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Editorial Advisory Board

Is Online Video Living Up to the Hype?

1 Jun, 2009 By: Thomas Haire Response

Pruett: It's important to differentiate between the video being a response ad itself or the ad being embedded into an existing pre-roll or short-form styled commercial. So, is one watching an ad on or an individual's mash up on YouTube? Either way, human behavior metrics will dictate placement and the length of what is to be shown. Viewer metrics online will differ in the short term but will, in the medium term, begin to adjust to TV metrics.

Stacey: Production needs to ensure it has the material to be able to edit and cut the show down so that it will work online. Taking this into account upfront saves time and money.

Yallen: For effectiveness, direct response online video commercials should be 30 seconds at the maximum. In the beginning of Web 2.0, it was very appealing not to be bound by a 15-, 30- or 60-second spot length. However, online audiences have proven that they only watch about eight seconds of pre-roll video. The wildcard in this category are the viral videos ending up on YouTube, Google Video and other social networking sites, which can be any length.

Are TV networks now including online video options in selling packages of media time? What other ways are these media outlets capitalizing their online opportunities for marketers?

Fays: At Viacom, 75 percent of our packages are sent with online video components. The only way for this aspect of the business to grow is constantly propose exciting, innovative, efficient concepts to advertisers.

Knight: All media clients are evaluating the best use of online in overall media campaigns, including streaming, banners or as information tools. We always encourage our media clients to create media opportunities online, if possible, so we can create optimum cross-platform opportunities for them.

Lee: Some TV networks are now offering the ability for cross-channel promotions.

Murray: Some are. Usually they are not strategically presented, but rather as an add-on to make a package "sexy."

Pruett: This is just beginning, including in the upfronts. Many of the networks also have other channels available to advertisers, including magazines for example. They will also start to have interactive television offerings in the near future. Though I hesitate to use the term convergence, which I think is often proven not to happen, it would benefit the advertisers if networks started to harmonize their media packaging across all channels. In effect, this may significantly alter the way agencies buy the media and the expertise needed to do it.

Smith: Yes, but inventory availability, cost and audience responsiveness are not where they need to be. The breakthrough in online video media will most likely come from online pure play sites like YouTube and Hulu, not necessarily from a network's Web site.

Stacey: Some TV networks are starting to include online options in their media time packages. They are trying to blend the sinking TV viewership with the steady online population so that they can offer two sources of eyeballs. This can help them maintain their rates. Some TV networks are also mixing advertising into video players to create a more viable and scalable business model.

Yallen: Online video from the television networks is still a premium CPM buy. They often integrate an entire media player along with a skinned page along with the campaign. Many networks offer CPC buys for banners and online options for direct response advertisers. However, one strategy that we have been successful with is to package online advertising as part of a value-added component.


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