X
alright well thank you very much sir
BrightRoll for enabling as to be here today and thank you very much for being
here it's great to see a lot of IB members
in the audience today but a couple things I wanted to go through that we're
gonna talk about one is
you know looking at some the research that we've done I let's look at 11 where
the money is coming from
and then of course the question is what's holding up video so
Rob young and and a friend were talking about the gap
so we'll we'll reinvestigate the gap a little bit and then the question overall
as
is this a watershed moment in video so when is a video I mean TV and online
video together
so that's basically our agenda for the next hour 15 minutes
now here's the study probably have seen some of these numbers before but this is
from the Canadian media usage study the release
I every year we've been doing this for years what we've done is we broke it
down into formats and as you can see on the far left hand side
is the amount of Canadian consumer time being spent
in the video format whether it's television or online video
is dramatically the largest part %uh the media formats
a approach that there that they re taking radio is next other interactive
is things like chattin email
and enter into newspaper social and gaming so this is a different way
at looking at how consumer time is being spent
and then of course we look at the revenue side so we do another study in
which you are probably well aware of which is the revenue side where we
gather the numbers from the south side
I in a blind format so that we can understand where the growth is
in digital and as you can see by the form outside
is search is very strong but where the growth is
is more vile and video and it's also important to notice that in the mobile
side we have not broken down that number into the mobile video
mobile search for mobile display that's a bit of a methodology problem that
we've identified
so next year will be able to allocate those numbers in their proper spot
but what it means is that you look at that 58 percent growth
in video revenue it actually a higher
number I'm you could probably do the math yourself and figured out on the
back of an envelope
but its it is a higher number than the 58 percent but about $246 million as we
measure it but it's it's somewhere north at that which is a great number to see
that had a growth
alright
and to the point is that the consumers are leading the way as I Brenton and
and our Rob young have I talked about is there's this gap
and when we look at the overall amount of time being spent with media
and then the overall amount of time being spent with digital video
only 14 percent is being spent with digital video
and then we contrast that with the revenue side it's only one percent of
the dollar's
now this kinda gap has existed in the past we've seen this before with
online as was coming as part of the marketplace
we've seen it was searches things grow it's a traditional
very I expected gap that Daddy has always existed as consumers lead the way
and of course marketers will closely look at this
and build up the amount to spend that happens but the fact is that they follow
the consumers
answer the question that we ask is so what's up why is this gap existing
now there's probably a lot of different reasons
and we could probably spend a couple hours chatting about them but really
we're gonna just look at these
3 which we think are some other bigger challenges that we have in front of us
talent rights GRP measurements
and workflow some go through these one at a time talent rates
as you know it for anyone who's been planning media
looks at says ok am planning on this television and I have a commercial that
I wanna move over to the online space and then you start look at the amount of
dollars is gonna cost
for the music and for the talent he go jeez what a problem how am I gonna get
this done
and often things get hold of the media plan because of the amount of dollars at
a cost for the talent rights
well every three years he's talent rights get re negotiated between the ICA
the acai
Natura and 2014 and around June was the year that those
worry negotiated and so there's been a lot of movement in that area to try and
address
how they can make it a lot easier to move this money around and make sure
that the
digital video is gonna get those a television spots in those areas
so there's certainly the racket recognition that has to happen
and there's some good movement in there but the real challenge of course is
around things like the residuals
and I know that these are kinda things are really sound like in the plumbing I
how the media planning and buying an advertising works but really these are
the things that have to get worked out
and so I talk about a residual it means how much exposure is that talent being
given
whether it's an online video or whether it's in television the amount of
exposure
is should be sorta along the same lines as how much the talent right
are so if you have a very big campaign whether it's online video or television
the talent should get more money and that's just the way that the
negotiations work
well the good news is that they've look the desert understood
that their they don't quite have the metrics in place so they're gonna spend
the next year
or so doing a residual study to try and see how they can build a model
for both television and online in a way so that the residuals make sense
i right now the residuals are not making sense and everybody recognizes that and
I will get fixed
GR PEs now we've always heard that you know if we could just have one GRP
number for online video to
and television together to make it really easy would make them flow of
money back and forth
happened quite naturally and that certainly one way to look at it but
