Video ad networks (also called Connected TV ad networks) are private marketplaces (PMP) that link advertisers and publishers through a cloud services platform. The use of ad networks provides a simple way for advertisers to publish and pay for ads that are automatically inserted into Internet TV programs that match criteria (programmatic advertising). This enables Internet TV service providers to earn money from advertising without having to hire and manage a staff of advertising people. Advertisers can select geographic areas, content types, other criteria and setup budgets. Internet TV content owners (publishers) enable insertion of ads into their programs (pre-roll, interstitial, post-roll, and other formats) on the streaming systems they manage.

Connected TV video ad networks include Doubleclick for Publishers (DFP), AOL Platforms (aolplatforms.com), Adrise (adrise.com), Tremor Video (tremorvideo.com), YuMe.com, and Tube Mogul (tubemogul.com), and others. To see an updated of video ad networks, go to http://InternetTVPlus.com/VideoAdNetworks

Programmatic Advertising

Programmatic advertising is the use of rules and processes to automatically select and insert ads into content programs. The use of private marketplace ad networks (PMPs) with programmatic advertising enables real time dynamic ad insertion (DAI), ad selection and customization using third party data management platforms (DMPs), and interactive options for the viewer (control and direct response).

Dynamic Ad Insertion (DAI)

Dynamic ad insertion (DAI) is the process selecting and inserting an advertising message into a media stream or graphics image display area when the insertion becomes available (real time). DAI insertion may be into the TV streaming system (server side) or at the viewing device (client side). The ads may be selected inserted on demand or they may be pre-loaded into the media player (viewing device) or streamer (system equipment).

The selection of ads for insertion may be done using information about the viewer that is available from multiple sources such as user profiles, content viewing history, and data management platforms (DMPs). The ad selection process and results can be analyzed and optimized by data side platforms (DSPs)

Data Management Platforms (DMPs)

Data Management Platform (DMPs) are systems that store information (data warehouse) related to people and/or devices such as demographic information, buying history, and other details. Marketers and advertising systems can use DMPs to provide additional information about potential customers so they can better target offers and customize promotional materials.

To use a DMP, some viewer identifying information is sent to the DMP which finds the person, gathers additional desired information, and returns the details to the requestor. The requestor can then use the information to select products, offers, and modify promotional materials. This may be done fast (almost instantly). The use of additional qualifying information can dramatically increase the advertising effectiveness.

DMP providers include Adobe AudienceManager, Oracle DMP, eXelate, Krux and Lotame. To see an updated list of DMPs, go to http://InternetTVPlus.com/DMPproviders.

Demand Side Platforms (DSPs)

Demand side platforms (DSPs) are systems that analyze customer information for ad targeting and customization. DSPs may use multiple data sources (DMPs) to get a bigger picture of potential customers interests and needs. The criteria can include demographics, household income, web browsing behavior, purchasing information, location, devices used, and other information. DSPs can maintain a history of viewer engagement activities to continually update (optimize) the ad selection, customization, and insertion process.

DSP providers include Acxiom, Bluekai, Lotame, Datalogix, Experian, TruSignal, Alliant, IXI and comScore. To see an updated list of DSPs, go to http://InternetTVPlus.com/DSPproviders.

Connected TV Ad Interactivity

Connected TV ad interactivity is the ability of a person to select and control the presentation or transfer of an advertising ad or message. Because Internet TV advertising is commonly provided by a two-way Internet connection, ads can be designed with additional controls and content that the viewers can engage with. Because the interaction commands are transferred over existing Internet connections, no significant changes are needed for the TV delivery network.

A key challenge for interactive advertising is the extra development steps and content that is required. Media agencies can be a barrier to interactive ads because it takes extra effort and new skills to develop interactive ad campaigns. Interactive campaigns involve providing audience choices at interaction points where data can be gathered and additional response information (e.g. video clips, graphics, forms) may be provided.