Two-thirds of publishers say video drives higher revenues | Media Analysis | Business
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Research commissioned by global digital media company, Dugout, has revealed that nearly three quarters of publishers (72%) believe that video advertising can drive higher revenues for their business compared with other formats and channels, and 87% say it improves user experience.
Dugout 4Dec2020
The research, conducted in conjunction with Digiday, asked publishers, agencies and brands about their views on the state of video; in particular the importance of video formats, the appetite for contextual advertising, life after third- party cookies, investment in VOD and OTT, challenges and obstacles to investment. It investigated where publishers and advertisers see opportunities for video advertising and explores the challenges to overcome to capitalise on these growth areas.

Publishers were found to be making the most of the growing numbers of global internet users able to stream and download high quality video content. An overwhelming 91% percent of publishers valued video content in their editorial strategy, with 25% saying it’s highly valued, 50% that it was valued and 16% noting that it was somewhat valued. These views were clearly being put into practice, with 69% of publishers frequently or very frequently using video content to support editorial.

The survey showed that video content also stood up favourably with publishers when compared to non-video editorial content. The research found 62% of publishers say video content drives “a lot of engagement”; compared with the 44% of publishers who said this was the case for non-video editorial. Almost half (44%) of publishers saw video content as driving “a lot of shares”, compared with only 13% of publishers who observed this for non-video editorial.

Advertisers, both brand and agency respondents, also emphasised the value of video. Just over half (53%) of advertisers said that video advertising generated a higher ROI compared with other formats and channels. And when it came to priority factors determining investment in video, formats took a clear lead with 52%, followed by location (18%) and quality of the player (16%).

Yet challenges with video and obstacles to investment were also revealed. Both publishers and advertisers were struggling with inventory and having a sufficient supply of video inventory and generating that supply was a particular challenge for the publishers surveyed. An overwhelming majority (85%) of publishers said generating a sufficient supply of video inventory is challenging. When it comes to challenges of video advertising in practice, publishers and advertisers are aligned on the most important concern being quality of content, with 56% and 58%, respectively, citing this. 

“It’s positive news that both publishers and advertisers recognise the importance of quality video content to complement and enhance editorial strategies, drive audience engagement and boost the bottom line,” said Dugout VP of marketing Rachel Powney commenting on the research. “And now, with comprehensive first-party audience profiles and improved contextual data to hand, publishers and advertisers have the ability to achieve ever-more effective video-based advertising.”