Each year, the landscape of how we consume video content changes at an alarming rate. More and more publishers are becoming desparate for innovation solutions to adapt to the new world of marketing and deliver consistent returns. Competition for content is on a constant rise, coinciding with the fragmentation of audiences and devices which greatly affect content monetization (Which totalled $9.56 billion in the US in 2016).
One of the largest frontiers for the furure is that of metadata. Metadata is the driving force behind AI and machine learning. As these technologies develop we’ll be able to tell more about our customers and find ways to better engage them. The better we understand their preferences on social media, the more effective our outreach will be. A better understanding of our targets will generate better content.
As such, AI and ML have an instrumental role in the future of advertising. As Niko Waesche, Global Head of Customer and Audience Activation at research copany Gfk suggests “we’re not just talking programmatic anymore, we’re talking about consumer activation, reaching the right people at the right time”. Marketers will thus need to interact with customers in a much more targeted and concise way mixing content strategies and data prowess.
In other words companies will increasingly rely on video driven content. Socintel360 anticipates that worldwide programmatic video revenues will almost double to $15 billion by 2018. As programmatic video ushers us into a new era, the pressure is on for tech companies to incorporate new technology and refine their video making practices.
How can Digital Publishers Increase Video Ad Yields?
There are many different stategies that digital publishers can use to increase video ad yields. Marketers can rely on anything from anti-blocking technologies to using data to improve their decision making to improve their ad yields. Yet the most effective modenr strategies incorporate a mix of programmatic videos and personalisation. Programmatic has a long track record of success. A 2016 IAB report produced by Advertiser Perceptions revealed that programmatic accounted for a whopping 41% of US digital video ad spending in 2016. The prominence of programmtic content is staggering.
Many companies have found some success in transitioning to a programmatic strategy. One example is seen during a period in 2015, where clients using the Ooyala Pulse SSP programmatic platfrom saw their ECPMs increase by 25% (Largely due an increased use of PMPs for ad transactions. This indicates that programmatic can help to increase advertising reach and ad yields together.
A similar success story is seen in Sweden, notorious for having high penetration of smartphones and fixed broadband. Sweden also has the fastest growth rate in the online video market with great potential in terms of growth potential. Ooyala Research data indicates that from May 2016 there was a 500% growth rate between January-May in programmatic revenue. Clearly programmatic strategies can help to drive revenue and engagement.
One other viable approach to increasing video ad yields is to deploy personalized videos, which pay close attention to your target markets viewing preferences. Verizon utilizes a multitouch personalized video engagement program which educates viewers and provides information about the services and installations that are available to purchase. Each video addresses the customer by name and confirms the installation time and confirms the installation time and date.
Companies looking to taking their video marketing beyond personalisation can also go down the live-action dynamic route. Guz Atmon suggests that live action videos with actors help “humanize the brand, and tell the brand’s story with a person at the center”. The rationale is that audiences seek to connect to characters and actors when watching video content. Creating content that lacks characters your audience can relate to can lead to viewers being disconnected from the brand message and the services being offered.
Of course this raises the challenge of selecting appropriate actors for your video content, as well as ensuring the live-action footage conveys a personalized message. Using on-screen text and voiceover narrations are one of the main ways that companies personalize footage today (Samsung are one such example). The key aim is to produce content that reaches out and connects with your viewers. Conveying a clear an authentic message through personalized videos is key to increasing your ad yield.
Video Ad Yields: Simplicity is Key
Whilst the technology behind successful video content is complex the content itself need not be. Programmatic and live action video are immensely effective but they need to be accompanied by a clear and personalized brand message. Unfortunately, personalisation is not without its complications. The 2018 General Data Protection Regulation (GDPR) will have major implications for what data can be retained on consumers.
The GDPR will require marketers to collect consent from all data subjects they have or risk legal action. In practice, this will greatly effect the expension of technologies like programmatic video, as companies will be more restricted in how data can be retained and used. Despite this, the great success of programmatic video and personalized content will drive marketers to go the extra mile to meet the requirements and increase their ad yields.