Why is Video More Expensive Than Display?

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Why is Video More Expensive Than Display?While Americans are indeed watching a record-breaking amount of online video these days, publishers’ decision to create more video content has as much to do with appealing to potential advertisers as it does appeal to readers.

That’s because video ads are some of the most valuable, and expensive, advertising inventory the web has to offer. As a result, the prices for these ads are usually at least twice as high as a banner ad on the same website. Even with the increase of available video inventory, it is still expensive. But why?

First, there’s the obvious reason – it’s video and not a static ad.Video allows you to tell a story and make an impression.Which makes the ad more engaging for the website visitor and also helps increase campaign performance metrics. That’s the obvious reason that video cost more.

Right now, most of these premium publishers are selling out their video advertising slots without much trouble, and the trend will likely continue in the near future. According to a study put out in October by the AOL-owned video ad tech company Adap.tv, 86% of the 171 brands surveyed expected to increase their spending on video ads in 2014.

As long this demand continues and prices for video ads remain high, you can expect to see more publishers make video advertising inventory available on their websites.