Video has become one of the most popular online content formats worldwide, holding its number two spot next to articles/posts. According to statistics from 2022, an estimated 92.8% of online users watch video content weekly. With such a high percentage of viewer screen time, video ad monetization has become one of the most profitable ways to generate revenue from video content.

What Is Video Ad Monetization? 

Video ad monetization refers to the process of generating revenue through video ads. This is done by finding the appropriate ad monetization platform that connects the publisher of a website/app with advertisers looking to serve their video ads to the publisher’s users. In simple terms, video ad monetization is when publishers generate revenue from the video ad inventory they sell to advertisers.

Need a video monetization solution for your ad-powered business?

Start Monetizing

Benefits of Video Ad Monetization for Publishers

Global ad spending on video advertising is expected to reach US$176.60bn by the end of 2023. With advertisers investing so much into video ads each year, it’s no wonder publishers are using this opportunity to generate more revenue. There are three main reasons why video ad monetization appeals to publishers:

Better User Engagement — Video ads generally perform much better than image ads. They are proven to increase dwell time since they have a clear message and are far more engaging. Better user engagement results in higher revenue.
Wider Audience Reach — Subscription-based or pay-to-view monetization models limit the publisher’s audience pool. A large portion of users nowadays prefers ad-supported free content rather than having to pay a subscription fee. While SVOD seems more profitable, focusing only on this model limits your reach. On the other hand, with video ad monetization, you’ll be able to reach a wider audience and, in turn, receive higher ROI. 
Revenue Boosting — As a result of the two previously mentioned points, video ad monetization is more practical for increasing ROI. For instance, U.S. publishers get an average CPM of 2.80 USD for display ads, while for instream video ads, in some cases, CPM can even exceed 30 USD.

How to Monetize Videos With Ads

Now that we have defined and explained the core benefits of video ad monetization, it’s time to go through all the necessary steps publishers need to take to monetize their video content with ads. 

Develop and Update Your Video Ad Monetization Strategy

To create the perfect video ad monetization strategy, publishers need to decide on the following:  

Ad Formats — The two formats publishers find the most success with are instream and outstream video ads. Instream video ads are placed within the video content while outstream alongside non-video content (articles, social media feeds, mobile apps, etc.). While instream ads are more costly considering that publishers have to produce or lease video content, they have shown greater efficiency as they receive higher CPM.  
Ad Density — Ad density (how frequently ads appear within a video or on a webpage) can greatly impact user experience and the effectiveness of ads. For example, having too many ads can be frustrating for users. 
Price Floors — Publishers need to set appropriate price floors to avoid selling their inventory too cheap or having their fill rates drop due to expensive inventory. 

In addition, publishers need to regularly keep track of video ad performance and adjust their strategy accordingly to sustain their progress. 

Monetize with pre-, mid-, and post-roll instream video ad formats.

Learn More

Produce, Purchase, or Lease Quality Video Content

The first step is producing or acquiring quality video content that you can monetize. While many publishers produce their own, some lease or purchase video content from production companies. However, this can be a burdensome task, so it’s best to find a video monetization platform that offers leased, monetizable content.

With TargetVideo’s Video Content for Publishers, publishers can generate revenue from exclusive original video content on their websites. 

Create additional ad-serving opportunities with original brand-safe videos.

Explore Brid.TV

Find the Right Ad Monetization Provider

Finding a video ad network that aligns with the publisher’s needs is crucial. It’s best to look for a provider that offers all the essential services for video ad monetization, such as video management, a fast and lightweight video player, and high-quality ad demand.   

Pro Tips for Ad Monetization for Video Publishers

There are multiple articles on general guidelines for starting a video ad monetization strategy (choosing the right platform, player, etc.). So, instead of just listing them out, we decided to go the extra mile and share some pro tips for publishers.

Understand the Importance of Ad Placement

The main idea of digital advertising is serving ads at the right place and at the right time. Ad placement is especially important when it comes to instream ads — ads that appear within the ongoing stream before (pre-roll), during (mid-roll), or after (post-roll) the video. Each one of these has its advantages and weaknesses: 

• Pre-Roll — These ads appear as soon as the user starts the video. Pre-roll ads offer a good user experience as they are placed at the very beginning of the video, making them less disruptive to the user. To illustrate, the 2017 survey found that almost half of the surveyed respondents completed skippable pre-roll ads. 
• Mid-Roll — Mid-roll ads appear during the video stream. These ads have the highest completion rates due to users already being highly engaged with the streaming content. However, the downside of mid-roll ads is that they are the most interruptive of the three, and having too many mid-roll ads can drive your audience away. 
• Post-Roll  — Post-roll ads appear when the video ends. While offering the best user experience, they may seem irrelevant since not many users reach the end of the videos. Nevertheless, some practices can help make post-roll ads worthwhile. 

Boost Ad Viewability

Ad viewability is the most notable factor in boosting ROI from video monetization. However, improving viewability is easier said than done. Many users often scroll through a website without taking a second glance at the video. So, how can the publishers counter this? By choosing the right video player for their strategy. 

A customizable player with a sticky behavior that follows users while they scroll through the website is an excellent solution. Additionally, a player that has an autoplay option, meaning that the video starts playing the moment a user accesses the website, also contributes to boosting ad viewability. 

If you still haven’t decided on a suitable video player, our superior HTML5 video player comes with extensive customization and an array of content units designed to boost user engagement and ad viewability. For instance, our contextually matched playlists serve the most relevant content to your audience so your viewers keep watching longer.

Make Your Content Available on Various Devices

Cross-device monetization is paramount for publishers, especially in recent times when mobile devices generate around 60% of global website traffic. To reach a wider audience, publishers need to make their content accessible to a variety of users, many of which use mobile devices. So it’s best to opt for monetization platforms that offer OTT and CTV advertising support. TargetVideo’s data shows a 56/44 split when it comes to video ads viewed on mobile devices vs desktops. 

Set Up Header Bidding

Header bidding allows publishers to set up auctions for their ad inventory, making the demand partners bid for ad placement in real time. Key benefits of HB include greater transparency and much higher potential earnings. 

Continuously Optimize Price Floors

To drive consistent revenue, publishers need to regularly track and optimize their price floors. This process can be done manually. First, the publisher needs to calculate initial floors based on their traffic volume, geo-location, industry niche, the chosen ad format, and so on. Then, they need to track auction performance using header bidding analytics and adjust price floors accordingly. For instance, if a publisher has a high ad fill rate, a good move would be to increase price floors and earn more. On the other hand, if a publisher’s fill rate is low, they can lower the price floors to receive more ads. 

Another much simpler and more time- and cost-effective solution would be to employ an automatic price floor optimizer. TargetVideo’s Prebid price floor optimizer analyzes historical and real-time data to set price floors for each ad impression. It is easy to set up and already has a track record of boosting publishers’ RPMs by over 200%.

Start Monetizing Videos With TargetVideo

If you’re still looking for a platform that offers all the necessary features you need to start monetizing your videos, join us at TargetVideo. Our video monetization solution comes with a custom Managed Ads Service that maximizes potential revenue for your inventory with the help of our AdOps team. In addition, we offer a dynamic Prebid price floor optimizer as a part of our powerful Yield Optimization Engine, along with video header bidding, instream and outstream video ad units, and so much more.  

Start a VOD streaming business with Brid.TV.

Get Started

FAQ