Why digital video advertising is key to news media’s revenue model

By Dawn McMullan

INMA

Dallas, Texas, USA

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Here’s a fact that might surprise you: Video is 50% of the media revenue and profit pool in any country around the world, Patrick Béhar, principle at McKinsey France, explained at the INMA World Congress in London. Video is also the least disrupted part of the media ecosystem.

“It’s tough to think about having a scale footprint with advantageous economics ... without having a substantial video presence,” Béhar said.

Consider these statistics: 

  • 40% of advertising remains with traditional video advertising (linear TV), growing 2% to 4% worldwide.

  • 2% to 4% of advertising is now with digital video, but it is growing at 40% a year.

“I think there is opportunity in content creation, to build scale around content creation, especially across Europe,” Béhar says. 

Béhar looks to the blurring of boundaries between free and paid TV as a video opportunity: “You’re going to see a lot more hybrid business models in the future and that is an opportunity for larger scale players.”

About Dawn McMullan