Good Read: Drake Morton
Six Ways to Increase Digital Video Revenue
by Steve Robinson , Thursday, April 21, 2011
With demand for streaming content clearly established, publishers have shifted from testing digital video advertising to bringing ad revenues toward parity with broadcast. Most publishers face two big hurdles to expanding revenues: Providing enough inventory to meet growing demand and fulfilling sold campaigns efficiently.
Both of these challenges result from an imbalance in the digital video ad market supply and demand. When it comes to inventory, premium publishers are typically only selling three to four pre-roll ads per show in digital video, compared to seven or eight in TV, and as such are only making a fraction of the revenues.
Additionally, although they may believe they have reached “sold out” video ad inventory status, most publishers leave money on the table because they simply can’t fulfill their ad orders in a timely manner. Think of the situation like this: You go to a shoe store and the clerk informs you the store is sold out of shoes. However, it’s not that they are actually “sold out.” The real problem is that the retailer couldn’t get the shoes delivered from the manufacturer to the store and into the inventory system fast enough for you to purchase them.
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