However, once someone clicks play, an advertiser has only a matter of seconds to win or lose the attention pointed towards the accompanying video. This is where a nanosecond of invaluable opportunity lies for video advertisers.

An ad that compliments the content a viewer is seeking in that brief moment of intent can be more impactful than reaching that same viewer later on when they’re streaming their favorite shows to unwind.

JWP saw that impact when we partnered with Mars for an M&M’s contextual video campaign.  Exposure to ads that were placed with JWP’s proprietary contextual targeting drove more offline purchases than any other video PMP partner, or any video on the open exchange (Nielsen Catalina data). This underscores the effectiveness of timely, relevant ad placements.

What is Contextual Video Advertising?

Contextual video advertising is the science of aligning the video ad with the content in the video, therefore tapping into the mindset of the viewer at the moment of relevance.

Intent is signaled at the video level, which improves accuracy when it comes to ad placement. In fact, by placing your video within contextually relevant content, you’re nearly doubling your chances of brand recall and purchase intent.

It’s the most ethical and noninvasive way to target the psyche of an individual. Advancements in technology and AI, like the ones made at JWP, allow for a deeper analysis of video and content consumption signals making this a powerful targeting tool in a post-cookie, pro-privacy era.

Through a contextual lens, a viewer is not being approached as a consumer, or a data driven sum of past online behavior. A contextual video ad impression is targeting a curiosity, a feeling, or an interest. This is far more privacy conscious than other forms of advertising, such as cookies.

3 Reasons Why Brands Should Prioritize Contextual Video Ad Alignment

Let’s explore reasons why contextual ad alignment far transcends its perception as a default alternative to audience data targeting. 

1. Impact to Drive Results

Contextually Relevant Video Ads Receive Higher Engagement and Purchase Intent 

If a video advertisement is relevant to the video the viewer is watching, they are more likely to watch the ad to completion. There is increasingly more data proving out the power and effectiveness of a contextually relevant strategy.

As the video player, JWP has measured viewership correlation between the video ad content and the video itself to find that relevant ads get higher video completion rates and viewability metrics than other ads on the same video. A leading global CPG brand at Dentsu determined that JWP’s contextual video campaigns consistently achieved the highest viewability on completion of the ad (VOC) 2x their goal. Google reports that relevant video ads get 3X times more attention than average video ads. 

And, as mentioned above, M&M’s was able to drive more offline purchases (vs other PMP’s and video on the open exchange) with JWP’s contextual targeting 

2. Contextual Accuracy Protects Brands 

When it comes to brand safety and brand suitability, ad placement is critical. A brand’s credibility and trust with consumers can take years to build, and be compromised in an instant with poor ad alignment.

For this reason, transparency of content is essential, and the title, keywords, or classification is not enough. JWP is in a unique position because it powers more video on the open internet than any other player.

JWP specializes in editorially produced journalistic videos, as well as studio produced entertainment videos. When you take a premium environment and then have the technology to evaluate the specifics of the content itself, advertisers are given a powerful contextual tool to ensure a safe and suitable location for their brand.       

Considering Reviews

Oftentimes in video, product reviews, movie reviews, gaming reviews don’t reveal if they are positive or negative in the title. The publisher wants to entice the viewer to watch the video to find out. JWP can recognize the tonality of the review as positive or negative, to help brands properly align, conquest, or avoid depending on the content.

Additionally, JWP can decipher good news on news sites while deterministically excluding bad news.

3. Contextual Video Advertising Protects Viewer Privacy

Contextual advertising stands out as both privacy-safe and ethical, particularly in its treatment of user data. Unlike methods that rely on tracking individual behavior over time, this method aligns with current data protection regulations and consumer expectations for privacy. By focusing on the context rather than the consumer, it ensures a balance between personalized marketing and privacy protection, setting a standard for ethical advertising practices.

