Monday, August 6

Ads for fun and profit

One of the more interesting topics being debated currently (at least in terms of meta-discussions in the online space) is the future for web-tv and online video ads. So far "regular" online advertising is growing at record speeds both here in Norway (+31% y-o-y in May) and in other markets. But there are certain regional differences, with the prevalence of Adwords on global / US sites, and the local preference for unique visitors over page views among them. Still, both locally and globally there is an ongoing discussion and quest for the solution(s) for ads related to online video.

While it is quite easy to have some simple automation in terms of matching text and (text) ads, the technical and volume challenges related to video content are still quite a hurdle. For 'traditional' news clips with voice-over or accompanying text or tags it might work (or the ads could be just as random as the general banner ads on most news sites appear to be), and the same for clearly defined, ongoing shows like LG or Ask a Ninja. Using the fan base and their connection to target ads, the same way that niche topical sites (from CNet to Hardware.no) target specific topical advertisers.

For more random clips (ugc typically) perhaps the best route short term is sticking with the blog coverage or perhaps Gmail (and for that matter Yahoo or MSN) post talking about it. That way, existing patterns for matching and formating could be easily extended - and it would be easier to pick up on things like mood; is the video making fun of or lauding an actor, is it a sad story about loss or an upbeat tale of love - which could and should influence the ads used during and after the content.

As for pre-rolls, the time dimension seems to be shortening - with 7 seconds gaining traction as perceived threshold (at least outside the US, where the general clutter threshold is lower)

There seems to be two paths the assorted companies in the video ad space are taking; either becoming a "destination for ads" (building up volume and placing it themselves) or "tech for all" (making solutions that existing destination / media sites / portals can buy or use to expand their established ads sales portfolio).

Short term I think the second path, creating supplemental solutions for ongoing sales, will be the more rewarding to watch - mostly because the established brands and (text) destinations are in a better position to get the advertisers to learn as they go (just like in the early days of first banner and then text ads - not to mention the rise and demise of pop-ups along the way)


More input - both in terms of the actual articles, but also the quite interesting comments:


...and the sun should be coming out making for a nice, although belated summer day...
@ around
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