Showing posts with label video ads. Show all posts
Showing posts with label video ads. Show all posts

Tuesday, August 28, 2007

YouTube Introduces Ads in Videos



AUGUST 28, 2007

Users will also pay a one-time fee for some content.

Times are good for ad-supported online content. YouTube has put transparent ads on the bottom one-fifth of videos from its content partners. And The Wall Street Journal, one of the few paid-content success stories, is considering making its online version free.

Most consumers think that viewing ads in exchange for quality content is fair, according to IBM's "The End of Advertising" report, published in August 2007. More than six in 10 consumers IBM surveyed said they preferred ad-supported online content, while 28% preferred paying for ad-free media.

However, "don't expect consumers to spend incrementally on different devices," said Bill Battino, study co-author and communications sector managing partner at IBM Global Business Services, in a Brandweek interview. "People want to pay for content once and then move it" to whatever device they like.

An Associated Press-America Online study conducted with Ipsos Public Affairs noted that 71% of US online video viewers polled would rather watch online videos free in exchange for pre-roll ads.

As for YouTube in particular, a December 2006 Wired magazine reader poll estimated that 63% of US Internet users would tolerate banner ads there, and only 14% would stomach a short pre-roll ad before each video clip.

Pre-roll ads were not favored by most users. YouTube may also have felt that banners were not the way to go, with viewer attention on the videos themselves and not necessarily on other parts of the page. The transparent ad overlay at the bottom of the video is likely a good compromise. It doesn't delay video playback like a pre-roll, and it's directly on the video, not dependent on viewers looking to other parts of the page.

Further, these ads appear on videos only those of partners, since YouTube does not own the copyright to many user-posted pieces. Given the limited scope, size and intrusiveness of the ads, YouTube viewers may well accept the ads.

Don't count on the transparent ad being the final form, however.

"Let's put YouTube's new video ad format into context—while it's likely a good experiment, it's still an experiment," said eMarketer senior analyst David Hallerman. "At this stage, what sorts of advertising the audience will accept and what formats appeal most to advertisers remains an open question. However, the more experiments the better."

Users will pay for some types of content. Please read eMarketer's Online Video: Making Content Pay report to learn more.

Saturday, August 25, 2007

YouTube Users Respond Schizophrenically to New Ads

A number of YouTube users have spoken out with their frustration and disappointment over the ads now appearing on their videos, reports ComputerWorld.

Some respondents have voiced their opinions in the comments on the blog post announcing the appearance of the ads. One person made a video wherein he shared his opinion.

Reasons cited by those against the ads range from a lack of creativity to the loss of control the uploaders now have. At least a few people did point out that YouTube hosts their videos for free but it still has to pay for the server space, so ads aren't all that bad.

Across the pond, tolerance was more forthcoming. Conchango's latest New Media Landscapes study found users are happy to deal with advertising as long as they get free content along with it. And one in five are prepared to pay for premium content if they must, with a strong preference for video-based content because it is faster to absorb than text.

Wednesday, August 22, 2007

Google Aims to Make YouTube Profitable With Ads

This is a a smart direction to go in. This form of video advertising is consistent with consumers behavioral interaction in watching TV today. They will now be able to interact with the content/ad overlays. Pre roll is more akin to consumers behavior in seeing ads in a movie theatre before previews.Interesting data for our version of this which will be created with vidQube.If you read the New York Times version it has the ads starting at a $20 CPM HAPPY TIMES!!!



Published: August 22, 2007

Ever since Google bought YouTube last November, it has avoided cluttering the site and the video clips themselves with ads, for fear of alienating its audience.

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A demonstration of an ad for a movie on the bottom of a YouTube video. Real ads would not reflect the content of a video.

Multimedia

Sample Ad Spot Video (youtube.com)

The strategy helped cement YouTube’s position as the largest video Web site but didn’t do much to justify YouTube’s $1.65 billion price tag.

Now Google believes it finally has found the formula to cash in on YouTube’s potential as a magnet for online video advertising and keep its audience loyal at the same time.

The company said late Tuesday that after months of testing various video advertising models, it was ready to introduce a new type of video ad, which it said was unobtrusive and kept users in control of what they saw.

The ads, which appear 15 seconds after a user begins watching a video clip, take the form of an overlay on the bottom fifth of the screen, not unlike the tickers that display headlines during television news programs.

