Commentary

Glut of Video Inventory Could Get Even Bigger

Print-based publishers continue to move into the one area that continues to garner premium ad rates: video.

The New York Times wants to add more video to its website.  That step may be a  reaction to continued lower advertising results, with revenues down 6% from all platforms, and digital revenues down 2.7%.

Much is to blame, including programmatic systems pushing down ad prices. Even some video CPMs are going down, although those prices are still much higher than digital display prices.

Much of this original video might not be on the level of so-called “premium” video – such as off-network repeats of big popular shows like ABC’s “Modern Family,” CBS’ “NCIS” or Fox’s “The Following.”

But for many publishers, increasing their video content can counter lackluster advertising results. Given the seemingly unlimited supply of possible video opportunites, it can also muddy up the works for some media buying executives.

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The upfront market just finished. From reading the tea leaves, it seems that network sellers got some decent high-single-digit percentage gains.  But total dollar volume could actually be down -- at least for the broadcasters -- by 5% or 6%.

The 70 or so ad-supported networks, by contrast, may have grown their overall business by 2% to 3%.

So a lot of traditional TV premium inventory may be available for the coming scatter periods. Surely, continued underdelivery of 4% to 7% will eat up some of those gross rating points.

But stuff will still need to be sold. Does that add to more video glut -- premium, discount, digital, and otherwise?

Maybe not in the short term. Marketers are already changing their valuations of video.

2 comments about "Glut of Video Inventory Could Get Even Bigger".
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  1. Paula Lynn from Who Else Unlimited, August 8, 2013 at 3:40 p.m.

    Of course video has a place in news of any kind. However, when one wants to know about any subject, one can read about it X times faster than watching it. One can even read the details faster than watching the skim. Although there is a place for video that can enhance a story, video does not replace the written word.

  2. Edmund Singleton from Winstion Communications, August 9, 2013 at 6:01 a.m.

    I love the New York Times videos, but do forget to watch, have placed a post-it on my bathroom door...

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