There are many great reasons why digital publishers should invest in video - contextual video content can increase user engagement and dwell time, more video placements equal new inventory, and video CPMs are consistently higher than display.
So why, then, do many consider the ‘pivot to video’ to be a failure? Media’s big ‘pivot to video’ was prompted by:
- a shift in media consumption from O&O to third-party platforms,
- higher CPMs for pre-roll than display,
- a far-reaching assumption that people prefer to watch videos instead of read articles, and
- Facebook’s inflated ad viewership metrics, which were ultimately deemed miscalculated at best, and bogus at worst.
Add a little herd mentality to the mix, and we saw nearly every digital-first publication axe writers and hire video producers en masse. In the end, thousands of people lost their jobs, in a ‘pivot to video bloodbath.
Yet while publishers have scaled down their video businesses as a result of these miscalculations, the appetite for digital video and ad spend only continue to grow. eMarketer projects that video ad spend will grow significantly faster than viewers in many markets. The U.S. will experience a compound annual growth rate of almost 13% by 2023. And if that’s not impressive, rates in the U.K., China and Canada will be even higher.
The digital video opportunity is arguably bigger than ever, and digital publishers should turn to where they have the most control: their O&O.
- have made the costly investment in gorgeous original production,
- consistently sell out on your pre-roll inventory, or
- are crushing it on display advertising and want to attract some high-value pre-roll demand,
there are several strategies that you may want to consider for a robust digital video business. After all, if 2018 taught us anything, it’s the importance of a diversified strategy...
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