Video advertising has emerged as one of the top-performing mediums in online advertising. With display advertising failing to deliver results, there is a growing trend amongst publishers to leverage videos as advertising mediums on their sites, mobile applications, OTT content, and CTV.
Video advertising monetization is an increasingly important aspect for publishers to maximize CPMs, engagement, and advertiser demand. This medium can be applied across all digital channels and offers increased monetization opportunities.
This article aims to highlight the various aspects of video monetization.
What Is Video Ad Monetization?
Video advertising monetization can be described as earning money through the placement of video advertisements on online websites.
The most common types of video ads include pre-roll ads, out-stream videos, rewarded videos, CTV advertisements, and live-streaming ads. Video advertisements usually generate more engagement than display banners, hence higher CPMs.
Why Video Advertising Generates Higher Revenue ?
Video ad s are highly regarded due to their ability to provide richer storytelling compared to other static media.
Some of the reasons why video ads cost more include:
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Factor |
Impact on Revenue |
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Higher engagement |
Users spend more time watching video |
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Better viewability |
Easier to notice |
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Strong brand recall |
Better campaign performance |
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Premium inventory |
Limited and valuable |
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Advanced targeting |
Audience segmentation improves results |
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Cross-device reach |
Works across web, app, mobile, and CTV |
Understanding the Modern Digital Advertising Ecosystem
Before moving on to monetize through video, one must have a basic understanding of the way that digital advertising works.
1. Publishers
The owners of the digital spaces on which the advertisements are run are publishers and content creators; they include websites, mobile apps, video-streaming sites, and even connected TVs (CTV).
2. Advertisers
An advertiser is an individual business or brand that aims to market their goods or services. They invest in advertising space on publisher inventory that targets particular audiences.
3. Demand-Side Platforms (DSPs)
DSP or Demand Side Platform refers to an advertising platform which helps advertisers automate their process of ad purchases and enhance their target marketing process.
4. Supply-Side Platforms (SSPs)
An SSP is designed to assist publishers in managing their inventory for advertising purposes. An SSP works to provide more competition for the inventory being sold.
5. Ad Exchanges
Ad exchanges facilitate real-time bidding of ad impressions through the process of auctioning among buyers and sellers of ad impressions.
Types of Video Ads
1. Pre-Roll Video Ads
These are displayed before video content plays.
Pros
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Higher completion rates
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Good demand from advertisers
Suitable for
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Video content providers
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News sites
2. Mid-Roll Video Ads
Mid-roll video ads occur while the content is playing.
These types of ads bring in the highest income since they target people who are already engaged.
Best For
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Long-form content
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Webinars
3. Post-Roll Video Ads
Post-roll video ads show up once the content has ended.
Although engagement is typically lower, they offer additional income without disrupting the viewing process.
4. Out-Stream Video Ads
Out-stream advertising is an advertising format that occurs beyond the scope of video content.
Examples:
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In-article video ads
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Sticky video players
5. Rewarded Video Ads
Preferred by app-based publishers, particularly gaming applications.
Users choose to watch the ads in return for rewards like:
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Access to premium content
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Virtual currency
6. Connected TV (CTV) Advertising
CTV advertising allows advertisements to be delivered via connected television equipment.
These can be:
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Smart TVs
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Streaming media
CTV Ad Monetization: Why Publishers Should Pay Attention
Ad monetization through CTV represents a compelling opportunity for publishers new to streaming video. On the advertiser’s side, moving away from traditional television advertising into the realm of CTV provides superior targeting and measurement capabilities.
Benefits of CTV Monetization
|
Benefit |
Impact for Publishers |
|
Premium CPMs |
Higher revenue per impression |
|
High engagement |
Better ad completion rates |
|
Strong demand |
More advertiser competition |
|
Brand-safe environment |
Attracts premium brands |
|
Cross-device reach |
Larger campaign budgets |
|
Programmatic growth |
Easier inventory monetization |
Top Video Monetization Strategies for Publishers
Adding video ads alone won’t suffice.
1. Implementing Video Header Bidding
In header bidding for video, multiple bidders get a chance to bid together.
Advantages of video header bidding include:
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Increased competition
-
Improved CPM
2. Diversifying the Sources of Demand
Being dependent on a single buyer reduces earnings possibilities.
