Online video is of huge interest to digital marketers right now, and barely a week goes by without research on its continuing growth in an otherwise stormy advertising environment. That being said
it is a very new medium in many senses and a number of misconceptions do exist.
Perhaps the largest misperception about online video advertising is that it's one amorphous entity, yet
this couldn't be farther from the truth. As with all digital advertising, issuing a blanket statement to encompass an entire industry does a disservice to the various companies in the industry that
introduce innovative technology and are dedicated to connecting brands to the right set of consumers whom they want to target. The truth is online video advertising is currently divided into two
complementary parts; in-stream video ads and video display ads. Both can be highly effective for marketers, but they should not be confused.
In-stream video refers to ads that are inserted
into the video being watched by the consumer. In-stream advertising does not equal overlay video ads partnered with user-generated content. Overlay ads are a component of the in-stream experience,
along with pre- and post-roll ads. This full spectrum coverage enables publishers to monetize content from start to finish and advertisers to deepen user engagement via precision targeting and
branding effectiveness achieved by ads tightly enmeshed with the video. The OPA and Dynamic Logic's study in November 2008 showed that in-stream video is the best current option for marketers to
achieve their branding performance goals; far better than display ads and much better than video display ads.
Video display ads live outside of the content window. A time tested digital
strategy now significantly bolstered by the inclusion of video, video display ads are showing an increase in engagement over traditional display advertising across the board. Upgraded with video the
rich media banners, boxes and full page takeovers can provide a broad reach alternative for marketers seeking to get the most out of what many publishers may consider to be remnant display inventory.
Why the confusion? Sure conspiracy theorists will point to bad actors who look to sell one thing and deliver another, creating noise and confusion but frankly I just think it's mostly
because its all so new. It's also due in large part to the word that appears in both formats: video.
This chart can be helpful in breaking down the different formats that populate
in-stream and video display ads, and distinguishing video from display ads:
Clearly I am a fan of in-stream video advertising. I think it's like going to a fancy steakhouse and ordering an exquisite
cut of steak that comes with melted Roquefort cheese on top; the Roquefort becomes part of the steak experience. The same cheese on the side just isn't as tasty. But hey, others may think differently
and importantly the Roquefort is better than plain steak in all instances.
That online video advertising is projected to become a $4-5b industry over the next couple of years is not
surprising. It reflects the changing media landscape and uniquely melds the successes of what has worked well for 50 years offline with what makes the Internet so special and effective. That said it
is very new and needs more clarity. A greater focus on transparency and clarity will only help online video grow more quickly and achieve marketers' goals.