Brightcove has published a manifesto highlighting ad-supported online video’s challenging economics and proposing improved viewing experiences, ad optimization and reduced operational complexity as critical solutions. While observing that online video usage has clearly “crossed the chasm” to become a mainstream experience, the manifesto notes that “the extreme concentration of ad dollars among a few mega companies” (citing Morgan Stanley research that 85% of incremental spending goes to Google and Facebook) will ultimately mean fewer content options.
From an experience standpoint, the manifesto lists improved player load time, seamless integration of ads, better understanding of quality of experience and more immersive experiences as critical for content providers to focus on.
To optimize video ads, Brightcove emphasizes first and foremost the benefits of server side ad insertion over the client side alternative. Brightcove cites the example of MediaWorks, New Zealand’s biggest independent broadcast, which saw a 35% lift in video ad inventory by switching to SSAI. Brightcove also pointed to benefits from driving more impressions per session and more video views through aggressive video syndication. Brightcove’s goal is to help customers increase their video revenue potential by 50% over current levels.
Finally, the manifesto emphasized reduced operational complexity that could decrease total cost of ownership by 50%. This includes the full gamut of content processing for multiple devices, social video publishing and multi-business model support.
In total, the manifesto is a comprehensive view of the challenges many video content providers currently face and how they can improve their competitiveness and profitability. The manifesto is available for download here. Brightcove’s CEO David Mendels also posted a backgrounder video here.