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How are advertisers reaching cord-cutters with new targeting and creative tactics throughout emerging platforms like smart TVs and OTT devices? As audience behavior continues to shift towards on demand viewership, in this session we take a deeper dive into the rise of connected TVs with a research-driven approach, focusing on trends and statistics.
Neuromarketing is the latest watchword in advertising strategy, as examples of neuromarketing are increasing ad engagement in the connected TV world. Neuromarketing is neuroscience used in advertising, the outcome of research into biometric monitoring of TV viewers. Innovative research companies are able to reach down to platform-level, so that a live campaign can be tracked and measured to tell you whether your show is doing better on Roku or Apple TV or an Android device. With this level of granularity, the neuromarketing research is enabling marketers to do geo-targeting, DMA targeting, and device targeting easily and accurately. In this video, Felix Gomez explains how neuroscientific research works, and shows us an example of neuromarketing increasing ad engagement in a virtual reality study.
Senior Director, YuMe
“I can now reach people who are saying ‘I want on-demand video, when I want it, where I want it.’ At home, on the train…”
“It’s a wild, wild west right now on connected TV. Everybody wants to be in this space.”
“So, we want to take you, wrap you up with what we’re doing in the marketplace from a research perspective, and give you a little sneak peek of research that we just released. It’s awesome. I love it. I geek out about it.”
“One thing we’re actually working on with Disney Theatrical is the first-ever comprehensive virtual reality study around content. So, we’re not even there yet to say ‘How does advertising work in VR?’ because again, we want to validate that VR is actually working. So, we’re working with Disney Theatrical on Jungle Book and we’ve deployed a mass research project at CBS Television Studios in Las Vegas.”
“Neuroscience is measuring emotional engagement. Everything that we have been doing from a research perspective has been conscious. ‘Do you like the ad? Sure I like the ad because you gave me $50.’ Whatever. We wanted to take a deeper approach and understand the non-conscious measures. So [we’re] looking at attention, looking at people when they’re looking at ads. Also, looking at how people are feeling. So when we did this research study, we used their biometric monitoring system.”
“The biometrics systems showed in real time people’s engagement to the ad.”
“This is the first iteration that we’ve taken with neuroscience, but we believe this is going to be the future of how we conduct research, due to the fact that we can be more granular. We can understand how people are feeling.”
Felix Gomez (Translator): Thank you everyone for coming out. This is your little outing for tonight. I hope it’ll be interesting. YuMe is a company for extreme videos, we do a lot of research. We invest in research and everything we do in our space must be validated. There will always be skeptics. Do videos really function? We aren’t here to replace TV, we’re here to compliment it. We have formidable statistics on TV and all sorts of things. I’ll tell you how we reach this space of the next TV and when we see what’s happening on the TV and I’ll show you what’s happened in the industry over the last six years. American Idol was the first interactive reality TV show. Do you remember this show where you could go vote for the people? It was the first interactive thing. 2007 had two important events. The invention of the iPhone and Netflix… gave streaming. Then nobody wanted to invest in Netflix. And that tells us… that all that we want… is that it has to be quick. 2014, Netflix is 30 million, and now they’ve gone from 30 to 60 million. To be connected with the (unintelligible) and the content. All right, so I’ll give you the landscape. (Unintelligible). When we started… we exist for 13 years now and we will answer to the questions of the skeptics. You look at my ad? Does it work? It doesn’t work that. We are partners with Nelson Fusion and that’s to complete our transmission of videos. Before selling the product to agencies, we will validate it. So that we know that it works. There’s savings of $2 CPM and we’ve augmented the GRPS. The bare necessities. The second study in 2011, we were partners with Nelson again, and this was mix and measure… and so the purchase of televisions and we add videos, and we add screen. It was mobile, it was mobile, it was mobile. And we had an idea of what was already on the market. 2013, at the time, people had 4.5 of connected devices.
