Four best practices for an AVOD strategy: Part 2 - Monetize

By Sergio Santos on Aug 02 2016 at 6:15 PM
This is the second of a four-part series.
 
In this series, we’re discussing recommendations for how to get the most from your AVOD business. Yesterday in part one we discussed audience engagement. Today, let’s cover the critical area of maximizing monetization. 
 
The basic formula for making money with video ads is:
 
(Number of Video Views) x (Sell-Through Rate) x (CPM) = Revenue 
 
For example, (1M views) x (80% sell-through) x ($10cpm) = $8,000 in revenue. To earn more, just optimize any part of the formula. Here are a few ways to do that.
 
SELL OUT INVENTORY
Help your sales team maximize results
 
  • Sell all platforms. Is your ad sales team selling to desktop, mobile, set-top and all the rest? They should be. And if it makes sense to bundle platforms, go for it! 
  • Sell mixed rolls. Have your sales team offer mixed groupings of pre-rolls, mid-rolls and post-rolls. 
  • Train sales teams. Many salespeople are still transitioning from the non-digital world. Make sure your team fully understands the value of video impressions and how to sell them.
  • Optimize forecasting. Don’t guess: use a powerful forecasting tool to plan for the future and make informed decisions.
  • Leverage programmatic. Use a supply-side platform (SSP) to supplement your direct sales and stay competitive by accessing budgets carved out for audience-based, data-driven objectives. Ooyala Global Video Index data from Q1 2016 noted a 22% quarterly increase in programmatic premium inventory across the global viewer base of our Ooyala Pulse SSP programmatic trading product. Combined with continued growth in programmatic activity from premium buyers, this led to a 74% increase in paid impressions.
 
EXPAND INVENTORY
The more ad placements you create, the more you can sell
 
  • Add new ad types. Don’t just sell pre-rolls; your ad partners may be interested in mid-rolls, post-rolls and companion ads.
  • Optimize ad loads. Use data and A/B testing to understand your viewers’ threshold for ads and adjust accordingly. 
  • Use ad re-insertion. Consider using an ad reinsertion (a.k.a. anti-ad blocking) technology to counter ad-blocking apps and get lost impressions back. Publishers using Ooyala Unlock, our ad-reinsertion technology, saw ad impressions rise as much as 23% in Q1 2016.
  • Stream it live.  Live streaming is one of the most engaging video formats. It’s a great opportunity to create ad impressions with pre-rolls, mid-rolls and other ad units.
  • Try new devices. New platforms can mean more impressions. If you don’t have a set-top offering like a Roku or AppleTV app, for instance, consider building one.
 
INCREASE CPM REVENUE 
Increase the value of your inventory 
 
  • Try new ad formats. Look beyond in-stream ads to in-player banners, full-page takeovers and other formats. Sequencing your ads may also spur advertisers to pay extra to tell an ongoing story to viewers. 
  • Sell audience-based packages. Advertisers will gladly pay a premium to reach their desired audience. 
  • Use data to prove value. Share your numbers on engagement, device playback, behavior or any useful metric that will help command higher advertiser CPMs.
  • Offer exclusivity. Give select advertisers an exclusive “first look” arrangement to buy your inventory before others.
  • Think holistically. Look for a partner with an SSP fully integrated into your broader ad tech stack so you can holistically manage and sell your inventory across both reserve and programmatic budgets. You get greater ad operations control and retain more of your digital dollar. 
 
Tomorrow in the third part of this series, we’ll talk about ways to optimize your content strategy for AVOD.
 

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