Monetising Video

VIDEO MOVES REVENUE

Publishers Luncheon 18 November 2015

Brought to you by Brightcove

MONETISING VIDEO Ben Morrell, Senior Technical Consultant for Media, Brightcove

4 | ©2015 Brightcove Inc

INDUSTRY LEADER IN ANY METRIC YOU WANT

©2015 Brightcove Inc 5 |

1.4 5,770 IN MORE THAN 75

COUNTRIES

$125m IN 2014

MASSIVE PLATFORM SCALE: DAILY METRICS


POWERING LEADING MEDIA PUBLISHERS ALL OVER THE WORLD


AGENDA

• Market Trends

• Monetisation Live Use Cases

• Challenges

•  3-Point Monetisation Checklist


Brought to you by Brightcove

We are hard wired for moving images and sound

People remember …


20% of what they hear

People remember …



30% of what they see

People remember …



70% of what they see

and hear

Growing smartphone penetration compels publishers to secure a post-print future off the desktop


Worldwide smartphone penetration (%), 2012 - 2019


2012 2013 2014 2015

2016 2017 2018 2019

23.0% 28.3% 33.2% 37.4%

41.8% 46.5% 51.3% 56.0%

More than half of the world’s population will be mobile Internet subscribers

Source: Global entertainment and media outlook 2015-2019, PWC

Of those who spend time on their mobile, 30-40% will watch a video


30%

62%

43%

57%

70%

75%

40%

54%

57%

58%

64%

64%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Watching videos or movies

Getting news alerts

Reading

Playing games

While watching TV

Social Networking

Activities Performed at Least Once Each Day

Tablet

Smartphone

Source: ExactTarget

In fact, digital video ad spend is shifting to mobile


$2.65 $3.54

$4.52 $5.32 $5.78 $6.23 $6.64 $0.24

$0.66

$1.44

$2.45

$3.67

$4.88

$6.07

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

2012 2013 2014 2015 2016 2017 2018

Digital Video Ad Spending by Channel, ‘12-’18 in billions

Desktop Mobile

Source: IAB, PwC, eMarketer, June 2014

And video advertising fill rates have increased across the board


PUBLISHERS BROADCASTERS

77% à 92% 64% à 67%

56% à 88% 57% à 70%

55% à 89% 54% à 74%

Source: 2014 SNL Kagan, “Media Trends, Actionable Metrics, Benchmarks & Projections for Major Media Sectors, 2014 Edition

SHOW ME THE MONEY


Digital advertising for THE NEW YORK TIMES, was up 14% and accounted for $48 MILLION OF REVENUE. Growth was driven by mobile and video advertising as well as native advertising.

WALL STREET JOURNAL’S live video show ASIA TODAY says that video push has created an 85% GROWTH IN VIDEO STREAMS and has attracted a range of innovative advertisers across categories

BLOOMBERG charges roughly $75 CPMs for video which is FIVE TIMES MORE than the $15 CPMs it typically gets for dot-com content

Social media is creating a big impact on how news is distributed, consumed and ultimately monetised


Facebook’s algorithm heavily favours video

% of posts that reach an audience on average … when shared


4% 14% 35%

TEXT-based PICS VIDS

2.65

2.90

3.12

3.19

3.43

3.49

3.69

4.06

5.50

6.25

- 1.00 2.00 3.00 4.00 5.00 6.00 7.00

Daily Mail

Yahoo

Breitbart

BBC

The New York Times

NBC

The Guardian

Fox News

The Huffington Post

Buzzfeed

Millions

Top 10 Publishers on Facebook – # of shares

“A year or two from now, we think Facebook will mostly be video .. ” Ted Zagat, Head of Ad Product


Source: Newswhip, The Biggest Facebook Publishers of September 2015

Breakdown of all traffic for the site:

