Deloitte’s Digital Advertising model is designed to provide planning and analytics for advertising on streamed internet content, particularly television series. The advertising business process covered in this application consists of four main parts. Part one is the licensing of shows, which are typically licensed for a specific period of time, or viewing window. Part two is the estimation of audience size and demographic characteristics for each show and viewing window. Part three involves planning the sale of ad slots to advertisers based on target segments for each episode of the series, and part four is the analysis of actual results to the plan.
The Manage Licensing Windows dashboard allows the user to enter licensing contract details that will determine length and contract terms for viewing windows. Licensing windows create the capacity – estimated views per episode – that are the basis for selling advertising. Contract terms are start date, end date, streaming cost per hour, and text description for each licensing contract.
The Estimate Audience Size by Episode dashboard allows the user to enter estimates for both audience size and the digital conversion rate, which drives the calculation of episode views per week.
The Target Audience Segments dashboard gives the user the ability to select a different target audience for each advertising slot for a given episode based on the demographics for the show. This feature allows the user to specify a range of target audiences for an episode based on ad slot.
The Plan Advertising Revenues dashboard allows the user to enter assumptions for the CPM Rate (cost per thousand impressions), which in turn drives the revenue calculation. It also allows the user to adjust the conversion rate to modify views if needed.
The Plan Ad Slot Revenues dashboard allows the user to plan and revise ad slots by audience target segment. This is a crucial feature as ad planning changes during the later weeks of a viewing window for an episode.
The streaming internet business model requires management to have the ability to manage licensing and the associated contracts for potentially thousands of television episodes. The application enables users to link episodes to licensing contracts and viewing windows, thus automating the process of licensing management.
Episode and Ad Slot Level Planning
Effective management of digital advertising inventory requires detailed planning at the level of episode and ad slot by week (or by day in more demanding cases). estimating the inventory of potential impressions that can be sold to advertisers. The application automates the calculation of impressions based on planning assumptions.
Data Driven Target Audience Planning
One of the compelling advantages of advertising on streaming content is the opportunity to target multiple audience segments during a viewing window. The application is designed in a way that allows media managers to plan advertising revenues based on measurement data of audience demographics such as age group and income range, and to revise the plan during the remaining weeks of the window.
Detailed Revenue Planning and Analysis
Reporting and analytics are critical to successful planning of digital advertising revenues. The application tracks actual and plan by week, by four-week period, and for year to date to give users multiple comparisons of plan and actual views, audience impressions, and revenues.
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