One of the key drivers of online’s future growth will be content syndication. While video syndication has been around for some time now, a number of new platforms are going to make it easier than ever for content owners to distribute their content online. Similarly, it’s going to become much easier for publishers to have high quality video content on their sites. One of the companies to enter the race most recently is glomex, which is a spin-off of ProSiebenSat.1 Digital and a one hundred percent owned subsidiary of ProSiebenSat.1 Media SE. Here Michael Jaschke, CEO of glomex, explains how the platform will work and how video syndication is set to transform the video advertising landscape in the coming years. Michael will be delivering a keynote presentation on Thursday 20th of October at New Video Frontiers.
What is Glomex and how does it work?
“glomex -The Global Media Exchange” is a unique, international marketplace for premium video content. The one hundred percent owned subsidiary of ProSiebenSat.1 Media SE, based in Unterfoehring near Munich, offers its “Media Exchange Service”, an easy to operate, web-based platform where owners of professionally produced videos and web publishers can trade content for reach – easily and without friction. The necessary technical infrastructure is provided by glomex in the shape of a cloud-based transactional platform. Delivery and distribution of the videos is executed through the glomex video delivery infrastructure, which also holds a market-leading ad block management solution. Thus, glomex globally distributes and monetizes its partners’ content. The advantages for all those involved lie in a significant increase in reach, thus unlocking new revenue streams, combined with an equally significant decrease in operating cost.
Many publishers are now using outstream formats as a way to add video advertising to their sites? Should we expect to see outstream and instream video featuring on the same page or is there a risk of ‘video clutter’?
We believe that the advertising industry needs to find less intrusive forms of advertising. This will be achieved through more relevant advertising that will take content, context and user situation (mobile, stationary, home, office, etc.) into consideration and is true for both outstream and instream video ads. Today outstream video ads can complement instream video ads – however outstream ads typically have a much lower completion rate. Intelligent ad management is a key focus area of glomex, aiming for the right balance between top long term user experience and top long term monetization of that same user. While doing this, glomex helps publishers create more returning visitors while at the same time optimizing revenue.
Should publishers be focusing on the social platforms as much as they are today? And do they really have any choice?
Publishers need to still utilize social platforms to drive traffic and build their audience. However, publishers that have their own content need to get back into the driver seat by managing their own content reach. We believe that content will be characterized by (1) a short shelf life and (2) the fact that most consumers don’t look for specific content but expect content to find them. Both factors drive what we call “nomad” content. Publishers have very little time to monetize their content which means that they need to look for as many distribution channels as possible – social platforms being just one of them. Social platforms have the disadvantage that there’s in fact a lot of clutter and content just drowns in the flood of posts in a consumer’s feed. glomex changes this by allowing publishers to use a large network of premium distribution sites, that guarantee relevance and less clutter – making content shine that would otherwise be lost in the noise.
What can the online publishing world learn from the TV industry when it comes to scaling their video businesses?
Brands remain important – they give consumers orientation and can create a premium brand safe environment for top advertisers. However publishers need to embrace the fact that for video content, the most important consumer interface is the player and not the website or app – compare this to a TV set in a home. In a world of always on and unbelievable amounts of content noise, reach becomes the key element allowing premium publishers to rise from the noise. glomex is trying to give publishers who own content exactly that – a branded player in a premium publishing network for maximum content reach. Digital video ads on the other side need to start following the path that consumers grew to accept from the TV industry – more control and less short-term gain, creating a better user experience and in the long run a better ARPU.