27% Facebook native video

23% Direct to the site or apps

21% Snapchat content views

14% YouTube views

6% Facebook traffic to the site

4% Images on Facebook

3% Other distributed platforms

2% Google search to the site




AVOD across multi-devices and platforms Driving a seamless viewing experience


AVOD Advertising supported Live and VOD content


Multiple monetisation opportunities Pre-roll, sponsored content, sponsor banner and logo overlay


Online Video Channels Driving additional digital revenue streams


Immersive Portal Experiences Driving awareness, traffic, engagement, time- on-site, conversion and loyalty


Lean Back Migrating TV dollars online


Sponsored Content Creating content for brands



BUT VIDEO AT SCALE IS HARD FOR PUBLISHERS …

Growing video

libraries

Encoding for every

device

Supporting large teams

Delivering beautiful

experiences

Reaching social

channels

Payment

Integrating with marketing technologies

Knowing what’s

working


AND THIS WILL ONLY GET HARDER AS YOUR VIDEO CONTENT STRATEGY GROWS

COMMON PITFALLS TO MONETISING VIDEO

•  Delivering a bad user experience

•  Lack of consistency across devices

•  Inability to identify the high value

genre

•  Losing revenue from ad blockers



LET’S PLAY WHERE’S THE VIDEO?

A GREAT USER EXPERIENCE …


… AND SEAMLESS ACROSS DEVICES TOO


Companion

Overlay

Banner Top

Banner Bottom

Pre Mid Post

MONETISE EFFECTIVELY


MONETISE EFFECTIVELY



Internet video publishers capture only a fraction of the best possible ad monetisation revenue

Internet Video Publishers Capture Only a Fraction of the Best Possible Ad Monetisation Revenue


Example Challenges

•  No ad delivery solution for LIVE streams

•  No single ad network has enough inventory

•  Ad network has no SDK for Windows 8 app

•  10-15 % ads are lost due to download performance issues

•  10-30 % ads are blocked by ad blockers

Ad performance loss is caused by hard technical challenges of delivering video ads to multiple devices & apps in a complex Internet ecosystem

The Rise of Ad Blockers: A win for consumers? No.


GLOBAL AD BLOCKING GROWTH


41% of web users are equipped with ad-blockers

Blocking ads continues to build on the strong growth rates seen during 2013 and 2014. The findings: •  Globally, usage of ad blockers grew by 41% YoY (Q2 2014 – Q2 2015) •  As of June 2015, there were 198 million monthly active users for the major

browser extensions that block ads

Source: The rise of Ad Blocking Report, from Adobe & PageFair, 2015

41% YoY global growth Q2 2014 – Q2 2015

45 mil Average MAUs in the US

Q2 2015

$21.8bn Ad revenue blocked in

2015

16% Of mobile Firefox users

block ads

SIMPLIFYING THE COMPLEXITY BEHIND MONETISATION


AUDIENCE ENGAGEMENT REVENUE

#1 - AUDIENCE


Build The Audience

Create Content Niches & Personalisation

Extension of Existing Services

Business Model Flexibility

#2 - ENGAGEMENT


Devices & OS – Native or Mobile Web

User Experience Create Engagement/Discovery – Social Media


CONTENT

ON THE GO



#3 - REVENUE


Paywall Flexibility, Dynamic Business Model Ad Servers & Standards

Strategy around Ad Blockers

STRATEGY AROUND AD BLOCKERS


Ad optimisation technology that allows publishers to:

Maximise Ad Delivery

Streamline Viewing Experiences

Increase Revenue Across Desktop & Mobile

Combine SSAI with Player Management Service

TO WRAP UP


MOBILE INTERNET AD SALES MIX SOCIAL MEDIA

What are you doing to capture mobile dollars?

Look at your direct sales versus ad exchange revenue

Optimise the mix between advertising and sponsorship

Use social media to explore audience and revenue

THANK YOU

Date post:	14-Apr-2017
Category:	Technology
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Monetising Video

Technology