Increased Online Video Advertising Spend is Boosting Digital Publisher Revenue
Online video advertising has boomed in recent years creating new revenue streams for the publishing industry. Advertisers are targeting consumers through video placements as it’s proving an effective method to help grow their brand. For publishers, offering premium video content is proving to be a worthwhile and necessary investment.
Publishers are continuing to adapt to consumer preferences as video content becomes an increasingly in-demand form of consuming information. Insider Intelligence’s Q1 2021 Digital Trends Report found that adults are spending an average of 140 minutes a day watching short-form video in 2022. Based on advertising demand alone, publishers are aggressively considering how to implement an Online Video Platform (OVP) plus robust video content strategies to maximize and diversify their ad revenue streams.
Digital video ad spend has continually increased over the past few years, and has seen substantial spikes recently as digital advertising budgets have grown to match skyrocketing engagement. According to IAB’s 2021 Video Ad Spend and 2022 Outlook Report, digital video ad spend increased 49% in 2021 and is expected to reach nearly $50 billion in 2022. Zenith has found advertising across all digital channels will exceed 60% of global ad spend for the first time in 2022, reaching 61.5% of total expenditure.
In a world where digital advertising has become the preferred option among advertisers, digital video ad spend reigns supreme.
With a cookie-less future on the horizon, advertisers turning to digital video are becoming increasingly reliant upon contextual targeting to reach their desired audience. IAB’s 2021 Fall Impact Study found that 74% of marketers will be investing in contextual relevance by the end of this year. This shift has placed the onus on publishers to keep their audience engaged with valuable content that creates a reliable readership to attract and appease advertisers.
More specifically, publishers have generated a 31.8 percent increase in advertising revenue through online video, according to the Association of Online Publishers (AOP) and Deloitte’s Q3 2021 Digital Publishers Revenue Index Report. Compared to digital advertising alternatives, digital video is providing one of the best returns for publishers.
Despite the abundant opportunity, many publishers struggle with the startup expense of getting a video program in place, reaching appropriate scale of onsite video plays, and maximizing their slice of the revenue pie.
The truth is that most publishers do not have the capabilities to create contextually relevant video content for each of their articles. While having capable OVP technology is critical to delivering a good user experience and monetization capability, it is just one part of having a comprehensive video solution. It is equally important that publishers have a robust catalog of high-quality video to achieve the scale necessary to demonstrate true video engagement.
Since most publishers do not have the capability to create this on their own, partnering with companies to deliver a continual stream of premium relevant video content is a must-have part of the equation.
Publishers today are not battling with each other for their audience’s attention, but rather are competing with YouTube, TikTok, Reels, and Netflix in an ongoing competition for consumer engagement. Luckily for publishers, a comprehensive solution is not impossible to find. A study conducted by Wistia pointed out that people spend 2.6 times more time on websites with video than those without. Offering quality, brand-safe video content that provides relevant information to your audience is an effective way to increase consumer engagement that can be monetized through the ongoing shift of dollars from traditional media to digital video.
STN Video has conducted internal case studies to monitor the revenue performance of publishers leveraging our digital video platform. Las Vegas Review-Journal saw a year-over-year increase of 536% in revenue and 41% in monthly page views through the implementation of the STN player.
Jim Prather, Executive Director of Digital Programming for the Las Vegas Review-Journal, stated “Our number one priority at the Review-Journal is delivering quality content to our readers. STN Video plays a key part in our content strategy by delivering the best possible video content to keep our readers up-to-date and informed, and at the same time, has driven impressive results”.
STN Video’s objective has always been to provide publisher-focused digital video content, world-class OVP technology, and monetization solutions tailor-made to your business. We are always eager to talk to current and potential partners to see how we can help you grow. Reach us here to learn more.