How To Advertise On Video: Try Avoiding Video

When CNET Networks added video-sharing capabilities to its Webshots property last week, executives were faced with a dilemma: How to make money on short clips of an unpredictable nature.Rather than placing commercials before the clips, CNET decided to follow the lead of some fledgling Web video networks by relying on a more low-key, non-video approach: It is including simple Intel branding on the video player.Less-intrusive, non-streaming ads, ranging from player branding and static images after a clip to text links, are thought to hold promise in matching advertisers with user-generated content. The fastest growing segment of video online, it has so far proven resistant to advertising.Revver, a Los Angeles firm, places cost-per-click static image ads after user-generated clips. Campaigns for brands like Diet Coke and GameTap boast click-through rates of about 3.5 percent, according to the company, well above the typical banner campaigns, which garner clicks less than 1 percent of the time. "We're at the earliest stages," said Steven Starr, Revver's CEO. "How the advertiser benefits from these different experiments is not completely proven."San Francisco-based VideoEgg, which has a network of user-generated content created on social networking sites like Bebo, Hi5 and Tagged, is trying a variety of ad placements, including text invitations to see an ad message or play an advergame placed at the end of videos, and a "graphical ticker" callout that appears on the bottom of the screen during the video. Early advertisers include Dell, Pepsi and 20th Century Fox.In all instances, the ads seek to bridge the gap between not interrupting a viewer and giving brands the opportunity to connect, said Troy Young, VideoEgg CMO and a former executive at Omnicom digital shop Organic. "The invitations are really difficult to miss, unlike a text ad on the periphery of the page," he said. "These hit you between the eyes."While CNET will show in-stream spots in "curated" collections, like the best snowboarding clips on Webshots, it will rely on the simple logos for most user-created clips. "That gets brand association with that kind of content without being obtrusive," explained Martin Green, CNET's svp of community. Some believe these experiments will likely prove futile. According to Nate Elliott, an analyst with Jupiter Research, these low-key placements are unlikely to become popular with advertisers anytime soon. Instead, he believes user-generated video sites should simply tweak the existing streaming ad model to include shorter, more targeted spots. "We have a proven ad format that consumers will accept and advertisers want to buy," he said.Pricing such user-initiated experiences remains tricky. Jeff Marshall, svp at Publicis Groupe's Starcom MediaVest Group, said agencies have enough trouble equating Web video views with TV plans. The introduction of alternative models, dependent on user activation, would further muddy the waters. "I don't see it being the predominant vehicle to deliver messages for brand marketers," he said.Young allowed that much remains to be worked out from a pricing and measurement standpoint. VideoEgg is pricing its ads based on a $40 effective CPM—a similar rate for in-stream video spots. It charges a base $4 for displaying ad invitations and an extra 4 cents per engagement. "The demand on advertisers and agencies is getting on people's playlists," he said. "When they do that, people will watch."

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How To Advertise On Video: Try Avoiding Video

Brian Morrissey

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