Two of the largest growth areas in online advertising have been, and are projected to be, behavioral targeting (BT) and video. BT is a must-include for virtually every digital campaign and is projected to grow to a $4.8 billion market by 2012 (eMarketer stat). Online video is generally accepted to be the medium in which the biggest global advertisers will be shifting much of their future overall ad spend -- sooner rather than later, assuming ad formats keep pace. Naturally, combining the proven performance of BT with the as-yet-unlocked potential of online video, seems like a match made in heaven …
I was in a conference room in downtown Manhattan. The CMO of a large package goods company was addressing his media agency, asking questions about branding on digital platforms. His queries were pointed. His patience, short....
As a consumer, I could see that video within classifieds would be a very positive development. While you certainly would not benefit from seeing a video about a baseball ticket you are purchasing, you would benefit from seeing a video about a piece of furniture, a vehicle, or some other more tangible product. Much like virtual tours have allowed home buyers to be much more effective when searching for a property on real estate Web sites, the same could potentially be true for consumers of miscellaneous goods and services.
If consumers have changed the way they interact with media, why is it that today's new media marketplace differs only slightly from its offline counterparts? Web pages resemble print pages in magazines. Pre-roll, mid-roll and post-roll digital video advertisements resemble television's ad formats. Yet Internet advertising -- with its ability to engage the user, provide metrics to the advertiser, and flexibility for publishers -- has the potential to be something much more exciting to marketers, publishers, and users than any media before it.
For those of us selling in-stream video advertising to advertisers and agencies the good news about budgets moving into our space keeps coming. According to an Accustream iMedia Research report $420 million was spent in pre-roll ads in 2007. Based on conversations that I have had with both advertisers and agencies, in-stream will see a substantial increase in budgets in 2008 as well.
Despite the debate over the viability and sustainability of ad-sponsored online video networks and platforms, there's still a giant elephant in the room that I suspect many are missing. No, it's not about pre-roll versus overlays versus in-banner video or the likes. It's that increasingly, online video ad spend is being parked by agency buyers and their marketers as a line item back in the ol' TV budget -- not always within the digital spend.
Now that the Writers Guild of America (WGA) strike is over, creative and technical staffs are back to work creating programming that is destined for worldwide consumption. The strike, of course, was based on the amount of money writers will receive for the rental and sales of content in digital media from, among them, online content rentals, streaming, and purchases.
For more than a year, analysts have predicted exponential growth in video advertising revenue. The media have hyped new ad formats as having the potential to change -- dramatically and positively -- how consumers interact with dynamic new video ads. Many new video players have mushroomed, touting "video advertising" revenue models to a sea of hungry VCs that are anxiously providing them with big bucks. But video publishers are challenged by the many consumption points and the slew of new ad formats for the multitude of emerging players.