Myself alone, I have 6. The laptop, the work laptop, personal iPad, Apple TV… maybe even seven. You have at least 4 connected devices. In 2016, the average teenager has more than 2 devices. Before 2016, it was by family members and we didn’t count children. Now it’s close to 3. At 4 years old, they’ve got an iPhone, they have laptops, iPads, and they’ve got gaming consoles and so there are a lot of distractions. We said to Nelson, if we take 10% of our TV budget and pass it on to the digital, if we did it at 20%, if we added lots of screens. Nelson, mix and measure, we see a change deriving. And now, we’ve verified the raw data. Let’s look at what happens when we add screens. 29%. You add a device… those that we call circumventers… I’ll explain the terminology. I’ll give you more acronyms and you’ll be even more confused. Kim works in Detroit and in Toronto, you’ll be able to ask her. We’re in the comfort of our own homes, and so, if we add all of these screens in terms of numbers, giant potential. And so, are there already ladders for what we can do for connected TV? Not even. It’s unlimited. There’s a little bit of confusion between Canada and the US. I’m giving you US statistics but I have some Canadian statistics too, don’t worry. There is over 164 million consumers and 84 million of homes that have connected TV. Think about it. We use OTT, those are the circumventers.
These TVS… it’s to connect them. And so all devices that can connect to WIFI and produce content. And so, OTT is a branch of CTV. THere’s CPM, there’s CPC, there’s CTV and there’s the growing potential. And so the consoles… 54 million of users. This number was always the highest number. It rises 70… there’s only 74% for games, and the rest, interactive communications. When you connect through Blu-ray, it’s declining but there’s still 48 million users on the market. We want to concentrate on Smart TVs and streaming. Other times, it was 5 thousand dollars.. and now, there’s Wal-Mart, it’s the only thing we find. $400. The prices are decreasing. Things are produced. The first thing. And so first you give your information to subscribe, and you’re connected to WIFI, and you can do that since connected TV. And so you can imagine the applications and executions, etc. Media players… 3 years ago, there was only Apple. In the fourth trimester of last year, something happened, it already have half of the people of the market. Apple said well if that’s the case, we’ll defend ourselves. And so now, all Apple TVs can do the same as a Wi-Fi telephone. And so, these agents have something big. Amazon with Firestick. Duo and Chromecast is a type of… (unintelligible) and Apple TV, and Amazon, Smart TVs are doing good work. They realized that they could go to their consumers and say that on their Smart TVs, they could have a welcome page and on that, they could get onto anything. And so people want content at the tip of their fingers and they want to personalize it, like we personalize our phone. Let’s look at the numbers. We have numbers to clarify things. There was a lot of research. The research was independent researchers. They independent organizers… In 2016, the number of American homes… 100 million of inscriptions. And how do we complete for example? It may not appear pertinent for you Canadians but us, people obtain packages for $9 a month. They have the same thing that you have on your cable television that costs you $30 to 100 a month. All of this is increasing. The millennials don’t want to pay $150 to get 100 channels. I like to watch my sports and I need my cable. My girlfriend too. Netflix, what’s Netflix doing? People are constantly asking how is that we can do advertisements on Netflix? But there are people to reach the viewers. (unintelligible) 3.4 million dollars. Empire from Fox did 9 million. It was the most elevated quota on cable TV for the last 2 years. There’s almost 5 million viewers. It’s the mentality. We say we already have done viewerships. You saw with Amazon, they had great TV series. I watched two of them and I would order food online. It was disgusting but I did shower between. The aptitude of having everything at the tip of your fingers and the aptitude to say, okay, now I’m going to do my exercises. And to continue my show when I get back. It’s not just content. There’s the placement. The comfort. How do they view this on their tablet? What people are doing in the market? We have to change the way we reach the people and the consumers. Is Netflix never going to do ads? They are very jealous and protective of their data. And so when we think of the activities that are happening on these platforms… the connected, the platforms, I have an app for that, I have an app for the TV apple. These apps need to give professional content. There isn’t going to be someone who has a website from their basement that’ll pass directly to the distributors from Apple. So it’s the quality of movies, of TV shows, and the direct events continue. And so these platforms when we talk about ads, we don’t ask the question, where’s my ad? Are there buttons… it’s high quality product, because it needs to be viewable because people engage themselves completely. As for Canadian consumers, 3/4 of Canadians watch videos online and 9 out 10 consume them and now we see where they watch them. Laptop, desktop, smartphone, tablets, internet, and some kind of gaming console, or Smart TV. We have to study the context. We did a lot of research on the fact that consumers watch content between two screens.
