed briefing for target group characteristics to check realizability based on AGF- and TV- user data Needed lead time: minimum 8 weeks 24
More Adressable TV targeting options Single households Generation 50+ households 25
Time targeting enables situational SwitchIn use cases before shopping before meal before or to an event morning household items 06:00 12:00 delivery service 18:00 20:00 lotto-drawings 12:00 20:00 noon FMCG 06:00 12:00 catering/gastronomy 11-13:00 18-20:00 event-live-stream 20:00 23:00 afternoon food/snacks 06:00 12:00 cereal/coffee/tea 06-09:00 13:00-16:00 cinema premiere/concert 12:00 20:00 71M advantage: All timeslots available incl. PrimeTime 26
Innovation at its best: Retargeting on(addressable) TV Targeted contact class modulation Intensification TV commercial seen intensification Incremental Reach TV commercial not seen Net coverage Source: SevenOne Media August 2017 27
TV retargeting allows storytelling und incremental reach 1. TV FLIGHT TV Spot gesehen ADDRESSABLE TV FLIGHT SwitchIn XXL/Freestyle/Classic Storytelling Targeted storytelling Engagement Engagement booster through additional campaigns contacts 2. 1. Campaign contact TV Spot nicht gesehen 2. Campaign contact SwitchIn XXL/Freestyle/Classic Incremental Reach Increase of the net range Efficiency High efficiency of the overall campaign 1. Campaign contact 28
At a glance Branded Red Button Interactive ad placed on TV commercial SwitchIn placed on linear TV program (content) TV Spot nicht gesehen Targeting and media control Geo Regio Weather Target group Time Individual Retargeting AGF Data Frequency Capping Predictive Behavioural Source: SevenOne Media, December 2017 29
TV becomes measurable! Individual tracking and reporting of all relevant campaign KPIs SwitchIn Classic/Freestyle/XXL Microsite usage Standard KPIs Optional KPIs KPIs Ad Impressions (AIs) (target-performance comparison) Unique Devices* (of the delivered impressions) Visits Visitors Clicks AIs by TV brands Ø Retention time / visit Interactions (depends on content and functions of microsite) Clickrate AIs by advertising material ** Ø Page views / visit Ø Interactions / Visit (depends on content and functions of microsites) Optional: + tracking pixel (see technical specifications) AIs by weekday Ø Video views / visit Optional: + tracking pixel (see technical specifications) AIs by hours AIs by context AIs by regio/city *** Details: see technical specifications https://www.sevenonemedia.de/service/downloads *TV brand overlapping (one number) and per TV brand (each a number); **exception sequential delivery at SwitchIn XXL combi; ***For geo targeting campaigns 30
Programmatic TV - next generation addressable big screen advertising DSP All SwitchIn forms and targeting features programmatically bookable Dynamic creatives delivery by events, AGF-audience Real-time reporting and monitoring for transparency control Deal-model: programmatic guaranteed* *Programmatic Guaranteed =Inventory selection by 71M adserver, 100% of delivered AIs must be used and paid 31
1 I 2 I 3 I 4 I Addressable TV: classification Advertising opportunities Facts & Figures Appendix 32
Every second household has a Smart TV Household cover Smart TVs Share in % 70% 66% 60% 50% 40% 42% 53% 30% 28% 20% 10% 4% 9% 18% 0% 2011 2012 2013 2014 2015 2016 2017 Source: IHS April/June 2015; gfu-study may 2016, n=5.000, GfK Retail & Technology, 08/2017 33
Technology-standard completely established in only 3 years HbbTV function is standard in current Smart TVs 100% 90% 80% 70% 66% 90% 92% 93% 91% 91% of current Smart TVs with HbbTV 60% 50% 40% 30% 34% 20% 10% 0% 2% 2010 2011 2012 2013 2014 2015 2016 Smart TVs equipped with HbbTv Source: GfK Retail & Technology, 02/2017 34
More than 32 m. connected TVs and 23 m. devices with HbbTV sold Connected TVs 2004 2016 in m. 35 Devices with HbbTV 2004 2016 in m. Addressable TV 25 30 25 6,7 32 m. CTV 20 23 m. HbbTV 20 25 m. Smart TV 15 15 10 24,7 10 23,0 5 5 0 0 Set-Top-Boxes, DVD-Player etc. Smart TV 2004-2016 (incl. Smart TV, Digital-Receiver, DVD/ BluRay-Player) Source: GfK Retail & Technology, 02/2017 35
11.5 m. connected devices support Addressable TV Devices (Unique Devices) 11.5 m. Connected TVs / month Source: Adserver Tracking SevenOne Media, September 2017
