1、 #FreeWheelVMR / Q1 2018 / FREEWHEEL VMR 1 PREMIUM VIDEO: Seizing the Opportunity Q1 2018 #FreeWheelVMR #FreeWheelVMR / Q1 2018 / FREEWHEEL VMR 2 The FreeWheel Video Monetization Report is released quarterly and highlights the changing dynamics of how enterprise-class content owners and distributors

2、 are monetizing premium digital video content. The data set used for this report is one of the largest available on the usage and monetization of professional, rights-managed video content worldwide, and is based off of census-level advertising data collected through the FreeWheel platform. Letter f

3、rom the Authors PAGE 3 Q1 2018 Summary PAGE 4 Core Observations: U.S. PAGE 6 Core Observations: Europe PAGE 17 Conclusion PAGE 28 Author Bios PAGE 29 Glossary PAGE 30 Premium Video: Seizing the Opportunity TABLE OF CONTENTS Q1 2018 #FreeWheelVMR / Q1 2018 / FREEWHEEL VMR 3 LETTER FROM THE AUTHORS TH

4、E VALUE OF PREMIUM VIDEO HAS NEVER BEEN STRONGER. Big screen viewing, controlled ad loads, and the growth of live offerings create highly engaged audiences. However, it is a tumultuous time for the broader advertising industry. Brands are demanding transparency, control, and a high return on investm

5、ent in a brand-safe environment. Big advertisers continue to vocalize their grievances with Facebook and Google, citing lack of transparency into the content against which ads are placed and concerns that ads are viewed for no more than a few seconds. Meanwhile, the entire digital marketing ecosyste

6、m is working through the impact of Europes new General Data Protection Regulation (GDPR), which requires stricter management of consumer data. Yet despite these challengesor perhaps, in part, because of thempremium video is well-positioned to thrive. The New TV Ecosystem allows advertisers to couple

7、 the scale of premium television with the targeting and measurement capabilities of digital, while tightly-controlled sales channels deliver a brand-safe environment. The first quarter of 2018 provided evidence of premium videos position of strength: LIVE AD VIEWS grew over 65% in both the U.S. and

8、Europe powered by tentpole events like NCAA March Madness, Super Bowl LII and the Winter Olympics. THE BIG SCREEN is at the center of the viewing experience with 50% and 38% of all ad views, in the U.S. and Europe respectively, being delivered on over- the-top (OTT) and set-top-box (STB) devices. SY

9、NDICATED VIEWING on IP-enabled platforms more than doubled in the U.S. as multichannel video programming distributor (MVPD) TV Everywhere offerings enabled viewers to watch what they want, where they want. THE AD EXPERIENCE remained engaging with 70% of mid-roll breaks containing four ads or fewer i

10、n the U.S., and completion rates of over 90% in both the U.S. and Europe. 2018 is already proving to be an eventful year. The AT&T / Time Warner acquisition is approved1, Nielsen announced it would partner to deliver new measurement capabilities in OTT and STB environments2, and bullish TV Executive

11、s look to demand higher CPMs coming out of the Upfronts3. The ecosystem continues to focus on innovative live delivery for the FIFA World Cup, as well as ensuring GDPR compliance. It is a time of both opportunity and challenge for the advertising industry, but premium video is ready to deliver audie

12、nces at scale in a brand-safe manner. REBECCA RANGELEY Head of Business Insight International HASAN IQBAL Senior Manager, Advisory Services ESRA AKTURK Associate, Advisory Services YING WANG Director, Advisory Services Digital Advertisings Challenges Are an Opportunity for Premium Video 1. “ATT-Time

13、 Warner Ruling” (2018). Retrieved at: 2. “Nielsen and FreeWheel to Expand Measurement Across OTT, Set-top-box, VOD” (2018). Retrieved at: 3. “2018 Upfront Advertising NBC, ABC, FOX sales” (2018). Retrieved at: #FreeWheelVMR / Q1 2018 / FREEWHEEL VMR 4 Premium Video Ad Views 35 % FOCUS ON U.S. LIVE V