A user can ignore the overlay, which will disappear after about 10 seconds, or close it. But if the user clicks on it, the video they were watching will stop and a video ad will begin playing. Once the ad is over, or if a user clicks on a box to close it, the original video will resume playing from the point where it was stopped.

“What we have come up with is a user-controlled ad format that is engaging,” said Eileen Naughton, Google’s director for media platforms. “We want our users to be able to accept and choose what type of advertising they engage in.”

For now, Google will place the ads only on video clips of its content partners — the more than 1,000 small and large media companies that have licensed their videos to YouTube. By doing so, YouTube will avoid the potential liability of having ads appear on copyrighted clips it is not authorized to display. And it will also prevent ads from playing on clips generated by users whose message may not be to the liking of advertisers.

The revenue from the ads will be split between the media partner and YouTube. Ms. Naughton said Google would charge advertisers $20 for every 1,000 times the ads were displayed. Google said the ads would begin appearing today throughout the site. Ms. Naughton also said advertisers would be able to take aim at specific channels and genres, as well as demographic profiles, geography and hour of the day.

If successful, the video ads could persuade more media companies to license their content to YouTube as a way to make money from it, analysts said.

“Today, YouTube is a sunk cost for Google,” said Darren Aftahi, a securities analyst with ThinkEquity Partners. “If they can couple the proper advertising with the proper content, there is a tremendous opportunity for the company.”

With 51 million users in June, according to Nielsen/NetRatings, YouTube now attracts an audience that is larger than the combined audiences of its three nearest competitors, MySpace, AOL and Yahoo. Its adoption of overlay ads for online video could turn the format into an industry standard, advertising executives said. The video ad market, which is expected to nearly double from last year to $775 million, has been projected to grow to $4.3 billion by 2011, according to eMarketer, a research firm.

But while Google may help popularize the format, it did not invent it. Smaller online video companies, like VideoEgg, a video advertising start-up in San Francisco, have been using similar overlay ads for nearly a year.

Troy Young, VideoEgg’s chief marketing officer, said the goal was to get away from forcing users to watch an ad before showing the clip they wanted to see. Those ads are known as “preroll” and are the most common form of online video advertising so far.

“On the Internet, you have a lot of short-form content, and preroll wasn’t going to work for short content,” Mr. Young said. Mr. Young said that preroll, and “midroll” ads that appear in the middle of a clip, may be appropriate for television shows, movies or other long videos. But overlays have proven effective at making money with short clips, he said. Viewers click on them at a rate roughly five times higher than banner ads, he added.

In tests, YouTube users had clicked on overlays five to 10 times more frequently than on banner ads that already appear on some YouTube pages, Ms. Naughton said. Yahoo has also been testing overlay video ads, creating further momentum for the format.

“We need to be in a place where we have standard overlays and standard measures of engagement across all portals, before the entire preroll industry can shift in any big way,” said Rebecca Paoletti, director of video strategy at Yahoo.

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Friday, August 17, 2007

Now, the Clicking Is to Watch the Ads, Not Skip Them


FOR generations, advertising interrupted the entertainment that Americans wanted to read, hear or watch. Now, in a turnabout, advertising is increasingly being presented as entertainment — and surprisingly, the idea of all ads, all the time, is gaining some favor.

One reason is the proliferation of broadband Internet connections, which make it easier for computer users to watch or download video clips. That is enabling media companies, agencies and advertisers to create Web sites devoted to commercials and other forms of advertising for amusement, rather than hard-core huckstering.

Oddly, the trend runs counter to another powerful impulse among consumers: the growing desire to avoid advertising. TV viewers, for instance, are spending billions of dollars a year for TiVo and other digital video recorders that help them zip through or zap commercials, and click-through rates for banner Web ads are declining.

The difference between “watching a commercial on a Web site and in your living room,” said Michael Jacobs, executive vice president and executive creative director at MRM Worldwide in New York, is that online is “an opt-in audience; you’re choosing to be there.”

“It’s the nature of the Web to offer a destination you know you can go to and know what you’re going to see,” said Mr. Jacobs, whose agency is part of the McCann Worldgroup division of the Interpublic Group of Companies.

“There’s certainly an audience for entertainment as part of the offering,” he added. “The numbers seem to support it.”

For example, veryfunnyads.com, a broadband Web site operated by the TBS cable network, has delivered more than 63 million video clip views since its introduction last August.

