This document summarizes a presentation about monetizing video content given by Ben Morrell of Brightcove. The presentation covers trends in video viewing like increased smartphone usage and time spent watching mobile video. It provides examples of publishers successfully monetizing video through pre-roll ads, sponsored content, and video channels. The presentation identifies challenges to video monetization like user experience, device consistency, identifying popular genres, and ad blocking. It provides a three point checklist for publishers to focus on audience, engagement, and revenue to more effectively monetize their video content.

2. VIDEO MOVES REVENUE
Publishers Luncheon
18 November 2015
Brought to you by Brightcove

3. MONETISING VIDEO
Ben Morrell, Senior Technical Consultant for Media, Brightcove

4. 4 | ©2015 Brightcove Inc

5. INDUSTRY LEADER IN ANY METRIC YOU WANT
©2015 Brightcove Inc5 |
1.45,770
IN MORE THAN 75
COUNTRIES
$125m
IN 2014

6. MASSIVE PLATFORM SCALE: DAILY METRICS
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7. POWERING LEADING MEDIA PUBLISHERS ALL OVER THE WORLD
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8. AGENDA
• Market Trends
• Monetisation Live Use Cases
• Challenges
• 3-Point Monetisation Checklist
©2015 Brightcove Inc8 |
Brought to you by Brightcove

9. We are hard wired for moving images
and sound
People remember …
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20%
of what they hear

10. People remember …
©2015 Brightcove Inc10 |
We are hard wired for moving images
and sound
30%
of what they see

11. People remember …
©2015 Brightcove Inc11 |
We are hard wired for moving images
and sound
70%
of what they see
and hear

12. Growing smartphone penetration compels publishers to
secure a post-print future off the desktop
©2015 Brightcove Inc12 |

13. Worldwide smartphone penetration (%), 2012 - 2019
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2012 2013 2014 2015
2016 2017 2018 2019
23.0% 28.3% 33.2% 37.4%
41.8% 46.5% 51.3% 56.0%
More than half of the world’s population will be mobile Internet
subscribers
Source: Global entertainment and media outlook 2015-2019, PWC

14. Of those who spend time on their mobile, 30-40% will watch a video
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30%
62%
43%
57%
70%
75%
40%
54%
57%
58%
64%
64%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Watching videos or movies
Getting news alerts
Reading
Playing games
While watching TV
Social Networking
Activities Performed at Least Once Each Day
Tablet
Smartphone
Source: ExactTarget

15. In fact, digital video ad spend is shifting to mobile
©2015 Brightcove Inc15 |
$2.65
$3.54
$4.52
$5.32 $5.78 $6.23 $6.64$0.24
$0.66
$1.44
$2.45
$3.67
$4.88
$6.07
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
2012 2013 2014 2015 2016 2017 2018
Digital Video Ad Spending by Channel, ‘12-’18 in billions
Desktop Mobile
Source: IAB, PwC, eMarketer, June 2014

16. And video advertising fill rates have increased across the board
©2015 Brightcove Inc16 |
PUBLISHERS BROADCASTERS
77% à 92% 64% à 67%
56% à 88% 57% à 70%
55% à 89% 54% à 74%
Source: 2014 SNL Kagan, “Media Trends, Actionable Metrics, Benchmarks & Projections for Major Media Sectors, 2014 Edition

17. SHOW ME THE MONEY
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Digital advertising for THE NEW YORK TIMES, was up 14% and
accounted for $48 MILLION OF REVENUE. Growth was driven by
mobile and video advertising as well as native advertising.
WALL STREET JOURNAL’S live video show ASIA TODAY says
that video push has created an 85% GROWTH IN VIDEO
STREAMS and has attracted a range of innovative advertisers
across categories
BLOOMBERG charges roughly $75 CPMs for video which is FIVE
TIMES MORE than the $15 CPMs it typically gets for dot-com
content

18. Social media is creating a big impact on how news is
distributed, consumed and ultimately monetised
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19. Facebook’s algorithm heavily favours video
% of posts that reach an audience on average … when shared
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4% 14% 35%
TEXT-based PICS VIDS

20. 2.65
2.90
3.12
3.19
3.43
3.49
3.69
4.06
5.50
6.25
- 1.00 2.00 3.00 4.00 5.00 6.00 7.00
Daily Mail
Yahoo
Breitbart
BBC
The New York Times
NBC
The Guardian
Fox News
The Huffington Post
Buzzfeed
Millions
Top 10 Publishers on Facebook – # of shares
“A year or two from now, we think Facebook will mostly be video .. ”
Ted Zagat, Head of Ad Product
©2015 Brightcove Inc20 |
Source: Newswhip, The Biggest Facebook Publishers of September 2015
Breakdown of all traffic for the site:
27% Facebook native video
23% Direct to the site or apps
21% Snapchat content views
14% YouTube views
6% Facebook traffic to the site
4% Images on Facebook
3% Other distributed platforms
2% Google search to the site

