Why Video Publishers Have More Inventory Than They Think

By Aimee Irwin (http://www.imediaconnection.com)

Think we're at our video inventory limit? Think again. Advertising.com's VP of video networks gives pointers.

According to data from AccuStream iMedia Research, 75 percent of all video advertising inventory is sold each month. The truth is that publishers aren't exploiting all the advertising potential of their video content. They are not sold out; they're simply not selling everything they have to offer.

With so much money to be made from video advertising, how can this be?

One reason is that unlike display advertising, unfulfilled video inventory doesn't leave a big blank space on your site. If there's no ad to show prior to a video clip, the publisher can simply skip right to the video content, which means publishers cannot easily account for missed ad opportunities.

Another reason for this overreporting is that, due to the early stage and rapid growth of online video, inventory simply isn't as predictable or easily monetized as display inventory, particularly when it comes to sudden spikes in traffic. For example, breaking news events can dramatically increase video viewership, creating a high volume of unexpected advertising inventory.

These factors and more lead publishers to overestimate the percentage of video inventory sold, simply because they're not factoring in the hidden potential of their video content. And this can be a costly oversight.

With high CPMs and strong demand for video advertising, publishers should be taking advantage of every second of video ad space available. Here are some ways you can extend your video ad inventory and better monetize your current assets.

1. Use continuous play for continuous revenue
It can be hard to get off the sofa. That's why at the end of a TV show, plenty of viewers stay put and get drawn into the next show. Video publishers, too, can leverage this phenomenon with continuous play, positioning multiple clips back to back in order to keep the user interested and thereby multiplying opportunities to run ads.

2. Partner with a network to fill every minute
If you want to fill 100 percent of your ad inventory, an ad network is the way to go. Partnering with a network is the most efficient way to deal with the ups and downs of video viewership. Networks eliminate the unpredictability problem, absorbing any available impression you have, in real time. So, if traffic spikes as the result of a breaking news clip, a network will automatically ensure that additional inventory is monetized.

3. Improve your advertiser appeal
Boost the value of your video inventory and you'll keep advertisers coming back for more. One way to accomplish this is to offer formats that give advertisers the most bang for their buck. Another is to make your video advertising as appealing and welcoming to site visitors as possible. Consumers who have a better user experience are more likely to view video again on your site (creating more ad opportunities) and will have higher response rates (creating happy, loyal advertisers.)

Here are a few value-enhancing strategies that work:

• Enable companion banners: What really sets online video apart from TV advertising is its interactivity and measurability. Like TV, video offers great visual and emotional impact. But video also offers a way to immediately generate and measure consumer response. Perhaps no format combines emotional appeal with actionability better than video advertising with a companion banner. Companion banners are clickable static ads placed inside a video player, just outside of the video clip. These ads are extremely attractive to advertisers, who essentially get twice the exposure for their money. In order to remain competitive in the video space, companion banners are a must-have value-add.
• Set session limits: Check out your favorite TV program online, and you may see the exact same ad before the content and at each '"commercial break." This creates a less-than-desirable to downright frustrating user experience. Unfortunately, that repetitiveness can also diminish response rates. One solution is to cap ad frequency based on session limits (the length of time the consumer has been viewing your video content). Reducing ad duplication may not only improve response rates, it will also open up your content to additional advertisers and revenue opportunities.
• Adapt ad length to clip length: Thirty seconds of advertising before a 90-second clip? What consumer wouldn't feel burned? A better approach is to adapt ad length to clip length, so a 90-second clip will have much less ad time than an hour-long program. Again, keeping viewers happy keeps them coming back to your content.

Boost the volume and value of your video ad inventory
Before you put up your "sold out" sign, take a closer look at your video assets for untapped revenue opportunities and ways to improve the user experience. When it comes to video advertising, every second and every impression counts.

As vice president of Advertising.com’s video network, Aimee Irwin is responsible for strategic publisher initiatives for the company’s video product, including the ongoing growth and development of its publisher base.