Behind the Buzz - digital and interactive advertising and marketing

FOOA and Video Advertising

by Rachel on June 10th, 2007

Jay Adelson (Digg) ‘Tapping into the Ad Potential of Media Sites’

We’ll talk about how the banner world does not apply to video. Forget the flash player - you’ll need to know the limitations. And me for this - the media buyers needs to figure out the standards,

On a trad website everyone wants things that are not the traditional value. Supporting integrated deals is good, it is a measurable quantity. the custom work is good, but depends on the custom work and resources.

For video, the object is not a website. The constituents have different motives. if you are buying ads, how do you figure which one to play with. With no standards it will be a couple years of learning before we can answer. The industry raced to ad injection, pre-roll and overlay where they can, but if shows are not just on the web and browser, how do you do this.

How and who gets paid? How will distributors and content coexist/share revenue. We produce a show with a sponsor and then an aggregator may wrap their own stuff around it. The future is not the wrap, the injection of an ad. It is the tv marketplace, putting the ad in the content so it is portable. They industry are racing to this, the sponsorship And the publisher knows the audience and can understand what to do

Motives? As an aggregator you are thinking of getting 100s of millions people in the same place and controlling the experience. The website gets people to one place, a distributor gets many people across many places; the scale advertising to this. For a content producer it is the same thing, but how do I get 30m people watching my show? If if had to spread across the aggregators how do i monetise?

In Silicon Valley there must be 1000 startups looking at monetising the flash video. The Flash Lemmings. But polling the viewers we find the users are annoyed by it, You don’t want to annoy your viewer. So the networks are best served by delivering the video and not disrupt. When the aggregators recognise the experience in the flash window is limited, they are moving to other areas , on other platforms

PreRoll, be careful. Almost all of the clients at Revision3 who have purchased pre-roll have moved away, it’s efficient to get out but the ROI is bad - not having the effect. If you put preroll you get abandonment. Post roll is a joke….not sure if any Revision3 viewer watches post roll. This is how it used to be:

So we may be looking at the return of sponsorship. There is a great opportunity in the early stage of niche video to develop relationships with sponsors. Godaddy and Sony and Microsoft have embraced it and it seems to be effective. So what content can absorb this? This kind of relationship is hard to scale from a sales POV. It’s a long sale cycle and I need standards to spin it up a little. Segmenting of shows, or a sponsored section of a show, we are experimenting with these things. eg DiggNation and verizon wireless.

When you have 100s of distributors, you can do in site. Most people get their videos through itunes,apple tv. We have 500k uniques, with 250k watch Diggnation. We have to do deals with a 100 distributors. The ad is integrated in video and does spread with it, but who is tracking and what definition are they counting as an impression? In the video there are 3 points we have an impression - beginning, the editorial bit and then the end. You also have along tail…we report 7 day, 30 days and 60 day figures. We need independent third parties to play in this. Figure out how to do this as a third party. We have start ups who will inject an ad into the file on download; when campaign expires the in-video ad can be replaced. Revenue issues are still to be worked out.

Future? Integrated techniques - I understand audience and the content but do not think agencies know how to do this. They are not doing the creative but it is a more effective campaign when they are part of the idea. Only a small amount can support customers content. I would love there to be a sponsorship standard, with costs and what you get. And you will need aggregators playing, eg Fed media, to get the impression counts to make it a worthwhile media buy.

Takeaways: it is not a tech problem, Its the same as tv, they watch it in the living room on the couch, Understand that first. Media buyers increasingly understand it, so the change will be how to spend budget. Content relationships will soar, sponsorships increase. At Revision3 we look to get sponsor to do a show for a long time.

Aud Q&A

Q: this is like payperpost…sponsored content. Why not your audience not upset?
A: It has to do with honesty and trust. This audience..there is a disclaimer upfront..it is sponsor time. We have also broken the ‘advertorial’ and given an opinion…(for Zune) There are a lot of community leaders who have the relationship already. Which is perfect for sponsorship

Q: how does this translate into mass market?
A: look across the landscape most is not tech. How many opportunities for networks delivering to mass media. The first target would be the networks, eg nextnewnetworks. These are mass media opportunities. Finding these islands of aggregated production vs the ones offs is probably a good strategy

Q: You are looking for a standard…does there need to be an IAB summit, do the leaders get out there and agree?
A: I would love to see an strawman from the IAB, defining the formats. There’s probably less than 10 ideas. Bring people from production side to table to discuss what would scale.

Q: How with all the channels do you track and define and know the audience?
A: For Revision3 we did a raw survey, tracked 7k using surveymonkey. 48 questions (inc an essay question) key audience was 18-34 males, over 70% were over 25. 40% of our viewers bought a product due to sponsor. 85% could name sponsors. Distribution networks are increasingly sophisticated in understanding their audiences. it is important for me that these networks feedback info, about standards of measurement.

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POSTED IN: Advertisments, Conferences and Events, Metrics and Research, Video Content