An Initiative To Enable Inflight Advertising To Join The Global, Cross .

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Inflight Advertising Initiative An Initiative to Enable Inflight Advertising To Join the Global, Cross-Platform Advertising Ecosystem Michael Childers, Chief Consultant, Content & Media Strategy Chair, APEX Technology Committee Member, APEX Board of Directors

Inflight Advertising Initiative The Airline Passenger Experience Association (APEX) consists of some 400 corporate members, including about 100 airlines, as well as: Airframers, including Airbus and Boeing Major movie studios: Warner Bros, Disney, Universal, Sony, Fox and Paramount Major IFEC systems providers, including Panasonic Avionics, Thales InFlyte, Lufthansa Systems, Gogo Major media companies around the globe

Inflight Advertising Initiative “Embedded” IFE is architected to reduce weight and heat in the inflight environment. Architected around a 2-year development, 10-year deployment cycle. Supported by a 30-day exhibition cycle and a 45-60 day advance delivery schedule. PEDs emerging as the client-side of the IFE network.

Inflight Advertising Initiative Digital Advertising: The field of advertising outside of IFE: A recent Pew Research Report indicates that 61% of Americans ages 18-29 say the primary way they watch television now is via streaming services on the internet, giving rise to the acceleration toward tipping point we are experiencing. Older adults still watch through cable, satellite or over the air, although a segment of that demographic is steaming only. Weakening revenues and advertiser confidence Anchored in broadcast Fragmentation: broadcast/cable/satellite has lost ground to the Internet, OTT (Amazon, Hulu, Netfix), “digital place-based” and “mobile out-of-home”*consumption. Advertising workflows have become increasingly automated as to ad placement, and as to data capture and reporting. Advertising whose views cannot be verified are of diminishing interest to advertisers. *In 2017, a total of 22.2 million U.S. adults will have cut the cord on cable, satellite or telco TV service to date — up 33% from 16.7 million in 2016 — the researcher now predicts. That’s significantly higher than eMarketer’s prior estimate of 15.4 million cord-cutters as of the end of this year. Meanwhile, the number of “cord-nevers” (consumers who have never subscribed to pay TV) will rise 5.8% this year, to 34.4 million. –Variety, 13 Sept 2017 For the TV biz, there’s another worrisome trend: People are watching less traditional television. For the first time, in 2017 average TV viewing in the U.S. is expected to drop below 4 hours per day, eMarketer predicts. Average time spent watching TV (excluding digital) among American adults will drop 3.1%, to 3 hours 58 minutes this year. Digitalvideo consumption, meanwhile, continues to climb. U.S. adults will consume 1 hour 17 minutes of digital video per day on average in 2017 (excluding time spent viewing video on social networks), up 9.3% year over year, according to eMarketer. –Variety, 13 Sept 2017

Inflight Advertising Initiative Video Advertising: The Holy Grail is now a video advertising ecosystem that establishes a global, cross-platform advertising market that combines broadcast, Internet, OTT (Amazon, Hulu, Netflix) and mobile out-of-home viewing. IFE, and by extension airports, have the opportunity to participate in the “digital out-of-home (DOOH)” and “digital place-based (DPB)” ad markets where the growth is.

Inflight Advertising Initiative Digital Advertising: Digital advertising makes up 30% of all ads, but accounts for over 60% of the ad revenue of the big agencies. Once the ecosystem is created, advertisers will choose selectively within it, looking to “contextualize” IFE ads by city pairs, destinations, seasonal considerations, and even destination weather, and to “personalize” ads using pax data.

Inflight Advertising Initiative An introduction to cross-platform marketing Search engine-based advertising: Madison Avenue has established a number of new standards, specifications and spot advertising practices. Combining Internet Advertising with Traditional Broadcast

Inflight Advertising Initiative Common Identifiers ISAN (International Standard Audiovisual Number) EIDR (Entertainment Identification Registry) Ad-ID is a web-based system for the registration of advertising assets. 2017 Spring ME Journal

Inflight Advertising Initiative Measurement The boards of directors of both the Association of National Advertisers (ANA) and the American Association of Advertising Agencies (4A's) have unanimously endorsed Ad-ID as the industry standard for web-based universal coding for digital assets to eliminate the guess work and avoid confusion.

Inflight Advertising Initiative Ad ID Some well-known agreements require that professionally produced commercial messages be registered with Ad-ID, LLC . This mirrors the existing global adoption of EIDR and ISAN for identification of long-form content. Expansion of the infrastructures that support these systems is underway. In the future, all mainstream advertisements will automatically be delivered with an Ad-ID identifier in the form of a SMPTE Open Binding of IDs (OBID) audio watermark.

Inflight Advertising Initiative Trackable Media identification Mainstream advertisers adhere to the Minimum Standards for Media Ratings Research of the Media Rating Council (MRC). Specific content identification delivery and tracking system requirements. The current ATSC candidate standard for content metadata recovery employs an audio watermark called VP1. This system is optimized for live TV and is not designed to convey MRC compliance accreditation on its own. Forthcoming standards from SMPTE support both live and ondemand workflows and will help close that accreditation gap. These systems are regularly submitted to the MRC for review and accreditation on a case-by-case basis.

Inflight Advertising Initiative Inflight Advertising The objectives of this initiative are: – To enable inflight advertising to be sold and delivered as part of larger advertising buys. – To facilitate the uniform identification of ads so as to ensure that their inflight exhibition can be identified and included in reports from other exhibition of the same ads. – To facilitate ad delivery and dynamic insertion, considering such things as delivering ads outside of the delivery of non-advertising content. – To establish uniform and comprehensive standards for data capture to facilitate reporting that qualifies for measurement by the advertiser. – To facilitate development of an IFE database on a route-specific basis that enables prospective advertisers to easily identify city pairs, flight counts, and demographics to qualify ad buys. – To develop the ability to “personalize” and “contextualize” IFE ads on a per-flight, per-pax basis. – To establish relationships and partnerships to facilitate the above.

Inflight Advertising Initiative

Inflight Advertising Initiative "Embedded" IFE is architected to reduce weight and heat in the inflight environment. Architected around a 2-year development, 10-year deployment cycle. Supported by a 30-day exhibition cycle and a 45-60 day advance delivery schedule. PEDs emerging as the client-side of the IFE network.

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