It's been said that those who ignore the past are doomed to repeat it. This week, in "New Challenges Chip Away at Cable's Pillar of Profit," The New York Times' David Carr opined that cable and satellite distributors' strategy of bundling television programming is facing multiple challenges. This got me thinking about the accelerating speed of change in the way media consumers adapt to new mass communication models. The timelines for mass adoption of various new forms of communication over the past two centuries have become shorter and shorter.
Mobile video advertising spending is set to quadruple in the United States alone in the next three years, from $518 million in 2013 spending to almost $2.1 billion in 2016, according to eMarketer. However, this increasingly engaging set of consumer interactions could present significant challenges for the mobile network operators that have to carry this advertising traffic. After all, one short video advertisement represents the equivalent of 900 mobile banner ads in terms of bandwidth.
While we marketers are engaged in active conversations about improving the reach and effectiveness of video advertising (and let's not forget operational efficiency), there's no better time to do a sanity check on all things video already on the table. Are we missing out on major benefits that are right under our collective industry noses? I would answer: Definitely, yes.
TV still reigns supreme for viewing video, but the second most popular venue for watching a show has become the mobile phone. In fact, more consumers are watching online video on their phones than on work or home computers, according to Experian's recently released survey of cross-device usage. What's more, Experian's research indicates that the growing consumption of video on other devices is leading to cord-cutting.
My latest obsession is finding new and interesting ways to create a call-to-action from video, particularly in multiplatform environments. Why is a call-to-action so desirable and important? Advertisers need to prove the value of marketing budgets, publishers need to drive traffic to other destinations where they can monetize their audience, and distributors need to demonstrate the value of their platforms -- including online, in-home and away from home.
While some advertisers are now pursuing a video-neutral advertising strategy, in which all video impressions carry similar value, most of the incremental dollars shifting to digital video remain bucketed in either TV replacement or TV amplification. Let's examine the latest research available on each approach to try to draw some conclusions on the most relevant strategy.
Private marketplace gives demand and supply partners the ability to transact video advertising programmatically, in a direct, invitation-only technology platform. So why did this trend that started in display move to video?
With the success of "Patches," no one can question that Dove is a leader in branded video. Within 10 days of release, "Patches" garnered more than 41.4 million views, outpacing the growth of "Real Beauty Sketches," the eighth most viewed branded video of all time. So what does Dove do right that so many other brands get wrong?
The complaints from content creators about YouTube's revenue sharing structure are well-documented. And as Peter Kafka and Kara Swisher wrote in Re/Code, "having the giant YouTube dominate the online video space is frightening to many," including advertisers and producers. So Yahoo's recent announcement about developing its own high-end content programming, and the reports about its moves to acquire some YouTube stars and/or MCNs, should come as no surprise. Nor should the backlash.
The 5-Second Hook is a simple concept, but an entirely new consideration for advertisers. The rise of native advertising and YouTube's TrueView has made the "skip" button a ubiquitous artifact in online video viewing. As more and more publications have attempted to monetize content online (especially in the shrinking print industry), the use of interstitial video ads has exploded. Typically, the user has to watch at least 5 seconds of video before being allowed to skip. This little window of time is precious.