Testing Online Video Ad Performance is Better than Guessing

Online video advertising was the fastest growing digital advertising vertical in 2011, and the total spend for this category is expected to top $7 billion by 2015. With more viewers accessing broadcast-quality content online, networks, studios and cable operators have a clear opportunity to tap into a growing revenue stream. 

But how can media companies maximize their online video advertising revenue? Aligning ad and content demographics is a good place to start. But assuming that Axe Body Wash ads should play alongside content geared at young males transfers a linear broadcast mentality to the online space. This sort of thinking is a good place to start, but it ignores the potential of online broadcasting to track, measure and target ad performance. If you see online ads as merely an extension of traditional TV advertising, your company is losing money.

Smart media providers leverage new technologies to test, measure and optimize online video ads. Testing video ad performance is a better strategy than hoping your viewers engage with your paid content. Video analytics provide key performance metrics and help publishers answer critical questions like:

• Where to show ads

• When to show ads

• Which ads to show

• What type of ads to show

• How many ads to show

• How long each ad should be 

Publishers have the best chance of maximizing their revenues when they optimize their online ad monetization with video analytics. Video analytics show ad performance in real time and allow publishers to refine and adjust their ad placement, length and content. Testing and optimizing video ads delivers the most relevant paid content to the most number of users and increases overall profitability by providing key insights into viewer engagement and behavior.

The result, to dust off some business jargon, is a classic “win/win.” Viewers get more targeted ads that they care more about and publishers make more money from these ads. These advanced advertising analytics bring us one step closer to a truly personalized media ecosystem, where individuals are matched with content and ads that they want to engage with. And the only way to get there is through testing and optimizing, not hoping and guessing.