We want to see how they react to the content. To the right, you can see that connected TV is decreasing. It’s saturated to penetrate the market and so it doesn’t increase. The curve accentuates when… and so this corresponds to what? The country one line and it returns back to finding our consumers. People who have devices… what are they doing in the bathroom? Are they watching worldly content? And so for example, people are already on their laptop. We want to examine what’s happening at peak times? What’s happening? And then there’s a decrease. The research shows that people are connected and their television is connected. But when we do the research, it proves that there’s a strong mobilization.
Felix Gomez: Again, it’s the ability to say, well I can now reach people that are saying, I want on-demand video, when I want it, where I want it. At home, on the train, etc. So, take a step back. Let’s start looking at the demographic data. Pretty even adoption rate between men and women that own a CTV but when you start looking again down at the teens and millennials, it’s only going to start increase. I think it took me time, two full weekends, to show my mom how to use an Apple TV. But when she did, and she used it, she loved it. The same with, I’m sure, anyone’s had an experience with a family member. Now they’re hooked because they understand they can get their content when they want it. Versus to waiting for my mom’s telenovela to come on at 6pm on Univision, she was able to go on and watch it when she wanted in the morning, afternoon, and evening. Again, when we cut down the data, and look at the CTV ownership by age and gender, it’s there. There’s a lot of penetration taken place. Again, if you want these graphs and notes, feel free to reach out after. We have a lot of data on this. Looking across income, three years ago, this is where it was taking place, because of the entry price point, right? Fast forward now, you’re able to get. Roku stick for 39 bucks? Why not buy one? I can go to Crackle and watch free content. Right? I might get hit for a few pre-roll ads but hey I’m waiting a one-time 39 dollar rate for this and then I can go watch as much content as I want? It makes sense for a lot of people who are conscious from an economically perspective.
When we look at CTV ownership, overall, not just compared to US, the data says the same numbers. Different slide, same numbers, different graphs, beautiful graphs, don’t want to be an eyesore here. When we talk about ethnicity, we found that Hispanics and Asians are more likely to adopt CTV platforms than other ethnicities. This is something we worked with a company called Interpret in Q4 2015. If you don’t know who Interpret is there a really unique innovative research company that actually can get down to platform level research. So you can actual run a live campaign and they can tell you, tune and lift, by specific platform. They can say your show is doing better on Roku versus Apple TV versus mobile device, versus this Android device. Very innovative work, definitely recommend looking into them because they have a lot of strong capabilities when it comes to research and data. They don’t. Netflix doesn’t allow… I don’t even think Netflix allows Netflix to do them, right? You know it’s funny because we work a lot with Netflix and we do a lot of their original work on digital platforms and even when we work with their teams, they don’t even have access to their data. All right, you’re powerful enough to not even give your own colleagues access to the data. So, we talked about the research a little bit and we want to tie it back together to what you can actually do in the market and some strategies for some advertisers that I’ve been working with across the board. And so, it wouldn’t be a research roadshow until we show you what we’ve done in the marketplace. And, we actually started back in 2007 when Windows called us and said, hey, we’ve got something called a Windows Media Center. Now this was your Xbox that plugged into the Internet that plugged into the TV. All right, ok. It didn’t really take off as much as we thought but it gave us the experience on how to understand to monetize these platforms. So, in 2011, LG called, Samsung called, Crackle, and X Box called and said, help us to understand where consumers are going on our connected devices because we want monetize it. We just don’t want to show up and throw up like we did with online. We started running online banners. They were everywhere. 300 by 250, 7/8 by 90s, you’re just like, this looks terrible. And so we said, before you start trying to monetize your platforms, let’s understand from a research standpoint where they’re going. What type of initiatives we can take place to not only drive high engagement, drive high brand lifts for advertisers but not disrupt the consumer experience. Because again when you’re on these platforms, you’re in the comfort of your own home for the most part, right? I don’t think I’ve ever seen anyone train taking their X Box, maybe in a couple of years. You never know. But we wanted to take a step back and say, okay, what can we do with LG with their Smart TVS to create these one of kind of immersive initiatives that I’ll show in a few slides. And so it leads us to where we are now, we’ve worked with different companies to say, hey we’ll help you understand how to monetize your Smart TVS because we know that’s a huge growth. And a few of the other points we have up here is research that we’ve done in this space… Because, excuse me, we always want to be validating what we’re trying to set forth to do in the market. So, you look at the Eco-system, here are your platforms. From a concept bases, these are always going to be updated. Because it’s a Wild Wild West right now on connected TV. Everybody wants to be in this space. Even the premium publishers want to be in this space.
