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Best Practices for Driving OTT Advertising Revenue – OoyalaVideo advertising is a rapidly growing business, expected to generate $17.68 billion in 2016, according to Magna Global. While we've mostly concentrated on OTT subscription services such as Netflix and Amazon, advertising- sponsored OTT services (AVoD) will be an important component of online traffic. A recent report from video technology vendor Ooyala Inc. listed the best practices the company has picked up working with a range of customers and analyzing the data they collected. First, the company advocates separating out the video content on a site and creating a specific video section to showcase it. Visitors who want to watch videos should be able to find them right away. But, the company adds, it's also important to integrate videos into news stories and other text-based features, to address more topically driven visitors. So a video on a particular topic should also be embedded into a story on that topic. The company lists the following important recommendations for each section: For the video showcase section of a site:
For video integrated into other sections of the site:
Ooyala offers a prime example of the impact of these best practices. According to the company, a major news conglomerate was covering up thumbnail images with titles and play buttons, and its homepage didn't clearly mark articles that included video. By simply making these small fixes, video viewership rose 11% within a month. The report also lists some best practices for improving monetization through more effective ad inventory management and sales. According to the report, the basic formula for making money with video ads is: (Number of Video Views) x (Sell-Through Rate) x (CPM) = Revenue. For example, (1M views) x (80% sell-through) x ($10cpm) = $8,000 in revenue. So to increase revenue, any one of these would need to be improved. We've talked about improving video views, but websites can also improve their sell-through rate and advertising rates or Cost Per Thousand Impressions (CPM). To increase sell-through, Ooyala advocates adding more platforms (mobile, desktop, in-app etc.) and more specific devices (Apple TV, Roku etc.), as well as different ad placements. Many websites just offer pre-roll ads, i.e., those that run before the video. But mixed groupings can appeal to a broader set of advertiser needs, according to the company. Ooyala also advocates using programmatic advertising, or advertising that is traded automatically using algorithms. Ooyala's Q1 2016 Global Video Index found a 22% quarterly increase in programmatic premium inventory, which, combined with growth in programmatic investment from premium buyers, led to a 74% increase in paid impressions. The company also recommends using ad reinsertion (i.e., anti-ad blocking) technology to counter ad-blocking apps and including live streaming where possible. Lastly, the company urges AVoD providers to look at increasing their advertising rates. This can be done by introducing new, premium-priced advertising formats, such as in-player banners, full-page takeovers, sequencing ads to tell a story and other formats. It also recommends developing more insight into site visitors and selling targeted audience-based packages. This is, of course, dependent on data and analysis of site traffic. Similarly, exclusive access to parts of a site's inventory could help create new premium packages.
— Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation |
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On-the-Air Thursdays Digital Audio
ARCHIVED | December 7, 2017, 12pm EST
Orange has been one of the leading proponents of SDN and NFV. In this Telco Transformation radio show, Orange's John Isch provides some perspective on his company's NFV/SDN journey.
Special Huawei Video
Huawei Network Transformation Seminar The adoption of virtualization technology and cloud architectures by telecom network operators is now well underway but there is still a long way to go before the transition to an era of Network Functions Cloudification (NFC) is complete. |
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