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Online video advertising takeaways November 15, 2007

Posted by jeremyliew in ad networks, advertising, branding, business models, video.
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I moderated a panel today at NewTeeVee Live, which was one of the best conferences that I’ve attended this year. Kudos to Om and Liz for putting together a great show.

The four panelists were all CEOs of video ad networks. Jayant Kadambi of YuMe, Tod Sacerdoti of Brightroll, Matt Sanchez of VideoEgg and Matt Wasserlauf of Broadband Enterprises did a great job of discussing some of the challenges and opportunities in the industry.

Here are some takeaways from the discussion:

    Online video is a brand building medium, bought on a CPM basis.

    Ad buys today are coming from three buckets; TV budgets (the big opportunity, but further away), online budgets and experimental budgets. Video content coming from TV and other traditional video producers is most likely to win buys from TV budgets. Native online video content still coming from experimental budgets.

    To get to a scalable online video ad business, the key barriers are (i) standardization of ad units, (ii) standardization of ad serving infrastructure and (iii) standardization of measurement/metrics.

    There is tension between highly effective preroll ads and user friendly overlay ads (with a user initiated play), but these are the two most common ad units and most likely to become a standard. In-banner video is also popular.

    Big Media companies prefer point solutions for online video so that they can sell and control their own inventory; smaller online content owners want a packaged solution that delivers all elements of the value chain (ad sales, ad targeting, ad inventory management, ad serving, ad measurement) from a single provider. There is increasing pressure to create standards in ad serving from the large media companies so that multiple sales forces can sell ads without having to implement multiple serving solutions.

    Advertisers are buying content adjacencies today as a proxy to demographic targeting, but they would prefer to buy demos directly where they can

The four panelists really engaged; it was a pleasure to listen in to their conversation. You can read the transcript of the panel here.

Comments»

1. Darren Herman - Marketing, Advertising, Media and Technology Blog » Blog Archive » links for 2007-11-15 - November 15, 2007

[…] Online video advertising takeaways « Lightspeed Venture Partners Blog Interesting takeaways from the NewTeeVee conference (quick read) (tags: Online video preroll postroll tv advertising marketing) […]

2. j.brown - November 18, 2007

I think online video advertising is a bit overhyped.

3. The Latest Media News & Researchers You Shouldn’t Lose Sight Of : Videos and web TV - November 24, 2007

[…] Online video advertising takeaways. The four panelists were all CEOs of video ad networks. Jayant Kadambi of YuMe, Tod Sacerdoti of Brightroll, Matt Sanchez of VideoEgg and Matt Wasserlauf of Broadband Enterprises did a great job of discussing some of the challenges and opportunities in the industry. […]

4. MD - November 26, 2007

Interesting dialogue – considering only one of these companies has been able to generate north of $5M in revenue per year especially – hard to believe that the plain and simple trench-warfare needed to consistently land $100K+ ad campaigns didn’t arise as one of the biggest challenges, i.e. building an effective sales force that can fulfill on major brand campaigns…and most shockingly missing…the brands/agencies continuing issues around content and programming that is appropriate for their campaigns – or the observation that major brand campaigns are simply not going near UGC in any consistent way.

5. VentureBeat » Predictions for the consumer internet in 2008 - December 3, 2007

[…] Advertising in social media, online video and games start to become […]

6. Nate Pagel - October 25, 2008

I’d love to see an update – but it’s pretty much all still true. Just read this post 10/25/08.


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