It’s a hard game trying to figure out how the tech works on these platforms. Again, when we talk about the content that’s taking place you’re going to see that it’s premium content because it’s very costly to build these apps out. When we talk about actually launching and what we’re able to do, the beauty of it is it serves like a digital ad, right? So, even though it’s on a big screen, it’s coming from a digital platform. So we’re able to geo-targeting, we’re able to add DMA targeting, device targeting, right? What’s really unique now, really scary, is we just lost technology called ACR technology. ACR technology is the same exact technology that is used in Shazam. Auto content recognition. I’m Shazam’ing a song that I like, boom, got it. With an opt-in from the consumers, the platforms are now able to pass data are now on your broadcast and in-app viewing. So if I’m watching a baseball game, that platform will send in real time data that says this person at this IP address just watched that baseball game and then you can re-target them in real time with a smarter ad. And that’s across the platforms and the OEM’s, original equipment manufacturers, as well. Six months ago, you weren’t able to do that and the reason why is this is all coming from a digital ad serving perspective and it makes us a lot smarter. And when you think about it, it does sound Minority Report-esque, a little creepy, but I’d rather get a tailored ad for a beer that I like than an ad for a product that doesn’t even interest me. And so that’s where we’re heading from a target perspective and it’s beautiful, because again as the technology innovates (bless you) and as the ability to go and have mass scale, we’re going to be able to do a lot more from telling a creative story.
So what do these look like on the placements? These are all four different TV screens from all four different years. If you look to the top right, this is probably the latest version of a smart hub. Moving forward, Smart televisions are now… When you turn them off, they’re now going to be turned on and go to the smart hub. Not the last channel that you’re on. The reason why is because they are investing a lot into their smart hubs and they want you to spend more time, right? So when you look at this Smart Hub at the bottom, it’s very different from what Panasonic is doing. Here they’re saying, you can create your own ads and will give you a lot more to play with. Samsung is trying to keep it clean. But again, that’s a huge shift in the way that they are looking at how people are viewing content. They are not going to the last channel, anymore, of the live feed. They’re going to your smart…your smart hub placement and what these are called is… These are going to be called first impression units and you’re going to be hearing about them a lot more in the marketplace. And what that is, essentially, we’re creating with these OEM experiences, you can bring one ad to the page before they take a deep dive into Netflix, into Hulu, or some other non-ad supported platforms. So I’m going to take you through an example that we did for IFC where they actually ran this across key dates and the key dates was such an instrumental strategy for them for Portlandia because they wanted to surround dates that were big Netflix original launches. Because we know that if someone right here has their Netflix or Hulu or maybe, they’re music streaming, once they click into Netflix, the advertiser is going to lose them. They’re going to lose them into that new Orange is the New Black. Probably for several hours, maybe several days if you’re me, who knows. But, it is a way where advertisers are saying, I know I can’t be in these platforms, so how does that look from an executional standpoint?
So, that’s actually a live feed there, right? And when you click on it, it looks like a digital ad but it’s on the big screen. And you’re able to bring digital elements to the creative, multiple videos. So, you’re able to track all this. You’re able to measure all this. You’re able to optimize on what people are doing in the ad. Everyone who’s seen this show, it’s an amazing show, right? Definitely recommend it. That’s what we’re calling the Netflix strategy. Especially on the West coast, where the movie studios and the broadcast, and the tune-in clients are freaking out because they’re losing viewership, y’know? And it was funny because when we first brought connected TV to broadcast clients in Hollywood, they would say, nah there’s no way it’s going to take off. I’m not going to build an app. Now almost every broadcast client is working with us on a strategic level on how to actually go from that directly into their app. So, when we work with Fox on the latest Empire, they actually had a whole different strategy where this last deep link click into the last season of Empire because they wanted to get people excited about it again, right. They wanted to get people talking about it for when the premier was coming up which aligned with a big Netflix launch. They were going to Fox versus Netflix and again, when you think about the scale there, there’s a mass scale. There’s 200 million impressions available. From that perspective, so there’s different ways that yes, you can’t advertise in Netflix but the first impression unit that you’ll be seeing in smart hubs is a way to continue to appear. And then when you move, and you go to Roku, they’re now starting to build their home page to placement. When you go to rock concert days, you can see key sponsorships from advertisers, right.
