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BizReport : Advertising archives : September 26, 2011

4 Questions with Gotham Direct's Shattuck Groome

As online video seeps more deeply into the general consciousness, marketers are looking for more ways to utilize video ad options. According to one expert, the time is now for brands to be experimenting with and developing a video presence. Here are his top tips.

by Kristina Knight

Kristina: What trends are you seeing in video currently?

Shattuck Groome, Partner, Gotham Direct: We anticipate indefinite growth for the video market. However, there's a video marketplace pricing schism that creates a dual pricing model in which premium content (i.e., original TV programming) commands high prices and mid- long tail inventory(original digital content, including user generated content) prices are depressed.

Kristina: Over the next 2-5 years, how important is video going to become for online brands?

Shattuck: Video is and will remain extremely important for brands, and once offline and online video become a single category - video buying - the market pricing structure will stabilize. Right now, production costs are a challenge for many companies in the digital space, so it may take a few years to reach that equilibrium.

Kristina: ComScore and Nielsen have reported that video consumption, especially via mobile, is climbing...what does that mean for the space?

Shattuck: There are three distinct venues for video consumption: TV, laptop and mobile device screens. As companies try to figure out how to place advertising content, what many assume - incorrectly - is that laptops and mobile devices like iPads function as a replacement for TV. This is a primary cause of the pricing imbalance mentioned above. The good news is that as we begin to understand more about video works online, and as the market matures, this imbalance should resolve itself.

Kristina: What seems to be holding brands back from in-video ads? And is holding back a mistake, in your opinion?

Shattuck: The absence of standardized video ad units and formats creates a fragmentation in creative strategies. Instead of configuring creative to handle the range of formats, the market gravitates to in-stream, and varied ad unit formats create digital video space fragmentation. The result is that many agencies and brands concentrate their advertising spend on premium content. It's a language everyone understands because it exists in both the online and offline worlds. But it creates the pricing schism that is preventing the industry from reaching full maturity and taking full advantage of the explosive growth in mobile content consumption.

Tags: Gotham Direct, online video, video ads, video trends

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