Addressable TV available throughout Germany Number of unique devices / regions 300.000 500.000 120.000 1.070.000 2.480.000 450.000 120.000 1.570.000 Schleswig-Holstein Hamburg Bremen Lower Saxony North Rhine-Westphalia Rhineland-Palatinate Saarland Baden-Württemberg 180.000 250.000 680.000 320.000 560.000 280.000 920.000 1.740.000 Mecklenburg-West. Brandenburg Berlin Saxony-Anhalt Saxony Thuringia Hesse Bavaria Cities 1 Berlin 680.000 2 Hamburg 500.000 3 Munich 430.000 4 Cologne 320.000 5 Frankfurt am Main 270.000 6 Stuttgart 220.000 7 Nuremberg 180.000 8 Hanover 180.000 9 Düsseldorf 150.000 10 Essen 130.000 11 Dortmund 130.000 12 Dresden 130.000 13 Leipzig 120.000 14 Bremen 120.000 15 Karlsruhe 110.000 16 Mannheim 100.000 17 Duisburg 100.000 18 Münster 90.000 19 Erfurt 70.000 20 Bonn 50.000 Source: SevenOne Media (New Media Research), channel ProSieben, September 2017
Red Button / HbbTV gaining relevance Awareness Red Button Red Button overlays seen 50 40 +14% 71% HBBTV WILL BECOMME MORE IMPORTANT 30 +32% 20 10 0 Q4/16 Q1/17 Q4/16 Q1/17 TV Nutzer gesamt Connected TV Nutzer 70% NEXT TV SET WILL BE HBBTV CAPABLE 78% GOOD EXTENSION TO TV-PROGRAM 78% GOOD SERVICE OF BROADCASTERS Source: View Time Report Base: adults 14 years and older with TV, Connected TV user 14-49 years Source: Online survey SevenOne Media, n=1.040 Base: HbbTV user 38
Smart TV is especially attractive for young target groups Smart TV trend Figures in % 80 70 60 50 59% programs I spend more time watching TV, since I find more often interesting for me. 40 30 20 Smart TV ownership and usage are increasing Very attractive for younger audiences 10 0 45 65 22 33 Ownership 2016 2017 Usage Internet usage on Smart TV Source: Gfk household panel 01/2017 vs. 01/2016 Base: 16-39 years with Smart TV Source: gfu Insights & Trends 2017 39
Attractive early adopter target group in Connected TV 92% of the Germans use a television CTV user / share in % 65 28% are connected to the internet 54 40 83 Source; SevenOne Media / forsa 2016 Base: from 14 years, n=2.685; SevenOne Media (New Media Research), December 2017 40
Benchmark CTR for advertising formats SwitchIn XXL Pure 0,23% CTR SwitchIn Classic 0,31% CTR SwitchIn XXL Kombi 0,16% CTR Medium Rectangle 0,68% CTR SwitchIn Freestyle 0,25% CTR Branded RedButton 0,03% CTR Source: SevenOne Media, Ø Addressable TV campaigns August - January 2018 41
Agenda 1 I 2 I 3 I 4 I Addressable TV: classification Advertising opportunities Facts & Figures Appendix 42
SwitchIn campaigns 2017/2018 Honda Paramount Pictures Diageo Captain Morgan Köln Messe Hexal tegut Parship The Walt Disney Company MINI C&A The Walt Disney Company Concorde Filmverleih Borco Paramount Pictures Schock Spülen Who s Perfect Emirates Paramount Pictures 43
SwitchIn offers two access paths to interactive Microsite SwitchIn Launched automatically on program start for 10 seconds, no matter from which channel. TV usage Microsite Change of channel 1. Direct (Click while ad is visible) Startscreen (Click later after active ad display) 2. Indirect
Available on all TV formats of P7S1 channels Max Reach all timeslots Top 4 Day Time Access Time Prime Time
Strong brands in Addressable TV and InStream portfolio Addressable TV 432 Mio. SwitchIn InStream 11,9 Mio. Video Views *ASMI sites only in network rotation bookable, no direct bookings Source: SevenOne Media, December 2017 46
Sponsoring: Individual integration and direct link to format Case Opel Adam and Germany s next Topmodel 2016 1,6 m. Media library calls 500.000 Calls of the special Germanys next Topmodel 2016 Find your ADAM style and win tickets for the Germanys next Topmodel 2016 final! Source: Internal tracking, SevenOne Media 47
Market und technology 48
HbbTV accessible nationwide in Germany Satellite (46%) P7S1 channels incl. HbbTV signal Cable digital (33%) P7S1 channels incl. HbbTV signal Terrestrial (3 %) P7S1 channels incl. HbbTV signal Cable analogue (9%) IPTV (9%) P7S1 channels incl. HbbTV signal Satellites (HD + SD) Astra 19,2 E Cable operators (HD + SD) Unitymedia Tele Columbus Primacom net cologne Vodafone Kabel Deutschland DVB-T Netze (SD) Bayern Niedersachsen Rheinland-Pfalz Nordrhein-Westfalen Hessen Berlin Hamburg Bremen Cable operators analogue All operator IPTV Deutsche Telekom Vodafone Source: P7S1 Distribution, January 2017 49
HbbTV is bound to become a global standard In Regular Operation Announced / Trials Under Consideration Inactive Countries https://www.hbbtv.org/deployments/ [Stand 08.11.2017] 50
HbbTV is an official standard and uses existing TV and online technologies 51
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