The internet has opened the doors when it comes to advertising and marketing. It has also opened the doors when it comes to various ways that businesses can make money. Companies can make money on advertisements.
Videos over the years have become very popular. This is evident with by Blip’s success as well as watching its rival YouTube. When it comes to media, videos are a preferred method for getting across marketing messages, using in educational settings and for overall viewer recreational enjoyment.
Video hosting site Blip has decided to get their share of the pie by increasing its ad load. They will now make advertising a mandatory component on their site. While Blip has been sharing its ad revenue with its publishers 50/50, they have begun increasing their revenue by turning on pre-roll advertising. This will now be the default when it comes to advertising.
Publishers will be given the option to opt-out of ads for up to five of their hosted videos. After five videos have been opted out, the remaining videos will be preceded by the advertisements. Previously, Blip allowed publishers to choose pre-rolls only if they wanted them. It wasn’t a requirement.
Blip sent out an email that stated that their mission was to have their site be the premier place for people to discover the best video web series around. They intend to achieve that mission by monetizing the content that publishers upload with mandatory pre-roll ads that will precede each video. Blip went on to say that publishers had to understand that these pre-rolls help to pay for the bandwidth and technology that is required to host these videos.
Some publishers are upset with the new changes stating that when they signed up Blip specifically stated that publishers could use Blip’ services without accepting advertising on their video uploads. Publishers now fear that these pre-roll ads will drive away viewers however Blip sent out an email to all publishers stating that:
“While advertising will be a bit unsettling in the beginning, viewers are used to seeing pre-roll ads on numerous sites today. Seeing a name brand ad before a video also lends to credibility and the perceived value of the video by the viewer.”
In the early days lip rivaled YouTube. They eventually however changed directions and went from single videos to focusing more on video series. They even have their own studio in Los Angeles that will put out their own content by summer 2013.
A growing consensus is that viewers looked to the internet because of the lack of ads. Many viewers have felt that television offers so many advertisements that you more of them then you do show time. Many turned to the internet for viewing pleasure free from advertisements. However the internet like any other platform is an outlet to make money.
Publishers may not be happy about the changes that Blip is making but for now they literally have to just go with the flow. Blips pre-roll advertising policies for now are here to stay. The big question now is how many of the publishers will remain? Only time will tell.