Live Digital Video Advertising Live Digital Video Advertising

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1 Live Digital Video Advertising Live Digital Video Advertising Generate revenue, increase video AD inventory by device Generate revenue, increase and geography video ad inventory by device and geography

2 The Live Digital Advertising Marketplace Premium digital video continues to grow and mature at a rapid rate, due to notable increases in viewing of ultra-premium content, MVPD-authenticated users, new streaming devices, and trusted deep-pocketed advertisers. Long-form on-demand and live streams were the fastest growing content dimensions. As more and more viewers go digital to access content, usage and advertising across multiple devices have exploded in popularity. Mobile viewing alone has seen a 105% increase year-over-year. Driving this trend is live and long-form content each which have accounted online ad views for live and long-form content have grown 140% and 50% respectively year-over-year. Leading agencies and brands have embraced premium digital video s value proposition. With its engaging content, hard-to-reach audiences and advanced targeting capabilities, marketers are shifting spend to digital video, aligning budgets to viewership. What exactly is dynamic ad insertion? Dynamic means continually changing. With dynamic ad insertion, network operators and content rights holders can provide targeted ads that can be swapped in and out of their television programming as it s delivered to the end users watching on an Internet-connected device. Just as important, the video ads are provided in the correct video format depending on the consumer s device. The requirement for live ad insertion on digital devices could not come at a more important time. As OTT trends continue to rapidly grow, more video and ads are being viewed on multiple devices. According to FreeWheel s Q Video Monetization Report, live and long-form content are the main drivers of this progress, demonstrating 140% and 50% YOY growth respectively, increasing overall online ad views 43% YOY. Live and Long-form Content Driving Online Ad Views +140% +17% +17% +50% Short-form (0-5 min) Mid-form (5-20 min) Long-form (20+ min) Live (All) Ad View Growth by Content Duration Q vs. Q This data tells a clear and familiar story: premium live digital video continues to grow and mature at a rapid rate. This progression is validated by notable increases in viewing of ultra-premium content, MVPD-authenticated users, new streaming devices, and trusted deep-pocketed advertisers. Marketers are shifting spend to digital video, aligning budgets to viewership. And intelligent advertising is key to the success of these spends. Even more, advanced targeting like dynamic ad insertion powered by NeuLion Digital Platform has helped the Big Ten Network deliver more ads in a meaningful way on its digital product, BTN2Go. 2

3 globally distributed television network dedicated to covering one of America s premier collegiate conferences the Big Ten Conference. and Canada, including carriage by all the major video distributors, such as DIRECTV, DISH, Verizon FiOS, AT&T Mediacom, RCN, WOW!, and approximately 300 additional video providers across North America. telecasts, on-demand content, and additional exclusive live and on-dmeand games and programming on smart- Riding the growing trend of viewers going digital to watch all the action anytime, anywhere; BTN continuously looks to capitalize on advertising possibilities outside of its TV broadcast channel. NeuLion s platform, incorporating integration with FreeWheel and other ad decisioning services, increases sellable digital advertising inventory for pre-roll, mid-roll and post-roll ads that can be delivered dynamically live by device and geography. BTN is on air 24 hours a day, 365 days a year Live & Streaming Events Across All Platforms 40+ Football Games 105 Men s Basketball Games 55 Women s Basketball Games 100+ Olympic Sports Event Men & Women s Basketball Tournaments Dozens of Championship Events 3

4 About NeuLion NeuLion is powering the next-generation video experience. As a worldwide leader in providing interactive and engaging experiences for rights holders alike on multiple consumer electronics platforms, NeuLion specializes in digital video broadcasting, distribution and monetization for the world s top players. The NeuLion Digital Platform is based on a Service interfaces, NeuLion is able to integrate with numerous entities in multiple ways. The architecture diagram below provides a window into the consumer-facing services. As an end-to-end technology service provider, NeuLion s platform does everything from signal capture, encoding and transcoding to HD delivery, integration of interactive features and analytic reporting to deliver the top digital experiences on multiple consumer devices. Partners and Bright House Networks. The NeuLion Digital Platform Providing digital video broadcasting, distribution and monetization of live and on-demand content, up to 4K, to Internet-enabled devices. About FreeWheel FreeWheel helps the largest players in the television industry generate revenue from their ad-supported content. (MRM) was purpose-built to manage ad sales rights in the world of digital video. This ad management platform allows content companies to generate more revenue across partners, devices, and environments. FreeWheel s Stream Stitching product allows companies to monetize live, simulcast, and on-demand content with when integrated with the NeuLion s Digital Platform supports linear ad formats (pre-, mid-, and post-roll), and, through a hybrid solution, will also support companion and overlay formats; rich media formats from some of the most prominent providers in the mobile and desktop space are also supported. 4

5 Technology Integration for BTN2GO NeuLion and FreeWheel integrated their technology platforms to provide the Big Ten Network with a seamless live video delivery end-to-end solution with live dynamic mid-roll advertising on multiple devices. The mid-rolls create a larger ad inventory beyond pre-rolls and post-rolls which equates channel stream and all live events delivered on BTN2Go. It s a huge new advertising force, Michael Calderon, VP of Programming and Digital Media for BTN says. As we have more and more consumption of video on BTN2Go, we ll be creating addition ad inventory to feed the marketplace and build our business. How does it work? To start, BTN marks the video feed with cue-in, cue-out, and duration times for each advertising spot, after which the signal is pushed to the NeuLion Digital Platform for live encoding. Within NeuLion s advanced platform, the signal is transcoded into various bitrates and formats to prepare for distribution on multiple internet-connected devices including PC, smartphones, and tablets. NeuLion s platform supports many industry standards to provide a consistent video viewing experience across multiple devices including AVC, HEVC, HLS, and MPEG-DASH. Beyond the high quality viewing experience, the NeuLion player allows the FreeWheel and other customers through the seamless integration of both technologies. HLS players on Android and Windows 8 devices. Beyond the high quality viewing experience, the NeuLion player allows the FreeWheel Stream Stitching product the seamless integration of both technologies. As mentioned above, the NeuLion Digital Platform inserts the proper tags into the stream where by it proper spots. On the web, throughout the video playout, SCTE104 cue-out and cue-in events and proceeds to play any associated ads that are booked at those times. On ios and Android devices, the HLS stream has ads stitched into the stream for each individual user in order to provide a smooth transition between the ad and live video. All ads on BTN2Go are dynamically delivered based on the viewer s geography to provide more meaningful and relatable advertisements. NEULION DIGITAL PLATFORM SCTE35/SCTE104 INJECTOR + VIDEO SIGNAL LIVE ENCODING DEMUXING & STREAMING CDN NEULION ADAPTIVE DELIVERY AD ENGINE & STITCHER SERVER 5

6 NeuLion s Digital Platform, and integration with FreeWheel s Stream Stitching product, has delivered both technical and business NeuLion s live advertising delivery solution has allowed BTN to: Deliver advertising using program metadata and the EPG. Deploy pre, mid and post-roll ads nationally and locally thereby increasing ad inventory. Increase the value of an ad spot. Trigger ads with various business rules. Delivering ads dynamically has truly enhanced advertising on BTN2Go, allowing ads to be inserted into the network s digital programming based on device and location to better target their viewers and thereby For more information: TEL: I DANA.WILLIAMS@NEULION.COM I NEULION.COM FOLLOW US: