Monday, September 25, 2006
Targeted Video Ads to Explode
Giving away TV shows and supporting the content through targeted ads is clearly the way to go, but the networks have been slow to play. According to analyst firm ABI Research, revenues from dynamically inserting targeted ads via video on demand or streaming video content will grow from $284 million this year to $1.8 billion by 2011.
This fall marks the first time that you'll be able to watch full episodes online. ABC, NBC, and CBS are all offering some of their popular or new shows for free, but they are missing a golden opportunity by not requiring viewers to register or targeting the ads.
If I really wanted to watch Desperate Housewives, I'd gladly take a few minutes to register and give some of my basic information. It's unbelievable that they aren't asking for registration as a means to learn about their audience and build loyalty!
The click-throughs for ads that are suitable to an individual would be much higher, but instead everyone who watches sees the same ads. The networks could give a choice of say half a dozen categories, and ask individuals which products they are most likely to buy, such as new cars, sports gear, or insurance etc. The ad-servers could also control how many times a person sees the same ads.
Prime time may be dead, but video on demand is just out of the womb. The networks should seize this opportunity and grow their overall revenues through targeted advertisements. Investing in the ad insertion and analytics software are sound investments.
By John Gartner at 10:41 AM
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(1) Thoughts on Targeted Video Ads to Explode
Icould not agree more....As an internet executive that as been around long enough to see ups and downs of internet business including “dot bomb” and the stock market plunge of agencies and stuck with it to see resurgence of Web 2.0, I ask my Web 2.0 marketing and business posse this…Have we not learned anything from Web 1.0?
If we are truly a learning environment filled with Wikis, social networking and smarter spending habits, why are we not leveraging the consumer buying power to its fullest?
In Web 1.0, companies failed because they were not fiscally responsible and they continuously gave away products, services and their audiences for free, even though consumers were willing to pay. It just did not work.
In Web 1.0, we found that there could not be free services, no free drives and more importantly no free entertainment. What makes interactive “professionals” believe of the Web 2.0 revolutions think that free video can exist without advertising?
Has someone found a business model that allows companies to barter our products and services and then barter with the Internet service providers and electric company to keep our services running?
I want to begin seeing video sites that leverage distribution models that actually generate dollars for advertisers and creatives creating the content as well as the publishers selling the space where the content and consumers are living.
I think we can all glean learning’s from the mobile marketing space. The mobile marketing industry is making money! They charge nominal fees to consumers to access branded ring tones, videos and music, therefore making a viable business.
If you are going to offer free content, consumers are willing to sit though 10 seconds of ads to get what they want. Just as they have in the early days of radio, television and the current iterations of music sites, consumers will wait and get great entertainment at the nominial cost of their time. Consumers have shown us time and time again that if the content is good, relevant or worthy of distribution they will pay for it in an “on demand” model. Can you imagine getting on demand video service without out a subscription to a local cable company? (I think that is referred to as cable piracy)
While it is not the only way, it is a sure fire way to keep the lights on and employees fed. What I predict is a quick evolution from Web 2.0 to Web 2.0. 1.21, which will help agencies define the Pre-roll space, it will feed the starving creative mavens producing video content for the web and more importantly separate the girls from the woman in this market place.
Comments by Joanna Pena-Bickley : Monday, September 25, 2006 at 10:21 PM
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