The other day I was asked what I thought the most influential emerging technology was for advertisers and marketers.
That was a week ago…I think I finally have an answer
Even though online video isn’t a new technology I think it’s one that has advertisers have just recently begun to tap into more. Video advertising will be at the forefront of the online sector this year. This advertising opportunity will prove to be beneficial to media buyers because it contains less clutter, there’s better consumer targeting technology, and a lower cost of production when compared to television. Online video advertising will also experience massive growth opportunities this year as the shift from offline to online activities continues as well as the explosive growth in mobile and social platforms and formats.
I can see more advertisers utilizing online video for the following reasons (in a nut shell)
- mobile video will take off
- branded entertainment and interactive advertising will continue to expand
- online video can be shared across social media platforms creating even more buzz and video sharing, there’s the potential to target maximum reach on an enormous scale online
- video search will improve, new online video destinations (other than YouTube) will become accessible to advertisers
- media buyers may consider moving big budgets online if the consumer potential is greater (ex: to reach young consumers)
- YouTube will continue to seek out premium brands and advertisers
- the web will begin to challenge traditional TV and I can say that because I basically watch all my shows online now for lack of time to watch TV
- real time biding
I’d like to elaborate a bit on what real time bidding is real quick, because I recently just found out myself…
With the recent advancements in broadband and Flash video capabilities, bringing real time video advertising to consumers is more important now then it’s ever been. It’s all about one simple concept…getting the right ad, in front of the right person, at the right time. This is no longer a game of luck: Will that shoe fanatic be on the web when my shoe store banner ad is running along top of yahoo shopper’s homepage. But rather, it’s a game of strategy and defining a target (regional or internet based), then finding that target (IP data parameters), and placing the ad in front of them. The targeting parameters create impressions and each ad impression is sold to the highest bidder based on who the individual ad is being served to. An ad buyer, creates a platform or an ad audience (travel, fashion etc), then they can value each opportunity in that audience to buy an impression, in real time. And there you go ladies and gentleman…Local Advertising.
By defining a targeted audience you get the results you want by bidding your ad in real time. Having that targeted audience allows online video advertisers to get better results by bidding their ad, a better ROI, and overall boots success of the ad.
And there we have it. Online Video Advertising…the online advertising of 2011