Monetizing any form of content has always included the implicit understanding that there is an exchange necessary between viewer and provider to subsidize the myriad of costs involved in making and presenting that content. Audiences may not realize it, but there is an admission price to gain access to the content they want, whether it’s a one-off direct payment, a subscription, or a requirement to view sponsor messages advertising products or services.
For digital publishers and broadcasters who choose advertising as their preferred exchange, there is a fierce adversary that threatens to severely disrupt the entire ad ecosystem: ad blockers, which are estimated to drain nearly $22 billion in global ad revenues in 2015 — rising to over $41 billion next year. However, solutions are growing to circumvent these blockers, and unlock ad inventory and revenues.
As a content format, video is especially expensive to produce; as an ad format, it commands some of the highest CPMs due to its ability to be highly engaging and convey rich messages. Ad blocking therefore impacts the video business with particular severity and unique implications for digital video content providers.
This white paper will explore the rise of video ad blocking around the world, what’s being done to beat the blockers, and offer some key recommendations to digital content providers going forward.
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