Video Monetization for Publishers – The Underlying Challenges & Benefits

Video advertising is constantly spiking, smashing records every day, and it seems to be an unstoppable race towards more revenues and profitability. One driver behind this popularity is the proliferation of online video platforms and higher consumption of video content. So, while video consumption keeps increasing, it’s become crucial for publishers focus on video monetization. It’s safe to say that video monetization is still an untapped arena, and we are ready to tap into the details!

The UK Market & Video Marketing

The businesses are struggling to harness technology amidst the rise of BOYD, remote working, and collaborations. With videos, the UK businesses are becoming transparent and innovative since they are breaking the time and location barrier. Since the world has become dynamic and fast-paced when sharing data, videos have become the most scalable and secure medium.

In the UK, an average consumes 100 minutes of video content in a day, while 92% of marketers have made video an important part of their marketing strategy. The brand recalling through videos is 85% higher as compared to text-based content, while 93% of marketers have stated an increase in customer acquisition through video marketing. These stats clearly show how video marketing and monetization can yield profitable outcomes for businesses.

Importance Of Video Monetization for Publishers

Higher Revenues

With video monetization, higher revenue is the most tangible advantage. In particular, video advertising accounts for over 60% of revenue from social media platforms. Simply said, businesses leveraging video advertising experience more revenue.

Improved Reach

With video monetization, the publishers are empowered to reach every device that can consume video content. As a result, the user interaction increases, resulting in a more powerful business positioning.

Boosted Analytics 

With video monetization, the publishers gain in-depth analytics of users and their activities, such as stroke metrics and uncollated data that can be analyzed to create further marketing strategies.

Practical & Actionable Insights

The insights collected through monetized videos can be deployed in various ways, including guiding content development. Also, it helps identify the best-performing content and outline the audience’s geographical location to customize the content accordingly.

Challenges Associated With Proper Video Monetization

Low Fill Rates

The fill rate is defined as the ad ratio provided by video ad networks to publishers’ ad inventory. Currently, video ads have a lower fill rate due to lower demands for video-filling ads. In addition, the production costs are higher for monetized videos as compared to other video formats, resulting in lower 60ad inventory and demand for a higher budget.

Loading & Latency Times

The coded video ads can slow down the loading time and increase the page latency, given the delays in ad trading. Not to forget, the publishers add more tags to recompense for less ad revenue (these tags slow down the loading speed even more). That being said, low loading time and higher latency will result in ineffective user experience, resulting in insufficient traffic flow and less revenue.

Restrained Video Inventory

The video inventory is undeniably limited, which leads to constraints in the available video inventory on video monetization platform which means publishers are left with the choice to put ads on only one video. The publishers are often inclined towards placing multiple ads on one video to yield better monetization results, such as post-roll, pre-roll, and mid-roll ads. However, more ads sound intrusive and ruin the customer experience. That being said, publishers need to balance customer engagement and use the right amount of ads to drive the right results.

To summarize, digital videos have become a lucrative source of yielding higher ad revenue for publishers. The challenges exist but they are not intractable by any means. The publishers who can deploy effective video monetization strategies will be capacitated to create a sustainable source of ad-based revenue.