Time or Attention as a currency (aCPM)-RicardoCollison

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By: Ricardo Collison

Viewability vs Attention – Publisher POV

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Agenda

» Definitions and accredited vendors

» Why the push for viewability

» POV of a publisher on viewability

» Operational impact for a publisher

» Operationalizing a new currency for revenue recognition

» Your ideas are just this insane!

» Viewability vs Time

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Historical context

3

1994 20142007

Google buys

Doubleclick

AOL buys

Adtech

Microsoft

buys Atlas

2008 2009

RTB platforms

are born,

Adx, AdBrite,

OpenX,

Admeld,

Pubmatic,

Adjug,

Rubicon

Adapt.tv

First banner to be

shown on the web for

AT&T, had a 44% CTR.

2004

Facebook/Fl

ikr, Linkedin,

WP,

YouTube,

Reddit

founded

Everyone had or was

founding an ad network,

Rightmedia (yahoo),

Bluelithium, Dacota,

Adlink etc

Viewability

becomes a

reality


Increase in internet websites and users

4

The world currently has

> 1 billion live websites.

In 1994 there where

2500 websites

The world currently has

> 2.9 billion internet users

In 1994 there where 30

million.


Definitions and accreditation

5

Video viewability: a

minimum of 50 percent in

view for a minimum of 2

continuous seconds.

Display viewability: a

minimum of 50 percent

in view for a minimum of

1 continuous seconds.

Measured impressions:

The number of

measurable impressions

tracked by Active View.

Viewable impressions:

The number of

viewable impressions

tracked by Active View


Why the push for viewability

6

1.8 trillion

impression paid

for but not

viewed


POV of a publisher

» There are inherent risks with moving to a viewability currency. Most publishers would have already assessed the risk and proactively redesigned sites to minimize the risk

» Viewability drives incremental cost and workload

» Viewability does not help solve for third party delivery

» Finance processes become more complex

» “Make goods”, will cause havoc with inventory forecasts

» Will create complexity in the programmatic space

» Attribution framework may need to be reconsidered

» Impression currency has created the complexity we all face today, viewability will amplify this complexity

» Will it drive up CPM’s?

7


Operational impact for a publisher

8

Finance

Revenue

recognition

and invoicing

Yield /

Pricing

Inventory and

forecasting

Change in

how we sell

and package

products

Product

development


Example of complexity it creates

» Campaign requirements:– Contracted amount = $100,000

– Line item 1: 300x250 (imp 2mil, CPM $20)

– Line item 2: 728x90 (imp 2mil, CPM $20)

– Line item 3: 300x250 ROS (imp 2mil, CPM $10)

– T&C = 50% measurable, 60% viewable

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» Campaign delivery:– Contracted amount = $100,000

– Line item 1: 300x250 (incremental / wasted impressions 800k = $16k)

– Line item 2: 728x90 (incremental / wasted impressions 800k = $16k)

– Line item 3: 300x250 ROS (incremental / wasted impressions 800k = $8k)

» Net impact:– $40k worth of wasted impressions just meeting the 60% viewability in T&C’s

– “Make Goods” – delivered over unknown period i.e. viewability % may not be a static metric daily


Operationalizing a new Viewability currency

» The good:

– Sponsorship deals should not be impacted

» The Bad

– DR campaigns does not fit well into this framework – still based on CTR and last cookie attribution

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» The Ugly:

– No standardized measurement

– There are still technology challenges to consider

– Operationally its not ideal


Exploring the Concept of a new time based currency

» Food for thought:

– You a have a finite number of uses

– There are only 24 hrs. in a day however a almost infinite supply of impressions

– With time as a metric all impressions would be eligible for measurement

– We already sell on time based metric today (sponsorships)

» Why the consideration is worth it:

– 1.8 trillion impressions was paid for last year but never viewed

– More aligned with Digital GRP metric

– Attribution models today is systemically flawed (cookie)

– Determines interactivity “metrics that matter” to move more brand $

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Viewability vs Time – which one maybe better?

» Viewability:

– The market need to standardize viewability metric (feels like impression counting all over again)

– Early indication suggest operational efficiencies’

– Will keep us into a world of “make goods”

– Will create complexity in the programmatic space

– Attribution framework may need to be reconsidered

» Time:

– Already a concept of selling on a time based metric (sponsorships)

– Time is inclusive of viewability

– User engagement analysis operationalized

– ROI framework established and will not need to change

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Operationalizing Time as a new currency

» The good:

– All impressions would be eligible for measurement

– Sponsorship already sold on a time basis today (an easy transition and equation i.e. impression = time = revenue

– Optimization would center around contextual relevance as it should be vs viewabilty

– Framework would shift the market towards engagement and create scarcity again

» The outliers:

– Attribution methodology for DR campaigns would need to evolve

– Ad Operations would be turned on its head

– Programmatic impact - Ubiquitous platform adopted by the market

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The Challenges – Engagement vs. Attribution

» Brand Advertising

– Viewed

– Engagement/Consideration

– Action (ROI)

» POV:

– Already a concept of selling sponsorships.

– Engagement, already familiar concept

– ROI framework established

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» Direct Response

– Click

– Impression

– Attribution

» POV:

– ROI attribution by cookie

– Programmatic space will need to solve for a ubiquitous platform adopted by the market

– ROI framework established


Formula for calculating a baseline Attention CPM (aCPM)

15

Contact me if you interested in

the formula for calculating

aCPM (Attention CPM)

Documents

Time or Attention as a currency (aCPM)-RicardoCollison