Our entertainment now comes from “Valleywood,” which, as Rany Ng, Google’s director of product management for video advertising, explained in her NAB keynote address, is the merger of Hollywood and Silicon Valley. Valleywood means change: change in how people view content (including new options such as binge watching) and change in how advertisers reach those viewers.
“It’s created this massive explosion of content,” Ng said. “We’ve entered in this golden age of viewers.”
The entertainment industry has shifted from one of scarcity to one of abundance, Ng said. Multiscreen viewing has grown by over 500 percent in recent years, she noted, and viewers now watch three more hours of online TV per month than they did only last year.
Advertisers are also trying to deal with the shift to abundance. While 20 years ago they could work with the 4 major networks and know they were reaching their customers, today they have many more choices.
In this new landscape, there are three things programmers and distributors need to think about, Ng said:
Capturing the moments that matter: Brands can’t afford to be on every screen all the time, so they need to be selective and offer relevant messages to viewers.
Discovering new moments: Online TV metrics and ratings have “become this massive logic puzzle,” so advertisers need forecasting that helps them reach a desired audience.
Monetizing those moments: Google is seeing success with its programmatic marketplace for premium buyers and sellers, Partner Select.
Google acquired video advertising company mDialog in June 2014, and Ng announced that Google has now connected mDialog’s inventory with the DoubleClick Ad Exchange. This will help content owners sell programmatic ads on their inventory across multiple screens.
Google is expanding the tools available in DoubleClick for Publishers, Ng announced, to help publishers forecast their available inventory with greater accuracy. DoubleClick for Publishers now shows the impact from patterns in commercial breaks, and will soon let publishers use seasonality in forecasting upfront cycles, and also create models based on offline data.
Shortly before it acquired mDialog, Google created Partner Select, a programmatic marketplace for premium content and brands. Ng offered some stats on its success, noting that it now includes over 30 broadcast and premium content publishers and over 20 brand advertisers. Partner Select ads have a 74 percent completion rate, she said.
Ng concluded the keynote by urging attendees to think about letting advertising create moments, and explore new models of advertising.