Online video advertising are one one of the fastest-growing ad mediums across any media , far outpacing growth in spending on television and other digital formats. Correspondingly, online video ad viewership exploded in 2013, reaching over 35 billion views in the U.S. in December
The increasing spends a on" Video advertising " signals some important market changes both across the demand and supply side ( Advertisers and Publishers )
1)Web Monetization Publishers would see a definite shift on their earnings from their site, from online advertisements as, more advertisers would move from CPM/CPC model to CPM ( Cost per view ) Web monetization will undergo a rapid shake up ( for either good or worse.) However I have quite a few reasons to believe that it would be the later
2)Surplus of Low Quality Inventory :With the change in the revenue model,as more publishers rush to create video centric content,the CTRs would drop, as there will be a surplus of " low quality inventory.. as any new market will see a huge rush of players, which will add to the quantity but not quality
3)Measuribility of Video advertising : Almost all forms of online Video advertising currently is still interruption based
1) It forces the usersto watch atleast 30 seconds of ads before you watch the video on Youtube
2) All the 3 formats , pre roll, post roll, and instream video ads are interruption based. Unless the way advertising across Video are steamrolled, remember its the brands that would suffer more
3) How to you define a "metric " for engagement.? time spent for watching the video for 2 mins, 20 seconds, or closing the window after watching the ad
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