The advertising industry and online medium have entered a new relationship.
The growth in video distribution has bridged the divide between digital and broadcast media resulting in advertising companies and online services needing to renegotiate and restructure their online dynamic.
People used to spend time simply watching broadcast material but viewing has changed to interacting. It’s about sharing, clicking and debating content online. We use our search engines to find various forms of news, entertainment and customised content. Whether it’s on your cellphone, tablet or PC-online media is changing distribution and advertising models as it allows us to access video from almost anywhere.
Recording on PVR, downloading series and watching content online has allowed companies that are advertising on TV to be easily ignored. The growth of online media and video distribution has shown that to attract consumers’ advertisers cannot simply re-use traditional advertising models, rather they need to invent new ones.
Google, Yahoo, Hulu, AOL and others are currently partaking in ‘Digital Content New Fronts’, a conference which aims to connect brands and consumers by assessing the content consumers find valuable. The DCNF emphasises that advertisers need to devote more time and money to online video and mobile media.
Much like the tradition of the ‘Upfront’ in television, where networks pitch new shows to advertisers, each online company will be promoting its own programming by pitching its video advertising opportunities and video series to advertisers. The process will allow online video companies to develop their network shows and channels by capitalizing on their growing traffic as they match their usage with the price and placement of online advertising.
Like any relationship, progress depends on intimacy and undersanding. Online consumers want interactivity and customisation. So advertisers need to provide content that can be easily viewed and shared.
Local advertising agency EURO RSCG illustrates the potential of interactive advertising in their latest Peugeot 208 commercial which allows the outcome of the advert to depend on your decisions.
While I enjoyed the interactive nature of the advert, it is time-consuming and I'm unsure whether the trend will catch on with most online consumers.
Another change the DCNF emphasises is the shift from short video clips to long-form programming. Currently online videos seldom exceed seven minutes but with the new long-form programming videos will surpass ten minutes.
eMarketer has shown that adverts in long-form videos have a 88% completion rate, higher than the 76% for adverts placed in short form content. The statistics show that viewers watching longer videos are more willing to tolerate adverts.
It is clear that video advertising is progressing as an online format. How online video will transform and whether the changes advertisers decide to implement are well recieved by consumers remains to be seen. Stay tuned to Online Primetime for updates on the progress of the Digital Content New Fronts and everything broadcast.
Online video providers planning 'Upfonts' for ad sale, just like TV