14、IEWING Live Viewing Comprises Growth in Live Ad Views this Year Q1 2018 Q1 2017 +77 % Live Viewing Growth Accelerates Live viewing now comprises 35% of all ad views, up from just 5% five years ago, and high growth in smartphone viewership demonstrates consumers are willing to watch live content wher

15、ever they are. The increasing availability of live inventory represents an opportunity for marketers to be associated with the most topical content and drive in-the-moment conversations with viewers. Note: All growth comparisons between Q1 2018 and Q1 2017 figures Smartphone Live Ad Views Growth Q1

16、2017 Q1 2018 +171 % Growth YoY Live Viewing Composition 16 % 76 % 8 % EntertainmentSportsNews Growth YoY #FreeWheelVMR / Q1 2018 / FREEWHEEL VMR 5 FOCUS ON U.S. LIVE VIEWING Super Bowl LII The most live-streamed Super Bowl ever. Average Minute Audience of 2.02M Viewers 6 NCAA March Madness live stre

17、ams content across a record 16 platforms, including select mobile VR systems and the Xbox One gaming console5. NBC Sports Digitals live stream of Super Bowl LII ranks as its most streamed single game ever. Fans consumed 633.7 million live streaming minutes of Super Bowl Sunday coverage across 6.1 mi

18、llion unique devices 16 Unique Live Streaming Platforms NCAA March Madness Note: All growth comparisons between Q1 2018 and Q1 2017 figures NBC Sports digital coverage sets Winter Games records with 2.17B total streaming minutes. NBCU employed a new Total Audience Delivery (TAD) measure of aggregate

19、 viewership across linear and digital endpoints. 11 % Over the Linear NBC- Only Audience 4 Winter Games LIFT 4. “NBCUniversal Dominates With Most Robust Winter Games Presentation In History” (2018). Retrieved at: dominates-with-most-robust-winter-games-presentation-in-history/ 5. “NCAA March Madness

20、 to Reach 16 Platforms” (2018). Retrieved at: https:/www. 6. “NBCs Super Bowl LII Posts Total Audience Delivery Average of 106 Million Viewers” (2018). Retrieved at: Tentpole Events Drive Innovation This quarter, tentpole events like NCAA March Madness, Super Bowl LII and, in particular, the Winter

21、Olympics drove huge digital audiences. Brands and publishers seek to associate themselves with these one-of-a-kind experiences in new and innovative ways. For example, Turner Sports, CBS and the NCAA live streamed twenty-one games in virtual reality on the Live VR app. #FreeWheelVMR / Q1 2018 / FREE

22、WHEEL VMR 6 The Most Definitive Data Available on Premium Video Q1 2018 Core Observations: U.S. #FreeWheelVMR / Q1 2018 / FREEWHEEL VMR 7 2018 is off to a strong start. In Q1 2018, video views grew by 35% and ad views grew by 34%, compared to Q1 2017. All formats experienced growth, with clips and f

23、ull-episode ad views growing 7% and 25% respectively, but it was live that saw the highest growth at 77%. Full-episode content constitutes 53% of ad views and remains a key format for attracting and retaining viewers. Streaming services from tech players garnered headlines for their big programming

24、budgets and investments in original content. For example, Netflix announced an $8bn budget for 2018, half of which is for original programming, but a recent study from 7Park Data estimated that 80% of its viewership is attributed to licensed programming7. Content is still king and having deep pocket

25、s is not necessarily a guarantee for success. Continued Investment in Premium Video Content and Features OVERALL MARKET 7. “80% Of Netflix Viewership Comes From Licensed Content, Not Originals (Study)” (2018). Retrieved at: All content formats experienced growth, but live saw the highest growth at 7

