In a recent industry roundtable during AdMonsters’ Publisher Forum facilitated by Aeon’s co-founder, Adam Hua, along with leading publishers and ad technology experts gathered to discuss the rapidly evolving landscape of video advertising and CTV. The discussions revealed a complex web of opportunities and challenges facing publishers as they navigate the shifting demands of video advertising in 2024 and beyond.

The Video Advertising Paradox

Perhaps the most striking revelation from the roundtable was the growing disconnect between advertiser demand and publisher capability in the video space. While video advertising demand continues to surge past traditional display advertising, publishers face significant hurdles in pivoting their content strategies to meet this demand. The primary challenges stem from editorial constraints, production costs, and resource allocation.

"The transition to video-first content isn't as straightforward as it might seem," notes one publisher participant. "While the revenue potential is clear, the investment required in terms of both financial and human resources can be substantial." This hesitation is particularly noteworthy given that video ad spending is projected to reach $180 billion globally by 2025, according to recent industry forecasts.

The CTV Conundrum: Build It, But Will They Come?

Connected TV represents one of the fastest-growing segments in digital advertising, with projections showing the market reaching $55.2 billion by 2025. However, publishers with dedicated Watch Pages report minimal traction in transforming their owned and operated properties into video destinations. This raises important questions about the future of publisher-owned video platforms.

The roundtable discussions highlighted a critical insight: while publishers are eager to capture CTV ad dollars, the path to creating meaningful CTV inventory remains unclear. The challenge lies not just in producing content, but in changing deeply ingrained consumer viewing habits.

Sports Media's Unique Challenge

The sports media vertical presents a particularly interesting case study in the video advertising ecosystem. Despite high advertiser demand for video inventory, publishers in this space face a unique challenge: viewers predominantly consume live sports content on traditional television rather than mobile devices and desktop computers.

This behavioral pattern creates a significant supply-demand imbalance for sports publishers' on-site video inventory. While advertisers seek to reach engaged sports audiences through digital video, publishers struggle to generate sufficient inventory to meet this demand, as their audience's attention remains focused on traditional broadcast channels.

The Finance Vertical: A Tale of Performance Metrics

In contrast to other verticals, the finance sector presents an interesting countertrend in video advertising preferences. Despite the abundance of CTV inventory, advertisers in the finance vertical show a marked preference for on-site video advertising. This preference stems from the performance-driven nature of financial service advertising, where precise targeting and measurement capabilities are paramount.

The roundtable revealed that while CTV offers broader reach, it currently lacks the sophisticated performance optimization capabilities that finance advertisers require. On-site video advertising provides more granular targeting options and clearer attribution metrics, making it the preferred choice for performance-focused campaigns in the finance sector.

NIL Deals: Disrupting Traditional Sports Media Revenue

The emergence of Name, Image, and Likeness (NIL) deals in collegiate sports has introduced a new dynamic in the sports media advertising landscape. Publishers report that these deals are beginning to impact their ad revenue as brands increasingly allocate budgets directly to student-athletes rather than traditional media channels.

In response, publishers are exploring innovative approaches to maintain revenue streams, including:

  • Developing social video products that integrate athlete content

  • Creating influencer partnership programs

  • Establishing direct relationships with athletes for content creation

  • Exploring new video formats that complement NIL content

The Shift to Performance-Based Video Advertising

Perhaps the most significant trend emerging from the roundtable was the industry-wide shift toward performance-based key performance indicators (KPIs) in video advertising. This marks a departure from the traditional awareness-first approach that has long dominated video advertising strategies.

Advertisers are increasingly demanding:

  • Clear attribution models for video campaigns

  • Measurable conversion metrics

  • Detailed engagement analytics

  • Return on ad spend (ROAS) reporting

  • Direct response capabilities in video formats

Looking Ahead: Strategic Considerations for Publishers

As the video advertising landscape continues to evolve, publishers face several strategic decisions:

  1. Investment in Video Production

    • Evaluating the ROI of in-house video production capabilities

    • Exploring partnerships with content creators and production houses

    • Developing scalable video content strategies

  2. Platform Strategy

    • Determining the right mix of owned and operated video content

    • Evaluating CTV opportunities against resource requirements

    • Balancing social video presence with on-site content

  3. Revenue Diversification

    • Exploring hybrid monetization models

    • Developing new video ad products

    • Creating innovative sponsorship opportunities

  4. Technical Infrastructure

    • Investing in video delivery capabilities

    • Improving measurement and analytics tools

    • Enhancing user experience for video content

Conclusion

The roundtable discussions reveal an industry at a crucial inflection point. While video advertising continues to grow in importance and value, publishers face significant challenges in adapting their operations to capture this opportunity. Success in this evolving landscape will require careful strategic planning, smart resource allocation, and a willingness to experiment with new formats and platforms.

For publishers, the key to success lies in finding the right balance between meeting advertiser demand for video inventory while maintaining editorial integrity and financial sustainability. As the industry continues to evolve, those who can successfully navigate these challenges while building sustainable video strategies will be best positioned to capture the growing video advertising opportunity.

---

*This article is based on insights from the AdMonsters Publisher Forum and the Aeon-moderated Roundtable on Video Advertising and CTV. For more information about video advertising trends and publisher strategies, visit Aeon.