What is addressable advertising?
Advertising that uses a Unique ID to deliver precisely targeted advertising to either a household (via a Connected TV or Set-Top Box) or to an individual (via a mobile, tablet or computer).
Advertising that uses a Unique ID to deliver precisely targeted advertising to either a household (via a Connected TV or Set-Top Box) or to an individual (via a mobile, tablet or computer).
Technology that lets you show different ads to different audience segments watching the same TV program on Internet Protocol TV (IPTV) and set-top boxes. Those segments could be defined by behavioural, demographic, and geographic factors from first or third party data sets.
Advertising that uses data and technology to deliver Addressable Advertising or Premium Audience Targeting.
The technology and service that places (serves) ads on websites/applications and collects/reports performance data.
An Ad Tag is a snippet of code on a website that communicates with ad servers to make the correct digital ad appear on a web page or in an app. In Australia, OzTAM’s Video Player Measurement (VPM) reporting system attaches a unique OzTAM ID (code) to a participating broadcaster’s BVOD video files. As a result, VPM is consistent across devices, platforms and participating publishers/ broadcasters.
Ad Tracking refers to a method for recording campaign delivery metrics between ad servers.
The process for setting up ads in the Ad Server so that when an ad request is made to the Ad Server, the ad is delivered to the publisher.
The use of technology to automate and optimise parts of the TV buying process across Linear TV, Playback TV and BVOD (including Live Streaming), removing the need for repetitive manual processes.
A piece of technology that collects, organises and stores information about individuals’ behaviour (such as their TV viewing and shopping habits) and creates user profiles that are useful for marketers and publishers who want to target those individuals with advertising.
A targeting option which restricts advertising to only run at a specified time of day when it is most likely to reach and engage the target audience. For example, date and time targeting on Linear TV includes placement via a “roadblock” approach or “top and tailing” of ad breaks.
A basic description of individuals or households using classifications such as age, sex, occupation group, education level, household size, grocery shopper and number of children.
The ability to place a particular advertisement within a video stream to target an individual depending on its Audience Segment requirements. DAI is often a component of Addressable Advertising.
First party data is company-owned data about consumers that is collected by companies through their interactions with consumers. First party data can include data from behaviour, actions or interests demonstrated across website(s); data collated through CRM; subscription data; or cross-platform data from mobile web or apps. For example, OzTAM’s use of anonymised establishment survey and viewing data from OzTAM panel homes, or Qantas’ data collated from Qantas Frequent Flyer cardholders.
The General Data Protection Regulation (GDPR) is a European Union law on data protection and privacy which also addresses the export of personal data outside the EU and European Economic Area (EEA). The GDPR imposes stronger business rules on data protection in an effort to give individuals greater access to their personal data and control over how it is used.
A unique series of letters, numbers and periods that represent the unique numeric address for each internet-connected device.
Targeting relevant messages based on a user’s location, driven largely by mobile location services.
Allows advertisers to find people who are similar to their customers or prospects by building a look-alike audience.
A term to describe the targeting of Audience Segments, beyond simple age and gender parameters, within the premium advertising environments of Linear TV and Broadcaster Video On Demand (BVOD). Audience targeting is achieved by leveraging data from:
• industry audience measurement currencies
• a broadcaster’s data
• an advertiser’s data
• other third party data sources
Second Party Data is basically first party data that advertisers have purchased directly from the source. For example, a broadcaster could provide an advertiser with the data it has collated from OzTAM to boost targeting efficiency.
Information about consumer behaviour that is collected and aggregated by third party providers, such as Experian, Quantium or Acxiom, that is available to any party to buy.
The buying and selling of TV advertising inventory based on Demographics or Audience Segments. Dynamic Trading and Programmatic Trading are two audience-based trading models.
The practice of using individuals’ online usage for targeting. Time spent, search terms, articles read, and sites visited are just some of the online activity that can be tracked from past online activities.