Because this is where the eyeballs are heading. So when you talk about what you’re doing from a tech standpoint, the first impression unit is a great play from a strategic perspective when you want to reach court cutting eyeballs. The second is your standard in-app pre-roll. We’ve all, unfortunately, had the experience where we went to an FEP, full episode player, and we’ve seen the same ad three time across the same episode and you want to avoid that. So this is why technology is a huge my instrumental factor into how we work with CTV. And you have to have the ability to go and say my technology can render when someone says this is the first time they’ve seen this ad. This is getting a lot smarter. We’re, hopefully, moving with all companies the same. Let’s create a great experience because if I see the same McDonald’s ad three times in a row, that’s just going to be a bad user experience for myself. So when you think about what you’ll be able to do within in-app pre-roll perspective… Again, you’re able to get creative, you can just have your linear standard pre-roll unit or you can get engaging. This is something that we did with Amazon for Catastrophe where again, you’re going to your content and you want to watch a baseball game… So again, this is on the big screen, right. It’s a great show by the way, if you haven’t seen it. It’s an excellent show. And again, we’ve actually just did a case study that we’re finalizing, and it’ll be available to the public, on Amazon with Catastrophe. They ran the first impression units and they ran the brand awareness within the in-app. They use the first impression units to increase sign-ups and what we saw was there was an incremental lift from people intending to sign-up by seeing the first impression units. Because they’re also competing against the Netflixes of the world. We also saw high brand lift from high completion rates and intent to tune-in with in-app pre-roll and again, they would align, and it’s funny because, when you work with both of them, you can’t tell them what the other is doing but you kind of giggle because they’re doing the exact same thing and then you go and tell Hollywood what they’re doing and Hollywood flips out and they want their ads everywhere but it’s because this is making a lot of noise in the marketplace.
So, when we wrap it all up, we talk about what you’re able to do. You’re able to get the TV like experience, the targeting is certainly there, you can get really creative with the work that you do and you can also measure it. So, we want to take you, wrap you up with, what we’re doing in the marketplace from a research perspective and give you a little sneak peek of a research that we just released. It’s awesome. I love it. I geek out about it.
But one thing we’re actually working on with Disney Theatrical is the first ever comprehensive virtual reality study around content. So, we’re not even there yet to say how does advertising work in VR? Because again, we want to validate that VR is actually working. So, we’re working with Disney theatrical on Jungle Book and we’ve deployed a mass research project at CBS Television Studios in Las Vegas. Does anyone know why so many studies take place in Vegas? Because you could walk out on the street on the corner of Las Vegas of Tropicana with a clipboard and you can find 50 different people from all around North America in 20 minutes. Right? Makes sense. So we bring them into the lab and we’re just helping them understand, do they even like VR? How much content is too much content? What is a content that resonates? Before we say, let’s insert ads everywhere, and just blow that shit up. We don’t want to do that. And so that’s actually been released but the latest study that we just released with our friends at Nielsen, we love them. Whether we love or hate them, they have good research. Now from a ratings perspective, they’re all over the place, we don’t know what they’re doing but we love the research that we did and we just wrapped up a neuroscience research. So what is neuroscience? Neuroscience is measuring emotional engagement. Everything that we have been doing from a research perspective has been conscious. Do you like the ad? Sure I like the ad because you gave me $50. Whatever. We wanted to take a deeper approach and understand the non-conscious measures. So looking at attention. Looking at people where they are looking at ads. Also, looking at how people are feeling? So when we did this research study, we used their biometric monitoring system. So we literally hooked up people to machines to understand their heart rates, to look even if they had sweat glands. Understand if they’re sweating, why they’re sweating? Their motions, where they pay attention on the ads. And also respiration. A great example of this is we had a clip of… Video content of a roller coaster and it was peeking over to take the dip. To major factors triggered, people’s heart rate and respiration. We saw heart rates increase and then we saw people gasp for air. This is a great step that Nielsen and research companies are taking because we’re not able to actually understand how people are feeling versus what they tell us what we think we know they’re feeling. Right? Which makes sense. You’re going to know that if someone is crying, that something is wrong versus someone just being quiet and not telling you what’s wrong. And so, when we look at… What I want to do now, and I hope the polling gods are with me on this. I want you take a look at this video and pay attention to this video. It’s one of the videos that we used in the creative for the research project. Uh huh. Give me one second. Maybe it’s… Okay, cool. Let’s see if… The Internet is firing.