“It’s a very straightforward premise: You’re going to have a funny experience, and you’re going to have it every 30 seconds,” said Ken Schwab, senior vice president for programming at the TBS and TNT networks, parts of the Turner Broadcasting System division of Time Warner.

The funny-ad Web site is part of a rebranding campaign for the TBS network, which carries the theme “Very funny.” The goal is to cultivate an identity for TBS as a home for sitcoms and humorous movies.

“A lot of people talk about zipping through commercials because the average break doesn’t hold the promise of being entertaining,” Mr. Schwab said. By contrast, he said, “we have a very clear consumer proposition, on the site and in our shows.”

The concept of veryfunnyads.com has been expanded onto TBS, Mr. Schwab said, as the network will “call out” some commercials as “very funny ads” in hopes of keeping viewers from changing channels.

“I’m in the industry, and I’ll fast-forward through the ads most of the time,” said David Droga, creative chairman at the Droga5 agency in New York. “But I’ll stop for the good ones.”

“You put choice on the table, you change the whole game,” Mr. Droga said, adding: “Everything is about control. If an ad is interesting to you, you’ll have the conversation with the brand. If it’s not, it’s a waste of time.”

In about a month, Mr. Droga plans to test his theory with the trial introduction by Droga5 and its partner, the Publicis Groupe, of a Web site named honeyshed.com.

Mr. Droga described the concept as “MTV meets QVC,” offering consumers in the intended audience of ages 18 to 30 product information in the form of entertaining video clips rather than traditional commercials. The clips are to run two to three minutes apiece, he added, and be presented by hosts considered authorities in categories like cars, clothing or computers.

“The only reason we have any chance of being successful is transparency,” Mr. Droga said — that is, “if people know they’re being sold to, you can celebrate the sell.”

The USA Network unit of NBC Universal, part of General Electric, also intends to climb aboard the pitch wagon celebrating advertising as entertainment with an online effort centered on brand-centric content.

Plans call for a Web site next year that would include commercials and movie trailers as well as features like social networking and tools that would let visitors make ads of their own. The site is tentatively named didja.com, as in “Didja see that?”

“It’s all about relevance,” said Chris McCumber, senior vice president for marketing and brand strategy at USA Network. “Consumers want to be entertained on their own time, on their own terms.”

“If a spot is not relevant, you’re going to want to tune it out,” he added. “This will be a platform for consumers to experience their favorite commercials or find out more information about a product.”

The proliferation of portals dedicated to advertising as entertainment could mean the trend is already peaking, just as cover articles in magazines about a stock market boom are often followed by plunging indexes.

“I don’t think it is so much about putting entertaining commercials on the Web as it is about brands providing immersive experiences for consumers of which entertainment is a component,” said Mr. Jacobs of MRM, whose agency recently won praise for musical Webisodes for Intel, directed by the humorist Christopher Guest, which are appearing on Web sites like youtube.com and itgetseasier.com.

The responses to a survey this week on the Adweek Web site (adweek.com) suggest that advertising as entertainment is still a work in progress.

As of yesterday afternoon, 13 percent of respondents agreed the portals were “great fits for the current pop culture,” while 43 percent called them “too limited and doomed to fail.” The remaining respondents, 44 percent, agreed with a statement that they are “complete wild cards; let’s wait and see.”

Wednesday, August 15, 2007

eMarketer Report Indicates Need for Better Online Video Ads

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eMarketer reports that the online video sector is becoming an important factor for online advertising.

With the number of online video viewers to increase from 114 million last year to 183 million by 2011, in the US, it’s obviously an important aspect of Internet culture to consider. What’s more important is the face that the leading type of online video is news, with a 14% market share, and movie and television show trailers following, music videos coming in third, and user-generated content taking 9.4% of the market share. This ties in with an Online Publishers Association report that notes an increase in time spent online viewing and sharing media, as noted with Photobucket’s announcement today. So the question is, how to monetize your online video content?

This is something companies and advertisers have been throwing around for some time now, experimenting with different ways to advertise with videos and video-sharing sites. We at Mashable see the majority of development on this front going on with social networks and media-sharing sites, and user-generated content has been among the last sectors of online video for advertisers to delve into. For example, Heavy.com, AdPerks and RevLayer all have more “creative” ways of grabbing viewer’s attention. Advertising models with traditional media websites, such as those that provide news and trailer clips, have generally taken a more traditional approach to ads, but with the on-demand nature of online content, even this will require a touch of creativity.

[via blogzinger]

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