There are four common measures used to quantify audiences:
A small text file (up to 4KB) created by a website that is stored in the user’s computer either temporarily for that session only or permanently on the hard disk (persistent cookie). Cookies provide a way for the website to recognise you and keep track of your preferences. Cookies do not work within app environments.
Refers to the grouping or segmenting of audiences beyond standard demographics such as age, gender and income. For example, audiences can be segmented by:
Placing ads within a highly relevant context (that is, environment) for the advertised brand, allowing the ad to be seen in a place where consumers would expect to see the ad or the product or service being advertised. For example, allergy products may choose to contextually target the ‘pollen count’ section of the weather broadcast.
A Custom Audience is created from a larger customer list and can be based on behavioural, location or demographic data depending on the response required. A Custom Audience can be created using a DMP for any programmatically bought campaign and then ads can be targeted to that audience.
Information about consumers that includes, but is not limited to, buying behaviour, personal interests or psychographics. Data can be owned by an advertiser or sourced from external providers. “Declared data” is information about gender, address, age and is provided with consent directly by individuals while “observed data” is gathered by cookies that track preference and interests across the internet.
A unique number assigned to a programmatic ad buy that allows the buyer and seller to identify one another.
A technology platform that allows buyers of digital advertising inventory to manage multiple ad exchanges and data exchange accounts through one interface.
The use of Automated Trading to deliver an agreed number of people within an age and sex demographic. This is achieved by frequent rescheduling of advertising based on current and expected audience delivery across specific day parts (rather than specific programs).
The buying and selling of TV advertising inventory based on specified programs or timeslots (also known as Fixed Placement).
The equivalent of an Agency Trading Desk but operating independently of an agency group. It is a third party company that licenses and supports DSP technology to act as a trading desk for advertisers and agencies.
The use of paid ads that match the look, feel and function of the media format in which they appear. Native ads are often found in social media feeds, or as recommended content on a web page. Unlike display ads or banner ads, native ads don’t really look like ads at all. The word “Native” refers to the content’s coherence with other non-advertising content on the platform. Also known as Native Content.
A biddable open market system in which any seller can make digital inventory available for purchase by any buyer. Supply and demand determine the price at which the inventory is traded. A seller of inventory can set the terms around which they make inventory available into the Open Exchange, including setting floor prices, establishing blacklists etc. An Open Market Place can also be used to make third-party data sets available for advertisers to purchase. Red Planet is an example.
The use of automated buying and selling with pre-defined buying and selling parameters to deliver an agreed number of people within an Audience Segment. Programmatic Trading requires technology and data to enable frequent re-planning of advertising based on current and expected audience delivery across specific day parts.
When an advertiser pays for their brand to be shown or used within the content of a program.
A type of programmatic buying by which multiple parties (advertisers) submit bids on inventory in a real time, instantaneous auction that occurs via a Supply Side Platform (SSP) (see definition below) during the time it takes the web page to load. Real Time Bidding is the primary programmatic transaction type that occurs with Open Exchange trading.
Ad networks provide an outsourced sales capability for publishers and a means to aggregate inventory and audiences from numerous publishers into a single buying opportunity for advertisers and agencies. Ad networks may provide technologies to enhance value to both publishers and advertisers, including unique targeting capabilities, creative material generation and placement optimisation.
SSP is the technology that enables the selling of digital ad impressions in automated transactions. Publishers (i.e. inventory supply side) can sell and manage display, video or native ad inventory on desktop, mobile and Connected TV through SSPs.
An ATD lives within an agency and helps manage programmatic media buying through a bidding system known as a Demand Side Platform (DSP). ATDs are set up for the benefit of an agency and its clients to drive efficiency and performance in the media buying process. They allow media buying in an automated and often data-driven fashion.
The Ad Exchange is the digital marketplace that connects the ‘buy’ and ‘sell’ sides of advertising and media owners; utilised for digital video and programmatic buying of TV.
Virtual Australia (‘VOZ’) is Australia’s new Total TV database*. VOZ brings together broadcast viewing on TV sets and connected devices to provide an all-screen, cross-platform planning and reporting standard for Australia’s TV industry.
