As an advocate for premium video, defined as professionally-produced content in brand-safe, curated environments, the FreeWheel Council for Premium Video is focused on insights that help drive a broader understanding of the New TV Ecosystem and industry-wide collaboration.
What is the market share of premium video in relation to the whole video ecosystem? This is a frequent question we get from buyers looking to make smart investment decisions. With the Upfront and NewFront presentations complete, and negotiations now under way, this is an important question to answer, especially in light of recent concerns from marketers about brand safety.
Utilizing customer data from the quarterly FreeWheel Video Monetization Report, merged with comScore Media Metrix data, we categorize video publishers into three buckets:
- Multiplatform TV: programmers and operators
- Digital Pure-Plays: non-linear TV professionally-produced digital video publishers
- Aggregators & Long Tail: social media video and long-tail video sites
If we assume that there is premium content throughout all three categories, but that Multiplatform TV and Digital Pure-Plays provide exclusively premium content, we can say with certainty that around 9% of video starts and approximately 38% of video ads run within premium environments. The disparity here can be accounted for by the fact that much of those video starts are long-form content with multiple advertising opportunities, whereas much of the social media video content has zero or skippable ads associated.
As illustrated in the below infographic, the opportunity for high-quality, brand-safe video advertising placements is augmented by the fact that within those exclusively premium categories, they tend to skew higher towards larger screens (think over-the-top devices and set-top box video on-demand viewing of TV content) and ad completion rates. This speaks to a more highly engaged viewer, actively opting to watch content that is personal to them and a more familiar ad experience that aligns with the linear TV model.
While there certainly is scarcity in quality-assured video advertising environments, especially compared to the long-tail of video content, there is a clear and present opportunity to invest the right proportion of marketing dollars towards brand-safe video content where users are engaged. This is the premium video opportunity.