Inside Online Video Advertising

Online-ad-v-tv While online advertising fell overall in 2009, ad spend on online videos grew 41%.

And, with good reason.  Nielsen Research has recently released a report based on 14,000 surveys to measure the impact of video advertising online vs. video advertising on television. 

The patterns they uncovered were consistent:  video ads run during online full-episode TV programs yield deeper brand impact than corresponding on-air TV ads, with the difference most pronounced among younger viewers age 13-34.

"What accounts for this variation in impact between online video and traditional TV? Data shows that web video viewers are more engaged and attentive to the programs they are watching, which is likely a function of the viewing environment and the oft-required active mouse-clicking to initiate and continue content. Online video is also still a relative novelty compared to traditional forms of media.  Further, and most significantly, reduced ad clutter and the inability to easily skip ads are considerable recall-enhancing factors."

Another conclusion - "online video ads help to reinforce and strengthen the impact of a traditional TV campaign."

More data and analysis here.

Nielsen/Facebook Report: The Value of Social Media Ad Impressions

Ads-w-advocacy Here's an interesting summary of a study conducted jointly by Nielsen and Facebook to determine the effectiveness of different strategies in FB ads.

"Study after study has shown that consumers trust their friends and peers more than anyone else when it comes to making a purchase decision. It’s critical that we understand advertising not just in terms of “paid” media, but also in terms of how “earned” media (advertising that is passed along or shared among to friends and beyond) and social advocacy contribute to campaigns. To that end, we took a closer look at 14 Facebook ad campaigns that incorporated the “Become A Fan” engagement unit and sliced the effectiveness results three different ways, by each of the types of ads available on Facebook: 1) Lift from a standard “Homepage Ad”; 2) Lift from an ad that featured social context or “Homepage ads with Social Context”; and 3) Lift from “Organic Ads,” newsfeed stories that are sent to friends of users who engage with advertising on a brand."

If you're interested in keeping abreast of the latest in online advertising and its effectiveness, you should be intrigued by the results.  I wonder if there are any negative implications for a brand if users are offended by unwanted and intrusive ads on social media platforms such as Facebook?

Read the entire summary here.

Local Web Advertising

Forecast: Spending will triple in 2008, to $1.3B

From Media Life Magazine - "Local online advertising will once again be hot in 2008; that hasn’t changed. What is changing, however, is how this advertising is delivered, compared to past years when banners and pop-ups dominated, and who is selling it. "

Some other points from the article:

  • A shift out of banners ads and into search, email, video and promotions
  • Local online video ads will triple in 2008
  • Local media companies (newspapers, radio, TV, etc.) must develop internet-only sales staffs to compete

If you own a local business or lead another local organization you need to be tuned in to the huge impact the Internet is having on the local advertising market.  Perhaps nowhere is the cultural shift creating a bigger impact than in advertising and media.

A good time to get started on a local Internet-based campaign would be now.

But first get a plan.  (See previous post)

FOOA Day Two

Fooabadge The conference has been excellent. 

I'm a bit weary of writing about it, so let me summarize (in my own words like Mrs. Johnson told me in sophomore English).

  • The rate of growth in online advertising is steep which is creating a lot of opportunities for those who figure it out.
  • According to a survey by Marketing Sherpa, the combined spend for paid search and online ads for a recent 12-month period is estimated at 12.2 billion dollars.  This is substantial but to give it perspective consider that the spend for direct (postal) mail alone was $58.7 billion, newspapers $30 billion, and even local radio rang in at $15.5 billion.  But online is growing the fastest and is in fact eating into ad spends for many other mediums including television.
  • According to Jay Adelson of Digg and Revision 3 fame, forget trying to build Internet video around the Flash player.  You're going to need something portable and something that will work well with that big flat screen hanging on your living room wall.
  • Carla Hendra of Ogilvy had a lot of great points including:

Continue reading "FOOA Day Two" »

Future of Online Advertising - Day One, Part Two

Lunch was "butlered" no less.

This FOOA conference really has a great line up of speakers.  There's almost too much to digest, but I've been busy making mind maps for each of the speakers to help me remember the salient points.  And my MacBook Pro has been performing flawlessly.

Chas Edwards of Federated Media kicked off the afternoon focused on the emergence of conversational media.  For businesses, the key is finding out what your customers are discussing and then try to enter into that conversation.  He noted that Business Week says its blogs are now more influential than its magazine.

Ted Murphy of PayPerPost talked about connecting advertisers to bloggers.  I'm not too big on the idea of bloggers selling ads and I think the number of organizations who can benefit from blog advertising are limited.  But, PayPerPost is a good resource for those interested.

Henry Copeland, founder of BlogAds, was up next.  Blogs could be locations where your customers are carrying on those conversations. 

Continue reading "Future of Online Advertising - Day One, Part Two" »

Future of Online Advertising

Cimg2337 I’m in New York today and tomorrow attending the Future of Online Advertising (FOOA) conference at Gotham Hall.

Online ad spend is still soaring which is creating many opportunities for marketers, agencies, and organizations across the spectrum. If they are plugged in.

Greg Stuart, co-author of What Sticks, led off this morning with a call for marketers to accept the burden of proving that advertising campaigns are actually working. A big key is having universal agreement on the goals of the campaign by all those involved – client, CMO, agency, media planner, etc. It seems rather intuitive, but it is remarkable how little this happens.

How are you going to measure success? Can everyone involved in the campaign give the same answer?

Ron Bellanger, VP of Agency Development for Yahoo!, was next up. A key example he gave was the Kelloggs Special K online campaign at Yahoo which has been measurably successful. You can check it out by gong to Yahoo and searching on “Special K” or just click here.

Bill Wise, President of Remix Media, the media arm of Right Media, talked about the changes in the way media is being purchased. Right Media is providing an exchange model with most transactions being automated rather than negotiated by two humans. With Google entering the radio ad biz, it’s likely that media placement is going to change substantially over the next few years with transactions being handled more like an eBay auction than a horsetrade.

Kim Malone, Director of Adsense online sales and operations from Google spoke about adapting online advertising models. The movement now is from selling ads on a CPM (cost per impression) or a CPC (cost per click) basis to CPA (cost per action). In this scenario advertisers will pay a higher rate, but only for leads that result in an actual transaction.

Then Brent Hill from Feedburner took the stage. Brent talked about the rapidly emerging world of ad insertion into RSS feeds. A few years ago RSS distribution was primarily the realm of bloggers. Now commercial media companies are distributing much of their content by RSS and even more recently, retailers are using RSS to disseminate information and drive sales.

All of this before lunch. I’ve got a bit more than sushi to digest today.

Mobile Search - The Next Big Thing?

From Advertising Age (Danny Sullivan) -

"It is clear that 2007 will be the year that mobile-search-query traffic grows substantially." That's what Google CEO Eric Schmidt told analysts during his company's earnings call in January. Schmidt hopes his prediction comes true, because mobile search could mean new revenue for the search engines. But are we ever seriously going to search while on the move?

We've certainly been told long enough that mobile search is the next big thing. Heck, Google rolled out its first mobile-search service back in 2000. Seven years later, it's finally going to happen? That long-promised reservoir of search queries will be tapped at last?

Complete article