World’s Biggest Online Video Ad Network Moves to Cost-Per-Engagement Pricing Model

By on 08/08/2011 6:57 AM @daisywhitney

Ad networks like Tremor Video aren’t aiming to compete with the premium publishers, said Jason Krebs, SVP and Chief Media Officer for Tremor, who was a panelist in the Beet.TV Leadership Webcast which originated in the AOL Studios in New York last month.

Instead, Tremor focuses on selling reach, frequency and engagement, while premium sites sell brand adjacency, custom ideas and a permanent position to advertisers, Krebs said during a discussion on whether ad networks and exchanges potentially commoditize video ad pricing.

Tremor is one of the first video ad networks to sell pre-rolls on a cost-per-engagement basis. That’s an important metric because engagement is a sought-after measurement by advertisers and it’s one that’s been hard to come by so far on the Web. With cost-per-engagement units, advertisers only pay when viewers engage with the ad.

“The cost is relative to the value of what you are providing to the consumers,” Krebs said. “If you have a good message to tell, we will make sure it finds its home with the right audience.”

According to comScore, Tremo Video is the largest online video network.

Also in this segment, Molly Sugarman of Horizon Media, the biggest independent media buying shop, speaks about the value of engagement around video.

Update 8/8: In an email to Beet.TV, Krebs tells us that from the second to the third quarter, Tremor expects to see a 140% increase in pre-roll cost-per-engagement revenue. "We are seeing very strong correlation to engagement and brand lift, which is obviously highly attractive to big brand advertisers," he says.

Daisy Whitney

 

Recent Videos
image
Programmatic 2.0 Is Here: Group M’s Kowan

VIEQUES, PR — So-called programmatic techniques for trading online ads burst on the scene quickly, and is now forecast to make up 72% of total digital display ad spend by 2017, according to eMarketer. Group M’s North America programmatic buying president Joe Kowan says that rush wasn’t ...

image
Mobile Consumers Want Quick, Visual Content: Facebook’s Dugan

VIEQUES, PR — Just three years ago, only 20% of Facebook’s business came from mobile platforms. Last Q4, that was 80%. That’s testament to the changes Facebook is having to make to ensure it continues connecting with audiences. But the same goes for advertisers who use the network, ...

image
OpenX By The Numbers: Profit Up 3x In Two Years

Eight years after launching as an ad-tech platform for publishers, OpenX is growing its business at a tear. “Our net revenue (was) $140m in 2015, which is up 40% year-on-year,” OpenX CEO Tim Cadogan tells Beet.TV in this video interview. “(In) 2014 and 2015, we doubled the size of the ...

image
Header Bidding Rears Its Head With Yield And Cost: OpenX’s Saifee

PALM SPRING — Look out; there’s a new piece of ad-tech lingo on the block. So-called “header bidding” has emerged as “one of the primary drivers of growth in programmatic for publishers over the last year”, according to OpenX monetization VP Qasim Saifee. So what is it? ...

image
Nielsen Onboarding TAM As Measurement Wars Heat Up

PALM SPRINGS – After comScore’s merger with Rentrak to combine multi-platform media measurement, it’s over to you, Nielsen. Ad agency Group M chairman Irwin Gotlieb last year told Beet.TV media measurement is broken because measurers are using the wrong yardstick in the multi-screen era. ...

image
Deloitte Gets In To TV Tech Tools Game: Ledger

LAS VEGAS — These days, it seems it is no longer enough for a consulting firm to just offering consulting advice – you have to back it up with implementation, too. That’s what Deloitte is doing by partnering with three software providers to wrap up their offerings as one of its own, the ...

image
Programmatic Ad Rates Will Be Higher Than Direct: Meredith’s Schenck

When programmatic ad trading entered the marketplace in the form of real-time buying from open online ad networks, many publishers feared it would devalue their inventory. But, slowly, publishers have begun to exert controls to keep pricing higher than that. Now rates could rise higher again, one exec ...

image
One Screen Good, All Screens Better: Bloomberg’s Caine

PALM SPRINGS — Bloomberg appears to have been undergoing a renaissance lately, with a line-up of strong products and a solid identity running across its many media outposts. In the latest new advertising tie-up, Bloomberg Media has sold a sponsorship for the green room, during its new Bloomberg Go ...

image
Hearst Reaches Maturity With Programmatic: Parker

Time was, newspaper folk sneered with apprehension at the rise of programmatic methods of digital ad trading, fearing automation in real-time open markets would devalue their ad inventory. But times have changed, and those publishers which have dipped their toe in the water are finding growing returns on ...

image
As Merger Closes, Rentrak & comScore Push ‘New Model’ For Media Measurement

PALM SPRINGS — The merger of media measurement houses comScore and Rentrak just completed, heralding what the pair say is a new era in consumer tracking for brands and publishers. According to comScore, the new entity can now see 260 million desktop screens 160 million mobile phone screens 95 million ...

Screen Shot 2016-02-01 at 12.05.34 AM
Turn’s New CEO On Video And The ‘Three-Legged Stool’

PALM SPRINGS — The world of advertising demand-side platforms is so new, most people may only have dealt with one or two. Bruce Falck says he has worked for five. Falck spent just four months as Brightroll’s COO until Yahoo acquired the company, last year joining Turn, the ad tech platform which ...

image
Sourcepoint Barokas’ Melds Ad Transactions To Beat Blockers

If you believe some of the market research about the prevalence of consumer ad blocking, the sky is falling on a publishing industry that has long depended on advertising. Those surveys may or may not be wholly accurate, but Ben Barokas is intent on solving the problem. Whilst working as general manager of ...

loader