2018-优质视频_抓住机会（英文版）-1mb

Premium Video: Seizing the Opportunity - Q1 2018 Summary

Core Content Overview

This report from FreeWheel, a Comcast company, provides insights into the state of premium video monetization in Q1 2018, highlighting the opportunities and challenges in the U.S. and Europe. It emphasizes the growth of premium video and its potential to thrive amid the challenges faced by the broader digital advertising industry.

Main Points and Key Insights

Market Growth and Trends

• Live Viewing Growth: Live ad views grew by 77% YoY in the U.S. and 65% YoY in Europe, driven by major events such as the Winter Olympics, Super Bowl LII, and NCAA March Madness.
• Big Screen Dominance: The big screen (OTT and STB VOD) accounted for 50% of ad views in the U.S. and 38% in Europe, showing its continued relevance in the premium video ecosystem.
• Smartphone Growth: Smartphone live ad views saw a 171% YoY increase, indicating a shift in consumer behavior toward mobile-first live content consumption.
• Syndicated Viewing: Syndicated viewing grew by 30% YoY, with MVPD TV Everywhere offerings being a key driver. These offerings grew by 103% YoY, reflecting the rise of vMVPDs (virtual MVPDs) and cord-cutting trends.

Ad Experience and Engagement

• Ad Completion Rates: Mid-roll ad completion rates remained high, with 98% in both live and full-episode formats in the U.S. and over 90% in Europe.
• Ad Load Management: Most mid-roll breaks contained four ads or fewer, with 70% of U.S. mid-rolls having 4 or fewer ads. Ad repetition was minimal in full-episode content, with 84% of streams having no repetition, while 36% of live streams had repetition due to sponsorship constraints.
• Ad Experience Optimization: Publishers are experimenting with ad loads and choreography to balance viewer engagement and monetization, while also striving to reduce ad loads to compete with subscription services.

Monetization Models

• Direct Deals: Represent 89% of premium video deals, driven by the need for brand safety and control.
• Programmatic Growth: Programmatic transactions grew by 45% YoY, although they still accounted for only 11% of the market. Programmatic direct and private marketplaces are gaining traction due to their ability to offer brand safety and guaranteed delivery.
• Open Exchange: Comprises 8% of programmatic transactions and is less favored due to its non-guaranteed nature.

Advertiser and Publisher Strategies

• Advertiser Demand: Advertisers are looking for holistic targeting and measurement solutions across devices and channels to optimize their campaigns.
• OpenAP Initiative: A consortium of major TV publishers (Turner, Viacom, 21st Century Fox, NBCU) is developing tools for audience-based buying, offering cross-publisher targeting opportunities.
• Content is King: Despite large budgets, licensed content remains the main driver of viewership. For example, 80% of Netflix viewership in the U.S. is attributed to licensed programming.

Europe Market Overview

• Subscriber Growth: Europe's premium video market has grown significantly, with 51 million subscribers in Q1 2018, up 10% from 2016.
• Content Investment: Streaming services like Netflix are increasing their investment in original content in Europe, with a reported $1 billion budget for the region in 2018.
• Partnerships and Acquisitions: European publishers are forming strategic partnerships and acquisitions to compete with global platforms like Netflix and Amazon. Examples include:
  • RTVE partnering with Atresmedia and Mediaset for a joint OTT service.
  • France Televisions, TF1, and M6 launching an SVOD platform to challenge Netflix and Amazon.
  • Endeavor acquiring NeuLion, and Dentsu investing in Perform Group.

Consumer Privacy and Regulatory Environment

• GDPR Impact: The General Data Protection Regulation (GDPR) in Europe has heightened the focus on consumer privacy and data management. TV and premium video providers are well-positioned for compliance due to their controlled ecosystems and trusted viewer relationships.
• Brand Safety: Advertisers continue to value brand-safe environments, and publishers are adapting to meet these expectations while leveraging data for better targeting and measurement.

Conclusion

Premium video is well-positioned to capitalize on the current advertising landscape's challenges, offering a brand-safe, highly engaged audience with the scale and targeting capabilities of digital. The growth in live content, syndicated viewing, and increased ad completion rates underline its potential. As the market evolves, programmatic and data-driven solutions will play a critical role in shaping the future of premium video monetization. Publishers and advertisers must work together to maintain a positive viewer experience while ensuring transparency, control, and efficiency in the digital advertising ecosystem.

Key Figures

Author Bios

• Hasan Iqbal: Senior Manager, Advisory Services
• Rebecca Rangeley: Head of Business Insight International
• Esra Akturk: Associate, Advisory Services
• Ying Wang: Director, Advisory Services

Glossary

• OTT (Over-the-Top): Content delivered directly over the internet, bypassing traditional distribution channels.
• STB (Set-Top Box): A device used to receive television signals, often used for VOD content.
• vMVPD (Virtual MVPD): A digital platform that offers live TV content without requiring a traditional cable subscription.
• CPM (Cost Per Mille): The cost of 1,000 ad impressions.
• TAD (Total Audience Delivery): A new measurement metric used by NBCU to track viewership across linear and digital platforms.
• GDPR (General Data Protection Regulation): A European regulation that governs data privacy and protection.