Okay. Now, grab your phones and text this number. Text this number to your phone and text YuMe to this number. So we want to give you a little sneak peek of how this actually worked. Anyone get a response yet? Join the polling room? We in? Nothing? K, Yes. Really? It should be… Ahhh, well the polling gods aren’t with us but what I wanted to show you which… That’s interesting, it’s working on my phone. Interesting. Okay, so, you’re able to vote, right? But what we want to show you is… Think about it, in your head. Was the ad engaging? We’ll do old natural polling. Doesn’t have to be digital. We’ll say, neutral, somewhat engaging. And the second question is, on which device would you find this most engaging? So think about was it engaging? Which device would you find it most engaging? And what the biometrics systems showed in real time, people’s engagement to the ad. So, here is the index level. So, when you think about it, right, I initially thought TV was going to be the most engaging. It’s actually the lowest and when you look at the phone, it’s that lead-in environment and so it got us hooked. And what we found with this is from the study, there were six key practices, best practices that we found. Brand early and often because there was an opportunity across every screen to engage everybody and it was up to us, as the advertisers, to tell a better story and we also found out that 15 seconds do work if you tell a story.
We actually just did another study with IPG media lab and we measured creative ad lengths, and we looked at 5, 10, 15, 30, 45, and 60s because everyone wants to know from my 5 second ad works. The biggest takeaway that we found in the 5 second ad, is that if you’re in an establish brand, it’ll work. If you’re not an established brand, it’s not going to work. You can tell a story in 5 seconds if you’re Budweiser. But if you’re a brand new clothing line, you’re not going to be able to tell a story in 5, 10 seconds. That’s another study that we can provide you with.
Going off the tangent, I apologize, but we also found that utilizing a human connection makes sense. I don’t know if you know that All State ad with the actor but every time he comes on the screen, we saw eyeballs attract. Every time a puppy came on the screen, we saw an eyeball attract. We also understood that context matters. Example, QSR works better on mobile. People on the go, they probably aren’t… They’re probably going to eat something while they’re on the go, makes sense that that works on mobile, right? And then avoiding small details. We ran this study with a major tune-in client and what we found is their first version of the creative, they had the main character front and centre, then the tune-in time in the top right, the heat mapping technology from the biometric systems showed all the attention to the actor, nothing to the tune-in client. When they did AB testing and swapped them, so have the tune-in date front and centre, and the actor in the top right, the ad performed a lot better. And again, this is the first iteration that we’ve taken with neuroscience but we believe this is going to be the future of how we conduct research due to the fact that we can be more granular. We can understand how people are feeling. We can understand when people don’t like things. We still need to do our attitudinal study and those brand lift studies and all that but adding this layer, and I will say that Nielsen is working across different mediums. Someone… We presented this in San Diego last week and we had a participant ask if we could do it on radio? Of course you can. You could do it on linear TV. It’s all about the emotional engagement. When we think about wrapping it all up, connected TV, start thinking about how you’re going to strategize. Start thinking about what’s going to take place in that medium because it continues to grow. When we wrap it with research, we’re now getting a lot more involved in understanding emotional engagement. That’s pretty much what I have for today. Take questions, comments. Storm out of the room if you don’t like it. Good?