26、7%. CHART 01 Total Video Start and Ad View Growth, U.S. Q1 2017 vs. Q1 2018 CORE OBSERVATIONS: U.S. +35% VIDEO VIEWS +34% AD VIEWS CLICK TO TWEET #FreeWheelVMR / Q1 2018 / FREEWHEEL VMR 8 CHART 2 Content Composition and Growth by Format, Ad Views, U.S. Q1 2017 vs. Q1 2018 Content Format Composition

27、Q1 2017 vs. Q1 2018 Content Format by Vertical Q1 2018 CLIPS (0-5MIN.)FULL-EPISODES (5+ MIN.)LIVE Live viewing now comprises 35% of all ad views. Although sports content continues to be the largest genre, news and entertainment content are also growing as TV Everywhere offerings becoming more ubiqui

28、tous. The increasing availability of live inventory across genres represents an opportunity for marketers to be associated with the most topical content. Many brands will be able to derive value from being part of the real-time conversations that surround live content. This years Winter Olympics ach

29、ieved a Games record for total and live streaming minutes8. NBCU employed a new Total Audience Delivery (TAD) measure of aggregate viewership across linear and digital endpoints. TAD recorded nearly 20 million viewers in primetime over 18 nights on all endpoints, representing an 11% increase on the

30、linear-only viewing figures. In Q1 2018, clips comprised 12% of ad views. In addition to this content format being an important monetization source, many publishers also use clips as a tool for driving awareness about their full episode and live content. Q1 2017Q1 2018 16% 60% 24% +7% YOY 12% +25% Y

31、OY 53% +77% YOY 35% Entertainment 23% 96% 16% Sports 39% 2% 76% News 38% 2% 8% 8. “NBCUniversal Dominates With Most Robust Winter Games Presentation In History” (2018). Retrieved at: 26/nbcuniversal-dominates-with-most-robust-winter-games-presentation- in-history/ CORE OBSERVATIONS: U.S. CLICK TO TW

32、EET #FreeWheelVMR / Q1 2018 / FREEWHEEL VMR 9 CORE OBSERVATIONS: U.S. Premium video viewers have come to expect both control and choice when it comes to how they watch content. Users are increasingly end-point agnostic, but for advertisers, it can be difficult to build a media plan that incorporates

33、 all devices due to differences in platform capabilities. In OTT and STB environments, targeting and measurement capabilities are not as established as they are in desktop and mobile environments. For instance, there is limited ability to use device IDs and to integrate with third-party verification

34、 solutions. To address this, publishers and distributors are entering into custom agreements with measurement companies to be able to analyze audience data. Most recently, Nielsen and FreeWheel announced they will work together to expand measurement to OTT and STB VOD inventory9. In Q1 2018, 50% of

35、ad views were consumed on the big screen (OTT and STB VOD combined), 24% on desktop, and 27% on tablet and smartphone combined, demonstrating the demand for content across all endpoints. Desktops, tablets, and smartphones are all very much multi-format devices. While the big screen is still the most

36、 effective platform to bring viewers together around popular content, viewers will engage with long-form content on smaller screens. One of the quarters most notable trends was the growth of live viewing on smartphones, which was up 171%. Viewers are willing to consume live content wherever they are

37、, demonstrating the universal appeal of this format and justifying why so many publishers are investing in developing unique live content experiences. Viewers Are Empowered Across Multiple Endpoints DISTRIBUTION 9. expand-measurement-across-ott-set-top-box-vod.html #FreeWheelVMR / Q1 2018 / FREEWHEE

38、L VMR 10 CHART 3 Ad View Composition and Growth, by Device, U.S. Q1 2014 Q1 2018 CORE OBSERVATIONS: U.S. DESKTOP TABLET OTT STB VOD SMARTPHONE +14% YOY +17% YOY +62% YOY +20% YOY +37% YOY Q1 2014Q1 2015Q1 2016Q1 2017Q1 2018 Q1 2014Q1 2015Q1 2016Q1 2017Q1 2018 79%67%37%31%24% 3%8%22%32%34% -14%16%16%