As you can see from the data below advertisers can still achieve reach while protecting viewer privacy. Top contextual content categories like Food and Drink achieve billions of impressions. And, they can do it in an environment of high viewability with strong completion rates ensuring the highest performance possible.  

To learn more about contextual video ad targeting visit our advertisers webpage. For a short time, we are offering new clients the ability to get a free brand lift study on the completion of their ad campaign with JWP.  

About JWP

JWP is the leading video player on the open web. Since 2004, JWP has helped premium publishers monetize their video with first to market video technology. Today, JWP is a global leader, delivering over 100 Billion monthly video impressions in the US alone. JWP captures unique contextual and video engagement data for advertisers. Get in touch to contextually scale across this premium, previously siloed, and valuable online video ecosystem.

The post Why Contextual Advertising Is So Important for Ad Buyers in 2024  appeared first on JW Player.

With so much economic uneasiness, strategic realignment, and technological upheaval, the only certainty is that whichever organizations acclimate to the current environment the quickest will emerge on top.

Amidst this backdrop, JW Player (JWP) commissioned Forrester Consulting to conduct a Total Economic Impact (TEI) study with SNY (SportsNet New York) and examine the potential return on investment (ROI) broadcasters may realize by deploying JW Player. This process was carried out by JWP experts, SNY team members, and Forrester researchers.

Through a rigorous process of interviewing, financial modeling, projecting, and due diligence, JWP and Forrester constructed a framework to prove the potential financial impact on similar organizations over a three-year period. A thorough investigation of the costs, benefits, and risks associated uncovered overwhelmingly positive results.

Background

Prior to working with JWP, SNY was entangled in a clunky video solution that drastically hampered workflows while lacking the analytical capabilities to uncover valuable insights. Monetization opportunities were limited due to relying on third-party advertising partnerships, while SNY’s team was virtually in the dark as to understanding viewer engagement and retention metrics.

Following a prolonged period of inefficiency, the organization decided it was time to pivot to an end-to-end online video platform (OVP) that was able to exceed their audience’s dynamic consumption needs.

When evaluating potential vendors, SNY had stringent requirements for their next video partner, including:

• All-in-one platform designed to scale
• Maximize ad revenue
• Reduce time to market for video production while enhancing the current video workflow
• Produce a high-quality, high-speed video player with autoplay functionality that easily integrates with the organizations APIs
• Enhanced viewer data and analytics
• Unparalleled customer service and technical expertise

JWP’s OVP checked all the boxes and proved to be the turnkey solution SNY desperately needed. Once the terms were settled, JWP began deployment and a dynamic relationship was underway.

Key findings

After a 3-year period, it was clear that SNY’s decision to partner with JWP was a fruitful one.

135% ROI over 3 years

SNY increased ad revenue by $2.9 million through improvements in audience targeting, with growth in the number of ad impressions of 190% in Year 1 and 150% in Years 2 and 3. The scale of video inventory to be sold for advertisement also increased from 10% to 100%. These gains result in a three-year risk adjusted PV of $2.9 million.

When factoring in the costs of deployment (platform fee, training, strategy, development, maintenance), the end result is an increase in ROI of 135% over a 3 year period and a net present value (NPV) of $1.76M.

Nearly double video production capacity and workflow efficiency

Production capacity increased by 83% and workflow efficiency increased by 93%, respectively. The end-to end workflow allowed the organization’s video team to decrease broadcast time from 30 minutes to 2 minutes, while increasing the number of videos broadcasted per month from 5 to 30. Workflow efficiency gains result in a three-year risk adjusted PV of $103,600.

Improved video production uptime by 95% from faster service request response

SNY realizes significant time savings during the broadcasting process due to JW Player’s responsiveness to real-time video service requests. With JW Player, average response time decreases considerably. Improved production uptime results in a three-year risk adjusted PV of $19,400.

Improved agility and faster insights through an intuitive platform

The interviewees noted that the tool and accompanying dashboards across all capabilities in the JW platform are user-friendly and require little internal training. Further, the metadata infrastructure allowed internal stakeholders to easily aggregate data across multiple audiences for advertisers.

