Profile: Digital Generation Inc (DGIT.OQ)
6 Dec 2013
Digital Generation, Inc. (DG) is an ad management and distribution platform. DG helps advertisers engage with consumers across television and online media, while delivering ad campaigns. As of December 31, 2011, the Company delivered campaigns for approximately 11,000 brand advertisers using approximately 4,300 media agencies and creative agencies across approximately 11,500 global Web publishers in 75 countries throughout North America, South America, Europe, Asia Pacific, Africa and the Middle East. On April 1, 2011, the Company acquired the assets and operations of MIJO Corporation. On July 26, 2011, the Company acquired MediaMind Technologies, Inc. On September 1, 2011, the Company acquired interests of EyeWonder LLC, and chors GmbH (collectively EyeWonder) from Limelight Networks, Inc.
The Company operates two network operation centers (NOC) in Atlanta, Georgia and Irving, Texas which link approximately 5,000 advertisers, advertising agencies and content owners with approximately 29,000 television, radio, cable, print and Web publishing destinations electronically throughout the United States, Canada, and Europe. Through the Company’s NOCs, it delivers video, audio, image and data content that consists of transactions among advertisers, content owners, and various media outlets, including those in the broadcast industries. The Company also offers a variety of other ancillary products that serve the advertising industry. These services include creative research, media production and duplication, distribution, management of existing advertisements and broadcast verification. For online media, the Company’s online division, MediaMind, offers a campaign management platform that helps advertisers and agencies simplify the complexities of managing their advertising budgets across multiple digital media channels and formats, including online, mobile, rich media, in-stream video, display and search.
DG provides primarily electronic and, to a lesser extent, physical distribution of broadcast advertising content to broadcast stations throughout the United States and Canada. It operates a digital network, connecting approximately 5,000 advertisers and advertising agencies with approximately 4,800 television, cable and network broadcast destinations, approximately 11,000 radio stations, and approximately 8,400 daily and weekly newspapers in circulation and over 5,000 online publishers operating in the United States and Canada. It receives video content electronically, primarily via the Company’s file transfer software that is deployed in post production studios. Video content can also be ingested through its various regional operations facilities throughout the United States.
Audio content can be uploaded via the Internet electronically. In addition, audio can be received using the Company’s Upload Internet audio collection system. Audio transmissions are delivered over the Internet via its SpotCentral audio application that allows the radio stations to download the radio spots on demand. Print content can be uploaded via the Internet electronically into the Company’s print media distribution system. Print transmissions are delivered over the Internet to various newspaper locations via Web-based software applications. The print transmissions are modified to the specific format required by the individual newspapers. Video and audio transmissions are received at designated television and radio stations on Digital Generation Spot Boxes, Client Workstations and Digital Media Managers.'
The Company offers various levels of digital video and audio distribution services to advertisers distributing content to broadcasters. These include Priority, a service which guarantees arrival of the first spot on an order within one hour; Express, which guarantees arrival within four hours; Standard, which guarantees arrival by noon the next day, and Economy, which guarantees arrival by noon on the second day. The Company also offers a set of services enabling advertisers to distribute video or audio spots provided after normal business hours. DG generally charges a fee per delivery for its advertising distribution service, which varies based on the service level ordered by the customer. In addition to the Company’s standard services, DG has developed products to service customers with particular time-sensitive delivery needs, including the delivery of political advertising during election campaigns, providing a rapid response mechanism for candidates and issue groups. The Company also provides advertising services to advertising agencies and advertisers participating in the direct response industry.
Long-form Programming Distribution
The Company also delivers digital video broadcast services through its Digital Media Gateway (DMG). The DMG consists of hardware and a suite of software applications that enable content creators and distributors to ingest, digitize, transport, store and prepare digital video media assets for broadcast. The DMG incorporates a Internet protocol (IP) multicast network of satellites, and can deliver all forms of video content, including news, video news releases (VNRs), syndicated programming, infomercials, and electronic press kits (EPKs). Another feature of the DMG is a terrestrial based return-path network, which automatically tracks and notifies the Atlanta NOC of transmission failures, system health problems and content usage data received in the DMG server at the broadcast television station. This system is fully automated and involves only minimal intervention by station technicians and customer support staff.
The DMG platform consists of both hardware and software applications. These applications are responsible for three main tasks: managing the flow of digital video content from its source to the digital uplinks, managing the transmission of digital video content using the Company’s IP multicast store-and-forward software algorithms from the digital uplink system to DMG caching servers at the stations, and managing the workflows for video assets from the DMG caching servers through various station systems. The application suite enables syndicators to deliver, track, manage and verify both standard definition and high definition programming to broadcast stations.
Online Creative Research
DG owns and maintains an online database of content and credits of the United States television (TV) commercials for the advertising and TV commercial production industry. The Company’s SourceEcreative database includes information relating to commercials, individuals and companies.
Media Production and Duplication
The Company’s production and duplication capabilities allow it to provide customers with ancillary services, which are offered in addition to its primary distribution service. DG’s services include storage of client masters or storyboards, editing of materials, tagging content, dubbing, video duplication and copying of media onto various physical multimedia formats, such as compact disc (CD), digital versatile disc (DVD) or tape.
Media Asset Management
The Company’s digital media asset management solution simplifies spot management, access, storage and collaboration for its customers. DG’s media asset management solution is integrated with its distribution system, enabling automatic archiving of trafficked spots, online search, send-for-review and review-and-approval capabilities, automated digital storyboarding, streaming previews, a. order and market data history for each spot, script attachment capability and online search, sort, retrieve and hardcopy fulfillment.
The Company’s Smart Planning product allows advertisers to use the accumulated data in planning and buying media for new campaigns. DG’s platform allows advertisers to research optimal media inventory, provides advertisers with relevant historic performance and cost data across different publishers, and automates the workflow of negotiating and buying digital media from publishers. The Company provides designers and producers with the tools and services to manage a campaign's creative development lifecycle, from initial design, to inclusion of interactive features, to adaptation for analytics and ad insertion, and finally, integration with campaign management and ad serving processes. The Company offers several tools that enable its customers to test ad performance on defined groups of consumers and adjust campaigns to show the audience. MediaMind enables its customers to use a range of digital media channels and formats to maximize reach engagement with consumers.
The Company competes with Google TV Ads, Comcast, Deluxe Entertainment Group, Akamai, Limelight Networks, Extreme Reach, Hula MX, Yangaroo, Pitch Blue, Deluxe Entertainment Group, Warner Bros. Entertainment, CBS, FlashTalking, DoubleClick, Microsoft, MediaPlex and PointRoll.
Digital Generation Inc
750 West John Carpenter Freeway
IRVING TX 75039