Subscription fatigue is very much still real and there’s more than enough data to validate this claim. As if the deluge of content wasn’t enough, streaming services are becoming more fragmented and exceedingly pricey.
In fact, in Q4 2023, Disney+ lost over 1 million subscribers after price hikes.
As a result, Live & VOD streaming audiences are much more willing to endure ads than ever before.
With this in mind, it’s no surprise that monetization models that heavily rely on advertising such as AVOD and FAST are becoming increasingly popular. While rising costs are undoubtedly a key factor, the noncommittal nature of AVOD and FAST ensures users that they’re not beholden to adding to their already bloated subscription packages.
For anyone on the other side (companies who drive business through video) growing adoption of AVOD, FAST, and connected TV is proof that advertising ecosystems are more important than ever, with an ever-expanding landscape of monetization opportunities through advertising, both on the demand side and supply side.
And when it comes to video advertising, much of it is dictated through video ad marketplaces. Which is why it’s so important for advertisers and content providers to choose the right ones to work with.
What is a Video Ad Marketplace?
Video ad marketplaces connect advertisers who want to buy ad space with content providers who want to sell it.
Content providers such as video publishers and broadcasters have a supply of inventory (the content they produce) and advertisers are looking to place ads in content that’s relevant, either through contextual targeting or behavioral targeting.
The process of matching buyers and sellers is often done programmatically, where real-time bidding determines which ads get placed where.
What are the benefits for advertisers?
Video ad marketplaces are an efficient way for advertisers to match ads with premium content. The programmatic nature of these intermediaries allows advertisers to take a granular, data-driven approach to targeting the right ads based on key demographics such as age, geolocation, device, and interests.
What are the benefits for publishers?
Content providers such as video publishers or broadcasters can easily monetize their content through video ad marketplaces. All they’re providing is the digital real estate within their video content. The rest is taken care of programmatically by the marketplace.
For publishers, this creates a steady stream of revenue, regardless of whether the ads are effective or not. Through automated bidding, publishers are ensured of capitalizing to the highest extent possible.
What should you look for when choosing a video ad marketplace?
When evaluating a video ad marketplace, advertisers should consider several key factors:
Targeting Options & Accuracy
Granularity is key when evaluating a video ad marketplace . You need robust audience targeting capabilities that offer a breadth of options for segmentation, such as demographics, interests, behaviors, location, device, operating systems, and more. Even better, partnering with a video ad marketplace that relies on both behavioral and contextual targeting increases the likelihood of your ad showing up within the most relevant content for your target audience.
Furthermore, when you’re paying by the impression or CPM, verify the marketplace’s ability to accurately target and deliver ads to the intended audience, otherwise you could be throwing precious resources away.
Ads are only as powerful as the content they’re associated with. The more targeted content you have at your disposal, the better the chance of your ad being shown to the right audience at the right moment. Ensure the video ad marketplace partners with high-quality publishers and offers premium ad inventory to maintain brand safety and integrity.
Capabilities, Integration, and Compatibility
Evaluate the technological capabilities, such as real-time bidding (or better yet, header bidding built directly into the platform), programmatic buying, outstream and instream ad capabilities, offline DRM, and ad verification tools. Ensure compatibility with existing ad tech platforms, as well as support for both SSAI and CSAI.
Instilling an effective ad-tech infrastructure will maximize potential impressions with the right audience while minimizing inefficiencies that inhibit workflows.
Measurement, Reporting, and Customer Support
Your video ad marketplace should allow you total visibility into which videos are performing the best when it comes to eliciting the highest levels of engagement.
Look for a platform with comprehensive performance measurement tools and reporting capabilities to track campaign performance, optimize strategies, and demonstrate ROI to stakeholders. Consider the level of customer support and assistance provided by the marketplace to address any issues or concerns promptly.
In 2024, viewers are more willing to endure ads than ever. As a consequence, their demand for relevant ads has also never been higher. If you’re an advertiser or publisher, and you haven’t already, you need to take advantage of this ad-friendly landscape choose the right partners to work with.
Fortunately, JWP makes the process super simple, with features baked directly into the platform as well as a world-class support team to help you launch, scale, and monetize as quickly as possible.