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July 21, 2014

The Boom in Online Video Advertising : 3 Reasons why brands need to rethink





Is there anybody on the planet who actually enjoys pre-roll video advertising? Research has shown that 94% of people skip pre-roll ads. Is there anybody on the planet who actually enjoys pre-roll video advertising? Research has shown that 94% of people skip pre-roll ads)

Online video advertising are one one of the fastest-growing ad mediums across any media , far outpacing growth in spending on television and other digital formats. Correspondingly, online video ad viewership exploded in 2013, reaching over 35 billion views in the U.S. in December


The increasing spends a on" Video advertising " signals  some important market changes both across the demand and supply side ( Advertisers and Publishers )

1)Web Monetization  Publishers would see a definite shift   on their earnings from their site,  from online advertisements as,   more advertisers would move from CPM/CPC model to CPM ( Cost per view ) Web  monetization will undergo a rapid shake up   ( for either  good or worse.) However  I have quite a few reasons to believe that it would be the later 

2)Surplus of Low  Quality Inventory :With the change in the revenue model,as more publishers rush to create video centric content,the CTRs would drop, as there will be a surplus  of " low quality inventory.. as   any new market  will see a huge  rush of players, which will add to the quantity but not quality


3)Measuribility of   Video advertising : Almost all forms  of  online Video advertising currently  is still interruption based 

1) It  forces the usersto watch atleast 30 seconds of  ads  before you  watch the video on Youtube
2) All the 3 formats , pre roll, post roll,  and instream video ads are interruption based. Unless the way advertising across Video are steamrolled, remember its the brands that would suffer more 
3) How to you define a "metric " for engagement.? time spent for watching the video for 2 mins, 20 seconds, or closing the window after watching the ad