Why advertise around online video?

I was recently asked to summarise the reasons to advertise around online video. I came up with four broad factors:

1. User Experience

  • Users are actively choosing to watch a clip
  • Adverts generally can’t be fast-forwarded
  • Ads can be interactive
  • Ad breaks are shorter than TV and so spots have a greater chance of standing out
  • Online is a “lean forward” medium with viewers closer to the screen and in a more attentive state

2. The ways in which it can be bought

  • A specific number of impressions can be bought and capped
  • The variety of metrics it can be bought by (though this will vary by site)
  • It can be bought alongside display and other forms of advertising to maximise exposure

3. The way it complements TV

  • Audiences with TV and online are strongly positively correlated
  • TV and Online work together
  • Advertising within catch-up increases reach
  • Advertising within clips increases frequency and engagement among a show’s biggest advocates (and fans of shows tend to be more positive to the ads)

4. Effectiveness

What do people think? Any suggestions to add to this?

sk

Image credit: http://www.flickr.com/photos/warmnfuzzy/

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5 Responses

  1. I agree that advertising around video makes sense for exactly the reasons you’ve stated, however the user experience isn’t quite there yet and this has meant that we’ve had problems with this with some of our campaigns on quite a few publishers (including ITV!).

    Frequency capping is crucial and without this, a good experience can quickly turn into a bad one that negatively effects the advertiser.

  2. Of course, this list omits the negatives :-). I agree that UX can be far from perfect – sometimes the issues are out of our hands (broadband speeds etc), sometimes it is down to us.

    I’m not a techie and so may be mistaken, but I had been under the impression that we did frequency cap according to specifications (time of day/site section etc) for advertisers – I’m sorry that something went wrong for you, whether it was capping or something else.

    From the user experience, the only issues with frequency capping should come from house ads/networks using up the remnant inventory. But should is a loaded word and the balance between ensuring impressions are delivered on time and restricting the coverage is delicate…

    Cheers
    Simon

  3. Hi Simon

    This is related, but not specifically about your post. Thought you would be interested in this CNET article: http://news.cnet.com/8301-1023_3-10126439-93.html.

    It appears that Universal are making money from their YouTube channel, which means YouTube (Google) will too. So, it’s professional content which is attracting the ad revenues. Interesting that video is now making money for Universal – pre YouTube it was just a promotional tool.

    Cheers
    Jon

    Cheers
    Jon

  4. Thanks for that Jon – I hadn’t read that.

    Music companies raking in money from Youtube doesn’t surprise me – as well as Youtube overtaking Yahoo! in search, it has also overtaken Myspace in music.

    However, I would contend that given the sheer size of Youtube (circa half the entire online video market), those revenues are still disappointing.

    People prefer professional content and are more accepting of ads around them. However, Youtube is stigmatized by being UGC. Its major challenge – and I believe its success or failure will ultimately be judged on this – is in its ability to transcend this label and become a general video destination. The introductions of widescreen and HD are evidently steps in this direction.
    Cheers
    Simon

  5. I agree that given the size of YouTube, and the money Google paid, then the scale of revenues is paltry.

    Btw, I read at the weekend that Warner has withdrawn all its content from YouTube because it couldn’t agree ‘fair’ compensation with Google.

    This one will run and run…

    Merry Xmas!

    Cheers
    Jon

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