Wednesday, January 28, 2009

What Works in Online Video Advertising?

I was given the heads on this article through IABSmartBrief. The source is BusinessWeek. It gives an interesting look at how standardizing video ads impacts online marketing. It speaks to the hesitance firms have about utilizing videos ads due to the costs required by the necessary customization of various formats. Notes All States Media Director:” ‘With so many different formats for video online, we incur incremental production costs every time we enter a new format’. As a result, some companies are avoiding online video advertising altogether”.

That’s changing now. A Pool has been formed -- a collaborative effort between firms and web publishers – to identify and standardize effective video ad practices and formats. The mutual benefits are clear – firms can produce video ads that better reach their audiences, more cheaply, while web publishers drive more video advertisers to their services. “Proponents of a common standard liken their quest to the search four decades ago that made the 30-second spot the gold standard for television advertising. In terms of advertising spending, television didn't take off until it got a 30-second unit," says Tracey Scheppach, senior vice-president of video innovations at Starcom MediaVest, whoe spearheaded the Pool late last year by asking Microsoft, Yahoo! (YHOO), Hulu, CBS Interactive (CBS), Discovery Communications (DISCK), AOL (TWX), and online video ad network Broadband Enterprises to propose a total of 30 different types of ads…participants hope their efforts will single out an ad format that has the strongest likelihood of attracting eyeballs and interest”.

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