Archive for March, 2008
What Is the Right Ad to Content Ratio?
So, I just got back from iMedia’s Breakthrough Summit, and it was definitely a worthwhile show. While there are always differing opinions at the conference, there seemed to be consensus around one idea that I heard across every panel: in online video, the type and length of a video consumed will in large part dictate the type of ad unit it can support.
So what are the different types and lengths of online video content and what level of ad presence will they support? According to Hulu’s Kevin McGurn, a :30 spot for every 7 minutes of content isn’t an annoyance to consumers and is a fair trade for free content. Networks have been good about this, but seem to fall down on the frequency with which they show the same ad. Networks should be rotating different advertisers, or at the very least, different creative into full length shows.
At the other end of the spectrum, you’ve got what Shelly Palmer, Monday’s keynote speaker called “video snacks”, short clips 2 minutes or less that are often viral in social media and user generated. His feeling was a: 30 pre-roll simply can’t be supported long term against such clips. The consensus was a :15, :7 or :5 second pre-roll made the most sense and no doubt an overlay is probably the least intrusive, most viable unit in this environment.
What about the middle ground, the online video clips that are between 2 and 7 minutes in length, for example webisodes? No one addressed this head on, but the conventional wisdom seemed to be that a: 30 pre-roll can be supported in this environment for clips that approach 7 minutes, and a :15 pre-roll is a fair trade for clips on the shorter side, and :7’s and :5’s will also work here, in isolation or in conjunction with overlays.
It was refreshing to see so much consensus around how best to make ad supported online video work for both advertisers and consumers alike. The ad to content ratio, taking into account content length versus ad length, is an important consideration, lest online video advertising becomes as annoying as pop-ups became in their day.
Samantha Voisin, Digital Media Director, MediaVest Worldwide and me, YuMe’s VP of Eastern Sales, at the Breakthrough Summit
At the YuMe cocktail party at iMedia – Larry Allen, SVP Network Development, Platform A, Thom Hoge, YuMe’s VP of Western Sales and Emily Allen, Digital Media Group Director, Smithsonian Media
- Gian Lombardi
Hulu Launch
As you may have seen, Hulu is now officially out of Beta and available to the general public. Hulu, a joint venture between NBC Universal and Fox, features a large library of advertising supported television shows, movies and other video content. I should highlight this is all premium content – shows like “The Office” and “30 Rock.” Given we are a transparent video ad network, I was most interested in Hulu’s chosen ad model. Basically, they require you to sit through, on average, two minutes of ads throughout a half-hour show. Given this is about 75% less than what we sit through on TV today, that doesn’t seem so bad. But I am probably biased given my chosen field.
Because we at YuMe focus on premium (non UGC) content, we have always felt that advertisers would be more apt to advertise – and more successful – in professional content. Jayant speaks to this exact point in an article in today’s Washington Post.
“Tolerance for advertising is low for the amateur snippets. With user-generated content, people don’t want to see the ads. But if you’re desperate to watch something specific you’ll put up with more ads to see it.”
- Molly Glover Gallatin
Smart Ads
Following a Yahoo announcement last summer about instantly customized ads, Alaska Airlines has announced a system that will assemble personalised adverts on the fly. When you use Alaska Airlines’ Web site to search for a flight and then surf to other sites, the airline will throw up banner ads that are relevant to you, or your location. For example, if you’re in Seattle, you might get an ad for the Seattle-to-Portland fare. If you’re in Portland, you would instead see the Portland-to-Seattle fare.
Interesting eh? Well, guess what? Alaska Airlines, or anyone else for that matter, can do the same thing for video as well. Take a look at our AdTakes ad product in our ad gallery. You will see a geo-targeted overlay where we’ve customized the ad based on the user’s location. In real-time, we adjust both the store location and product price point featured based on whether you are in California or Florida – all from one video creative.
- Jayant Kadambi
Ever Evolving World of Web Syndication
It used to be that it cost millions of dollars to produce high-quality programming, and it was only possible by the privileged few. Nowadays, everyone with a mid-range Apple and an HD camcorder can become producers, directors and, if necessary actors. Of course, most made-for-the-Internet productions or webisodes are not 22 minutes with built-in story breaks at particular times suited for TV. They tend to be shorter, and the lengths vary.
The trend towards this type of programming has hit the studios as well, with Stage 9, an offshoot of ABC announcing a series of programming tailored for the web. It makes sense. It’s cheaper, far cheaper, than a TV show, and so this programming choice requires less money from advertising and sponsorship in order to break even. And the syndication choices are far greater, Stage 9 can release the show on ABC.com, a couple of other sites, give advertisers some sort of share of voice or exclusivity and then make a further release (think reruns on TV) all over the place.
What is the best form of advertising for this type of content? Sponsorships are going to be the norm for a while, but we at YuMe will be trying everything, to see what user’s respond to the most. Maybe a combination of a 15 second pre-roll, with a few contextually placed overlays, followed by a post-roll announcing the next episode? We’ll let you know.
- Jayant Kadambi