VOZ will deliver:
* User data that contributes to VOZ is fully anonymised. All OzTAM TV audience measurement panel households opt-in with full consent. OzTAM collects no information that can identify the person(s) that owns or uses individual devices, and VOZ and the elements needed to deliver it meet Australian privacy standards.
OzTAM’s Video Player Measurement (VPM) reporting service measures and reports on BVOD content viewed on connected devices; with the introduction of VOZ, VPM viewing will be reported by demographic.
The estimated total population available to target against within a nominated audience segment (demographic, region).
A term used to describe a single de-duplicated profile of an individual’s viewing consumption across both Linear/Broadcast TV and/or BVOD.
The price an advertiser pays every time a video ad runs through to completion. Cost per Completed View (CPCV) can either be used as a measure of inventory efficiency, or as a currency for trading video. For example, rather than paying for all impressions, some of which may have been stopped part-way, an advertiser only pays an agreed fee for ads that are viewed to completion (CPCV=Cost/Completed Views). This is relevant for digital video platforms such as Facebook, but not for TV where all ads run to completion.
A measure of how many pixels of a video advertisement can be seen, how much of the screen it takes up and for how long it is seen. Viewability is an advertising metric that aims to track only impressions that can be seen by users. Also see Cost per Completed View (CPCV).
Unlike online-only platforms which are hampered by scrolling, TV ads are 100% viewable on every device in almost every case with all BVOD players defaulting to full-screen on tablets, mobiles, TVs and over-thetop players, such as Apple TV, as soon as the play button is pressed, which accounts for 80% of BVOD viewing. On computer-based browsers, which account for less than 20% of viewing, BVOD players default to a large proportion of the screen and many viewers make one click to trigger the player to play full-screen. Viewability has a direct effect on attention and sales impact, as demonstrated by The Benchmark Series.
RegTAM is the official source of TV viewing data for regional Australia. Regional TAM Pty Limited is a joint venture comprising the five free-to-air regional commercial networks – NBN Limited, Prime Television Pty Ltd, Seven Queensland, Southern Cross Austereo, and WIN Corporation Pty Ltd.
RegTAM ratings are Australia’s accepted currency for TV trading in the regional markets. The audience data is used by a range of parties such as TV networks, advertisers, media buyers and program suppliers to aid them to understand viewer behaviour, and in assessing program or network performance.
ROI is the percentage or dollar return of profit or revenue from a given media investment. ROI can be expressed as a percentage i.e. The Payback Australia study, conducted by media audit firm Ebiquity, found for FMCG brands every dollar invested in TV media returned 170% in revenue or in dollar terms. That is, every dollar invested in TV media returned $1.70 in revenue.
In 2016 ThinkTV commissioned Ebiquity, an independent marketing and media consultancy, to determine the ROI of 21 advertisers with a collective spend of $500 million to analyse three years’ of media spend and sales data using econometric modelling. The study found that TV has almost twice the ROI of the next media channel when indexed across four of the country’s biggest advertising sectors: fast moving consumer goods, automotive, finance and e-commerce.
Reach refers to the total number of different people or households or devices who were exposed to a program, or an advertisement, during a given period. Reach % = Reach/Universe Estimate.
OzTAM is the official source of TV audience measurement covering Australia’s five mainland metropolitan markets (Sydney, Melbourne, Brisbane, Adelaide and Perth) and nationally for subscription TV.
OzTAM also measures BVOD consumption through its Video Player Measurement service (VPM).
OzTAM is owned by Australia’s major commercial TV broadcasters (Seven West Media, Nine and Network 10). OzTAM operates separately and independently from all broadcasters and has an independent, non-executive chairman and an external technical auditor, whose role is to ensure OzTAM’s panels perform to specification.
OzTAM ratings are Australia’s accepted currency for TV trading in the metropolitan markets and nationally for subscription television.
Australia has the largest per capita people metered TV panel in the world, consisting of OzTAM and RegTAM’s (see definition in next column) combined panels.
Restricting (capping) the number of times (frequency) a specific consumer is shown a particular advertisement.
