Major Changes to Video with the plcmt Parameter

Explore how the new 'plcmt' parameter can transform video advertising strategies and impact video monetization.

Earlier this year Google announced upcoming changes to video request declarations coming April 2024

In a significant update to the video advertising industry, Google has announced changes to video request declarations that took effect in April 2024. These amendments are set to shape the way video content is monetized, with a focus on transparency and improved user experience.

The announcement highlighted the introduction of a new 'plcmt' parameter to video ad requests. This parameter is designed to provide clearer information regarding the type of video placement being utilized, which aids in better aligning ads with the appropriate content and viewer expectations.

Understanding the plcmt Parameter in Video Advertising

The 'plcmt' parameter stands as a pivotal element in the realm of video advertising, offering a structured way to classify the nature of video ad placements. Advertisers and publishers alike must understand its function to ensure compliance and optimal ad performance.

By specifying the type of video placement, whether it's an in-stream ad, an outstream video unit, or an accompanying content request, the 'plcmt' parameter tells the advertiser where a video ad is actually being played.  Until now, many of the video units were declaring themselves as in-stream in the markets and being sold at the same value as ads displaying on Smart Televisions and other pure video experiences.

Floating Video units unrelated to content on page and how the plcmt Parameter will affect declarations

Floating video units that are not directly related to the content present on the page are a unique challenge in video advertising. With the upcoming changes, video providers like Primis, Ex.co, Aniview, and others must declare these units as 'Accompanying content requests' by using 'plcmt=2' in their video ad requests to Google Ad Exchange.

This declaration will categorize the inventory more accurately, but it may also lead to shifts in monetization strategies as the industry adapts to the new level of transparency. Providers need to prepare for the potential impact on revenue and consider adjustments to their ad placement strategies.  Publishers need to recognize that the days of extremely high CPMs for floating video players may be coming to an end. 

Predicting the Impact of plcmt Parameter on Floating and outstream video providers

The introduction of the plcmt parameter is anticipated to bring about significant changes for providers of floating and outstream video units. As these ad formats are reclassified under the new system, it is likely that they will experience fluctuations in demand and revenue.

While it is challenging to predict the exact outcome, it is plausible to expect a period of adjustment as advertisers reassess the value of these placements. Providers may need to explore alternative monetization strategies or enhance the value proposition of their ad units to maintain competitiveness.   The more that you create an experience where people are actually watching video and getting a video ad - the more money you will make.   If it is clearly not a video that users are watching, expect revenues to decline.

This may be one of those times where "the party is over" for easy CPMs from Video.   Transparency is the new normal, with Advertisers and exchanges putting ever more focus on ensuring that there is no blurring of lines in the programmatic ecosystem.