Question: About the connected TV app. The Eco-system who’s controlling? If I clicked on the Netflix button, for example, is it LG that’s controlling the ad? Who’s controlling that ad?
Felix Gomez: It’s a company like ourselves. Historically, when we first started working with LG and Samsung back in 2011, we literally had to go and poke holes in the hardware. And as you can imagine, that broke everything. Fast forward, we’ve now created technology where we can send a dynamic tag and it’s a dynamic ad insertion on your TV. How we were doing ad insertion on broadcast TV, we’re now able to do that from a connected TV standpoint. Whether it’s that first impression or the in-app pre-roll. Any other questions?
Question: My name is (unintelligible). I’m at Concordia University. It’s my first time encountering this term and am I getting it right? First impression units. That’s a market you’ve cultivated working with the platforms to make sure that the… Cause it is… Acknowledgement that Netflix…basically monopolizes first impression units and so… I’m just curious… You were just talking about it. I want to hear some more of it, the back story and what are the platforms in particular that are receptive to these first impression units?
Felix Gomez: Yeah, no absolutely. So, that’s a great question and we are… We actually named it. It could that once it gets more popular across platforms, it may change. But, from… Your question is really… The OEMs are the ones that said, we don’t make a ton of money on these first impression units, we make money moving our product but we understand that there’s money to be made, right? And we’re not going… To take a step back, when you look at some of the OEMs when they bill top sales teams, in the past, like Apple and what not, they just haven’t invested that much and so there’s been companies, tech companies that have said, let us help you understand, all right. And so when you look at the first impression units, more and more platforms are adopting it. So we’re working with another major OEM that doesn’t have automatic ad monetization on their home screen on their FIU yet but they found out that LG and Samsung and Sony are doing it so they called us and said, hey so what are the best practices here? And it takes time, because you can’t just say, remove what you’ve got going on here and put an ad. You have to do a lot of research to understand where people are going on your screen. But it’s going to become more and more increasingly popular. When you look at Amazon Fire stick, there now looking at ways to say, I want to build this out so their consumer has 100% control. We don’t believe that Netflix will ever build a standalone set top because they’re all about distribution now. Netflix has taken the stance of, let’s throw out as much as possible and see what sticks because we have the ability to do that and we have real time data to tell us what sticks. But we’re going to continue to see the OEMs taking on a lot more first impression units.
Question: It’s a little bit of side topic but… What’s your impression of the niche apps that are happening? Say now all the major broadcasting companies are rushing to follow up but what about those niche apps that are sports related. Where do you see them succeeding or failing in the long run?
Felix Gomez: Yeah, it really depends by vertical. 82 percent of all activity on an over the set top box device is primarily used for video streaming and that’s just from a little bit of Apple’s research. We believe the other 18 percent can be music. But there’s a lot of opportunity in niche platforms in this, and not only in this but in VR as well. When you think about education, right? And having… There’s an app called Happy Kids, and I’d never heard of it and their reach is monstrous. It’s an educational platform. Thinking about what’s being viewed on broadcast television and cable and applying that to these platforms, right? You can almost estimate and look at, well if this is taking place on PBS and they’re watching Sesame Street here, we need to mirror it here. Because again, more and more, when you think about it from an educational stand-point and I am just picking on that topic specifically, kids are using iPads and iPhones to get to these apps. If they have a bigger screen, they’re going to be a bit more mesmerized. From like a sports’ perspective, we’re seeing more and more sports providers… Sometimes it can get a little ugly because the way that you’re able to distribute on these platforms may be different from cable. And so that’s where it gets a little ugly but what we see… And Apple took the first chance at this, is opening the Eco-system. Creating more content available on demand. So, it doesn’t matter if it’s a niche, as long as it’s something that is used and again that can be education, it can be knowledge, it can be nature, and we’re starting to see that with VR too. There’s a lot of talk with VR around here and some people say, it’s only made for what you can’t experience and we are the first to disagree. Why wouldn’t you have your kid walk a dog and train a dog and do that all in a virtual standpoint before you just get him a dog? I mean that’s… A very common sense thought process and again it’s what you’re doing now on these devices should be mirrored here. Any other questions? Awesome everybody. Thank you for your time. I appreciate it.