Proportion of an advertising frame that appears within a viewable space on the user’s screen as a percentage of total pixels within the frame. Usually reported as a percentage of impressions that met the agreed viewability standard.
An individual’s BVOD viewing across devices is identified by assigning a User ID, for example by having them sign in to a BVOD service. All data that contributes to OzTAM’s VPM reporting service and is fully anonymised. At no point does OzTAM monitor anything other than when a connected device is accessing a network app or browserbased video server. OzTAM collects no information that can identify the person(s) that owns or uses individual devices.
The number of times an individual is exposed to an advertising campaign, program or time slot. For digital video, frequency is usually managed through the implementation of a Frequency Cap (see definition below) when planning media, as higher frequency levels usually come at the expense of reach. This is reported as average frequency and calculated as total number of impressions/reach = average frequency.
The proportion of an advertiser’s target audience that is exposed to a campaign or program, expressed as a percentage of the relevant Universe Estimate for that Target Audience. It is typically used for TV advertising that is bought against a specific demographic or audience segment. For example, if 720,000 women aged 25-39 were exposed to an advertising campaign from the total universe women aged 25-39 of 4,800,000 people then the campaign delivers a TARP of 15 as 720,000/4,800,000 = 15%.
The method by which one calculates the number of unique viewers who are exposed to an advertising campaign, program or time slot. This is done by removing from an estimated audience size any individual who may have seen the same piece of content through more than one medium, thus preventing them from being counted more than once. For example, if Steve watched the same show on his TV, on his PC and his smartphone, it would be counted as three views. A ‘de-duplicated’ audience measurement would report Steve as a single viewer.
Represents the percentage of views of an ad during which the ad was watched to completion. This is calculated by the number of ad impressions delivered to completion divided by total impressions.
Also known as view through rate (VTR) or video completion rate (VCR).
Measurement and reporting of broadcaster video consumption (including reach and frequency) across multiple video screens including mobile, tablet, TV, Connected TV, OTT and personal computer.
Decay or Decay Rate is used to describe the rate at which the impact or effectiveness of advertising diminishes over time. Effective advertising remains in the mind of a person who may not be in the market to purchase the product when they first see the ad. The memory of the ad can be triggered by packaging cues, a song or other visuals but the memories slowly fade over time.
The cost of reaching a single TARP (Target Audience Rating Point, or one per cent of a demographic/audience segment viewing a broadcast program at the time). CPT is expressed as the dollar cost of advertising within a program divided by the number of TARPs it will (or does) achieve. CPT=Total Cost/TARPs. For example, if the Nightly News Bulletin costs $4,000 for a 30 second spot and achieves 8 TARPs against the specified target audience, then the Cost Per TARP (CPT) is: $500.
Cost Per Thousand (CPM) is the cost an advertiser pays to deliver 1,000 ad impressions. CPM = Total Cost/ Impressions x 1000. CPM is calculated by dividing the cost of an advertising placement by the number of people or impressions it delivers (expressed in thousands). For example, if the Nightly News Bulletin costs $4,000 for a 30 second spot and achieves an audience of 500,000 then the Cost Per Thousand (CPM) is $8.
The cost of TV is based on supply and demand, supply refers to the amount of advertising inventory that is available and demand is based on the advertisers requirements for that inventory. The greater the available supply of advertising inventory, the lower the cost while the higher the demand from advertisers, the greater the cost. The price of TV advertising is also influenced by seasonality, the location where you’d like to advertise as well as the programming and the desired audience.
A media agency or the broadcast sales teams can fill you in on the cost of advertising at various times of the year, contact the broadcasters.
If you’re trying to figure out how to stretch your budget further or you’re an SME, get in touch to see how we can help, contact ThinkTV.
The price an advertiser pays every time an online video ad runs through to completion. Cost Per Completed View (CPCV) can be used as a measurement of inventory efficiency, or as a currency for trading video. For example, rather than paying for all impressions, some of which may have been stopped part-way, an advertiser only pays an agreed fee for ads that are viewed to completion (CPCV=Cost/ Completed Views). This is relevant for online-only video platforms such as Facebook, but not for TV where all ads run to completion regardless of whether they are shown online or broadcast.
