Online Video Digitizes the Radio Star…. The IAB Makes Sure We Monetize It
Online video is gaining momentum in a big way these days.
This week, the IAB released new digital video player-ad interface definition guidelines. The latest in a series of online video advertising guidelines and formats meant to drive traction in the video advertising space and provide consistency across ad models. This goes a long way in developing a greater level of comfort with brand advertisers. The IAB’s support demonstrates that digital video is a safe and measurable space for a brand’s voice.
According to the IAB site, “This is only part of the IAB’s ongoing effort to improve marketplace understanding of the role of digital video in the marketing and media ecosystem.” The new guideline focuses on standardizing the digital marketplace to facilitate the buying and selling of video advertising with in-stream and integrated ad models. By creating standards for content publishers and video advertisers to seamlessly integrate advertising into video content, the IAB is making it easier for publishers to work with advertisers to generate healthy revenues.
The IAB’s active stance on the promotion and commerce of the digital video space reinforces the growth potential market. At a time in the economy when brands are scaling back budgets, online video remains a considerably cheaper buy that heavily engages the brand with the niche demographic they’re aiming to reach.
In a recent eMarketer blog post, Senior Analyst David Hallerman said, “Digital marketing offers compelling benefits, especially for cash-conscious companies. Marketers can more readily measure the results of Internet advertising than with most traditional media. This produces more-efficient advertising and higher ROI, which in turn pushes traditional media to compete with lower pricing.”
As the Internet continues to grow to be the preferred destination for consumers to watch video content on sites like YouTube and Hulu, advertisers should jump on the opportunity to reach this valuable online audience.
Tags: Advertising, eMarketer, IAB, Online, Video
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What’s the Matter with CPMs? A Lot.
I think that we can all accept and agree that online video ad spending will grow, even with the current economic state. Advertising in general has taken a hit, but rich media ads show extreme promise. For instance, eMarketer predicted that video ad spend will increase 45% in 2009 .
Online video has the ad spend, but not the model. Currently, the industry is using the same, traditional cost per thousand impressions (CPM) model that’s used for TV for online video. The problem is that CPMs don’t work because the digital space is completely different from television. Since content is consumed differently, advertisers need to measure the performance of online ads by just that – performance.
There isn’t an industry standard yet, but advertisers are starting to get the clue that the CPM metric is inefficient and that ROI depends on shifting to a performance-based pricing (PBP) model.
In an iMediaConnection article , Real Time Content CEO Naj Kidwai discusses this shift and how advertisers can take advantage of it. iMediaConnection boiled it down to 3 major take aways, which they list at the top:
* The CPM model doesn’t translate to online video
* Video ads can be developed with thousands of variations to encourage engagement
* Performance-based pricing brings more value to the advertiser and rewards the vendor
Read Naj’s entire article in iMediaConnection here .
Tags: Byline, eMarketer, iMediaConnection, Pricing, Reporting, Video
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