39、 11%17%18%13%18% 7%8%9%8%9% COMPOSITION SHARES BY QUARTER DESKTOP TABLET SMARTPHONE STB VOD OTT CLICK TO TWEET #FreeWheelVMR / Q1 2018 / FREEWHEEL VMR 11 CORE OBSERVATIONS: U.S. CHART 4 Format Composition by Device, Ad Views, U.S. Q1 2018 36%31%33% DESKTOP 100% STB VOD 44%3%53% OTT 36%20%44% SMARTPH

40、ONE 53%13%34% TABLET CLIPS (0-5MIN.)FULL-EPISODES (5+ MIN.)LIVE CLICK TO TWEET #FreeWheelVMR / Q1 2018 / FREEWHEEL VMR 12 CORE OBSERVATIONS: U.S. The majority of video monetization continues to occur on publisher owned and operated (O&O) platforms, but a significant and growing proportion is through

41、 syndicated viewing. In Q1 2018, there was 30% year-over-year growth in syndication leading to an overall rate of 39%10. The primary growth driver was MVPD distributed content delivered via IP-enabled platforms (websites, mobile apps and OTT devices), which grew 103%. This is a continuation of the t

42、rend observed throughout 2017, as cable subscribers access their existing providers TV Everywhere capabilities, as well as the rise of virtual multichannel video platforms (vMVPDs). VMVPDs are now an important part of the market with the number of subscribers tripling since 201311. Dish recently rel

43、eased numbers for Sling, the market leader, revealing it had 2.2 million subscribers by the end of 2017, up from 0.6 million at the end of 201512. These packages allow viewers to stream live content without having to pay for larger bundles. Interestingly, research from The Diffusion Group estimated

44、that 37% of vMVPD subscribers also had a traditional pay TV subscription13. This suggests viewers dont yet feel vMVPDs deliver on all their consumption needs. From a monetization point of view, many publishers still include impressions from vMVPD live streams in their Nielsen C3/C7 ratings, meaning

45、they are not yet enabled for dynamic ad insertion. Feature improvements in inventory management controls and access to programmatic channels helped enable 37% growth in STB VOD inventory, broadly in line with the market. Portals like Hulu and YouTube also remain important syndication platforms, but

46、growth is more moderate. MVPD TV Everywhere Offerings Drive Growth DISTRIBUTION CHART 5 Share and Growth of Ad Views by Syndication Platform, U.S. Q1 2018 Breakdown by Channel 23% 39% 38% +103% YOY +37% YOY +7% YOY MVPD (IP PLATFORMS) MVPD (STB PLATFORMS) PORTALS Syndicated7 +30% YOY39 % Total Volum

47、e of Ad Views, U.S. 10. For 2018 a methodology change has been introduced for US syndication. Ad views from STB VOD (those on a box that accompanies a cable/broadcast/satellite setup) are now included in syndicated adviews 11. “The Number of US Cord-cutters has Tripled Since 2013” (2018). Retrieved

48、at: news/73965-number-us-cord-cutters-has-tripled-since-2013.html 12. “Sling TV now has 2.2M subscribers, making it the largest internet-based live TV service” (2018). Retrieved at: tv-service/ 13. “Virtual MVPDs Ended 2017 with 5.3M Subs: Study” (2018). Retrieved at: virtual-mvpds-ended-2017-53m-su

49、bs-study-418107 CLICK TO TWEET #FreeWheelVMR / Q1 2018 / FREEWHEEL VMR 13 CHART 6 Ad View Share by Advertiser Industry, U.S. Programmers Q1 2018 18% Consumer Packaged Goods CORE OBSERVATIONS: U.S. 14. “The Biggest Companies in the TV Industry are Banding Together to Arm Themselves Against Google and Facebook” (2018). Retrieved at: http:/www. together-to-arm-themselves-against-google-and-facebook-2018-4 15. “NBCU Will Join Open A.P. Audience-Target