Brand safety is the importance of placing advertising and brand promotion in environments that do not damage the brand through perceived association with inappropriate content. This is measured as ‘Brand Safe %’ or the percentage of impressions that were displayed in brand safe environments. Technology can be used to block ads appearing on web pages where its appearance might negatively impact the advertiser’s brand.
Consideration needs to be given to a brand’s exposure in an environment that may damage the brand. For example, the brand ad could appear next to or within an unsafe environment such as religious extremism or pornography. This is an important consideration when advertising on online-only video platforms such as YouTube. TV environments are tightly controlled and considered more brand safe. Brand safety has ramifications for the audience’s level of trust in the platform. An environment that is not brand safe is less trusted, as are the advertising messages that the platform carries.
Bot traffic consists of ad impressions made by so-called “bots” rather than humans. Bots, or web robots, are software applications that perform simple tasks on the internet. While they have some constructive uses, they are most frequently associated with fraudulent activities (known as Ad Fraud), such as mimicking a human’s view of an ad and generating misleading impression metrics.
A video ad or video content that initiates to “play” without user interaction or without an explicit action to start the video (essentially automatically starting without a “play” button being clicked by the user).
Detection that the audio content of an ad was played with the volume ‘up’, whether for an audio-only ad or for a video ad. This is a particular consideration for platforms such as Facebook where some audio is toggled ‘off’ by default. OzTAM uses audio matching technologies to measure TV audiences meaning that TV viewing is captured in the ratings only when audio is detected (i.e. the sound is on).
A form of campaign targeting that aims to reach a specific audience, based on their demographic, interests, life stage, behaviour, or most likely a combination of these.
The average number of people (or homes) in a target market that were watching a specific advertising campaign, program or time slot, expressed in absolute figures for that Demographic or Audience Segment. (e.g. 150,000 car buying intenders were watching a commercial break).
A measurement of the impact that advertising has on sales or other brand impact metrics during a specific advertising campaign to determine Return On Investment (ROI). This can be used to allocate the contribution of different media channels to ROI and help marketers maximise the ROI of a campaign. Advertisers use attribution modelling to quantify the contribution of various media activities. Careful consideration should be given to “last click attribution” models, which will attribute the full sales effect to the last click, while ignoring the important role of top of funnel activities such as TV in driving traffic and consideration towards the last click.
Attention is the allocation of mental resources, visual or cognitive, to visible or conceptual objects. Before consumers can be affected by advertising messages, they need to first be paying attention.” The Rising Cost of Consumer Attention: Why You Should Care, and What You Can Do About It by Thales S. Teixeira, Harvard Business School
Video content produced by individuals, often amateurs, often using basic equipment and made publicly available to other consumers. There is little to no means of policing the safety of this content as it can be posted by anyone and viewed virtually immediately.
The delivery of video or audio content over the internet, stored in bits which enables it to be played in real time and without viewers having to wait for all the data to download.
Short Form Video is generally only one to two minutes long and may include news updates, ‘how to’ videos or YouTube clips. Consideration should be given to the brand safety of user-generated short form video. If the content is ad-supported, it typically contains pre-roll advertising which may be skippable or non-skippable.
A set-top box is a peripheral device that connects to a TV set and enables it to link to the internet as well as receiving and decoding digital television (DTV) broadcasts. DTV set-top boxes are sometimes called receivers. A set-top box is necessary for TV viewers who wish to use their analog TV sets to receive digital broadcasts.
Premium Video is professionally produced content, delivered by curated user experiences, in a brand-safe context to highly engaged audiences. Accessed on any screen, it is often viewed within multi-platform TV as either Linear TV or Broadcaster Video-on-Demand (BVOD). In this context it is described as premium because it offers alignment to quality programming, in a brand safe environment, to highly engaged audiences irrespective of the relative cost to advertisers.
