Demystifying Advertising Terminology for Your System Design Interview
Understanding a Leading Advertising Platform:
As you prepare for a Staff Data Engineer interview at a leading advertising company, having a solid grasp of key terms in the industry is crucial. This post will summarize relevant concepts, connect them to your personal media consumption habits, and bridge the gap to system design considerations like load and latency.
Streaming vs. Traditional TV Advertising:
Over-the-Top (OTT) Advertising: This method reaches viewers through streaming services like Hulu, Paramount+, and ad-supported versions of Netflix. It differs from traditional cable TV advertising.
Connected TV (CTV) Reach Extension: This expands advertising reach beyond cable to include smart TVs, streaming sticks, and laptops/tablets used for streaming. Essentially, the platform helps advertisers target viewers who consume media through various streaming apps.
Your Streaming Habits:
Imagine you watch shows through Apple TV, smart TV apps, Prime Video, and encounter commercials on Instagram and YouTube. Even on vacation, streaming shows on a laptop or iPad through apps like Hulu or Netflix would be considered OTT viewing. Hotels might offer various viewing options – some with traditional cable setups and others with access to streaming apps through their TVs. If a hotel offers streaming apps, the platform could be used to deliver targeted ads during your vacation viewing!
Peak Moments and Low Seasons for Streaming:
Peak Moments: Super Bowl, season finales of popular shows, major sporting events (Olympics, World Series), and holiday viewing.
Low Seasons: Viewership can drop significantly compared to peaks. Industry reports suggest a 30-50% decrease during off-peak periods.
Quantifying Peaks and Low Seasons:
Peak Events: Millions of viewers tune in simultaneously (think Super Bowl reaching over 100 million viewers in the US).
Low Seasons: Viewership can vary.
Global Reach and Market Focus:
The company's website might not explicitly state their global presence. However, their focus on CTV advertising suggests they likely operate in markets with high CTV adoption (US, Canada, UK, Western Europe). During your interview, you can inquire about their specific markets.
Industry Examples for Viewership:
Super Bowl (US): Over 208 million viewers for Super Bowl LVI in 2022 (Nielsen).
Olympics (Global): Viewership varies depending on the sport and region. The 2020 Tokyo Olympics reportedly reached over 15 billion viewers globally.
OTT Focus and Streaming Protocols:
OTT can include live TV, but it encompasses a broader range of content, including on-demand streaming of movies and TV shows. Here are the primary internet protocols involved:
HTTP (Hypertext Transfer Protocol): The foundation for communication between viewers and streaming platforms.
RTMP (Real-Time Messaging Protocol): Often used for live video streaming due to its low latency capabilities.
HLS (HTTP Live Streaming): A popular protocol for delivering segmented video content for playback on various devices.
Ad Serving and User Targeting:
Commercials are often served through Content Delivery Networks (CDNs) for fast and reliable delivery.
User targeting methods include:
Data Segments: Targeting specific demographics, interests, and viewing behavior.
Contextual Targeting: Matching ads to the content being viewed.
Geo-Targeting: Delivering ads to viewers in specific locations.
Collaborative Filtering (Potential):
While specific methods are not publicly disclosed, collaborative filtering is a possibility for user targeting. This technique analyzes user behavior patterns to identify similar viewers and recommend content or ads. However, this would likely require user consent for data collection and adhere to data privacy regulations.
Time Zones and Viewership Distribution:
Time zones influence peak viewing for premieres. However, streaming platforms cater to delayed gratification by offering entire seasons at once, spreading viewership over a longer period compared to traditional TV. Estimating viewership for a new show is challenging, but industry reports suggest popular series can garner millions of viewers within the first week. The exact distribution would depend on factors like genre and audience interest.
Example: Advertising Considerations for Kids' Content
Regulations like COPPA (Children's Online Privacy Protection Act) restrict targeted advertising to children. Alternative approaches for kids' shows might include:
Contextual Targeting: Placing ads for toys or other kid-related products during commercial breaks within the show itself.
Day Parting: Scheduling ads to air during time slots when children are most likely to be watching.
Next Steps:
Research streaming viewership trends to understand how audiences consume streaming premieres and on-demand content.
Explore industry best practices and regulations around data privacy (e.g., GDPR, CCPA) and how they might influence user targeting techniques.