JWP’s formula for success for broadcasters

Forrester’s TEI report showcases the potential ROI broadcasters can expect by working with JWP, relying on SNY as a case study. The full report explains in meticulous detail how the solutions devised by JWP can be applied to broadcasters of any size, with heaps of data to support this assertion.

The post The Total Economic Impact™ of JWP for Broadcasters: A Monetization Story appeared first on JW Player.

In this article, we’ll cover the benefits, challenges, and best practices of pre-roll ads to help you maximize brand impact and drive revenue growth.

Benefits of Pre-Roll Ads

Pre-roll ads have become a mutually beneficial tool for advertisers looking for targeted exposure and digital broadcasters striving to effectively monetize their content. Let’s dive deeper into their advantages.

1. Better Visibility

With the average consumer being exposed to around 6,000-10,000 ads daily, pre-roll ads are your best bet for reaching an even wider target group.

Namely, pre-roll ads appear right before the content the viewer wants to watch. Therefore, the guaranteed exposure leads to increased brand awareness and a lasting impression on the audience.

2. Laser-Focused Targeting

Advertisers can take advantage of targeting technologies to tailor their pre-roll ads to specific demographics, interests and online behaviors.

3. Higher Completion Rates

Unsurprisingly, pre-roll ads typically yield higher completion rates compared to their mid-roll or post-roll counterparts.

That being said, non-skippable pre-roll ads reach a 80% completion rate as opposed to the 40% achieved by skippable pre-roll ads.

4. Positive Brand Association

By creating pre-roll ads that seamlessly align with the viewer’s interests and the content they are about to watch, advertisers create a sense of value and relevance.

Consumers get a more favorable view of the brand as they appreciate the consideration for their preferences and the absence of disruptive advertising. Plus, entertaining, informative, or ads that offer a preview of the upcoming content can leave a positive impression, associating the brand with quality.

5. Improved ROI

Unlike traditional advertising methods that often rely on broad reach and generic messaging, pre-roll ads enable advertisers to optimize their campaigns for maximum efficiency.

By pinpointing the right audience and delivering tailored content at the optimal moment, brands can minimize wasted impressions and maximize the impact of their advertising dollars.

Furthermore, the ability to track and analyze pre-roll ad performance provides valuable insights into viewer behavior, allowing for continuous optimization and refinement.

6. Increased Interactivity

Pre-roll ads offer a unique opportunity for interactive engagement. Viewers can be prompted to click on links, visit websites, answer polls, or even make purchases directly from the ad.

This level of interactivity not only increases viewer engagement but also provides invaluable data and insights into consumer behavior, allowing advertisers to continuously work on their targeting and messaging strategies.

7. Impact on Buying Decision

Pre-roll ads can directly impact consumer purchasing behavior. By showcasing products or services in an engaging and informative manner, these ads can spark interest, create desire, and ultimately drive viewers to take action, whether it’s visiting a website, making a purchase, or signing up for a service.

8. Increased Lead Generation

By incorporating clear call-to-actions (CTAs) within an ad, advertisers can encourage viewers to provide their contact information or express interest in their offerings. Businesses can then nurture these leads and convert them into paying customers over time.

9. Pre-roll Ads Are Easier to Understand

Pre-roll ads offer a distinct advantage over traditional TV ads in terms of viewer comprehension and recall. Their shorter duration and focused delivery in a digital environment make them easier to digest and less likely to be overshadowed by other distractions.

10. Immediate Call-to-Action

Compared to traditional advertising formats that often require viewers to take action later, pre-roll ads can elicit immediate responses. The clickable nature of digital ads allows viewers to click through to a website, landing page, or product page instantly, facilitating a seamless transition from awareness to action.

