Publishers face four key challenges when they start out with online video: content production and acquisition, content delivery, ad management and ad sales. For publishers more familiar with display advertising and producing content based around text and images, the move to video can be daunting or too difficult to scale. However, one all-encompassing solution is to work with a company like Clipkit GmbH, a Berlin-based start-up, who act as part content syndication company, part video ad network. VAN caught up with Mathias Blüm, Managing Director of Clipkit, to understand how the model works.
Clipkit has an interesting business model. Could you first explain what you do to people who aren’t already familiar with the company?
We syndicate premium video content from professional producers. Our content library currently consists of more than 150,000 clips and grows up to 100 fresh new videos per day. With a great focus on integration into editorial contents and contexts, those video clips are distributed in a highly relevant way to our publisher partners.
Both, producers and publishers, as well as ourselves, benefit from video advertising revenues. With an overall reach of 250 million marketable premium video views per month, clipkit is one of the largest and fastest growing independent video networks in Germany.
At the core of all those processes lies our own video player technology, which is responsible for bringing website context, video content, and highly targeted video ads together in one screen, on all devices.
How effective is the algorithm in choosing the right content for the right page?
At the moment, publishers can choose to implement video content manually or on base of automatically refreshed playlists. We currently are working on a context-sensitive algorithm which should take care of this on a completely automatical base in the near future. This is a service we call a 360 degree solution for the whole web which isn’t offered for video content yet.
However, there is some room for improvement when it comes to matching text and video content. This is something we are working on at the moment. Since we have a deep understanding of all three relevant sides of video marketing – publishers, producers, advertisers – we know exactly what is needed to make the perfect fit for website, video, and ad.
Based on a huge data warehouse and an intelligent piece of technology we’re building at the moment, we will be able to make a big leap for “relevance”.
Is it possible to buy from you programmatically yet? If not, is it something you’re looking at for the future?
Yes we already offer programmatic buying to some selected partners. As everybody in our business can confirm, this aspect will play a significant role in the future. As we are a technology driven video company we want to adapt, test and drive every important and promising technology as early as possible.
How would you describe the current state of the German video advertising market?
The German video advertising market is dominated by the big TV networks, respectively their own digital ad networks and their own video platforms and Youtube.
But like in every other market there is always a need for more net reach in terms of unique video users which we are able to create. However, the digital publishers outside of those video platforms are embracing premium video content more and more, which creates an ever-increasing potential for new video content and advertising opportunities in the mid- and longtail.
All in all, Internet usage in Germany follows the worldwide development of increasing importance of online, mobile, and connected TV video inventory.