When the multinational operator France Telecom/Orange announced that it was taking an $80-million, 49-percent stake in the online video site Dailymotion earlier this year, it was obvious there were a lot of ways that relationship could be used on both sides. The question was whether a big, incumbent telco could ever follow through on any of them. Well, today, we are getting one glimpse of how that tie-up might develop. Orange has announced a deal with the video site to serve local ads alongside both premium and user-generated videos in various markets.
To be clear, a spokesperson for Orange says that its deal with Dailymotion is not directly because of its investment in the company: it benchmarked Orange in each market before signing the deal, it says.
The ad partnership, which Orange says is exclusive to it, will use the Orange Advertising Network to serve local ads in the markets of France (mobile-only), all of Latin America except Brazil (web-only), Poland (web and mobile), Spain (web and mobile), and the UK (web and mobile). These are live already, and apps for the markets, starting with an iOS app, will be coming out in the next few weeks, says a spokesperson from Orange.
Further markets will be announced on a country-by-country basis, she adds. The different platforms, she ads, are due to the fact that Dailymotion already operates its own advertising services in certain cases. The service is also being marketed in the U.S., although that market is not exclusive to Orange.
Samsung has been confirmed as one of the launch brands.
Worldwide, Dailymotion says it has around 1.2 billion views of its videos per month, from 114 million unique visitors, with 20,000 new pieces of content added every day to an inventory that is already over 20 million videos. The deal will give the video site the ability to consolidate at least some of their markets under one advertising supplier.
One curious aspect of the partnership is how it will integrate user-generated content into the online advertising game. Advertisers will have the ability to create their own bespoke ad campaigns — by reaching out to the “Motionmakers,” the videomaking community that Dailymotion has amassed, and getting them to create content based on those advertisers’ briefs.
While brands have run campaigns in the past as contests, seeking the best user-generated video content to promote its goods, with the hope of it going viral — this is perhaps the first time I’ve seen this model made into an actual, formalized service. Other formats that will be sold include more traditional placements like banners and home-page takeovers.
While Dailymotion, like its bigger rival YouTube (NSDQ: GOOG), thrives on user-generated content to stock its inventory, it has also (like YouTube) been building up a catalogue of premium content as well in different local markets where it already has a strong audience. Some of its partners in the geographies covered by this deal include ITN in the UK, TV Azteca in Latin America, and TV3 in Spain, it says.
Financial terms of the partnership were not disclosed.