Challenges of Pre-Roll Ads

Although pre-roll ads offer many benefits, they are not without their challenges. Advertisers and broadcasters should be mindful of potential drawbacks to keep the effectiveness and sustainability of this advertising format.

Ad Fatigue and Banner Blindness

Repeated exposure to the same or similar pre-roll ads can lead to ad fatigue, where viewers become desensitized to the message and tune it out. Similarly, banner blindness can occur when viewers subconsciously ignore anything that resembles an ad, even if it’s relevant to their interests.

To combat this, advertisers need to constantly come up with creative solutions, vary their messaging, and use frequency capping to limit the number of times a viewer sees the same ad.

Ad Blockers

The rise of ad-blocking software poses a significant challenge to pre-roll ads. When viewers utilize ad blockers, the ads are simply not displayed, resulting in lost opportunities for advertisers and broadcasters.

In an attempt to overcome this challenge, some platforms offer non-skippable ad formats or explore alternative monetization strategies like subscriptions or sponsorships.

Negative User Experience

Intrusive or irrelevant pre-roll ads can negatively impact the user experience, leading to frustration and potentially driving viewers away from the platform.

Hence, it’s crucial for advertisers to create engaging, relevant, and concise ads that respect the viewer’s time and interests. Offering a skip option after a few seconds can also help eliminate negative sentiment.

Best Practices for Pre-Roll Ads

Pre-roll ads are effective tools for reaching a large audience, but they can also be intrusive if not done right. Follow these tips for a successful pre-roll ad:

• Make your ads short and to the point: Pre-roll ads should be no longer than 15-30 seconds for your message to be delivered effectively before the viewer loses interest.
• Insert call to actions: Encourage viewers to take the next step by including a clear call to action (CTA) in your ad. This could be a link to your website, a discount code, or a prompt to subscribe to your channel.
• Get the viewer’s attention within the first 5 seconds: The first five seconds of your ad are key for gaining the user’s interest. Use this time wisely by highlighting your most compelling offer or introducing an intriguing element that will keep them watching.
• Make the ad skippable: While non-skippable ads may generate more views, they can also frustrate viewers. Allowing viewers to skip your ad after a few seconds shows respect for their time and can lead to a more positive brand perception.
• Use targeting technologies: Take advantage of available targeting options to ensure your ads are reaching the right audience. For instance, you can include targeting based on demographics, interests, or browsing behavior.
• Allow autoplay: Autoplay allows your ad to start playing automatically when a viewer lands on the page. Should you decide to enable this feature, mute the volume by default to avoid startling viewers.
• Optimize for mobile: With over 7 billion users worldwide owning a smartphone, a significant portion of viewers will be watching your ad on mobile devices. Make sure your ad is formatted correctly for smaller screens and that the video quality is optimized for different internet speeds.

Key Takeaways

Overall, pre-roll ads are a powerful asset when thoughtfully implemented. If you want to make the most out of your video ads, consider investing in a video solution like JWP, who offers ad scheduling and dynamic routing, as well as additional tools such as player customization and an ad infrastructure built on contextual targeting that will help you maximize engagement and revenue.

Contact our sales team today to learn more!

The post Benefits of Pre-roll Video Ads for Advertisers and Digital Broadcasters appeared first on JW Player.

Let’s dive into the key areas to watch and how your business can get ahead of the curve.

The Rise of Digital Video

Here are the main trends that will drive this multi-million dollar industry.

Connected TV (CTV) and Social Video Keep Growing

CTV advertising is becoming the new primetime as streaming services steal viewers away from traditional TV. Namely, the connected TV ad spend is expected to reach $22.8 billion in 2024. The trend is projected to rise gradually over the next few years, ultimately reaching $31.6 in 2028.

Moreover, short-form video platforms like TikTok and Instagram Reels continue to rise. Their engaging, bite-sized ad formats are capturing audience attention and generating impressive returns.

The numbers suggest that social video will keep rising at a rate of 20%, reaching $23.4 billion in revenue in 2024. This represents a 32% faster growth than total media overall.

