Yes, Web video ad spending will be up in 2009. Perhaps not as high as the 45% currently predicted by eMarketer (and already revised down from a higher initial number), but spending will grow from this year's rather meager base of $587 million.
We all know what's going on out there, so let's not spend too much time on the problem -- the economy is in terrible shape. Here's the good news: smart publishers will continue to be successful in monetizing their inventory in these troubled times and will set themselves up for dramatic growth once the macroeconomic situation improves. Goods continue to be sold and advertisers continue to compete for consumers' share of wallet. So how can publishers maximize their revenue in a down economy? Here are few pointers...
Delivering multimedia online represents an investment that goes beyond initial production costs. However, many online enterprises lack the technology infrastructure and resources needed to ensure the quality delivery of their streaming video. When your technology needs exceed your capabilities, yet demand more than you're willing to spend on infrastructure, it may be time to work with third-party service providers called content delivery networks (CDNs).
The entire online world went abuzz when General Motors CEO Rick Wagoner said that part of G.M.'s strategy toward a more efficient model would include a "substantial" shift of its $500 million budget to online advertising.
It's official; the video space is more complicated now than it has ever been. The quality of the content ranges from one extreme to the other -- everything from professionally produced, long-form, HD video to a video clip of a friend who dared you to eat something outrageously disgusting from a mobile device (well, it was funny, and I wanted to capture the moment).
Having spent eight days in India in August, I found the recent tragic events in Mumbai of particular interest as I have both business colleagues as well as friends in three of the largest cities in India. While the world watched the events play out to their terrible conclusion, I was reminded of one of the most seminal events in television history, that of watching Jim McKay's harrowing updates during the 1972 Olympic game in Munich. It's interesting to compare the two events, 36 years apart.
In a recent article, Dan Rayburn concluded that targeting (or the lack thereof, to be precise) is hindering the success of online video advertising . As an industry stakeholder, I was both surprised and concerned by this perception. The targeting capabilities of online video ads are what give the medium so much potential. I know it gets referenced a lot, but I thought this would be a good forum to explore the targeting capabilities by providing some suggestions on how some top verticals can maximize their online video advertising campaigns with available targeting capabilities.
In an industry where the "Wanamaker" question hovers over the creation of every media plan seeking to target a brand's message to the right consumer -- and the selection of media to achieve that goal -- the notion that "50% of a media buy is wasted, but which half?" seems to be more relevant today than when first quoted in the late 1800s.