Streaming Media White Paper 2008 - (Page 13) www.streamingmedia.com 13 The Next Generation of Online Video Advertising movement to monetize online video,Tremor Media works with content owners, publishers, and advertisers every day helping them understand the marketplace to determine the best ways to make money from video advertising. What follows is a list of answers to the questions we are frequently asked about the online video industry and how Tremor Media has set out to revolutionize the control and flexibility by which publishers can monetize their video assets. Read on to learn more about how to make the most out of what you’ve got through dynamic in-stream advertising. As leaders in the And with consumer demand for online video exploding, the opportunities to drive not just revenue but profit from online video will only continue to grow. In the U.S. alone, video consumers stream more than 10 billion videos a month, and eMarketer has estimated that one in two Americans, or 154 million people, will watch a video at least once a month in 2008. • It’s a brand-safe way to extend your ability to monetize unsold video inventory • We work with the top brands and agencies • Offices throughout the U.S. and Canada • Our technology and ads are IAB compliant If you’re part of a video platform like Brightcove, Dragonfly, PermissionTV, or Broadcast Interactive, we may have already integrated. The way we make you money is totally transparent: • We avoid all sales channel conflicts. The Big Picture There’s a lot of talk about monetizing video, but how big is the opportunity really? No single ad market, online or off, holds the potential growth of online video advertising. According to the latest numbers from eMarketer, it’s been growing more than 50% a year and the market is projected to grow from $775 million in 2007 to more than $4 billion by the year 2011. In-stream inventory has a higher value than any other online real estate. This growth is driven by brands both big and small. Big brand advertisers want to expand their reach, while smaller brands see opportunities to establish their initial presence, and both are excited about the potential to spend their ad dollars on impressions that target users to deliver the most value possible. While offering online video used to be a loss leader aimed at getting people in the door, thanks to decreased bandwidth costs, it’s now possible to enable a system whereby the more you stream, the more money a publisher makes. Is pre-roll dead? “There’s a reason TV is a $70 billion format,” says Tremor Media CRO Randy Kilgore. Simply stated: sight, sound, motion—that’s what moves product. It’s fashionable to bash pre-rolls for being too much like TV, but Kilgore bets that for anyone who makes substantial money from online video, 80% of their revenue comes from pre-rolls.“Big ideas are fun and interesting,” he said, but “basic blocking and tackling” is what sells products and/or changes brand perceptions. That said, pre-rolls are only the beginning. Given the right technology, mid-roll impressions can be just as valuable to the advertiser and perhaps even more so to the publisher as they allow you to more fully monetize longer form content, enabling it to be as profitable as short form, if not more so. Why should I use an ad network? Ad networks allow publishers to add sales capacity without adding salary. They afford greater reach to more advertisers and help guarantee that all available inventory can be sold. At Tremor Media, our team of industry veterans can complement your existing sales force with unparalleled access to the biggest agencies and advertisers in the world. Here are some of the reasons why publishers employ us to help sell their ads: What’s Your Biggest Pain Point with Your Technology Providers Related to Online Video and Video Advertising? Lack of audience 3.5% Other 11.3% Endless integration/ engineering 36.7% Lack of quality content 18.3% Lack of ad revenue 31.3% http://www.streamingmedia.com
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