NTV Predictions: Video Advertising
Among the questions we’ve asked our panel of experts was this one: Which online video ad format will become dominant in 2008?
Selections from their responses are below. We’d love to hear your take on the question or on our panelists’ predictions in the comments. For more information on the NewTeeVee 2008 outsourced predictions, see this post.
Kevin Nalty, “self-proclaimed viral video genius” (a.k.a. Nalts from YouTube):
“Google’s InVideo ad is clearly the model. It’s less intrusive, it’s targetable, and it works for marketers. Google didn’t invent overlay ads and they won’t be the only entities that provide it. But in 2008 we’ll see prerolls relegated to just the most valuable content, and surrounding banners becoming commoditized.”
Steve Woolf, Smashface Productions (co-creator of EPIC-FU):
“Overlays have a shot at being dominant. They give the advertiser and ad agency some control over the presentation of the message to the viewer, and impressions and clickthroughs are still the most measurable metrics. As long as they don’t make them too obnoxious and alienate users.
“But you know what I think will really rule the roost? Pre-rolls. Users don’t complain about pre-rolls for some reason. Content creators hate them, but users don’t bitch nearly enough to get advertisers to start thinking that they need another angle of approach if they are going to spend real money for an ad buy. As the pressure to generate revenue rises for video companies, we will see more and more pre-roll ads.”
Shashi Seth, head of monetization at YouTube (manages YouTube’s advertising products):
“I firmly believe that for any video ad format to succeed, it must be non-intrusive to users. In my opinion, that excludes pre-rolls, mid-rolls and post-rolls. I am not saying that these ad formats cannot exist — they just will not be dominant.
“The best online video ad format is [YouTube's] InVideo ad, and it will become a more popular vehicle for advertisers in the coming years. The InVideo ad is good for everyone: it allows flexibility for advertisers to build creative that is interactive and specifically targeted, and it allows users to interact with engaging content that does not disrupt the user experience. With InVideo ads, YouTube users close the overlay less than 10% of the time, as opposed to pre-roll ads, which can have abandonment rates as high as 70%. Many other companies are also moving to this format.”
Richard de Silva, general partner at Highland Capital (investor in Metacafe):
“Overlay — bottom thirds. Not pre-roll.”
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1) Whatever Google pushes – their existing relationships and dominance will continue and extend to video overlay ads.
2) Whomever can best re-purpose the 15 and 30-second TV spot best. Seriously. OK, i admit, we have something in the works in this area… :) But think about it – if TV ad dollars shift because of the Writers Strike, expect to see a slew of advertisers who want to use their campaign funds to push the ad format they have already spent millions producing.
Frank Sinton on December 27th, 2007 at 7:45 pm - Permalink
2008 Prediction: Video advertising will fail to work well.
Sure Google/YouTube ads will be dominant, but they will continue to fail to monetize video at the levels needed to make much impact for Google or content producers. Content producers will see something of a boon from the socializing of video content to be used in social media for moderate to big companies.
JoeDuck on December 27th, 2007 at 10:17 pm - Permalink
Keep an Eye on what Video Egg is doing with overlays then look at what will happen to Video advertising in 2008 .
Matt_ on December 28th, 2007 at 4:00 am - Permalink
And if the right format was still not created? more predictions for 2008 on our twitter account http://twitter.com/predictions08
predictions08 on December 28th, 2007 at 5:35 am - Permalink
Liz,
Keep an eye on what long form video as ad units. My former company is developing them for many firms.
Also there is a ton of coverage from adtech in NY.
IMO: what podtech is doing AND contextual navigation will be the way it goes… overlays and swifts are the banner of the video ad market – ineffective but the only game in town
Furrier.org on December 28th, 2007 at 9:59 am - Permalink
[...] Be The Ad Unit of Choice December 28, 2007 Posted by Furrier.org in Technology. trackback Liz Gannes at NewTeeVee takes a stab at the online video market for 2008. Great first start. In her post there is a lot of guessing. Why? Because online video [...]
Heard it Hear First - Long Form Video Ads Will Be The Ad Unit of Choice « Furrier.org on December 28th, 2007 at 10:14 am - Permalink
What is the dominant banner ad format? If we can’t answer that after 12 years, why would anyone attempt to know what the dominant video ad format would be for 2008. I won’t. But I’ll try and measure whatever an agency produces AND a publisher accepts. Ultimately the user’s decide – and that’s what metrics and analytics are for – in aggregate.
Nate Pagel on December 28th, 2007 at 5:27 pm - Permalink
I don’t understand how Mr. Seth considers InVideo ads to be non-intrusive.
Having an ad pop up and obscure the bottom third of the content is annoying and distracting, and is one of the reasons why I stopped watching television.
Thee Stranger on December 29th, 2007 at 3:29 pm - Permalink
[...] flat-fee, this can be a showstopper for the mobile ads party. NewTeeVee recently posted their “outsourced” predictions for Video Advertisement. Even if focused on Internet TV, most of the comments are also valid for Mobile Video [...]
tech-talk.biz » Blog Archive » Will 2008 be the year of Mobile Advertisement? on January 2nd, 2008 at 7:43 am - Permalink
Thanks NTV and all experts for the valuable predictions.
See below a post on Mobile Advertisement. Most of the ideas for Internet TV / online Video do apply to Mobile Video too.
http://tech-talk.biz/2008/01/02/will-2008-be-the-year-of-mobile-advertisement/
Jose Miguel Cansado on January 2nd, 2008 at 7:51 am - Permalink
The best format that is emerging as the standard for 2008 and beyond is the Blip’d Media Format. Any social video can support widgets and graphics within a transparent user-controlled overlay. Even Youtube can run from a DVD/CD. Measurements of ads and widgets etc… are instant and totally FREE.
All of these benefits are available NOW and can be easily done in seconds without modifying current video views. See it live in action: myspace.com/iamghettogates
Move your mouse over to play the video – discover more! See why 2008 will soon be the year everyone is going to get blip’d!
hunamiu on January 2nd, 2008 at 3:08 pm - Permalink
[...] NTV Predictions: Video Advertising Among the questions we’ve asked our panel of experts was this one: Which online video ad format will become dominant in 2008? [...]
NTV Predictions: Video Advertising « Adsales’s Weblog on January 5th, 2008 at 9:25 pm - Permalink
[...] many interesting blog posts from NewTeeVee, Contentinople, and Digital Media Wire to name just a few, have discussed the video advertising [...]
Transcoding Expands Video Advertising Opportunities at RipCode Blog on January 28th, 2008 at 6:02 am - Permalink
[...] der Meinung von Experten sollen sich die Overlay/Inlay-Ads bei Videoplattformen in diesem Jahr durchsetzen. Bei dieser Werbeform werden Teile des Players mit [...]
Internetvideos: Pre-Rolls, Overlays plus X | Digitaler Film on February 9th, 2008 at 6:26 am - Permalink
[...] of a strategy shift from December 2007 when the “Head of Monetisation” from YouTube said, “I firmly believe that for any video ad format to succeed, it must be non-intrusive to [...]
Show me the money - How to make money from advertising? « Velocix Blog on July 10th, 2008 at 4:41 am - Permalink
Youtube will be successfull with the in-video format in terms of the bigger brands but they still have to work out what user-generated content ads will display next to–the advertiser needs a higher comfort level here.
An affordable option is Hot Pluto’s Video Business Directory–and it’s not “less-intrusive”–it’s “non-intrusive.”
http://www.hotpluto.com
Brett Hill on October 27th, 2008 at 12:28 pm - Permalink