For the last couple of years, most of what you read in industry publications is about connected TV (CTV). It makes sense that it’s such a hot topic because CTV provides digital buyers with access to your TV screen, which is a game changer.
Even with the rise of CTV, investments in online video are still massive. And there’s plenty of money to be made for publishers focused on a great user experience.
In fact, Cisco estimates that 82 percent of IP traffic globally will be video by 2021.
When consumers use their laptops or smartphones, in a lot of ways these devices have become a television that’s able to do a whole lot more. And because online video inventory is so measurable, there’s an opportunity to provide brands with ads that they know will be served to consumers who are truly engaged with their messaging.
So if those dollars are there, let’s take a look at the factors that will determine which online video publishers get them.
Four factors of successful online video monetization in an increasingly competitive ecosystem
Completion rate and content
These two factors go hand in hand. If I’m an advertiser, I don’t want to spend money on ads that aren’t completed.
A great way for publishers to ensure higher completion rates is by creating compelling content that makes their videos a destination and not a burden. If the video content is the reason I went to a web page, of course I’m going to be willing to sit through an ad in order to get to the content.
As a publisher, if you can create an experience where users are watching the entire ad, you’ve solved a huge part of the problem for buyers.
Why is CTV so great? Because it dominates the television screen and requires viewers to give the ad their attention. Create a large-player online video experience, and you’ll allow buyers to be confident that your site is doing the same for them.
Will the user see or hear the ad?
As a publisher, you can hide large-player, auto-play ads below the fold and have a chance at a good completion rate. But because online video is so measurable, buyers are going to know you’re doing that because your viewability and audible and visible on complete (AVOC) scores are going to be abysmal.
As a publisher, you need to look at this as an opportunity to separate yourself from your competition to advertisers. Think about the kind of environment you’d want to advertise in if you were the buyer and create that. Make your video experience the star of the page, and let the viewability and AVOC metrics prove that to buyers.
Supply path optimization
Buyer confusion has never been higher with regards to where inventory should be accessed. As result, buyers may just turn to other publishers if they aren’t actually clear what the most effective way to buy your inventory is. Work with your partners to make sure the marketplace is aware of how you want your inventory purchased and who you want them to purchase it from.
Online video investments are still extremely significant — even with the rise of CTV. But buyers are savvier than ever, and expectations have never been higher.
This isn’t a problem. It’s an opportunity for publishers to separate themselves from the pack, be the outlet that buyers know they can turn to, and make sure they’re brands hit their KPIs. Step up to the challenge, the dollars will be there to reward you if do.
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This article was written by Dustin Perlberg, director of platform services at SpotX.