Walking your C-Suite boss through video advertising’s biggest misconception
If you’re in charge of a publisher’s video content program, few events can cause more anxiety than a meeting with the C-Suite when you’re first getting your initiative off the ground.
You’ve assembled a great team, produced dozens of quality videos, and worked late into the night on your carefully crafted distribution strategy. The only problem? Your new video program hasn’t quite delivered the ROI your company was expecting yet. And now it’s up to you to explain why your company should continue devoting resources to it.
Debunking the greatest myth about video
While some executives have the misconception that video doesn’t produce a strong enough ROI, the truth is video can be very lucrative.
As any publisher knows, quality video content costs much more to produce than a written article or slideshow. But the long-term payoffs can be substantial. The Interactive Advertising Bureau predicts that U.S. advertisers will spend $14.5 billion on digital video in 2018, with this number climbing to more than $23 billion by 2021. Publishers who are able to break into the over-the-top (OTT) television market will have an opportunity to reap even greater rewards, with ad revenues in this space expected to top $30 billion in 2018.
In addition to highlighting these facts in your C-Suite meeting, consider bringing success stories of how media giants have integrated video into their businesses. Hearst, which generated 15 billion video views last year, just recently opened a new, 26,000 square-foot production studio dedicated to video. Firms like Vice Media have built multi-billion dollar companies on the back of a strong digital video operation. Though Vice began as a niche punk-rock print magazine in 1994, the publisher’s early bet on original video and branded content have helped it grow into the household name it is today.
For more examples, our resources page features case studies that can support your conversations with the C-Suite.
Why does this misconception about video exist?
New video publishers frequently struggle not because they lack quality content with high ROI potential, but because they aren’t showcasing or monetizing their work the right way.
For instance, if not enough people are engaging with videos on your site, your problem might be that you’re not A/B testing your headlines and thumbnails. If your visitors are leaving quickly after they arrive on the page, you might want to speed up your site load times. If people aren’t interacting with ads, a more strategic approach that invests in the lifetime value of the customer may be in order.
Monetization can further be hindered by the fact that, until recently, a great deal of video viewing has taken place on outside platforms like Facebook and YouTube, which generate lower CPMs for publishers and force them to split their revenues with another company.
Facebook’s latest algorithm changes have dramatically reduced social traffic to branded videos, meaning publishers can make an even greater case to their C-Suite boss: The time has never been better to use their owned and operated site as the main source of video monetization.
How JW Player can help
Here at JW Player, video monetization is what we do. Our ad technology is compatible with all major ad servers, networks, and exchanges, and our latest partnership with SpotX further allows publishers to simultaneously access multiple demand sources via video player bidding. We also offer consultative services on optimizing your ad yield. Best of all, you won’t have to worry about a revenue split diluting your ROI, as our customers keep 100% of their ad revenues.
So relax, take a deep breath, and know that help is on the way. We’ve proven time and again that video advertising can deliver major ROI for a wide range of video publishers. There’s no reason for your C-Suite boss to believe your firm will be any different.
Ready to boost your video ad revenue? Schedule time to speak with a video expert.