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Online video advertising challenges


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Online video advertising challenges

  1. 1. Javier Lasa (2010) Blog: http:// Online Video advertising challenges
  2. 2. Online video advertising challenges <ul><li>Online video advertising faces its own set of challenges, including: </li></ul><ul><li>-        Audience fragmentation </li></ul><ul><li>-        Proliferation of UGC increasing inventory, which drives down ad rates </li></ul><ul><li>-        Piracy </li></ul><ul><li>-        Lack of a prevailing ad format </li></ul><ul><li>Internet video advertising is often not adapted to the medium since is directly translated from the TV format. </li></ul><ul><li>Users´attention scarce: 25% of users will never see our content when faced with advertising(10% users skip the ads) </li></ul><ul><li>Video prerrol is effective for long-term content but not for short videos </li></ul><ul><li>Video advertising also needs to be contextualized with the content and the audience </li></ul><ul><li>Hulu is experimenting with advertising on demand that allows the user to select the spot among a battery of options. </li></ul>* The simpler the better. Local merchants are not buying CPM-based advertising. They’re buying timed sponsorships. They want to see the ad they bought on the site. We won’t be selling media to merchants — banners ‘n’ buttons — so much as we will be selling service: helping them with all their digital needs, including optimizing them in Google and Yelp and social media and mobile.
  3. 3. Tim Trefren The Death of the Pageview The death of the pageview Metrics like average revenue per user (ARPU) and customer lifetime value (CLV) are vastly more valuable than detailed pageview tracking. There's also a clear pattern in the direction the Web is heading - toward interaction and responsiveness, and away from separate pages.
  4. 4. Branding vs direc t response
  5. 5. TV vs internet ads programming Web TV lacks of 75% advertising pressure in comparison to TV ( 15 min ad to 1 hour programme) the is room for ad improvement in online video
  6. 6. The myth of CTR Web TV lacks of 75% advertising pressure in comparison to TV ( 15 min ad to 1 hour programme)
  7. 7. Web TV lacks of 75% advertising pressure in comparison to TV ( 15 min ad to 1 hour programme) 8% users accounts for 85% clicks
  8. 8. The value of the CTR The results of a comparison of the U.K. and U.S. ad markets in November 2009 show that the average U.K. Internet user is exposed to 1,575 display ad impressions each month compared with 1,773 impressions in the U.S., or about 11% fewer ads.
  9. 9. Different types of online video have different market value. How To Make Money In Online Video Value of Online Video The above figure shows the traditional classification of online video according to the source (Superpremium, Premium, Prosumer and UGC (user-generated content) and its market value. Esto no me queda claro, no entiendo muy bien por qué están metidas aquí estas variables : duration, video clips (Youtube) or program (Hulu) or temporal relationships (live or prerecorded).
  10. 10. Online Video Classification: the value of participation and life cycle analysis A concept that is not taken into account in online video projects is to segment the video formats based on the value of participation (and viral conversation) and its life cycle. Podría ser así : The concept of video format segmentation based on the value of participation (including viral conversation) and the video´s own life cycle is often not taken into account when defining online video projects In terms of life cycle, live events have the lowest value followed by news because in general terms users show no interest in their recovery. On the other hand, web shows, web series, training info. and practical guides have a higher life cycle (the same concept that TV reruns)- View Full Report One year after since their original publication, online videos keep 25% of the original traffic. Online Video's Short Shelf Life Many online video projects compete with traditional TV formats when they should invest in providing a scenario of differential participation, even by bringing a different multicast strategy. The conclusion is clear: the strength and appeal of online video is not based on linear play content similar to that of the TV; it is based on the offer of a different experience of participation around this content.
  11. 11. <ul><ul><li>Preroll de 3-5 segundos (solo marca anunciante) </li></ul></ul><ul><ul><li>Claim en espacio superior </li></ul></ul><ul><ul><li>Publicidad bajo demanda </li></ul></ul><ul><ul><li>Traducción de Noemí : </li></ul></ul><ul><ul><li>3-5 secs. Preroll (advertiser only) </li></ul></ul><ul><ul><li>Claim on top </li></ul></ul><ul><ul><li>Ads on demand </li></ul></ul><ul><ul><li>(*) Source: Hulu </li></ul></ul>Video advertising best practices
  12. 12. <ul><ul><li>Preroll de 3-5 segundos (solo marca anunciante) </li></ul></ul><ul><ul><li>Middle en vídeo con frecuencia de tiempo </li></ul></ul><ul><ul><li>Traducción de Noemí: </li></ul></ul><ul><ul><li>3-5 secs. Preroll (advertiser only) </li></ul></ul><ul><ul><li>Middle within the video with time frequence </li></ul></ul><ul><ul><li>(*) Source: ificandream </li></ul></ul>Video advertising best practices
  13. 13. <ul><ul><li>Integration of advertising </li></ul></ul><ul><ul><li>(*) Source: ificandream </li></ul></ul>Video advertising best practices
  14. 14. <ul><ul><li>(*) Fuente: abc </li></ul></ul>Video advertising best practices
  15. 15. Thank you Javier Lasa 2010 Blog: http://