Commentary

Online and Interactive Video Advertising Hot for 2009

According to a recent survey of more than 400 senior-level decision makers, conducted by PermissionTV,  online video is the top priority for digital marketing budgets, along with a strong preference among marketers for increased sophistication and interactivity in online video capabilities to promote their brands.

Matt Kaplan, VP of Solutions and Chief Strategy Officer of PermissionTV, said "... online video will play an increasingly critical role in all interactive campaigns... survey results demonstrate the strategic importance of online video in the overall marketing mix... as well as more sophisticated video experiences."

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The study finds that more than two-thirds of respondents identified online video as a primary focus of their 2009 digital marketing campaigns, as respondents consider interactive video experiences to be the next evolution for online video. 62 percent believe that non-linear, interactive storytelling will become the most effective medium for marketers.

Digital Marketing Focus in 2009 (% of Respondents, Multiple Response OK)

Anticipated Focus

% of Respondents

Online video

66.8%

Social media

41.6

Search

34.1

Podcasts/Webcasts

32.0

Rich media

30.5

Banner ads

22.8

Mobile

17.4

Source: Permission TV, January 2009

 

Least Likely Media Budget Cuts in 2009 (% of Respondents)

Unlikely Cut

% of Respondents

Digital (banner ads, email, online video, podcasts, webcasts)

33.7%

Traditional (print, radio, TV)

24.7

Trade shows/events

21.3

Guerilla (viral, outdoor, social media)

14.5

Source: Permission TV, January 2009

Linking to other videos, graphic overlays, user comments and user-defined contents paths are the most widely needed interactive capabilities for respondents. In Q2 of 2009, more than half of the respondents expect to be implementing or extending an online video project, whereas currently less than one-third are doing so.

Most Likely Online Video Initiatives in 2009 (% of Respondents)

Video Initiative

% of Respondents

Branded content/video destination

63.9%

Viral video

39.0

Interactive experience

38.3

User-generated video

29.1

E-mail video campaign

28.8

Video syndication

22.5

E-commerce

21.8

Source: Permission TV, January 2009

More than two thirds of respondents reported that strengthening relationships with existing customers and prospects is the primary goal of online video initiatives.

The report notes that traditional and digital/interactive advertising agencies are are overwhelmingly confident in their ability to recommend online video initiatives to clients, though digital/interactive agencies expressed more confidence in recommending online video to clients. However, traditional agencies claim more responsibility for driving online video initiatives than digital/interactive agencies.

Ways Online Video Expected to Enhance Customer Engagement (% of Respondents)

Enhancement

% of Respondents

Increase brand awareness

71.4%

Lead generation

47.2

Loyalty/retention

44.7

Converting customers

41.6

Improving service/support

39.8

Source: Permission TV, January 2009

Chad Ciesil, President at WhittmanHart Interactive, said "We're recommending the use of online video in all of our client's campaigns as it can lead to greater customer engagement and better campaign ROI."

For additional information about this study, please visit PermissionTV here.

3 comments about "Online and Interactive Video Advertising Hot for 2009".
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  1. Andrew Salomon from Purchase College, State University of New York, January 22, 2009 at 8:52 a.m.

    What are the chances this is a self-serving study, kind of like when the cell-phone makers released a study saying cell phones did not cause brain cancer? I'm being serious here; how credible is this information?

    More broadly, I keep seeing conflicting reports on the future of online video and the problems of finding a workable ad models. A JP Morgan analyst -- reported on MediaPost.com -- said ad models for online video would fail. Exactly where does the truth lie?

    Andrew Salomon
    News Editor, Back Stage
    asalomon@backstage.com

  2. Tyler Lecompte from MeHype.com, January 22, 2009 at 10:18 a.m.

    @ Andrew. Of course this survey is somewhat self-serving, noticing that it was produced by PermissionTV, a company that works specifically with companies, brands and agencies to implement online video advertising. Why would they commission a survey on anything else? That being said, this survey is actually pretty well put together, if you take the time to read the actual survey from permissionTv's website (ignore the video they accompany...that is self-serving) you will see that their methodology is accurate, as well as broad-reaching.

    As for the JP morgan analyst, as well as many others, they are all referring to the "ad model" for online video, not the actual "use" of online video in the marketing mix, which is what THIS survey addresses. Many, many companies and agencies are planning to use online video in their mix for 2009 and beyond, the problem is finding the best possible "ad model" to capitalize on the exposure video gives while limiting the risk to budgets or ROI...

    @ mediapost:

    I disagree with the section that shows some difference between user-generated video and "viral video" (I hate that term) because nothing can be created virally...to be viral is a outcome, not an exploitable channel or feature of anything! Don't continue to permeate that misnomer please...

    At my company, MeHype.com, we are directly trying to create a monetization ad model for online branded video creation that makes sense for all parties: the advertisers, the consumers and the producers. We'll see if it works, since we are highly dependent upon successful adoption and implementation of online video in these marketing mixes...like this survey/piece says there will be! Video Ads in 2009!!!!

  3. Ernesto Burden, January 22, 2009 at 12:01 p.m.

    I'd be curious to see a more specific breakdown of what sorts of ads are working best relative to online video ... pre-roll, post-roll, overlay, or as I've often seen, traditional banner advertising displayed around the video element?

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