of let's understand that the metrics are not necessarily the right there right
now
but we do know that the agencies are doing a great job at figuring it out
in sometimes in at Rock ways and they've looked out building up their formula to
say if I'm spending that amount on television and getting this Amanda GRP
exposure
and they're looking at the numbers that are getting out of their metrics on the
online via side that they have ways to figure it out in
in and be able to report back to to their marketers
in ways that make sense for the people can understand things like cost per
point
and
also understand the the value that can be brought to the table
in making these dollar shifts back and forth no courses also
when you think about it attribution modeling is becoming far more
prevalent in the market so whether it's GRP czar impressions arguable
impressions
or sales data and weather data it's all being smashed up into some big data
big after attribution model so it kinda comes back to
to the question have our GRP is really that necessary
or maybe there's something that's better that's gonna come along but nonetheless
it's being worked out in the market and that's important and then of course we
look at things that are happening as
you know in the states for instance through the coalition at media
measurement
which is called Sam and they're looking at things on how to build these
matching panels and census data together so that they can
give advertisers marketers and agencies and guidance
on how to bring these channels together in some way that make sense
so there that those are all interesting things that can bring those
those numbers together to help the buying side of things now here's
probably one of the biggest challenges and an earlier speakers talk to this a a
little bit so
I'm you know we we share the the building with media ocean and we've seen
them
talk about a couple different things and and this is an area where there's a
probably one of our biggest challenges you know when we look at the TV buying
space
about 2 percent of the the overhead is going into the actual behind mechanics
so it's been sixty years have television that had a long time to
optimize the bars optimize the work Los Angeles and so you can see here on the
far right
most of what they do is in the digital space meaning
that they were able to pass back in for things like I owes
terms and conditions contracts back and forth
it's all digitized except for a few things so they've really really paid
this road in a nice way
and you compare that with where digital iz
now let's also keep in mind we've only been at it for a few years
right to look at all the steps error and most to them
still manual processes for a digital media thing
so basically when it comes down to it most of what you can do in the digital
space
in terms of digital workflow is really send the insertion over and then
somebody on the other side click CSX at ten of you go
now course programmatic RTB has been dealing with the park negotiating
the ability to price the inventory and that happening now digitally
but remember that only still a fraction how much
workflow is being done in the program in the overall media space
only a fraction of that is being done programmatically so that's why we
haven't let that out there
so really quickly show 0 that is actually a percent
is the challenge right and as you guys now
from especially on the agency side at discrepancies
manual workflow Excel spreadsheets it's the bane of our existence and that needs
to get fixed
well the good news is we're working on it obviously we've been working on it
for years
in discussions but again I think that there's a far
greater effort happening right now between buyers and sellers
to address this problem in fact we're having a meeting tomorrow about it
tomorrow morning at nine o'clock
actor to address the issue between some the CF hours in IIT people
between publishers and agencies so I'm very hopeful that rocks Lee be able to
I move the needle in this area very very quickly and just as a
sort of a contrast I love what we saw happening on television it was my
colleague
you know our a TV buyer about four and a half years ago basically working in
collaboration with a number a publisher's
broadcasters the base we said let's make this work
and everybody held hands together and they were actually made it work from our
perspective and hear veils was the the product at the time
so is doable right
it's just that we haven't pushed it harder not yet and we will continue
moving on a long man space
it's a really just in summary
there's the three points 1 as everyone has said earlier today
follow consumer behavior Canadians are very quick adopters have technology
whether it's things like
smartphones tablets
but also just in their behaviors they love to better to play around with those
things adopting gaining
online video viewing and and on and on and then from a buying perspective we
all wanna buy holistically with TV
so really it sorta and overall media strategy that looks at everything
together
that's really what it one of the keys to growth is to try and pull these things
together into a holistic strategy that's
possibly based on paid owned and earned approaches
and then of course as I said the digitized asiana workflow
is critically important to the market and this is a course where the
Association fits and these are the kinds of things where we can bridge between
the advertiser
the agency in the publisher and the technologies to say let's pave this road
together
and make sure that our business urs are spending more time
on strategic things and last time pushing paper around
and emailing Excel back and forth a nap when I thank you very much for
attending today and of course if there's any questions that were tweeting a on
Wed be happy to answer