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NTV Predictions: Video Advertising

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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.

nalts.jpgKevin 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.”

woolf.jpgSteve 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.”

seth.jpgShashi 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.”

desilva.gifRichard de Silva, general partner at Highland Capital (investor in Metacafe):

“Overlay — bottom thirds. Not pre-roll.”

16 Responses to “NTV Predictions: Video Advertising”

  1. 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.”

  2. 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:

    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!

  3. Thee Stranger

    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.

  4. 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.

  5. 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

  6. 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.

  7. 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.