Ugh. I’m sorry I went to the advertising panel of this conference! We “users” could be awash in advertising before, after, and during our online videos if the presenters at the Dealmaker Media Under the Radar Conference have anything to say. Advertising is coming to online video almost before online video comes to the masses. And companies are wildly trying to figure out 1)how to serve it up; 2)how to get consumers to watch it; 3)how to help brand managers and marketers reach new generations of consumers.
Both Adap.TV and Scanscout have their eye on video as a means of delivering advertising to viewers. However, they will have problems with consumers avoiding their advertising, as the technology to do this already exists, much as Tivo does on TV.
XLNTads, yet another company, is a platform for creating ads to brand specifications. For a large advertiser, this is a huge boon:
A network of 500 videographers will join for both recognition and money. Brand sponsors can post a creative brief, and then look at different kinds of solutions for their brand challenges. The videographers access the brands creative assets, create solutions, and the advertiser gets to look at them and choose. The ads are posted for the ad agencies or brand marketers to see. Every submission that a brand advertiser receives from XLNT ads belongs to the brand. The winning submission receives $20,000 for his or her ad. This is a lot less than the $385,000 an agency or a brand marketer pay for a 30-second spot.
The brand advertiser will pay $25k a month to belong. The company will be supported by the brand owners. This is quite a beautiful dream–a congruence of user-generated content and savings for the brand marketers.
But the videographers will suffer, won’t they? They will get paid less for their very creative work than the prevailing norms of agencies. The brand owner will look at 500 ideas, file 499 away in their minds without paying, and pay outlet-store rates for the winner.
Let’s see: I’m a videographer. If the brand marketers still control the messaging, why would you want to produce an ad Why would you want to be in the position of permanently participaing in a design competition? This model puts the content generator into a position of permanent submissiveness.
Same old problem. Owner of the IP suffers.
Last company in this advertising model: YuMe networks. It’s pronounced You-Me, and is Japanese for “monetizing the dream>’ Rafe Needleman, who is moderating this panel, tells them they need another name if no one knows how to pronounce theirs :-)
But they have the most promising long term business model in the room. They are dynamically producing ads for any kind of video and inserting ads into downloaded movies, events, etc. They have attacked the areas of live events, BitTorrent, and anything else users are watching video with. They are a connecting point between content and advertisers in p2p, mobile, and online. They’re serving ads on multiple platforms while waiting to see what will happen next.
I think I will go to a panel on music, next. It won’t be as distasteful to me as these new methods of cluttering our minds with MORE advertising. Seems like every time a content provider finds a new medium, and advertiser wants to “monetize” it for him.
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