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24. AVOD across multi-devices and platforms
Driving a seamless viewing experience
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25. AVOD
Advertising supported Live and VOD content
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26. Multiple monetisation opportunities
Pre-roll, sponsored content, sponsor banner and logo overlay
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27. Online Video Channels
Driving additional digital revenue streams
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28. Immersive Portal Experiences
Driving awareness, traffic, engagement, time-
on-site, conversion and loyalty
©2015 Brightcove Inc28 |

29. Lean Back
Migrating TV dollars online
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30. Sponsored Content
Creating content for brands
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BUT VIDEO AT SCALE IS HARD FOR PUBLISHERS …
Growing
video
libraries
Encoding
for every
device
Supporting
large
teams
Delivering
beautiful
experiences
Reaching
social
channels
Payment Integrating
with marketing
technologies
Knowing
what’s
working

32. ©2015 Brightcove Inc32 |
AND THIS WILL ONLY GET HARDER AS YOUR VIDEO
CONTENT STRATEGY GROWS

33. COMMON PITFALLS TO MONETISING VIDEO
• Delivering a bad user experience
• Lack of consistency across devices
• Inability to identify the high value
genre
• Losing revenue from ad blockers
©2015 Brightcove Inc33 |

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LET’S PLAY
WHERE’S THE VIDEO?

35. A GREAT USER EXPERIENCE …
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36. … AND SEAMLESS ACROSS DEVICES TOO
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37. Companion
Overlay
Banner Top
Banner Bottom
Pre Mid Post
MONETISE EFFECTIVELY
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38. MONETISE EFFECTIVELY
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Internet video publishers
capture only a fraction of
the best possible ad
monetisation revenue

40. Internet Video Publishers Capture Only a Fraction of the Best Possible Ad
Monetisation Revenue
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Example Challenges
• No ad delivery solution for LIVE streams
• No single ad network has enough inventory
• Ad network has no SDK for Windows 8 app
• 10-15 % ads are lost due to download
performance issues
• 10-30 % ads are blocked by ad blockers
Ad performance loss is caused by hard technical challenges of delivering video
ads to multiple devices & apps in a complex Internet ecosystem

41. The Rise of Ad Blockers: A win for consumers? No.
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42. GLOBAL AD BLOCKING GROWTH
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41% of web users are equipped with ad-blockers
Blocking ads continues to build on the strong growth rates seen during 2013
and 2014.
The findings:
• Globally, usage of ad blockers grew by 41% YoY (Q2 2014 – Q2 2015)
• As of June 2015, there were 198 million monthly active users for the major
browser extensions that block ads
Source: The rise of Ad Blocking Report, from Adobe & PageFair, 2015
41%
YoY global growth
Q2 2014 – Q2 2015
45 mil
Average MAUs in the US
Q2 2015
$21.8bn
Ad revenue blocked in
2015
16%
Of mobile Firefox users
block ads

43. SIMPLIFYING THE COMPLEXITY BEHIND MONETISATION
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AUDIENCE ENGAGEMENT REVENUE

44. #1 - AUDIENCE
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Build The
Audience
Create Content
Niches &
Personalisation
Extension of
Existing Services
Business Model
Flexibility

45. #2 - ENGAGEMENT
©2015 Brightcove Inc45 |
Devices & OS –
Native or Mobile
Web
User Experience Create Engagement/
Discovery – Social Media

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CONTENT
ON THE GO

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49. #3 - REVENUE
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Paywall Flexibility,
Dynamic Business
Model Ad Servers &
Standards
Strategy around Ad
Blockers

50. STRATEGY AROUND AD BLOCKERS
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Ad optimisation technology that allows publishers to:
Maximise Ad
Delivery
Streamline
Viewing
Experiences
Increase
Revenue Across
Desktop &
Mobile
Combine SSAI
with Player
Management
Service

51. TO WRAP UP
©2015 Brightcove Inc51 |
MOBILE INTERNET AD SALES MIX SOCIAL MEDIA
What are you doing to
capture mobile dollars?
Look at your direct sales
versus ad exchange
revenue
Optimise the mix
between advertising and
sponsorship
Use social media to
explore audience and
revenue

52. THANK YOU