An online video ad platform, such as the one offered by JW Player, provides a quick return on investment and impact business, especially in the broadcast industry. For years, if you wanted to make money from online advertising you had to shop for an online video platform (OVP) first. Then you would find an ad network. Lastly, you would hope the two played nicely together. Thankfully those days are long gone.
In the last ten years, or so, the OVP industry has seen a significant increase in feature sets. This has been through organic development and also through partnering with complimentary service providers, such as ad platforms. One example is JW Player, a “one-stop-shop” for web video publishing, video content management system, and online video ad platform. They worked with a leading industry analyst to get data to support their commitment to this philosophy.
Case Study in Broadcasting highlights the impact of an Online Video Ad Platform
Broadcasters have felt the impact of cord cutting in the past decade. Consequently, they have embraced the old mantra: “If you can’t beat them, join them.” Implemented properly, web video impacts Broadcasters in a positive way. For most broadcasters, a complete replacement of legacy systems is necessary. However, in the end reducing operating costs and producing more inventory directly adds to the bottom line.
Given the current climate of eroding MVPD carrier fees and increasing competition from direct-to-consumer streaming services, Broadcasters are looking for gains across all areas of the business. For cable channels that own their content, the web can provide additional revenue streams. For all broadcasters, economies of scale efficiencies offer increased profitability.
JW Player, a leading web video platform, recently commissioned a Forrester Total Economic Impact (TEI) report, specifically targeting the broadcast industry. To demonstrate their findings, the two firms co-hosted a webinar. Let’s explore some of the highlights.
JW Player commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) broadcasters may realize by deploying JW PlayerTHE TOTAL ECONOMIC IMPACT™ OF JW PLAYER FOR BROADCASTERS
A FORRESTER TOTAL ECONOMIC IMPACT™ STUDY COMMISSIONED BY JW PLAYER
OVP and Regional Sports Network Knock it Out of the Park
The subject broadcaster, SportsNet New York (SNY), is defined by key characteristics that should be pointed out when analyzing the report results, including:
- Majority of their programming is live sports
- They are a Regional Sports Network
- Gained increased viewership in 2022, thanks to a championship caliber regular season from the NY Mets, their flagship programming property
Understanding these characteristics individually is essential to providing context for the TEI results. One of the most compelling was highlighted in the report: 2022’s performance by the NY Mets. Unfortunately, given the webinar’s schedule constraints, there wasn’t sufficient time to cover all of these. Let’s address each of them.
Live events, in a category with few rivals
First, SNY relies almost exclusively on live sports, pre/post-game coverage, and programming around their flagship vehicle, the NY Mets. Consider that live sports is often considered the “last stand” for linear broadcasting. Parks Associates report, Insights into the Evolving US Streaming Landscape, found that “live streamers” subscribe to more services and spend more than “non-livestreamers.” If you are a broadcaster that does not own rights to live content, your mileage may vary on the results of this report.
When it comes to Local, Less is more
Second, regional sports networks are able to sell directly to local advertisers, as well as national brands. The ability to target a small, serviceable audience is worth a significant premium to media buyers. On the other hand, national broadcasters may only have the option to participate in ad networks. As a result, ad revenue streams are at the mercy of bidding algorithms.
Hit Show Halo Effect
Lastly, the season long performance of the marquee programming attraction. Yes, the Mets are under new ownership and should have a sustained run for the foreseeable future. Sports seasons are subject to:
- individual performances, anyone can have a down year
- plain old luck
Specific numbers have to be properly contextualized based on these factors. Forrester’s TEI report does calibrate what was a breakout season for the Mets in 2022. Broadcasters have to consider the halo effect of similar “hit shows,” or lack thereof, with respect to their web video’s ROI.
What is Web Video’s ROI for Broadcasters?
After interviewing the SNY team, Forrester’s TEI came away with three major findings. The areas with the greatest return on investment (ROI) were:
- Ad Revenue: if you own content, monetize it! JW Player’s online video ad platform allowed SNY to unlock the maximum revenue potential of their inventory.
- Time to Market: Using the JW web video platform SNY is now able to produce 30 videos per month. In contrast, their legacy system created only two in the same production window. Additionally, JW’s end-to-end workflow has a modern user experience and requires less internal resources.
- Video Production up time and Service Request Response: no more slow-to-load video players or viewer abandonment. A state of the art video platform means video playback starts well within the consumer’s expectations.
Let’s dive into each one in more detail.
How does an Online Video Ad Platform Impact Revenue?
Direct sales is the name of the game when it comes to ad revenue. To that end, migrating to JW’s platform gives SNY access to audience demographics and the ability to create ad rules. This new capability provides their media partners with needed data to make profitable, lasting partnerships work. The webinar goes into a good amount of detail on how JW web video impacts broadcaster ad revenue.
How does Web Video Impact Time to Market?
JW’s optimized OVP workflow saw SNY cutting production time from 30 minutes to 2 minutes. Savings like this in video edit time and coordination allows SNY to meet the increasing demand for in-play clips. Additionally, internal resources are now free to work on in-studio programming, increasing owned and operated content inventory.
According to Parks Associates, TV remains the top device for OTT services, despite its consistent decline over the past years. Consumption has shifted to mobile devices, now the second most popular device among consumers. Web video omni-screen strategies allow broadcasters to maintain their foothold on large screens, while simultaneously serving the mobile market.
How does Web Video Impact Production and Service?
First challenge for broadcasters looking to make an impact: get visitors to your site. The second is keeping them on your site. And finally, the ultimate goal is having them watch videos to completion.
One of the best ways to achieve that goal is to update the back-end production system. Not only will your content look and sound better, but it will also see a boost in:
- faster load time, reducing bounce
- higher viewing completion rates
- service up-time: just like sports, the best ability is availability
All of these add up to better user experiences for the consumer and less service calls for you.
How will an Online Video Ad Platform impact your Bottom Line?
Web video impacts broadcasters, but it can help businesses large, medium, and small. Now is the right time to modernize your audience’s web video experience. We understand that internal resources are limited and that is exactly why we offer web management services. Our expertise will save you time, money, and allow you to allocate precious resources to your core business.
Are you ready to replace your legacy video system? Contact HSV Innovations for a free consultation. Once we identify your use case, together we’ll find the correct web video solution to meet your budget and schedule to begin impacting your bottom line.