Often, the strategies for video advertising monetization are discussed not by content producers, but by the publishers who make money off those advertisements. For publishers, getting advertisers to pay them to show their ads is a way to make additional funds from an online following on YouTube, Vimeo, or another video platform. An advertiser pays a certain amount, either by click or by view, and the publisher agrees to run the ad during a break in their own video. The advertisers have a way to reach out to the right audiences on video platforms, with the hopes of converting those fans into followers. CPG brands, in particular, can use video advertising monetization to improve brand affinity as they build relationships with the users of those communities.
The issue that most people trying to launch a video advertising monetization strategy will face is getting consumers to watch all the way to the end of their video. This can be quite a challenge, especially on popular platforms like YouTube which allow users to skip an advertisement after a certain amount of time. The key to proper video advertising monetization is choosing a platform that allows you, the advertiser, a bit more control over what advertisements consumers see, and more importantly, when they see them.
What Video Monetization Advertising Costs Marketers
Video content has exploded in recent years. It’s estimated that more hours of video content are uploaded every 30 days than was created by all the major TV networks for the past 30 years. In this array of content, advertisers see opportunity. With one of these video platforms, a video advertiser can pay popular content creators to air their ads. This is done one of three ways:
- Pay-per-click: Pay-per-click occurs the same way in video as with any other medium. Whenever a viewer clicks on your video advertisement, the host of the show receives a nominal amount.
- Pay-per-impression: This occurs any time someone sees your video, and the amount will taper off depending on how much of the advertisement they watch, with a main goal of getting them to watch it in its entirety.
- Affiliate sales: The host of the video is paid for the performance of your ad, in that they receive a commission on any products purchased. They do not receive payments unless a purchase is made.
While the advantages of video advertising can vary by platform, it’s important to note that virtually all platforms work off one of these three payment schedules, with advertisers paying a budgeted amount to a third-party to cover the costs of these views or paying the host directly.
For the most part, content producers work through a video hosting service like YouTube, Facebook, or a smaller, niche site. The platform is a key consideration since the platform contains your audience. Some advertisers might be tempted to focus on only the largest platforms, as those have the largest audiences. However, the size of the audience isn’t necessarily the best determining factor for which platform you should choose. You also have to think about the quality of that audience.
The Problem with Video Advertising Monetization Platforms
When most hear the words “video monetization,” the first thing that comes to mind is YouTube. The platform is hugely popular, with over 1 billion users worldwide. However, with that popularity comes limitations. This can be especially true if you’re a CPG brand looking to gain attention. In the past two years, the number of businesses on YouTube’s advertising platform has doubled, which has increased competition significantly.
In addition, it’s not simple for advertisers to get their entire video advertisement viewed. Often, watchers will have the option to skip advertising when it pops up during a video. Other times, they’ll use the commercial break to click out of the screen and get other tasks accomplished.
You want to be able to reach video viewers while they’re in the seemingly endless shopping aisle.
The problem with platforms like YouTube is that the traffic your video will get is passive. As the main purpose of the site is entertainment, video advertisements don’t reach viewers when they’re in the right mindset—specifically, a buying mindset. You want to be able to reach video viewers while they’re in the seemingly endless shopping aisle. This is why it might be better to choose a niche mobile shopping platform to share your video advertising.
Using a Shopping App-Based Mobile Video Platform
There are two main reasons that your video advertising should be mobile: timing and motivation. CPG brands want to reach someone when they’re already in the buying mindset. Preferably, marketers want to reach consumers while they’re in the aisle. Shoppers using mobile are three times more likely to watch a video than those shopping from their desktops. This is something you can further exploit with shopping apps, which offer these additional benefits:
- Active audience: Users opt to be part of shopping apps, like Shopkick, specifically so they can connect with brands. These users are already engaged with the app, which makes it more likely they’ll actively watch your video.
- Higher conversion: On Facebook, 63% of all ad clicks occur on mobile platforms, but only 34% of conversions occurred. On Google, 39% of clicks on paid ads came via mobile, with 31% of purchases coming from a user on a mobile device—making for a very high click-to-conversion ratio. These statistics show that mobile is better for increasing brand awareness—and better for sale conversion when it comes to PPC advertising.
- Location-based advertising: It’s estimated that 57% of smartphone owners watch videos while in the store. If you’re using a platform that allows users to receive a geo-targeted notification, you can present your advertising as they’re shopping.
For each of these reasons, mobile is a strong video delivery vehicle, especially when you’re paying by impression. When you have to pay every time someone views your video, you want to make sure your message is reaching them at an ideal moment. Simply put: mobile allows you to more deeply target users to get the most impact out of that message.
Mobile video monetization is a good way to ensure you get what you pay for. Unfortunately, it can be wasted money if it’s not aimed at the right consumers. Shopping apps can help target your message by allowing you to work on a refined platform full of active users. These apps allow you to share your video advertising at the right time, so your video can make more of an impact with the right audience—your target consumer.