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
First-Party Data Helps Meredith With Video Content Strategy

First-party data is critical to deliver video content to the right audiences, says Laura Rowley, VP of Video Production and Product for the Meredith National Media Group, a media and marketing company serving women, in an interview with Beet.TV. Meredith has grown its video viewership in the last year to 30 ...

David Moore, Xaxis recut
The Next Big Thing at WPP Digital: “Creative Optimization”

In 2015, WPP’s large portfolio of digital agencies, tech providers and content companies, which are fully or partly owned by WPP,  will be organized into a “complete” offering that can “compete with any company in the world,” says David J. Moore, President of WPP Digital and ...

image
Beamly Wants To ‘Super-Charge’ Ads After Pivot ‘Step Change’

The social TV app formerly known as “Zeebox” has ambitions to offer advertisers new experiences, after rebranding to “Beamly” earlier this year. First launched in 2011, Zeebox helped viewers learn and talk about shows during live broadcast. But it expanded to VOD and a greater female ...

image
Second Screens Yield Vital Data for TV Networks

The next hurdle for second screen marketing lies in measuring consumer sentiment towards a TV show, says Alan Wolk, Chairman of Second Screen Society, in an interview with Beet.TV. That can be done by tapping into the treasure trove of data available via mobile phones that consumers use to interact with a ...

image
Addressable Tools Will Drive Programmatic TV, Videology’s Scott Ferber

Programmatic TV will be driven first by addressable tools, says Scott Ferber, Chairman and CEO of video advertising technology platform Videology, in an interview with Beet.TV. “The first step where programmatic and addressable will converge in the TV space is on the data side…understanding who ...

image
AOL Sees Growth in Programmatic TV with 58 Ad Campaigns Up

While programmatic TV buying operates in a just a small slice of the overall TV ad market, it is growing and advertisers are allocating budget.  AOL has some 58 advertising campaigns running in test mode, on its platform, says Bob Lord, Global CEO of AOL Platforms in this interview with Beet.TV We sat down ...

image
Out-Stream Gives Slate 10x Video Ad Boost

CHICAGO — Webzine Slate may be producing some video of its own nowadays but, as a text specialist, the outlet may never make enough to satisfy booming advertiser demand for video ad inventory. That’s why the publisher is using InRead, an ad format from vendor Teads which allows sites to inject ...

image
Cars.com’s Kraut Sees Ad Value In Data After Gannett Sale

CHICAGO — A couple of months after US news publisher Gannett finalized its purchase of the remainder of Cars.com, the autos classified site is revving up to combine data points and its new owner’s heft to sell ads. “There’s a lot of data … our advertisers would love to have the ability ...

image
AdTech Banker Kawaja: Video Ad Platforms Need To Differentiate

If you are tired of trying to distinguish one “end-to-end, full-service video targeting and decisioning” vendor from another, imagine how people from outside the digital video industry must feel. LUMA partners CEO Terence Kawaja says 2015 will see ongoing video tech momentum after the ...

image
Nielsen-Adobe Deal on Track for 2015 Digital Ratings

As consumer interest in watching authenticated TV rises, the ad business will look for better ways to measure video across screens, says Jeremy Helfand, VP Adobe Primetime at Adobe, in this interview with Beet.TV. About 10% of all authenticated TV content is viewed through an OTT device, underscoring the ...

image
WPP’s Modi to Deliver “Addressable” TV Ads Programmatically with Videology

Modi, the recently launched advanced TV unit of WPP’s GroupM, is working with video adtech company Videology to deliver television advertising to specific cable and satellite users in real-time, using programmatic ad decisioning technology, explains Jamie Power, Senior Partner at Modi, in this ...

image
Satisfying Readers Is Key To Content Marketing: Digitas’ Mark Book

CHICAGO — DigitasLbi’s “Perceptions Of Care” video campaign for Whirlpool has won rave reviews from ad watchers, after the agency worked with popular web publisher Upworthy to craft the campaign as a pair of videos. The campaign has generated some hefty social media views. So what was ...

loader