ID Media's Baliber: When Will Video's 5% Solution Moment Happen?
Following his keynote conversation at the VIdeo Insider Summit in Montauk, Long Island, ID Media’s Michael Baliber acknowledged that at least part of the problem with online video’s ad market share has to do with the legacy models of advertisers and agencies, and the fact that they’re still thinking from a traditional TV planning and budgeting framework.
Asked when online video would have its equivalent of cable TV’s “5% solution” (a share that former Publicis agency Ted Bates said Madison Avenue should start budgeting for that then emerging video medium, circa early 1980s), Baliber said, “so that’s where that 5% number comes from.”
Baliber noted that a recent report from ID’s sister Interpublic units, the IPG Lab and Magna Global, recently came out with a “second screen” report recommending that the ad industry allocate 5% to 10% of its budgets into online video.
One of the problems, he implied, is that agencies and clients still use legacy models like projecting TV ratings in order to budget ad buys, which don’t necessarily apply well to online video.
“A lot of it is about education,” he said, adding, “A lot of it is about having the mindset and the guts in your bell of saying this is the right thing to do.”On the education front, Baliber noted that the Interpublic shop just held a one-day agency-wide training session on Tuesday to educate its entire team -- including traditional TV buyers -- about “programmatic” media-buying.