.tv Trends in Video Advertising

[equity78]

Study: Most Watch Web Video, But Avoid The Ads
by Shankar Gupta, Wednesday, Dec 20, 2006 6:00 AM ET
MOST WEB USERS--56%--RECALL ADS EMBEDDED in video content, according to a study released Tuesday by Burst Media.

But that doesn't mean users like the ads; more than three-quarters of those surveyed (78%) said such ads were intrusive. What's more, 62% of respondents said the ads disrupted their Web surfing experience, while 48% said they typically stop watching video after they encounter an ad. Of the group that stops watching due to an ad, 28% said they leave the Web site immediately upon noticing the ad.

Twenty-one percent of respondents said they pay less attention to video ads than they do to standard creatives on the same page, and 42% say they pay about the same amount of attention to each.

Burst also reported that men are significantly more likely to watch video content online than women. Seventy-six percent of male respondents said they watched video content online, compared to 60% of female respondents. Women are more likely than men to say video ads disrupt their Web surfing experience--65% versus 60%. The most popular type of video content to view online are news clips--with 45% of respondents saying they viewed such content online, followed by movie trailers and advertising at 37%, comedy at 34%, music at 32%, and TV shows and clips at 31%.

The study, based on an online survey of 2,600 adults, was conducted last month.


07 online video ad spend to go up 89% from 06
The following is from Marketing Vox:


Video ad spend in the U.S. will reach $775 million in 2007, growing 89 percent from $410 million in 2006, eMarketer predicts. Still, online video ad spend will constitute just 4.2 percent of total online ad spending in the U.S. However, that proportion is expected to reach 11.5 percent in 2010, becoming a $2.9 billion business.

“At some time early in 2010, one in 10 dollars devoted to internet advertising will go for video placements,” said David Hallerman, eMarketer’s senior analyst and author of the report.

The high year-over-year growth rates of online video ad spend are expected to continue over the next several years: 67.7 percent in 2008, 53.8 percent in 2009 and 45.0 percent in 2010

 

[antonis12]

Good article EQ. thanks

Question for the group:

I keep seeing revenue figures for video ads in the $5-$15 CPM/range, so basically
$0.005 to $0.015 per impression.

Now let's assume they proceed to watch a 10MB video clip after that (not particularly long).

I have seen prices at CDNs (content delivery networks) like Akamai, brightcove, etc of between $1 and $3 per GB or $0.01 to $0.03 per 10MB video clip.

So basically, I don't understand how websites are currently making money via video advertising.

Caveats:

1. Major providers will have lower bandwidth costs

2. Not all people finish video clips

3. Bandwidth costs are falling

but still, something is missing from this equation. There is no way that video ads can be delivered profitably at the same pricing as text based impression advertising given the bandwidth costs.

Comments from knowledgeable people are deeply appreciated!!

Antonis

 

[RogueWriter]

I think it all comes down to the type of surfer you are going after, and focussing your streaming video towards that end.

For example, with my still skeletal www.businessservices.tv , I found the CEO of Palo Alto Software at YouTube giving a brief summary of his Business Plan Pro software. Right now, I just have that video playing on my front page, with an Amazon affiliate link underneath for them to click on, should they wish to purchase the software.

Once I flesh the site out, my hope is to have dozens - hundreds - of similar reviews/infomercials, geared towards shoppers. JMO, but I am not really interested in the browsing surfers - I want someone searching for specific items that I can sell to them.

So, someone just wandering about randomly might find my site, once it is finished, a tad boring - but it will be spot on for someone who is looking to part with some cash for a specific type of product.

I guess what I mean is, I wouldn't worry that much about the irritation factor - it's only an irritation to them if they weren't going to spend money on your site anyways.

 

[equity78]

I like your Model RW and I agree with you the browser is of no real value anyway. The first article I posted of the two is what I have said for awhile people don't click ads they just come to watch what they want. Get in,Get on, Get off. I love the line in the article about ads being intrusive, I am watching your content for free but I think showing an ad is intrusive yet I believe if you said to these same viewers " Will you give me what you do for a living for free? Hi I know your a florist but flowers come from Mother Earth so you charging me a fee is really intrusive.

Now I also think how you are going to make online with Your Tv Channel/Video Site depends on who you are and what you will provide. Meaning do you provide proprietary content? If you do create your own content I think you can charge a fee and or use a service like www.brightroll.com if you have great content and a good niche or idea. If you are taking other peoples content or USER Generated content you will have to find other ways to monetize your channel. IMO RW's idea is an excellent one.

WHO you are, and what you want your channel to be have to be defined from the get go IMO. So don't rush it because it is how people will label your site in one of the following ways: FUN, Creative, Cheap, Unoriginal, cutting edge, slow, poorly designed etc........

Imo the model that will not work is take someone elses content from sites where anyone could see that content and put it on a page with adsense. People will just watch and leave Look at a site like www.4tv.com great site but I have never clicked an ad.

 

[equity78]

RW are you getting any traffic at Business Services.tv ?

 

[RogueWriter]

I don't like the stat software I am using, it leaves me with wanting to ask questions about the data. However, it says that the site averages 270 or so page views a month. Not bad, since I have not advertised it or even completed it yet. It's just a skeleton, right now. I need to get my butt in gear and persue the business diary page, as that in particular seems to be getting some direct hits. I am going to use that page to document the creation/life/death of an online business. Well, hopefully creation/life/wealth beyond avarice/selling off/retirement from the business .

 

[YesBrilliant]

Excellent posts in this thread. Thanks to all.

In my case, I never click on the ads as well, nor do my visitors, I noticed.

However, one think that worked is placing a very quick ad (below) in the video and beside the video a text ad witht that same info linking to your affiliate program. So they eliminate or reduce the "intrusive" factor and make the visitor to remember what you offer.

***By a very quick ad, it means and ad with about 3 seconds or so in duration, enough only to show the Keyword or Image, let's say.

I am still experimenting with it but results are Not dissapointing.

 

[equity78]

I agree YESBrilliant they have to be short advertisements

 

[HBK216]

I find the info in this thread very useful. I still need to decide what to do about advertising on the .tv version of my project. Since the site will be all about videos, I need to see how I am going to sell advertising.

I was originally thinking about selling ad space where it would play right before the video. I see this done on major music sites. My issue is I personally find the 30 seconds annoying & afraid my (hopeful) visitors will too.

 

[equity78]

I think HBK if you have worthwhile content people will sit through it, I mean eventually we are going to move past wow that site has video and wow that site has the exact content I am looking for in a clean precise way.

 

[localexperts]

I agree with RogueWriter

What differs a video from a search engine or yellow page listing. Nothing. They are both carrots to get people to click to get more information.

That is why the yellow pages companies are converting from CPM to PPC.

A consumer who sits thru a video is more likely to buy (high quality traffic) than one who sees a two line Google Ad Word