Inventory should be connected with:
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Supply side platforms (SSP)
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Ad networks and exchanges
3. Optimize Video Placement
Improper placement may negatively impact engagement and overall user experience.
Things to consider:
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High-Performing Placements
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Above-the-fold video units
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In-content placements
4. Improve Viewability Metrics
The viewability affects the cost that advertisers spend.
Publishers must:
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Cut down page clutter
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Speed up page load time
5. Leverage First-Party Data
Since third-party cookies are becoming less prevalent, first-party audience data is increasingly important.
For example:
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Subscribers' details
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Signals about behavior
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Preferences for content
6. Implement Programmatic Video Advertising
Programmatic video advertising uses real-time bidding for automation of ad placement.
The benefits are:
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Efficiency gains
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Improved targeting
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More competition
Real-World Publisher Use Cases
News Publisher
A regional news site added out-stream video placements to its articles.
Results:
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Additional revenue source without making video content
-
Monetized more sessions
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Higher CPMs compared to display ad inventory
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Sports Publisher
Best Video Ad Networks for Publishers
Choosing the right monetization partner can significantly impact earnings.
|
Evaluation Factor |
Importance |
|
Demand quality |
Higher CPM potential |
|
Fill rates |
More monetized impressions |
|
Global advertiser access |
Broader demand |
|
Video technology |
Better user experience |
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Reporting tools |
Improved optimization |
|
CTV support |
Future growth opportunities |
Generally speaking, some of the best video advertising networks for publishers will include the following characteristics:
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Programmatic demand
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Header bidding
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CTV support
Common Video Monetization Mistakes
Mistake #1: Emphasizing Volume Instead of Quality
Too many video ads may cause higher bounce rates
Mistake #2: Working With a Single Demand Partner
Monetization using one demand partner often results in less competition.
Mistake #3: Failing to Optimize Player Performance
More than half of video views take place on mobile phones.
Mistake #4: Forgetting About Viewability
Lower viewability causes reduced advertiser bids.
Mistake #5: Procrastination With CTV
Publishers tend to underestimate streaming video audience growth.
When Video Ad Monetization Makes Sense
Video monetization becomes more effective if:
➤ Users are spending considerable amounts of time consuming the content
➤ Audience engagement levels of the publisher are high
➤ High demand for premium advertisers exists
➤ Video content forms part of the content strategy
➤ Publishers need to increase their CPM possibilities
Conclusion
Video advertisements have become one of the most important sources of income. Monetization has become necessary for the sustainable growth of publishers. Early adoption of video advertising gives publishers a head start as more viewers tend to prefer watching videos.
Formats include pre-roll, mid-roll, out-stream, rewarded video, and CTV. The effectiveness of video ads varies depending on various factors such as placement, viewability, and data use.
CTV has become one of the fastest-growing areas of video advertising as ad dollars move away from linear TV into OTT. Successful publishers find the best balance between monetization and viewer experience.
FAQs
1. What is video ad monetization for publishers?
It refers to making money through advertisements in the form of pre-roll, mid-roll, out-stream, or connected TV (CTV) video ads.
2. Why do video ads earn higher CPMs?
Video ads provide increased user engagement, better visibility, and improved brand recognition and therefore become more valuable for advertisers.
3. What is CTV advertising in simple terms?
CTV advertising refers to delivering video ads to internet-enabled devices such as smart televisions or streaming services such as OTT and FAST channels.
4. Which video ad format earns the most revenue?
Mid-roll ads have the potential to earn the most since they are viewed when users are actively watching the ad.
Absolutely not. Formats including out-stream video ads make it possible to monetize videos without creating any video assets.
If you’re not making the most of your ad space, you’re leaving money on the table. MagicBid helps web, app, and CTV publishers maximize revenue with smarter ad placement and optimization tools.
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Web Monetization: Get better ad visibility, higher engagement, and more revenue from every impression.
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In-App Monetization: Connect with premium advertisers to effortlessly boost fill rates and eCPMs.
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CTV Monetization: Deliver high-quality, tailored ad experiences that keep viewers engaged and advertisers paying more.
With MagicBid’s advanced ad tech and expert support, you can turn your traffic into higher earnings without the guesswork. Connect with us now to get a free ad revenue evaluation.
