Video Ads Ecosystem

Online videos are gaining popularity each day. Recent MR data indicate that in next few years, 85% of total internet traffic will be comprised of Videos. Wider acceptance and gaining popularity of videos also open gates for higher financial gains. Monetization of media is seen commonly these days. One of the issues which most of the companies face is how to monetize the media? There have been some Monetization models proposed and in use but using them is either complex or not so effective.

In order to better understand Video Ads Monetization models, we need to understand Video Ads Ecosystem.

Experts believe that Video Ads Ecosystem consists of four types of entities:

1) Video Providers: Video providers generate, own and manage content. Since they have ownership they choose the platforms on which the media has to be served.

2) Advertisers: Advertisers are the people who offer Ads which have to be played as pre/mid/post roll.

3) Ad Delivery Networks: Ad networks act as a common platform for Media Providers and Ad providers. They provide complete solution to efficiently monetize media content. They have in built intelligence to decide which video plays with which ad and at which position to maximize impact of that Ad.

4) Content Delivery Networks: Media and Ads are served together embedded as one stream. To get best performance, CDNs are best choice.

Video Ads Ecosystems help us in understanding complete picture of all the aspects which have to be carefully considered while making decision to monetize the media. Video Ad Ecosystem help in measuring effectiveness of an Ad. In general, measuring Ad Effectiveness is considered challenging because there is no common agreement on ways of measurement. One of the common beliefs is Ad completion rate is an important measure. Besides Ad completion, Ad abandonment rate is also important metric. It's common to use both of these parameters to measure the effectiveness.