Premium Video is defined by its quality and the attributes that make it different from other types of video content including:
Premium Video brings the traditional broadcast strengths of high reach and strong engagement in a high-quality environment in combination with the new digital capabilities across data, targeting and measurement in order to deliver the above five key elements in one package. Premium Video does this in a way that drives real business outcomes in both the long and short-term, offering tangible value to advertisers that cannot be matched by any other medium.
All TV content is produced by professional storytellers using quality audio and video equipment to broadcast standards.
The constantly updating list of stories in the middle of your home page on social platforms such as Facebook and LinkedIn. Newsfeed includes status updates, photos, videos, links, app activity and likes from people, pages and groups that a consumer follows, with the order and nature of what is displayed being determined by an algorithm. Video ads can appear in a Newsfeed and consideration needs to be given to the viewability of these ads given the speed of scrolling through Newsfeed content.
TV watched online is BVOD. It can be watched either live (via live streaming) or on-demand and is available via settop box, personal computer, mobile device or Connected TV. BVOD content is professionally produced, broadcastquality and includes TV shows and movies, archived shows and BVOD exclusives and originals. Sometimes referred to as Catch-Up TV.
BVOD watched over the internet at any time other than at the time of original broadcast.
Other forms of video on demand
VIDEO ON DEMAND (VOD)
A facility offered by online video providers (not just broadcasters) where households or individuals can access a movie, program or clip that can be watched at any time on any device.
ADVERTISER-FUNDED VIDEO ON DEMAND (AVOD)
Any type of VOD service that is funded by the inclusion of advertising in between programs, movies or clips. This includes both BVOD services and services where the content is more heavily skewed to User-Generated Content (UGC) such as YouTube.
SUBSCRIPTION VIDEO ON DEMAND (SVOD)
A type of VOD service where you have to pay a regular subscription to watch content. Most SVOD services don’t offer advertising. Netflix and Stan are examples of SVOD.
TRANSACTIONAL VIDEO ON DEMAND (TVOD)
A type of VOD service that charges for each individual piece of content. TVOD includes movie rental services such as BigPond Movies, Apple Movies etc.
TV received via aerial, satellite or cable is Linear TV, i.e. any TV that is not viewed over the internet. Sometimes referred to as Broadcast TV, it can be watched as Live TV or time-shifted as Playback TV.
Linear TV recorded on a Personal Video Recorder (PVR), VCR or other form of time-shifting technology and watched after the live broadcast. Also referred to as Time-Shifted TV.
Definition: The cost of reaching 1% of a specific demographic.
Formula: CPT= Cost of spot / Tarp (planned of actual)
Formula in action: $300 / 6.2 CPT=$48.39
Learn more about CPT and how to plan your advertising campaign in our booklet; TV Advertising 101: A beginners guide to advertising.
A TV set that is connected to the internet, allowing viewers to not only watch broadcast TV live but also to play games, watch BVOD, access social media and other VOD services. Also known as Smart TV.
Video content that is controlled, enabled and consumed whenever a viewer wants after its official release date or original on-air date and time. Catch-Up TV content can be accessed on set-top boxes, Connected TVs, mobile web, mobile apps, and video streaming services. If it is advertiser-funded then it is also referred to as AVOD; if it is Broadcaster VOD then it is also referred to as BVOD.
An advertisement that appears while a chosen website or page is downloading.
A form of video advertising that runs on a different part of a web page than the main video content on that page. In-Banner Video can run out of a static in-banner ad – e.g. a medium rectangle – this format plays politely at key anchor points on the page without sound until the user interacts. (Also known as “Outstream video”, In- Banner video can include so-called Native video, “In-Feed video”, “In-Article video” or “In-Read video”).
Long form video is generally regarded as single content pieces lasting more than 20 minutes, usually professionally produced TV shows, movies, series and documentary-type videos. If the content is ad-supported, it typically contains breaks, or mid-roll advertising as well as pre-roll advertising.
BVOD watched live over the internet at the same time it is broadcast.
Linear TV (TV received via aerial, satellite or cable), watched live as it is broadcast.