The cost-benefit analysis of video
Video is viewed paradoxically by publishers. They see budgets shifting to sight, sound and motion. Video ads, formerly known as TV spots, were always valued by advertisers far more than a standard display ad, no matter what efforts were made to gussy them up. Yet for many publishers, the costs associated with video creation are certainly high but the revenue while potentially big is uncertain. Tom Pachys, CEO of online video platform Ex.co, joined to discuss the challenge
“The publishers that we work with say that this is their biggest line item when looking at the advertising part of their P&L. That definitely works, but the cost of opening studios, recording videos, taking the risk, And also having that expertise – that's where the challenge is.”
Thanks to Ex.co for sponsoring The Rebooting. Check out its recent guide to selecting an online video platform.