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Insider is bucking the short-form video trend, making 71% more money YoY with longer videos on its own site
Digital advertising revenues grew ‘exponentially’ in 2021. The IAB reported the global total for the year at $190 billion, a $50 billion increase. Growth projections for 2022 have been scaled back throughout the year as fears of a recession deepen, but amid the growing gloom, video advertising seems to remain a bright spot.
The story of Insider’s success in the sector provides an interesting case study for publishers looking to increase their own video advertising revenues.
Takeaways
- Digital advertising revenues have taken a hit in 2022. Both Google and Meta, the two biggest players in the market have seen growth slide. Google’s search business missed analysts’ forecasts, and at Meta, net income was down more than 50% year-on-year.
- In contrast, short-form video platform TikTok is still seeing incredible growth. In April it was projecting ad revenues of $12 billion for 2022, up from $4 billion last year. Its success and copy-cat launches from Instagram reels and YouTube shorts are touted as proof that short-form is the future for video advertising.
- However, Insider, formerly known as Business Insider, is bucking the short-form trend, making more money from longform video than in 2021. Revenue from video ads on the business news site is up 71% year on year and Insider now gets more revenue from on-site videos than from YouTube partner sales.
Onsite video
- Insider says its on-site video – especially longer videos – is performing better, at least in part due to improvements made in user interface design and engagement tools that have made it easier to surface video content next to relevant content. It sells a mixture of pre-roll ads, sponsorships and custom content including branded video series.
- It is also seeing growth in direct-sold video ads. Direct revenue is up 45% year on and the number of advertisers who bought Insider’s video inventory directly is up 40%. Advertisers committing to spend an agreed budget on ads across Insider’s owned and operated sites, as well as on other platforms like YouTube.
- A key selling point is the integration of on-site video advertising inventory with Insider’s first-party data platform SAGA. The system supports video ad targeting based on audience behavior, serving ads against related stories that site visitors have expressed an interest in.
Direct sales
Insider is also seeing growth in direct-sold video ads. Direct revenue is up 45% year on and the number of advertisers who bought Insider’s video inventory directly is up 40%. Advertisers committing to spend an agreed budget on ads across Insider’s owned and operated sites, as well as on other platforms like YouTube.
A key selling point is the integration of on-site video advertising inventory with Insider’s first-party data platform SAGA. The system supports video ad targeting based on audience behavior, serving ads against related stories that site visitors have expressed an interest in. Insider’s recent video advertisers include Chase Marriott, Indeed and Lenovo.
The company has 28 million subscribers across all its channels, with 60% of its audience under 35 years old. Despite now making more money from direct sold ads on site, Insider’s largest viewership is on YouTube, underlining the need for publishers to have a solid YouTube strategy.
This piece was originally published in Spiny Trends and is re-published with permission. Spiny Trends is a division of Spiny.ai, a content analytics and revenue generation platform for digital publishers. For weekly updates and analysis on the industry news you need as a media and publishing business, subscribe to Spiny’s Trends weekly email roundup here.
