Even though some consumers may be turning to the Internet more and more to watch television, TV is not going away anytime soon. For me, I need it to fall asleep ;-) Likewise, local television ad spending is not going away anytime soon either. Advertisers are familiar with the medium, have existing creative assets, and like the brand building power that it provides.
However, television advertising lacks interactivity and measurability and this is where extension into online video advertising naturally comes in to play. I think the opportunity that exists to build this bridge between local TV advertising and Internet advertising is an obvious one, and so do our friends at Mixpo.
Mixpo today has announced a new offering geared towards agencies in an attempt to further extend local TV ad campaigns onto the web. I say "further" because this sort of convergence is not anything new for Mixpo. They have been working for some time now with media companies like NBC Local Media, Comcast and Tribune to bring local, video display advertising capabilities to advertisers.
Essentially they've created a way for television advertisers get more bang for their buck by taking their commercials, which they've already paid for and produced, and put them online in an interactive format. Anupam Gupta, Mixpo's CEO and President, had the following to say,
"There is a tremendous opportunity for TV advertisers to extend their local spot and cable strategies, and creative to the Web. The hurdle has been the complexity and cost of executing video and rich media advertising at the local level. Working with our media company partners and their advertisers over the past year has revealed the opportunity to answer those needs, which is why we are expanding our local online video advertising capabilities to agencies and in-house marketers. Our hope through our offerings for both sides of the local TV ecosystem is to facilitate a faster growth of the emerging local TV to the Web process.”
Why local TV, and Why Agencies?
While online video advertising spending is on the rise, it pales in comparison to local television advertising--$505 Million versus $24.7 Billion—it's not even close… for now. That being said, forecasts from the BIA Kelsey Group call for local ad spending to contract through 2013. Between 2008 and 2013, local ad spending will decline at a 1.4 percent compound annual rate to $144.4 billion. In contrast, the share of interactive ad spending will more than double from 9 percent in 2008 to 22.2 percent in 2013.
So, while local TV advertising may continue to decline, the local interactive segment will only grow. It begins to make perfect sense why a company like Mixpo might be looking into bridging the gap between the two worlds.
According to a survey released by Brightroll earlier this year, 71% of advertising agencies polled view online video advertising as a complementary medium to television. Here too you can see why Mixpo might look to agencies and in-house marketers to help further this evolution.
The Xspot Video Display Ad Unit
Mixpo now calls their interactive online video display ads the "Xspot." What is an "Xspot?" Well, essentially it is Mixpo's 300X250 medium rectangle video display ad unit which integrates a combination of video, interactivity and localization.
Interactivity is a crucial piece of the puzzle, especially with regard to measureability and conversion. In addition to interactivity, which has long been a unique part of the player, Mixpo has now added geo-targeted to the mix.
Imagine the impact of an interactive, geo-targeted video display ad for a regional or national chain with multiple locations. Just as an example, consider a national restaurant chain. With essentially one video, they could include interactive elements (overlays, links, forms, directions, etc...) that offer customers in a given local market a coupon for $10 off, directions to the nearest location, links to reservations, etc....
Some of you may be asking, is this "video advertising?" Well, while it is not in-stream video advertising (pre-roll, post-roll, etc...), it is video and it is advertising. Moreover, it is effective. In fact, rich media ad formats with video outperform other types of ads by an overwhelming margin.
By fusing together the branding aspects of television advertising with the interactivity of rich media video display ads, you end up with an engaging and effective, locally targeted online video ad unit.
Kudos Mixpo... I always knew you'd end up seeing it like I do ;-)