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BizReport : Research archives : December 09, 2010

Top tips for video from Panache's Cheryl Kellond

Heading into the New Year marketers are putting the finishing touches on ad campaign plans; if you're pushing into video or hoping to get more video ROI, these tips from Panache may help. Cheryl Kellond is the COO of Panache and gives us her tips for video in 2011.

by Kristina Knight

panachelogo.pngKristina: "In online video is the ad message more important than ad creative - or does it depend on the brand/advertiser?"

Cheryl Kellond, COO, Panache: "Video, whether published online or on television, is an emotional medium. The objectives of advertisers who place advertising in online video are very similar to those who place ads on TV - to build an emotional connection between the consumer and their brand, to cut through the clutter to be top of mind for the largest relevant audience possible. Therefore, the ad creative in online video is every bit as important online as it is on TV. In fact, for online, the creative is becoming more important as both publishers and advertisers are realizing that this interactive, lean-forward, online medium is allowing them to move beyond the 30-second spot so common in TV. To this effect, new online ad formats in digital video are employing brave new features such as user choice, interaction with product information and data, integration with social media, and interactive games that increase brand awareness, emotional engagement and purchase intent from the advertiser - and ultimately boost CPMs for the publisher. The online video audience has grown big enough to justify additional creative elements being added to traditional TV spots, in order to deliver a more effective ad experience online."

Kristina: "175 million consumers are watching video according to comScore. Do you see this as a kind of tipping point, where online is becoming as important as television? Or is it still too soon for that kind of statement?"

Cheryl: "I think the most telling statistic to answer your question is the percentage of TV shows that are being watched online first. This statistic most starkly captures the fact that advertisers and publishers need to consider online video consumption as on par with television programming consumption. Ultimately, this statistic encompasses the engaged audience that advertisers need to reach no matter on which screen the viewer consumes the content. When this statistic hits double digits, both broadcasters and advertisers will need to handle online and first-run television as peers and at this point it will have truly reached a tipping point. To consumers, video is video and it will ultimately need to be treated that way across all channels by publishers and advertisers.

Beyond this point, advertisers will need to take online video seriously to reach their most critical audiences - and at its current growth rate, online will have the scale required for advertisers to invest in new video ad formats designed to take advantage of this interactive, lean-forward, online medium. Publishers will have no choice but to increase ad loads to bring online content to revenue parity with TV, thereby preventing their digital video businesses cannibalizing the revenues needed to continue creating premium content.

Kristina: "There has been a lot of talk about light ad loads versus heavy ad loads. How do brands find that place where the ad loads aren't so heavy viewers tune out but light enough that they will still watch?"

Cheryl: "With online video ad loads at their current level, media and entertainment companies are cannibalizing their video revenues, making pennies on the dollar on digital video. The bottom line is that digital video ad loads must increase to allow profitability. A recent ComScore study shows that the consumer "sweet spot" for advertising in premium online video content is more than 2 times the ad load most broadcasters are delivering now. Also, research from the recent CW validates this and shows that consumers will actually consume exactly the same ad loads online as they do on traditional TV without a significant loss of viewing time. However, ad loads aren't the primarily issue. What the online video industry should really be talking about is improving the viewing experience to engage users and asking questions such as:

• What is the sustainable viewing model where online viewing might even increase while running a TV-level ad load?
• What's the model for improving advertising effectiveness and engagement to take advantage of the new interactive, social, online medium?
• How can online help broadcasters experiment with the overall ad experience to learn how to hold advertiser engagement - and CPMs - at current level even for the 40% of consumers tuning in via DVR?

The answer has to involve fuller ad loads, but the real difference for consumers, advertisers and publishers will be ad formats. What is the right mix of innovative - but scalable - ad formats that inform, delight and make viewers take notice or action? And how quickly will consumer viewing habits force publishers and advertiser to embrace scalable innovation around ad formats to maintain ad effectiveness and sustain ad-driven revenue streams?"

Tags: Cheryl Kellond, online video, Panache, video tips, viral marketing

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