The Video Value Chain and Video Advertising

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I read an interesting article by Steve Smith over at MediaPost talking about online video advertising and marketing and he had some fancy charts in it from the OMMA Ad Nets show as well as some interesting information. First up is a chart from GCA Savvian VP Josh Wepman that shows the video 'supply chain' so to speak. Alright, so it's actually the video value chain:

When talking about video advertising, he said that it was 5-6 times more effective and that is because it is far more engaging. That seems like a pretty strong claim which some might disagree with. Some would also say that display ads aren't effective at all and so 5-6 times that would be zero still. Then again, if that were the case, I would think that zero ROI would have killed all display ads long ago, so they must be effective to some degree.

He also spoke about display advertising and the difference between it and video ...check out this chart and you can see why many of us are battered and bruised when trying to navigate the muddy waters of online advertising.

No wonder we all chose to go into the online video advertising business, it's just simpler to navigate.

In talking about the future of online video advertising he said that publishers could start seeing far lower overall CPMs because the advertisers can find their target demo just about everywhere, and for less. How to solve that? Wepman said it's simple, keep your content on your own sites.

According to Steve Smith, "Wepman recommended that publishers need to leverage their assets more effectively in terms of embracing targeting on their own sites, demonstrating the value of context and selling data directly to advertisers themselves."

There are some who believe that Wepman's statements are all bunk (see the one comment on the MediaPost article) and that the audience actively seeks to avoid advertising. I don't know if that's exactly true, I more or less just passively block it out, unless it's compelling or funny like the recent string of Best Buy Playstation 3 ads, the Old Spice Guy or the Most Interesting Man in the World because he can speak French...in Russian and can cure narolepsy just by walking into a room and he's just like me...or so I'm told.

The Most Interesting Man in the World

Price Check on Aisle BOOM

You Can't believe everything you read on that Internet...that's how World War I was started

Haha! See, you all just watched some video ads... actively seeking to avoid advertising...pfft. These ads and the Old Spice Guy show that there's no reason that ads can't be cool. Hell, I might start drinking Dos Equis when I visit the States just because of those ads. Then again, I will probably never buy a Sony Bravia...unless I strike it rich with my new video ads on GDN.

What do you think? ▼

About the Author - Christophor Rick
Christophor Rick is a freelance writer specializing in technology, new media and consumer electronics. He is the CEO at Gamers Daily News (http://www.gamersdailynews.com) and his past work has included press releases, copy-writing, travel writing and journalism. - View All Posts By Christophor Rick