Mobile growth on YouTube is soaring. More than ever, people are tuning into YouTube on their smartphones, tablets, laptops and other mobile devices. Often out and about waiting in lines or at the coffee shop with free-time on their hands.
Last year, YouTube launched TrueView, a platform for displaying advertising on both the web and mobile platforms, allowing users to skip the ads they don’t want to watch. This is a win-win situation, as viewers get to skip ads they don’t want to view, which means advertisers only pay for ads that are displayed to an interested audience.
But what about all of the resources and effort YouTube put into developing high-end professionally produced video content in order to compete with Traditional TV? Over $100 million to be exact.
Mark Cuban believes that professionally generated content on YouTube is doomed:
“It also means that professionally generated content is pretty much doomed on YT. If YT can monetize, particularly on mobile UGC with far higher margins, why would they pay 55pct of revenue to the channels?… why would YT offer any financial support or incentives to professional content creators ? There just is no reason to. TrueView changed the game.”
Mobile is the new norm for YouTube, with over 40% of all YouTube clip views in the US coming from mobile devices, 25% worldwide. But these numbers are destined to increase since, which certainly will lead towards YouTube re-thinking their professionally paid content strategy.
The VOD advertising industry is really starting to heat up, and getting noticed by the Wall Street Journal, the New York Times and other mainstream news publications. Recently, Canoe, a provider of advertising software and services to national television programming networks announced that they will be licensed BlackArrow’s toolset enabling programmers to manage ad avails in and around Video On Demand (VOD) content.
“As consumer behavior continues to shift towards on demand experiences, Canoe and many in the industry realize the significant opportunity for dynamic ad insertion on VOD,” said Joel Hassell, CEO of Canoe. “We believe that the combination of proven technologies, software and services that BlackArrow and Canoe bring to the table will significantly enhance on-demand content as a vehicle for new revenue for programmers.”
Dean Denhart, CEO of BlackArrow, said, “With our technology operational across more than 30 million households worldwide, we’re excited about the opportunity to work closely with Canoe and our customers to deliver against the long-awaited and much anticipated value of on-demand TV advertising.”
This is certainly big news for both firms, and a key indication that DAI for VOD industry is breaking out. Read the full story about BlackArrow Solution Chosen by Canoe Ventures to Help Further Monetization of On-Demand Inventory.
BlackArrow now enables control of Advertising and Blackouts of Live Linear TV Programming Delivered to Tablets and Other IP Connected Devices.
So what does BlackArrow do? Simple, the following:
- Dynamic Ad Insertion (DAI) of local or national ads within linear streams;
- Linear replication of original broadcast ads within linear streams;
- Alternate content delivery to viewers in certain geographic areas or circumstances; and
- Linear addressability for targeted ads based on subscriber data.
This last bullet point is key. As streaming digital media to multiscreen and video on demand viewership grows, so is the need to properly monetize these various new platforms and formats. Dynamic insert of relevant ads based on key demographics is the sweet spot niche that BlackArrow has set out to fill.
Their partnerships with leading solution providers such as Elemental Technologies, Envivio, RGB Networks, and SeaWell Networks, will go a long way towards solving the interoperability challenges that pay-TV Operators face.
Read the full BlackArrow Press Release