Furthermore, CTV and social video are highly sought-after advertising channels by major brands, as they offer the unique ability to target specific audiences while achieving both brand awareness and measurable sales outcomes.

Specifically, 70% of the biggest ad spenders considered social media necessary for their media plan, while 69% thought CTV was a “must buy”.

Finally, while traditional media budgets are increasingly being reallocated to CTV, there’s also a growing trend of non-video digital ad budgets shifting towards CTV. This reflects its growing importance across various advertising channels.

Industry survey results state that 40% of the funding sources for CTV are reallocated from linear TV, and only 26% come from audience-based linear TV.

Consumer Packaged Goods (CPG) and Retail – The Biggest Contributors to Digital Video Growth

The forecast for the 2024 digital video ad spend shows a double-figure YoY growth for the CPG and retail sectors.

CPG is expected to grow 20%, while the retail sector will likely notice a 30% raise. These contributors will lead this unprecedented growth, driven by CTV’s expanded reach and targeted advertising capabilities.

Other categories, including auto, financial, restaurants, B2B, wellness, and travel will also grow more than 20%.

David Cohen, CEO of IAB, commented that advertisers follow consumers, and currently, that means digital video. He emphasized the challenge of delivering the best viewing experience, content choices, and advertising options in a crowded landscape, asserting that this competition ultimately benefits both consumers and the industry.

What Does This Mean for Video-Based Companies?

The convergence of CTV and social video presents a multifaceted landscape of opportunities for video-based businesses, offering avenues to enhance reach, engagement, and ultimately, revenue generation:

Connected TV (CTV) Opportunities

CTV ads are considered less intrusive and of higher quality compared to other digital formats. The positive association translates to increased viewer engagement, as audiences are more receptive to content they perceive as premium.

Moreover, CTV’s longer ad format allows for deeper storytelling and emotional connections with viewers, leading to increased brand recall.

These extended narratives enable brands to deliver their message more effectively and leave a lasting impression on viewers.

The precise targeting capabilities on CTV platforms further enhance the effectiveness of video advertising. Businesses can reach specific demographics, interests, and viewing habits, ensuring that their ads are seen by the most relevant audience groups. This laser-focused approach not only improves ad performance but also maximizes return on investment.

Additionally, CTV platforms provide detailed analytics on viewer behavior and ad performance, providing businesses with valuable data-driven insights. These insights allow for ongoing refinement of targeting strategies, content optimization, and overall campaign effectiveness, leading to continuous improvement and greater success.

Social Video Opportunities

Social video platforms offer affordable options with the potential for vast organic reach. Therefore, smaller businesses can experiment with various formats, fostering a more diverse and innovative advertising landscape. This emphasis on creativity helps brands stand out in a crowded market and resonate with younger, tech-savvy audiences.

The viral nature of social video content also presents immense opportunities for brand exposure. Trending challenges, shareable content, and user-generated campaigns can rapidly amplify a brand’s message, leading to exponential growth in awareness and engagement.

Lastly, influencer collaborations on social video platforms provide a powerful tool for expanding brand reach and authenticity. Research shows that 44% of Gen Z consumers rely on influencers when making a purchase. Partnering with influential creators allows businesses to tap into established communities and leverage the trust and credibility these influencers have cultivated with their followers, thus building genuine connections with potential customers.

Final Thoughts

The trends and statistics surrounding video ad spending in 2024 paint a dynamic and promising picture for video-based businesses, but one that requires strategic adaptation and agility. The explosive growth in CTV and social video advertising presents an unprecedented opportunity for these businesses to reach wider audiences and engage viewers in novel ways.

By understanding these trends and proactively adapting to the changing landscape, video-based businesses can capitalize on the opportunities presented and solidify their position in this rapidly evolving industry.

The post Video Ad Spend in 2024 and What It Means for Video Companies appeared first on JW Player.