* This article is a paid service of Digiday[Japanese version]a media for next-generation leaders responsible for branding.DIGIDAY+This is a reprint from.
Publishers see video advertising as a revenue stream with big growth potential as short-form video becomes more popular these days. A recent Digiday Research survey of 112 publishers confirmed this fact.
About three-quarters (74%) of publishers said they make money from video ads, according to the survey. Video ads are currently the most “small” or “very small” share of overall sales (33%), but that share has been steadily declining over the past two years. It was 39% in the first quarter of 2021, but it has decreased to one-third of the total in the latest first quarter of 2023.
Meanwhile, about one in four (26%) publishers said they didn’t make any money from video ads. This percentage has fluctuated over the past two years, but is now well above 15% in Q1 2021 as of Q1 2023. In other words, 74% of publishers make at least some revenue from video ads today, down from 85% two years ago.
Publishers have also consistently said that the video ad business is extremely important to them. Since the first quarter of 2021, in each survey conducted by Digiday of US publishers, the percentage of respondents who prioritized the growth of the video advertising business over the next six months as “high” or “very high.” is the largest, accounting for 42% in Q1 2021. In the most recent first quarter of 2023, this percentage stood at 39%.
Conversely, the percentage of publishers who said video ad growth was a “low” or “very low” priority increased significantly in the survey. In Q1 2023, 2% said the video advertising business was a “low” or “very low” priority, compared to 21% six months ago and 26% two years ago. %was.
What’s really interesting is the disparity between the percentage of publishers who say they’re getting some revenue from video ads and those who see growth in their video ad business over the next six months as a priority, albeit to some degree. It’s been seen As of the first quarter of 2023, 74% of publishers say they are getting some revenue from video ads. Meanwhile, 81% of publishers cited growth in their video ad business over the next six months as at least one of their challenges.
The difference between the two data suggests that publishers see video advertising as a revenue growth area in 2023.
Digiday’s research shows that small publishers are realizing the potential of video advertising the most.
Right now, about half of the smaller publishers (publishers with less than $10 million in total revenue last year) don’t make any money from video ads. 47% of small publishers say they don’t make any money from video ads, making this group the largest percentage of the total. This was followed by 17% of respondents who say video ads make up a “very small” portion of their sales.
However, if you look at smaller publishers who see the potential of video advertising as a revenue stream, the impression changes dramatically. Only 28% of small publishers in the survey said they never considered video advertising as a priority over the next six months. Meanwhile, 22% of respondents rated video ads as “moderate” priority, and 19% rated them as “high” priority.
In other words, while just over half (53%) of small publishers currently make some money from video ads, about three-quarters (72%) say they will at least make money from video ads in the future. I think it’s one of the priority issues. This is proof that they are fully aware of their potential.
Interestingly, looking at large publishers suggests that the potential of video advertising has already peaked. On the other hand, publishers themselves believe that there is room for further growth in the video advertising business.
Nearly all of the big publishers (publishers with over $50 million in total revenue last year), the study found, were already making money from video ads. Only 5% of respondents at large publishers say they don’t make any money from video ads.
In other words, 95% of the revenue comes from video ads at least. Among large publishers, the most common response (24%) was that video ads accounted for a “medium” share of overall sales, followed by a “small” or “very small” share of video ads. Each accounted for 20% of all large publisher responses.
Meanwhile, just 7% of large publishers said video advertising would not be a priority in the next six months. In other words, 93% of large publishers viewed video ads as a priority, to varying degrees. Notably, the proportion of large publishers that see video ads as a priority (93%) is less than the proportion of large publishers that generate revenue from video ads (95%). The gap could mean that the potential of video advertising for large publishers has already peaked.
But what’s even more interesting is that the largest percentage of respondents said video advertising is a “very high” priority for large publishers over the next six months. More than a third (34%) of large publishers said video advertising was a “very high priority.” This was followed by 27% of respondents who rated video ads as a “moderate” priority, and 22% who rated them as a “high” priority.
The bottom line is that publishers of all sizes see video advertising as a growth area for their business.
[original text]
(Text: Julia Tabisz, Translation: Tomoyuki Matoba/Galileo, Editing: Shohei Wakeshima)
Source: BusinessInsider
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