Hardly any business can be conducted without the use of video content and online video platform of any type these days. In accordance to that, we’ve seen exponential growth in video content marketing, which has now become the chief tool for publishers to get their brands out the door and into the online world.
60% of both B2B and B2C marketers already use video for marketing (OptinMonster) and over 50% of web users look for a video before visiting a store, says Google. With stats like these, it is easy to see that the video form has taken over a majority of the e-business, virtually turning the Internet into a giant hub for video content creation and video content promotion.
You’d think that given today’s choices of free #videoplatforms, it would be pertinent to go for the easiest and most obvious ones, guess again! Click To Tweet
You’d think that given today’s choices of free video platforms, it would be pertinent to go for the easiest and most obvious ones – i.e. Facebook and YouTube, which are currently the most dominant video services available on the market. The truth is, if you do that, you’d be absolutely right on the money. However, if you are a publisher looking to expose and monetize his brand through video content, you might be surprised to know that going for these ‘free’ platforms is not necessarily the only or even the right road to take.
Let’s explain a few things first.
Any publisher can tell you that the lower fill rates are a common occurrence nowadays simply because there’s less demand for ads to fill video ad inventory, specifically when compared to display or mobile ads. Of course, it must be said that the cost for video monetization is higher than a majority of other formats.
One of the most important factors that need to be taken into account for publishers are RPMs (revenue per thousand page views). These represent an estimate of earnings divided by page views or impressions and then multiplied by 1000. So, the simple formula here is the bigger the fill rates, the bigger the revenue. While video ads have higher CPMs, limited demand denotes that publishers’ RPMs, is lower because of lower fill rates for video ad inventory.
What usually happens is that publishers strive to achieve higher CPMs, thus increasing site latency and that can decrease ad revenue. When creating your video monetization and video ad strategy, the attention should, therefore, be directed not at CPMs, but rather at the revenue itself. Yoav Naveh clearly stated via AdExchanger recently, explaining that CPMs are a less effective metric for video ads when compared to the revenue.
No matter who you swing it and which path you choose ie free or paid video player/platform, it’s always about the user experience and it’s always about what the audience wants. Generally, that boils down to having fast and easy access to specific content they are on the lookout for. Publishers and advertisers tend to know their audiences very well, these days, which is a good thing, of course.
However, enter programmatic video ad sales, which can easily slow page load times and increase page latency somewhere between 10 – 20 seconds due to ad trading delays. The most common mistake publisher tend to make is to add more tags from more advertisers in the hope of reducing latency and in an attempt to make up for lower ad revenues (which is usually caused by lower fill rates). The trouble stems from the fact that additional tags simply lead to lousy page load speeds.
In short, when latency goes up, it leads to poor user experience and eventually audiences block ads or simply leave. In other words, a web site’s traffic is reduced and that understandably creates even less ad revenue.
Publishers who are focused on making an impact on the video marketing scene need to know where to start. Video monetization would be the broader goal here, of course. However, the initial mistake many publishers or video content creators tend to make is seen services such as YouTube and Facebook as shortcuts to immediate and quick profit. This is simply not the case. While it is true that you can make money on both platforms these days through video ads, in the past several years that process has gotten slower and generally tougher due to the immense competition.
Over 1 billion people are on #YouTube and YES, you should be there as well! However, it has become exceedingly hard to monetizing video content, especially, if you are just starting out. Click To Tweet
Given how many times YouTube (i.e. Google) altered their policies for the YouTube Partner Program, it has become an exceedingly hard way of monetizing video content. Especially, if you are just starting out. As of 2018, channel owners have new prerequisites for monetizing video content on their YouTube channels. Not only does the channel has to have a decent viewership, but it has to have at least 1k subscribers as well. In order to monetize your videos on YouTube here’s what you need:
It may not seem like a lot, but those are some serious demands for any small-time video creator or publisher. These days, it’s really not your best option, if you’re looking for a fast and simpler road to monetization.
With all this being said, if you are using YouTube, for example, keep in mind you are not able to influence any of these problems. Fill rates and increased latency are just whispers in the wind. And while it certainly is much easier not to worry about those things, it raises a different concern. Is that the full revenue potential of my video content that I’m seeing?
Enterprise video platforms, just like BridTV, offer a bit different approach. They are build to help speed up publishers’ video advertising endeavors and, more importantly, make those easier to implement and use, all the while you are at the wheels.